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A small western Pennsylvania water authority was just one of many organizations breached in the United States by Iran-affiliated hackers who targeted a specific industrial control device because it is Israeli-made, U.S. and Israeli authorities say.

“The victims span multiple U.S. states,” the FBI, the Environmental Protection Agency, the Cybersecurity and Infrastructure Security Agency, known as CISA, as well as Israel’s National Cyber Directorate said in an advisory emailed to The Associated Press late Friday.

They did not say how many organizations were hacked or otherwise describe them.

Matthew Mottes, the chairman of the Municipal Water Authority of Aliquippa, which discovered it had been hacked on Nov. 25, said Thursday that federal officials had told him the same group also breached four other utilities and an aquarium.

Cybersecurity experts say that while there is no evidence of Iranian involvement in the Oct. 7 attack into Israel by Hamas that triggered the war in Gaza, they expected state-backed Iranian hackers and pro-Palestinian hacktivists to step up cyberattacks on Israeli and its allies in its aftermath. And that has happened.

The multiagency advisory explained what CISA had not when it confirmed the Pennsylvania hack Wednesday — that other industries outside water and water-treatment facilities use the same equipment — Vision Series programmable logic controllers made by Unitronics — and were also potentially vulnerable.

Those industries include “energy, food and beverage manufacturing and healthcare,” the advisory says. The devices regulate processes including pressure, temperature and fluid flow.

The Aliquippa hack promoted workers to temporarily halt pumping in a remote station that regulates water pressure for two nearby towns, leading crews to switch to manual operation. The hackers left a digital calling card on the compromised device saying all Israeli-made equipment is “a legal target.”

The multiagency advisory said it was not known if the hackers had tried to penetrate deeper into breached networks.

The advisory says the hackers, who call themselves “Cyber Av3ngers,” are affiliated with Iran’s Islamic Revolutionary Guards Corps, which the U.S. designated as a foreign terrorist organization in 2019.

The group targeted the Unitronics devices at least since Nov. 22, it said.

An online search Saturday with the Shodan service identified more than 200 such internet-connected devices in the U.S. and more than 1,700 globally.

The advisory notes that Unitronics devices ship with a default password, a practice experts discourage as it makes them more vulnerable to hacking. Best practices call for devices to require a unique password to be created out of the box. It says the hackers likely accessed affected devices by “exploiting cybersecurity weaknesses, including poor password security and exposure to the internet.”

In response to the Aliquippa hack, three Pennsylvania congressmen asked the U.S. Justice Department in a letter to investigate. Americans must know their drinking water and other basic infrastructure is safe from “nation-state adversaries and terrorist organizations,” U.S. Sens. John Fetterman and Bob Casey and U.S. Rep. Chris Deluzio said.

Cyber Av3ngers claimed in an Oct. 30 social media post to have hacked 10 water treatment stations in Israel, though it is not clear if they shut down any equipment.

Unitronics has not responded to the AP queries about the hacks.

The attack came less than a month after a federal appeals court decision prompted the EPA to rescind a rule that would have obliged U.S public water systems to include cybersecurity testing in their regular federally mandated audits. The rollback was triggered by a federal appeals court decision in a case brought by Missouri, Arkansas and Iowa, and joined by a water utility trade group.

The Biden administration has been trying to shore up cybersecurity of critical infrastructure — more than 80% of which is privately owned — and has imposed regulations on sectors including electric utilities, gas pipelines and nuclear facilities. But many experts complain that too many vital industries are permitted to self-regulate.
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The U.S. proposed new guidelines Friday spelling out which electric vehicles will be eligible for tax credits, ruling out those that contain batteries or minerals sourced from China and other nations that have fallen out of favor with the U.S.

The restrictions dictate which clean energy vehicles will qualify for a subsidy of up to $7,500 under President Joe Biden’s Inflation Reduction Act, a federal law promoting sustainable, domestic energy production.

Only about 20 out of the more than 100 electric vehicles on the U.S. market qualify for a tax credit as it is. That number may be further reduced when this regulation goes into effect.

If a clean energy battery went through an assembly line owned by any “foreign entity of concern,” the car it will go into would be immediately disqualified from earning its owner any tax breaks from the U.S. government, starting in 2024.

The new rules target firms incorporated or headquartered in China, Russia, North Korea and Iran, among others, as well as companies where 25% or more of the equity interest or board seats are controlled by those countries.

From 2025 onward, electric vehicles made with critical minerals, such as lithium, nickel and cobalt, mined or processed by any “foreign entity of concern” will also be ineligible for subsidies.

