Hutchinson Man Sentenced for Child Pornography Distribution

Source: US FBI

WICHITA, KAN. – A Kansas man was sentenced to 151 months in prison for distributing child exploitation sexual abuse materials. 

According to court documents, Zachary Charles Hiskey, 27, of Hutchinson pleaded guilty to one count of distribution of child pornography. 

In June 2021, Hiskey used his account on a messaging app called Kik to share videos depicting adult males engaged in sexually explicit activities with prepubescent children. Kik detected the videos and reported the account to law enforcement through a cyber tipline. This led to the discovery of other child exploitation sexual abuse materials connected to Hiskey’s email account and to IP logs at his home in Hutchinson. 

While executing a search warrant at Hiskey’s home, investigators found an electronic device with an Internet browser thumbnail of recently viewed child exploitation sexual abuse materials. A forensic examination revealed the Kik account in question had been installed and then deleted on his cell phone.

The Federal Bureau of Investigation (FBI) investigated the case.

Assistant U.S. Attorney Jason Hart prosecuted the case.

Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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FBI Director Christopher Wray Speaks at 2023 mWISE Cybersecurity Conference

Source: US FBI

The goal of mWISE is to bring together the global community of security practitioners to share best practices on strengthening defenses and developing powerful and sophisticated cyber solutions.

Wray emphasized the importance of collaboration, referencing successful cases in fighting cybercrimes thanks to strong partnerships, including the takedown of the malware and botnet known as Qakbot, and the disruption of the Hive ransomware group. He called for further partnership to focus efforts on defending against cybercrimes from China. 

Multiple cyber programs pose international threats, including those based out of Russia, Iran, and North Korea, but the FBI has warned that China is a primary concern. For years, the Chinese government has been stealing American intellectual property and data.  

“China already has a bigger hacking program than every other major nation combined,” said Wray. “With AI, China is now in position to try to close the cycle—to use the fruits of their widespread hacking to power, with AI, even more powerful hacking efforts. In fact, if each one of the FBI’s cyber agents and intelligence analysts focused on China exclusively, Chinese hackers would still outnumber our cyber personnel by at least 50 to 1.” 

Wray concluded his remarks with a call to action to strengthening public sector relationships with the FBI so if a crisis arises, all parties will be best situated to respond.  

“My request is not just that you make an incident response plan, but that you make us at the FBI part of that incident response plan,” said Wray. “Give our folks a call today and build a relationship with your local FBI field office now.”

Emergency Preparedness Exercise Tests Response to Radiological Attack

Source: US FBI

Titan Shield participants are members of the Weapons of Mass Destruction Strategic Group (WMDSG), a crisis action team led by the FBI that brings federal agencies together to support information exchange and to deconflict WMD counterterrorism and law enforcement operations. 

The FBI, along with the U.S. Department of Homeland Security’s Countering WMD Office, led this year’s Titan Shield, developing the scenario and timeline of events, reviewing exercise objectives, organizing logistics and tools, and debriefing and evaluating the results at the exercise’s conclusion. The in-depth training requires a year-long planning cycle with interagency stakeholders who meet several times throughout the year to provide input. Each iteration of the exercise focuses on one or more WMD modalities—either chemical, biological, radiological, or nuclear—but the scenario always involves terrorism. 

“Over the past four years, the FBI Titan Shield exercise has been the principal mechanism to examine and validate the planning, collaboration, and decisive actions necessary at the strategic and tactical levels,” said, Sean Hearns, training branch chief, Preparedness Division, Countering Weapons of Mass Destruction Office, U.S. Department of Homeland Security. 

“The FBI WMDSG provides a structure to assess residual risk, while prioritizing federal interagency response capabilities,” he continued. “It is through this enhanced process that the WMDSG equips senior leaders with critical information to make informed decisions during a potential WMD crisis. Through Titan Shield, the Department of Homeland Security has enhanced its networks and fostered the relationships necessary to shape preparedness and response activities.” 

