Relation With Moscow Heats Up, US Increases Surveillance Of Kaspersky Usage

JAKARTA - The administration of AAS President, Joe Biden, stepped up a national security investigation into Russia's AO Kaspersky Lab antivirus software earlier this year. This comes amid growing fears of cyberattacks from Russia after Moscow invaded Ukraine.

The case was referred to the Commerce Department by the US Department of Justice since last year, a source told Reuters. But the Commerce Department made little progress until the White House and other administration officials urged them to move forward in March.

What they are concerned about is the risk that the Kremlin could use antivirus software, which has privileged access to computer systems, to steal sensitive information from American computers or damage it as tensions rise between Moscow and the West.

Access to networks of federal contractors and operators of critical US infrastructure such as the power grid looks particularly concerning, the sources said.

US regulators have banned the federal government's use of Kaspersky software in the US. The ban could force Kaspersky to take action to reduce the risks posed by its products. Even the ban could force Americans not to use it at all.

Previous investigations have shown that the US government is digging deep into its tools to attack Moscow with even the most obscure authorities in a bid to protect US citizens and companies from Russian cyberattacks.

“Authority is the only tool we really have to deal with the threat (posed by Kaspersky) commercially across the economy, given our generally open markets,” said Emily Kilcrease, former deputy assistant US Trade Representative.

Other regulatory powers do not allow the government to block private sector use of software made by Moscow-based companies, which US officials have long seen as a serious threat to US national security.

The Department of Commerce and Justice, and Kaspersky declined to comment. The company has for years denied any wrongdoing or any covert partnership with Russian intelligence.

An enhanced investigation is being executed using broad new powers created by the Donald Trump administration that allow the Commerce Department to ban or restrict transactions between U.S. companies and internet, telecommunications and technology companies from "foreign adversaries" countries including Russia and China.

For Kaspersky, the Department of Commerce may use its powers to prohibit the use of Kaspersky, purchases of Kaspersky software by US citizens, or prohibit the downloading of updates through regulations on the Federal Register.

However, a number of these rules are largely untested. Former President Donald Trump once used the law to try to ban Americans from using Chinese social media platforms TikTok and WeChat, but a federal court stopped the move.

A top Justice Department official said last year that the agency was examining dozens of Russian companies, including "known links between certain companies and Russian intelligence services," to see if they threaten U.S. supply chains. "The Justice Department may refer some cases to the Commerce Department for further action," Assistant Attorney General John Demers said at the time.

However, it is not yet known whether the company under review includes Kaspersky. The Russian software company generated about $95.3 million in revenue in the US in 2020. That revenue, according to market research firm Gartner Inc, accounted for nearly 15% of its global revenue that year.

It is not clear whether the figures include Kaspersky products sold by third parties under different brands. According to US national security officials, this is also referred to as a practice that creates confusion about the origin of the software.

In 2017, the Department of Homeland Security banned Kaspersky's flagship antivirus product from federal networks. They allege Kaspersky's ties to Russian intelligence and note Russian laws that allow its intelligence services to coerce assistance from Kaspersky and intercept communications transiting Russian networks.

The perceived threat has grown even more pressing since Russia's February 24 invasion of Ukraine, which Moscow described as a "special military operation."

In March, German authorities warned the Kremlin might force Moscow-based companies to participate in cyberattacks, or Russian government agencies could covertly use its technology to launch cyberattacks without its knowledge.

Kaspersky said in a statement at the time that it was a privately run company with no ties to the Russian government, and described the German warning as politically motivated.

Reuters has also reported that the US government began privately warning some American companies the day after Russia invaded Ukraine that Moscow could manipulate software designed by Kaspersky to cause harm.

The Wall Street Journal also reported last month that the White House asked the Treasury Department to prepare sanctions against the company. They added that some officials backed down fearing it could increase the risk of a Russian cyberattack.