Overnight Cybersecurity: Treasury tweaks Russia sanctions | Senate panel launches new Russia hacking probe

Welcome to OVERNIGHT CYBERSECURITY, your daily rundown of the biggest news in the world of hacking and data privacy. We’re here to connect the dots as leaders in government, policy and industry try to counter the rise in cyber threats. What lies ahead for Congress, the administration and the latest company under siege? Whether you’re a consumer, a techie or a D.C. lifer, we’re here to give you …

THE BIG STORIES:

–WHAT WE TALK ABOUT WHEN WE TALK ABOUT EASING SANCTIONS (With apologies to Raymond Carver): The Treasury Department on Thursday amended former President Obama’s most recent slate of Russian sanctions to allow U.S. technology companies to export products to Russia. Treasury’s Office of Foreign Assets Control (OFAC) clarified that American tech companies can seek licenses from Russia’s Federal Security Service (FSB) to export their goods to Russia, so long as the products aren’t used in Crimea and don’t violate pre-existing sanctions. The White House on Thursday denied that it is rolling back sanctions on Russia, put in place by Obama in response to Russian interference in the election. “I haven’t eased anything,” President Trump told reporters in the Roosevelt Room of the White House. Press secretary Sean Spicer argued that it’s “common for Treasury after sanctions are put in place to go back and look at specific carve outs for different industries or products and services.” “It is a regular course of action that Treasury does often when sanctions are imposed.” The FSB, Russia’s domestic security service, was one of several entities sanctioned by Obama in December related to Russian hacking of Democratic political organizations and operatives. The FSB must also approve certain encrypted technology imports to Russia per domestic law. The move was widely interpreted as President Trump relaxing sanctions on Russia. But foreign policy experts insisted that the OFAC’s amendment was likely meant to clean up unintended consequences on American tech companies. “This isn’t Trump weakening sanctions,” said Eric Lorber, sanctions consultant at Financial Integrity Network, on Twitter. “Unintended consequences popped up, OFAC dealt with them.”

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{mosads}–PELOSI AGAINST ANY REDUCTION OF SANCTIONS: The OFAC move might not have reduced sanctions, but Trump has, in the past, suggested easing Russian sanctions in exchange for nuclear disarmament or to reward good behavior. House Minority Leader Nancy Pelosi (D-Calif.) warned Thursday that any move by the Trump administration to roll back sanctions against Russia would fray international alliances and threaten security around the globe. The Democratic leader said even suggestions from the White House that sanctions might be scaled back could have perilous consequences for NATO and U.S. allies in Europe. “What the president has to understand is that when you’re president of the United States your words weigh a ton. So even with your administration putting out [the message], ‘We’re going to review that,’ is really staggeringly dangerous,” Pelosi said during a press briefing in the Capitol.

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A LEGISLATIVE BRANCH UPDATE:

— NEW SENATE PLAYER IN RUSSIA INVESTIGATIONS: A Senate subcommittee is launching an investigation into Russian interference in the 2016 election and how to prevent similar attacks in the future, the panel’s leaders announced Thursday. The Senate Judiciary Subcommittee on Crime and Terrorism probe will be the second lawmaker investigation into the Kremlin’s attempts to influence the election. “Our goal is simple — to the fullest extent possible we want to shine a light on Russian activities to undermine democracy,” committee Chairman Lindsey Graham (R-S.C.) and Ranking Member Sheldon Whitehouse (D-R.I.) said in a joint written statement. They said the investigation will focus on Russia’s methodology in the 2016 election and “possible avenues to help prevent and deter” foreign attacks and ensure the FBI is properly funded to handle these threats. It will include both open and closed hearings. The Senate Intelligence Committee last month announced its own official investigation into Russia’s activities.

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–MISCELLANEOUS LOUD NOISES: A routine House Oversight Committee hearing Thursday turned into a shouting match between the Republican chairman and the ranking Democrat over Russian interference in the presidential election. In a fight that exposed bitter frustration amongst Democrats that Republicans have kept the issue locked in a single committee — the Intelligence Committee in both chambers — lawmakers sparred over whether Oversight should conduct a public investigation into last year’s cyberattack that stole information from the Democratic Congressional Campaign Committee (DCCC). “It’s clear that politics have prevented this committee from being willing or able to do the necessary objective and nonpartisan oversight on the Russian attack,” said Rep. Robin Kelly (D-Ill.). The chairman, Rep. Jason Chaffetz (R-Utah), argued that studying the sources and methods used to draw an intelligence conclusion is the jurisdiction of the Intelligence Committee and, further, that it would be “inappropriate” for Oversight to “dive into the private systems of a political party.” Democrats weren’t satisfied. “That’s not anybody else’s work. That’s our work. There’s plenty of reports we can talk about — and we ought to do it publicly — about the damage done to the confidence in our electoral system. That’s what’s important here,” Rep. Stephen Lynch (D-Mass.) shouted.

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A LIGHTER CLICK: 

–YOU’LL PAY FOR THIS IN ODIN’S NAME: Bad Lip Reading of the NFL, 2016-2017 season end edition.

A REPORT IN FOCUS:

–PHISHING ATTACKS IN EGYPT: Egyptian non-governmental organizations have been targeted by a large phishing operation centered around a government crackdown on NGOs, researchers report.

Citizen Lab, a University of Toronto team devoted to investigating cyber attacks against human rights advocates, dissidents and journalists, uncovered the operation, which it nicknamed “Nile Phish.”

The attacks appear focused on the targets of “Case 173,” an Egyptian investigation to purportedly weed out foreign funding in NGOs. Opponents, however, have described the probe as an authoritarian strike at humanitarian groups.

Citizen Lab identified the attacks in seven NGOs: the Association for Freedom of Thought and Expression, the Cairo Institute for Human Rights, the Egyptian Commission for Rights and Freedoms, the Egyptian Initiative for Personal Rights, the Nadeem Center for Rehabilitation of Victims of Violence, the Nazra for Feminist Studies and an organization that asked the lab not to be named. The groups’ works center around human rights, including tracing state abuses.

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IN CASE YOU MISSED IT:

Links from our blog, The Hill, and around the Web. 

Uber’s CEO is stepping down from President Trump’s advisory council after a wave of pressure. (The Hill)

Software is politics. (Fast Co.Design)

Britain spent £10,000 teaching police officers to hack. (Motherboard)

The groundhog saw his shadow. (Yahoo)

Fake Rex Tillerson really talks about the fake @realRWTillerson account (Motherboard)

The Dutch will count all votes by hand in their March election. (USA Today)

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