The rules will be open to public feedback from automotive leaders for several weeks and are subject to change depending on industry recommendations.

Some information for this report came from Agence France-Presse. 
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Developers at the University of Maryland are using a holographic camera to capture people’s movements in three dimensions for what could be high-impact training, education and entertainment. It is technology with the power to transform how we learn and entertain ourselves. VOA’s Julie Taboh has more. VOA footage by Adam Greenbaum.
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US lawmakers warned Thursday that the Chinese Communist Party’s efforts to spread disinformation will only increase ahead of the 2024 elections in the United States. As VOA’s Congressional Correspondent Katherine Gypson reports, social media giant TikTok is lawmakers’ top concern.
Camera: Saqib Ui Islam
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The United States plans to sign a memorandum of understanding to cooperate with South Korea and Japan in the fight against false propaganda and disinformation.

It will be the first such agreement that Washington signs with its Asian allies, and it comes as U.S. officials and lawmakers accuse the People’s Republic of China of conducting “deceptive online campaigns” targeting the United States and other countries. Chinese officials have rejected the accusation.

Liz Allen, the U.S. undersecretary of state for public diplomacy and public affairs, is traveling to Asia this week. Allen will be sealing the agreement with South Korea and Japan on countering disinformation, according to U.S. and diplomatic sources.

U.S. President Joe Biden, South Korean President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida have agreed to find ways to coordinate efforts to counter disinformation, after the three leaders held talks during their first trilateral summit at Camp David in August.

“President Yoon mentioned the threat from false propaganda and disinformation in his address to the joint session of U.S. Congress in April. In this regard, we are now discussing the possible follow-up measures with the U.S.,” an official from the South Korean Embassy told Voice of America on Thursday.

In a statement on Thursday, House Foreign Affairs Committee Chairman Michael McCaul condemned the “increasingly deceptive online campaigns targeting the U.S. and other countries” by the Chinese Communist Party.

“The CCP has made clear it will use every tactic to spread its malign intent,” the Republican congressman said.

The South Korean government has identified 38 suspected fake Korean-language news websites that it believes are operated by Chinese companies. For example, in November, South Korea’s National Intelligence Service said two Chinese public relations companies, Haimai and Haixun, were allegedly creating such websites, according to Seoul-based Yonhap News Agency.

The State Department said Allen, while in Tokyo, will hold bilateral discussions with Japanese Ministry of Foreign Affairs officials that include a focus on countering malign foreign influence.

In a report issued in September, the State Department’s Global Engagement Center accused the Chinese government of using a combination of tactics in a bid to create a world in which Beijing, either explicitly or implicitly, controls the flow of critical information. The U.S. has warned that China is pouring billions of dollars into efforts to reshape the global information environment and, eventually, bend the will of multiple nations to Beijing’s advantage.

The Chinese Ministry of Foreign Affairs has pushed back, saying the report by U.S. State Department’s Global Engagement Center “misrepresents facts and truth.” A spokesperson from the Chinese Foreign Ministry called GEC the command center of “perception warfare.”

James Rubin, special envoy for the State Department’s Global Engagement Center, has said that Washington is working with allies to detect and counter misinformation and disinformation around the world.

In May, the U.S. signed a memorandum of understanding with North Macedonia, and in September, another with Bulgaria, both aimed at enhancing cooperation in countering foreign information manipulation.
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Vietnam, with the world’s second-largest reserves of the rare earths used in such modern devices as electric vehicle batteries and smart phone screens, is intensifying mining of the critical minerals. The industry, though, faces high processing costs, environmental concerns, and the takedown of industry leaders for illegal mining and mineral sales.

Vietnam’s rare earth resources are second only to those of China, which has held a tight monopoly since the 1980s. With Chinese relations with the West becoming more volatile, many countries are looking for other sources for the elements.

“China produces about 60% of the world’s rare earths but what they process is over 90%,” Louis O’Connor, CEO of Strategic Metals Invest, an Irish investment firm, told VOA.

“It was not a good idea to allow one country to dominate critical raw materials that are critical to all nations’ economic prosperity and increasingly military capability,” he said.

O’Connor added that while China has the world’s majority of raw materials, its dominance over technical expertise in the complex and costly process of rare earth refining is even greater. China has 39 metallurgy universities and approximately 200 metallurgists graduate weekly in the country, he said.