This year’s Titan Shield scenario presented a terrorist cell that stole radiological material and smuggled it into the United States with the intent to carry out attacks against sports stadiums using drones. During the exercise, WMDSG developed threat profiles and evaluated courses of action amid events rapidly unfolding in real-time.

Participants addressed various questions such as: What are the properties of the radioactive material and its effects on people and their surroundings? Which groups are best trained and equipped to appropriately respond? Do people need to be evacuated?  

“It is difficult to overstate the importance of what we are all gathered for this week,” said FBI Deputy Director Paul Abbate, who kicked off the training exercise. “If the United States was to encounter a complex WMD threat or incident, the safety of the nation would rest on our shoulders. Titan Shield presents an invaluable opportunity for all of us to practice our roles and responsibilities in response to such a threat.” 

Streamlining communications between senior decision makers, as well as outreach to foreign, state, local, tribal, and territorial officials, were additional factors WMDSG needed to consider. They also looked at strategies for crafting public messaging and determining how to disseminate information.  

At the conclusion of the exercise series, participants debriefed on what worked best and how they could improve future trainings. 

“Titan Shield helps us find ways to build on our successes and lessons learned to improve our coordination effectiveness and to become even more connected across all of our departments and agencies,” said Abbate. “The collaboration made possible by the exercise is a testament to the resilience of our partnerships and to our shared commitment to carrying out our responsibilities to the American people.” 

Director Wray Discusses National Security Threats at International Spy Museum Event

Source: US FBI

Among the biggest threats Director Wray emphasized at the event is the counterintelligence threat from the Chinese Communist Party. “I’ve been very vocal since early in my tenure that there is no country—underline no country—that represents a broader, more severe counterintelligence threat to the United States than the People’s Republic of China,” Director Wray said.

Key to the FBI’s ability to continue to keep Americans safe from these threats, including terrorism, espionage, and cyber attacks, Director Wray said, is renewal of Section 702 of the Foreign Intelligence Surveillance Act (FISA).

“702 authority is vital, absolutely vital—not important, not nice-to-have—vital,” Director Wray said, explaining that Section 702 is authority that allows the Intelligence Community to conduct targeted surveillance of non-U.S. persons located abroad in national security investigations.

The government uses the information collected under Section 702 to protect the United States and its allies from hostile foreign adversaries, including terrorists, spies, and malicious foreign nation-state cyber actors.

Tornado Cash Co-Founders Accused of Helping Cybercriminals Launder Stolen Crypto

Source: US FBI

Clients of Tornado Cash included the Lazarus Group—a Democratic People’s Republic of Korea-sponsored cybercriminal organization

Two men who helped create a service that blurs cryptocurrency transaction histories are facing federal charges after they allegedly conspired to launder money for criminal actors, violate U.S. government sanctions, and operate an unlicensed money transmitting business.

Washington state resident Roman Storm and Russian national Roman Semenov, two founders of the cryptocurrency mixer Tornado Cash, stand accused of helping move over $1 billion in virtual currency for criminal actors.

These clients included the Lazarus Group—a Democratic People’s Republic of Korea-sponsored cybercriminal organization sanctioned by the U.S. Department of the Treasury in 2019.

“The charges in the indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group,” the Justice Department wrote in an August 23 press release. Investigative efforts by the FBI New York Field Office and IRS-Criminal Investigation made the indictment possible.

According to the recently unsealed indictment, the duo had full knowledge that bad actors were using their services—and, consequently, understood they were violating sanctions—but decided to turn a blind eye to the money laundering.

Whenever someone carries out a cryptocurrency transaction, proof of that transaction is encoded into the currency itself. This digital ledger, known as the blockchain, lets crypto users verify the legitimacy—or lack thereof—of transactions by viewing a record of the cryptocurrency wallets that virtual tokens originated from and moved to. However, the blockchain doesn’t name the owners of the cryptocurrency wallets involved in transactions.

Cryptocurrency mixers like Tornado Cash further enhance the level of anonymity by muddying these transaction histories.

