MS Risk Blog

Cyber-Security Concerns for the Shipping Industry

For several years, security experts have warned that outdated technological systems could lead to increased risks to shipping vessels. In recent months, the warnings have grown louder. Most computer based shipping technologies, developed in the 1990s, were initially designed as isolated systems. Over time, the industry has moved increasingly online. The change has opened the industry to more threats from outside actors. As technology and users become more sophisticated, the shipping industry has struggled to keep up to speed with the latest changes, leaving older systems vulnerable to targeting.

Two key risks are the hacking or spoofing of marine traffic. Hacking refers to the unauthorized access to data in a system. A hacker could gain entry into the internal systems of a company and access private information, such as cargo documents, or the personal details of crew members aboard a vessel. A hacker could also install malware into the system, allowing them access to sensitive material such as e-mail transmissions. In the past year, hackers have changed the banking information on email invoices going to shipping companies, redirecting millions of dollars before the issue was identified. In June, the NotPetya ransomware-attack targeted several large businesses, including shipping giant Maersk. The virus wormed through the company’s global network, forcing a stoppage at 76 port terminals globally, and costing the company nearly $300 million.

Spoofing, on the other hand, is a process of falsifying the origin or location of something in order to mislead a user. In terms of the shipping industry, it can be used to alter the coordinates of a vessel, or make the vessel simply disappear from tracking systems. Spoofing attempts are often spotted quickly, however sophisticated actors continue to construct ways to outsmart the systems, causing spoofing to remain a point of concern.

Aboard a vessel, security issues can be amplified. For example, the AIS system uses satellites and marine radar to pinpoint the location of a vessel. This information, often publicly available, can be used to track the location of vessels around the globe, and can be used by pirates as a sort of “shopping list”. Using spoofing, a malevolent actor can theoretically alter the location of a vessel, causing a ship to redirect its course into unknown waters. With hacking, they can access a cargo list, obtain the information about the content of specific crates, and if they successfully board a vessel, they target only the crates with goods they find valuable.

While there are numerous entry points for a hacker to target, aboard a vessel, perhaps the weakest point is maritime satellite communication (satcom) system. Satcom boxes are nearly always connected to the internet, and often do not have updated technology. They are often poorly secured, and can easily allow access to “protected” data and entry into a company’s larger systems.

Governments and corporations have long struggled to keep up with the changes in technology. Because of the rapid rate of sophistication, legacy systems often do not have the features or capacity to protect shipping companies from such attacks. Awareness is growing as cyber-security becomes a more prominent global concern. Experts have called for changes in the industry, including secure firmware, password complexity, penetration testing, and other preventative measures to ensure that vessels, cargo, and crew remain safe.

The International Chamber of Shipping has recently launched guidelines designed to help ship owners protect themselves from hackers. More information can be found here: http://www.ics-shipping.org/docs/default-source/resources/safety-security-and-operations/guidelines-on-cyber-security-onboard-ships.pdf?sfvrsn=16

Kenya Sets New Presidential Election Date

Last month, Kenya’s election board announced that the country’s presidential re-run has been rescheduled for 26 October, after initially stating that it would be held on 17 October.

While the election board had initially disclosed that the re-run would take place on 17 October, a French firm whose technology is being used for the polls announced earlier this month that it would not be ready in time for that date.

The announcement came a day after a detailed Supreme Court judgement laid out the reasons why the court had nullified last month’s election.

Japan Sets Election Date

Japan has set a snap election date, announcing that the polls will be held on 22 October, as Prime Minister Shinzo Abe seeks to gain on momentum of voter support standing in the wake of rising tensions with North Korea. However a fledgling party, led by popular Tokyo governor Yuriko Koike, gained momentum late last month, as the biggest opposition Democratic Party stated that it would step aside to let its candidate run under her conservative, reformist banner.

After the Cabinet formally set the date of the election, Prime Minister Abe told reporters, “I decided to call this election because we must overcome the national crisis of the threat from North Korea and an ageing population by obtaining a mandate for the people.” However some opposition lawmakers boycotted the dissolution session, in protest against the prime minister’s election decision, which could bring about a political vacuum at a time of high tensions with North Korea over its missile and nuclear arms programmes.

Prime Minister Abe, a conservative who returned to power in 2012, is hoping that a recent boost in voter support will help his Liberal Democratic Party – led (LDP) coalition maintain a simple majority. It currently holds a two-thirds “super” a majority. However Koike’s new Party of Hope, which was only formally launched on Wednesday 27 September, has upended the outlook for the lection after the former LDP member announced that she would lead it herself. Speaking at news conference, Koike disclosed, “I’m someone who is always s ready to take action.” Koike further stated that she would not run for a seat herself, although speculation persists that she will. He name has often been floated to be Japan’s first female prime minister.

Democratic Party executives have disclosed that they would not run candidates of their own and would let members run under the Party of Hope banner. The party has struggled to overcome rock-bottom ratings, defections and an image that was tainted by its rocky stint in power from 2009 until 2012.

A survey by the Mainichi newspaper showed that 18 percent of voters plan to vote for Koike’s party, compared to 29 percent for the prime minister’s ruling LDP. Meanwhile an Asahi newspaper poll showed 13 percent planned to vote for her party, versus 32 percent for the LDP. Both surveys asked voters their preference for proportional representation districts where ballots are cast for parties, rather than candidates.