“The ability to go from having the potential to end product — that’s the most challenging, complicated, and expensive part,” O’Connor said. “For Vietnam, even if they have the deposits, what they don’t have is the human capital, or the engineering expertise.”

Vietnam increased rare earth mining tenfold with its output hitting 4,300 tons last year, compared to 400 tons in 2021.  according to the U.S. Geological Survey. Vietnam said in July it plans to process 2 million tons of rare earth ores by 2030 and produce 60,000 tons of rare earth oxides annually starting in 2030. This year, China’s mining quota is set at 240,000 tons to meet the demand for the electric vehicle industry, according to Chinese government data.

The United States and other countries are interested in Vietnam increasing its production of rare earths.

“The U.S. wants Vietnam to become a more important supplier and perhaps replace China, if possible, because of the risk that the U.S. may face in relying on rare earth supplies from China,” Le Hong Hiep, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore told VOA.

“Not only the U.S., but also other partners like Korea, Japan, and Australia also are working with Vietnam to develop the rare earth industry,” he said.

South Korean President Yoon Suk Yeol signed a memorandum of understanding in Vietnam in June to establish a joint supply chain center for rare earth minerals.

“We reached an agreement that there is more potential to develop rare earths together, as they are abundant in Vietnam,” Yoon said in a June 23 statement with Vietnam’s president Vo Van Thuong.

The United States signed such a memorandum on cooperation in the rare earths sector during President Joe Biden’s visit to Hanoi on September 9.

“We see Vietnam as a potential critical nexus in global supply chains when it comes to critical minerals and rare earth elements,” Marc Knapper, U.S. ambassador to Vietnam, said on September 13 during a digital press briefing. “We certainly want to work together to ensure that Vietnam is able to take advantage of its rich resources in a way that’s also sustainable.”

Scandal

However, a handful of Vietnam’s key rare earth enterprises have become entangled in scandal. On October 20, police arrested six individuals for mining and tax violations.

Police arrested Doan Van Huan, chairman of the Hanoi-based Thai Duong Group that operates a mine in Yen Bai province, and its chief accountant, Nguyen Van Chinh, for violating regulations on the exploration and exploitation of natural resources and accounting violations, the Public Security Ministry said. The two were accused of making $25.5 million from the illegal sale of rare earth ore and iron ore. Police raided 21 excavation and trading sites in Yen Bai province and three other locations. Authorities seized an estimated 13,700 tons of rare earth and more than 1,400 tons of iron ores, according to local publication VnExpress.

Although government statements did not state what made Thai Duong’s rare earth sales illegal, a source told Reuters raw Yen Bai mine ore had been exported to China to avoid high domestic refining costs, in violation of Vietnamese rules.

The chairman, Luu Anh Tuan, and accountant, Nguyen Thi Hien, of the country’s primary rare earth refining company, Vietnam Rare Earth JSC, were also arrested for violating accounting regulations in trading rare earth with Thai Duong Group. Dang Tran Chi, director of Hop Thanh Phat, and his accountant Pham Thi Ha were arrested on the same charge.

Looking at corruption in Vietnam’s rare earth industry will be “top of the list” for future investors, O’Connor said.

“Corruption levels would have to be looked at,” he said. “If you’re buying a metal that’s going to need to perform in a jet engine, for example or a rocket … they have to be sure of the purity levels. The chain of custody of these, it’s more important really than gold.”

Vietnam committed to industry

Hanoi is committed to developing the rare earths industry even though economic gains are limited by environmental and production costs, Hiep told VOA.

“Vietnam is now interested in promoting this industry mainly because of the strategic significance,” Hiep told VOA. “If you can grow this industry and become a reliable supplier of rare earth products for the U.S. and its allies, Vietnam’s strategic position will be enhanced greatly.”

“Whether that will be successful, we have to wait and see,” he added.

There are also environmental concerns for the growing industry, particularly as a crackdown on Vietnam’s environmental organizations and civil society leaves little room for public speech.

“The biggest challenge is going to be how do you handle the waste process from the mining,” said Courtney Weatherby, deputy director of the Southeast Asia Program at Washington’s Stimson Center told VOA.

“Ensuring that development happens in a sustainable way takes a lot of different actors,” she said.

But Duy Hoang, executive director of unsanctioned political party Viet Tan, said the room for outside actors to express concern over environmental and labor practices is narrowing.

“What we’re seeing is sort of a shrinking space for civil society to speak out and a number of the leading environmental activists are now in jail. We don’t have their voices which are very needed and I think there may be self-censorship going on by other activists,” he said. “There has to be accountability.”
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