To better understand the way a cryptocurrency mixer works, imagine a bank that’s open 24/7. When you use the bank, instead of getting an account of your own, you’re able to make a deposit into one massive, shared account.  

Because your money isn’t kept separately from everyone else’s, when you deposit funds, you receive a code that can be used to get it back out later. You can keep that code to yourself or share it with someone you know so that they can pick up the money instead. The choice is yours, but, in either case, the transaction can be carried out anonymously.   

The bank tracks how much money enters and leaves the shared account to ensure that no one’s funds get stolen—because the bank would be liable. But it doesn’t track who put in or removed money from the shared account, when they did so, or why.  

This is a dramatized example of how a law-abiding citizen could theoretically use a cryptocurrency mixer—which acts as a shared storage unit for virtual currency—to move their tokens in an anonymous, decentralized way.   

“It kind of breaks that chain in the transaction history, which is really how you trace cryptocurrency within the blockchain as you see how it moves from wallet to wallet to wallet,” explained Assistant Special Agent in Charge Paul Roberts, who leads the FBI New York Field Office’s Complex Financial Crimes Branch.

Know Your Customer (KYC) and Bank Secrecy Act (or BSA) rules enforced by the Treasury Department’s Financial Crimes Enforcement Network require that cryptocurrency mixers know who exactly is using their services and how, Roberts noted. He likened these rules to the identification requirements and mandatory forms associated with opening a new bank account.

However, Tornado Cash ignored these rules, and the company’s posture allowed criminal actors and organizations like the Lazarus Group to launder money through the service.

“Tornado Cash should have been registered as a money services business and should have been requiring people who are using their service to register those forms,” Roberts said. A criminal syndicate wouldn’t likely admit to opening an account with nefarious intentions, but required paperwork could have at least raised a red flag about the account holder’s identity, Roberts added. And, in theory, Storm and Semenov could have stopped the money laundering before it started.

To further complicate matters, even though the Lazarus Group wasn’t required to complete paperwork to use Tornado Cash, Storm and Semenov still knew they were using their service—and allowed them to do so.

“[Storm and Semenov] implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective,” the Justice Department wrote. “They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.”

These actions collectively led to their indictment on charges related to money laundering, defying sanctions, and operating an unlicensed company.

FBI Director Christopher Wray said news of the indictment “should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous.”

FBI, Partners Dismantle Qakbot Infrastructure in Multinational Cyber Takedown

Source: US FBI

On August 29, the FBI and the Justice Department announced a multinational operation to disrupt and dismantle the malware and botnet known as Qakbot.   
 
The action, which took place in the U.S., France, Germany, the Netherlands, Romania, Latvia, and the United Kingdom, represents one of the largest U.S.-led disruptions of a botnet infrastructure used by cybercriminals to commit ransomware, financial fraud, and other cyber-enabled criminal activity.  
 
“The FBI neutralized this far-reaching criminal supply chain, cutting it off at the knees,” said FBI Director Christopher Wray. “The victims ranged from financial institutions on the East Coast to a critical infrastructure government contractor in the Midwest to a medical device manufacturer on the West Coast.”

Safe Online Surfing Launching for 2023-2024 School Year

Source: US FBI

“The Safe Online Surfing program is a great way for teachers and families to prepare students for their journey through cyberspace,” said Ken Hoffman, who leads the FBI’s national community outreach program. “The interactive platform helps kids build a digital defense against predators and bullies while teaching them how to be responsible cyber citizens.” 

While taking the course, students guide a robot avatar through six thematic areas, answering true/false, multiple choice, and matching questions along the way. After completing all levels, students will take a final exam.  

Since the program’s launch in 2012, more than 1.6 million students have participated in the SOS challenge. 

The SOS website and its activities are open year-round, both at home and in the classroom. The challenge opens on September 1 and runs through May. Each month during this timeframe, the classes with the top exam scores nationwide will receive an FBI-SOS certificate and, when possible, receive a congratulatory visit from FBI personnel.  