In recent months, the prime minister’s personal ratings have risen to about 50 percent from about 30 percent in July, partly on the back of his leadership during the current North Korea crisis. However opposition parties say that he called the election to escape questioning in parliament about suspected cronyism scandals that had cut into his support.

South Korea Warns More Provocative Acts by North Korea in mid-October

South Korea last month indicated that it expects more provocative acts by North Korea this month, noting that they are likely to coincide with the anniversary of the founding of the North Korean communist party and China’s all-important Communist Party Congress.

During a meeting with President Moon Jae-in late last month, national security adviser Chung Eui-yong disclosed that he expected Pyongyang to act around October 10 and 18, however he provided no further details. Park Wan-ju, a lawmaker and head spokesman of the ruling Democratic Party, disclosed that the South Korean security adviser’s report also pointed to the risk that a military conflict could be sparked by “accidental incidents.” He added that “the president said the United States speaks of military and diplomatic options, but South Korea can’t go through war again.” He also sated that President Moon told the meeting that Washington and Seoul agreed that pressure needed to be applied to North Korea, with the door to talks still open. Asked if China had a plan to respond to an emergency in North Korea, such as securing nuclear and missile sites, Chinese defense ministry spokesman Wu Qian disclosed, “military means cannot become an option,” as he urged talks to resolve the issue. He added, “the Chinese military will make all necessary preparations to protect the country’s sovereignty and security and regional peace and stability,” without elaborating.

Meanwhile in a separate speech late last month, South Korean president Moon stated that cooperation with the international community to curb the North’s nuclear ambitions was at its highest ever. He further called for the strengthening of South Korea-US defences to rein in the North. South Korean lawmakers have also disclosed that national security adviser Chung had told them that the US and South Korea had agreed on the rotational deployment of US strategic assets to South Korea, possibly as soon as year-end. The nature of the assets however was not specified. The lawmakers further disclosed that President Moon added that it was inappropriate to discuss the deployment of nuclear weapons in South Korea. Moon stated that he had opposed the deployment of US Terminal High Altitude Area Defense (THAAD) system in South Korea, but rapid improvement in North Korea’s missile capabilities prompted the decision. China opposes the deployment of THAAD because it believes that its powerful radar could be used to look inside its territory. South Korea and the US have stated that it is only to curb North Korea’s missile threats.

China has vowed to uphold UN sanctions against North Korea, besides seeking to get stalled talks restarted with Pyongyang. Late last month, China’s commerce ministry disclosed that North Korean firms or joint ventures in China would be close within 120 days of the latest United Nations Security Council sanctions, which were passed on 12 September. The ministry further disclosed in a statement on its website that overseas, Chinese joint ventures with North Korean entities or individuals will also be closed. The statement however did not provide a timeframe. The ministry had issued similar rules after a previous set of UN sanctions in August.   Expulsion of North Korean diplomats has been amongst the measures that countries have taken against the reclusive state since its latest nuclear test. Malaysia has banned citizens from travelling to North Korea, citing the escalating tension on the Korean peninsula.

In recent weeks, tension on the Korean peninsula has risen as North Korea’s leader Kim Jong Un and US President Donald Trump exchanged war-like threats and insults over the North’s nuclear and missile development programme. The North has accused President Trump of declaring war after the US leader warned that Kim’s regime would not last if he persisted in threatening the United States and its allies, having earlier warned North Korea would be totally destroyed in such an event.   Pyongyang conducted its sixth and largest nuclear test on 3 September and has launched dozens of missiles this year as it accelerates a programme aimed at eventually targeting the United States with a nuclear-tipped missile. The United States and South Korea are technically still at war with North Korea as the 1950 – 1953 Korean conflict ended with a truce and not a peace treaty.

France’s President Seeking Joint Defense Force

The French president this month called for a joint European Union (EU) defense force as part of his vision for the future of the bloc.

Setting out a series of reforms for the EU, French President Emmanuel Macron has proposed greater cooperation on security and the fight against terrorism. In a major speech at the Sorbonne University in Paris, President Macron stated that he wanted the EU to boost its common defense systems and have “autonomous capacity for action” through a joint military force. He further called for a shared defense budget and common police, and stated that a European training academy should also be created.

In his other key proposals, President Macron stated that the EU should:

• Strengthen borders and protect the “sovereignty” of member states against uncontrolled migrant flows – speeding up asylum applications and helping countries where immigrants come from to stabilise their economies;
• Set up a single, EU-wide tax on financial transactions;
• Forge a common policy on sustainable development by harmonising subsidies for green technology and introducing a bloc-wide carbon tax;
• Reform the Common Agricultural Policy, by making it more flexible and less bureaucratic;
• Set up a European agency to encourage the emergence of “champions” in digital technology.

President Macron disclosed that “Europe as we know it is too weak, too slow and too inefficient,” noting however that “…only Europe can give us the means to act on the world stage as we tackle the great challenges of the day.”

While President Macron came to power in May promising to strengthen the eurozone and deepen EU integration ahead of Brexit, his plans face new hurdles in the wake of Germany’s election earlier this month, which resulted in a rise of the eurosceptic Alternative for Germany (AfD) party. While Angela Merkel was re-elected for a fourth term as chancellor, amidst falling support, the nationalist AfD party won its first seats in the German parliament.

President Macron is now pressing other EU leaders, including Angela Merkel, to work with him. However, Germany’s election results effectively mean that the Chancellor Merkel will now try to form a government that is likely to include the Free Democratic Party (FDP), whose leader is an outspoken critic of President Macron’s European agenda.