To participate in the challenge, teachers must register their classes at sos.fbi.gov. Teachers manage their students’ participation in the program; the FBI does not collect or store any student information.

Learn more and register your class at sos.fbi.gov

Outreach and Mentorship: Cliff’s Crew Visits the FBI

Source: US FBI

“Whatever challenges you may have in life can be frustrating,” said Turner. “Failure is a part of our lives. You have to embrace failure.”

Turner continued by explaining that at the end of the day, the recipe for success is focusing on what you can control and take ownership of—regardless of external pressures.

“When I experienced past failures, I asked myself: What did I do?” he said. “Don’t worry about what the teacher did. Don’t worry about what coach doesn’t like about you. What did I do that caused that failure, and what can I do moving forward to make it better? I can own that. That’s what I pass on to you.”

Turner concluded that new experiences are also key to personal growth.

“In my journey,” he said, “I’ve always kind of gone outside my comfort zone. You need to get comfortable being uncomfortable because that’s the only way you’re going to grow. If you guys remember that, you will be leaders on a level that you hadn’t even imagined. Be that leader. Stay true to yourself.”

Interested in learning more about community outreach at the FBI?

The Community Relations Unit at FBI Headquarters and FBI community outreach specialists in field offices across the country create and strengthen relationships locally and nationally with minority groups, religious and civic organizations, schools, non-profits, and other entities. 

Visit your local FBI field office’s page to learn about programs in your area.

FBI Internship Program Gives Wounded Warriors a Window into Bureau Careers

Source: US FBI

Moorer, who recently retired from the Navy and concluded his internship, encourages fellow wound warriors to apply, nothing that “I don’t think there’s a better program for you to go get on-the-job experience, exchange knowledge with other people who are very knowledgeable, and get an excellent job opportunity that could end up being the perfect career for you.

Eligibility 

The FBI Wounded Warrior Internship Program is part of the Defense Department’s Operation Warfighter program. This DOD initiative links wounded warriors with federal government internships so that they can gain work experience while recuperating from a wound, illness, or injury. 
 
The program is incredibly competitive, but at this time, there’s no limit on the number of qualified servicemembers who may be selected for internships each year, Keffer said. Thirteen FBI interns are expected to onboard by the end of fiscal year 2023, according to the program. 
 
As long as a field office or Headquarters division has an operational need—and if they believe an applicant is the right fit for the position—the FBI’s Human Resources Division will make the match.  
 
To qualify for the program, a servicemember must: 

  • Be an active-duty servicemember, a mobilized reservist, or a member of the Army or Air National Guard
  • Be a U.S. citizen
  • Be assigned to a Wounded Warrior unit, detachment, or regiment
  • Hold an active Top Secret security clearance
  • Have at least six months remaining on their service commitment
  • Have the ability to travel to and from their assigned worksite
  • Meet FBI security and suitability requirements

Interested servicemembers can reach out to their Operation Warfighter coordinator to begin the application process.

FBI-Led Sweep Targeting Sex Traffickers Recovers Dozens of Minor Victims

Source: US FBI

FBI Child Exploitation and Human Trafficking Task Forces across the country work throughout the year to locate victims and their traffickers. Often, victim specialists are embedded in operations. They serve as a liaison between the victims and FBI agents. They also help victims find services to rebuild their lives. The FBI’s Victim Services Division has a team of child and adolescent forensic interviewers, or CAFIs, who are specially trained interviewers skilled at gathering evidence without further traumatizing children and others with mental or emotional disabilities. These multi-disciplinary teams work with state and local partners to make resources available for victims, which might include counseling, medical services, housing, or job placement.  

“Our victim specialists, victim service coordinators, child and adolescent forensic interviewers, and other victim service professionals work collaboratively with special agents to ensure a trauma-informed, victim-centered approach is taken when engaging with victims,” said Regina Thompson, assistant director of the Victim Services Division. “This is especially important when engaging with victims of human trafficking as it is a very complex, traumatic crime.”