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BEN: A small country with many enemies.
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We are really, really
threatened by other countries,
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and we need to find innovative
ways how to defend ourselves.
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Israel builds its cyber arsenal.
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We intend to be
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one of the five leading
cyber powers in the world.
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But how are they using their power?
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We need to decrypt the
Iranian code because
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they are threatening us
with nuclear weapons.
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What's the cost of that strength?
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Israelis did not
only occupy the land,
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they occupied the sky
also and the air around us.
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♪
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Spring of 2015.
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A cyber security company discovers a piece of spyware
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targeting three hotels in Switzerland and Austria.
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All three of those hotels werehosting high level negotiations
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on the future of Iran's nuclear program.
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The malware, called Duqu 2.0, was really versatile.
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It could do anything fromtapping phone lines to operating
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two-way mics in hotel elevators, computers, and alarm systems.
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Duqu could theoretically spy on the Iranians,
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but also on the Americans and their negotiating partners.
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There are enemies
to these talks,
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and they will do
whatever they can.
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It's almost impossible to conclusively identify
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who created Duqu, but fingers immediately
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started pointing at Israel,
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a country with both the motive and the means.
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I flew to Washington to meet Adam Entous,
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the Wall Street Journal reporterwho first broke the Duqu story.
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You broke some stories that the
Israelis were not only spying
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on the US during
these negotiations,
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but they were also feeding
information to Congress.
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How'd you verify that?
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So what happened was is that
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we were monitoring Israeli
communications very closely.
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The US was sharing some
details with the Israelis
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about the ongoing negotiations,
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but we weren't
telling them everything.
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But we started seeing
in references to details
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from the negotiations
that the White House knew
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they were not providing
to the Israelis.
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Bottom line is is that the
experts that analyzed it
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and current and former
US officials who also have
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taken a look believe that
Duqu 2.0 is an espionage tool
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that's used by Israel for
it's biggest spying operations.
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Given the fact that the US
spends so much money in support
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of Israel's military and
its intelligence services,
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that Israel is so aggressive at
spying against the United States
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does upset, you know,
counter-intelligence officials
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in the United States
because they feel like
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they should be focused
on other things.
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And the money the US governmentgives to Israel is substantial.
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Since the creation of the state in 1948,
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the Americans have handed over more than $120 billion in aid,
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most of it in the form of military assistance.
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But military aid alone doesn't explain Israel's emergence
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as a global cyber super power.
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So how does a small country likeIsrael become such a big player
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in cyber warfare?
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And if the Israeli governmentis spying on the United States,
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its closest ally and its biggest financier,
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what does it say about the country's agenda?
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Ronen Bergman is an investigative journalist
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and a senior political and military analyst for
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one of Israel's largest circulation daily newspapers.
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- Ben, hi.
- Nice to meet you.
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Pleasure to meet you,
welcome, welcome to Israel.
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I met him at his home outside of Tel Aviv.
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What do you make of something
like Duqu 2.0 that was malware
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that was targeting specific
diplomatic discussions,
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and it seemed to benefit one
country and its interests.
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Do you think the
Israelis did it?
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Look, I'm not dealing directly
with Israeli intelligence
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on the USA, 'cause otherwise
this gonna be my last interview,
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or our next meeting will be...
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I would say with
some sort of bars or...
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or glass between us.
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Ronen Bergman wouldn't give me a straight answer
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when it came to Duqu or spying on Americans.
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But if the malware actually was Israeli,
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many people believe it came out of the military's
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signals intelligence branch, Unit 8200.
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Military service is compulsory for most Israelis,
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and Unit 8200 gets its pick of potential recruits.
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But why is it that the Israelis
are so good at cyber security?
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Well, I think it
started a long time ago.
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If you are the
military intelligence,
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from very early point they
got the permission to select
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from the, you know, thousands
and thousands of teens,
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and you offer them to
play a very unique game.
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A game that they can
play only in Israel,
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only in military intelligence,
they won't be able to play
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any other place in the world.
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The game is this: you get
at least three years
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of innovation summer camp,
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continuous innovation
summer camp,
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to come up with a solution
that would save the country.
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The deployment of your solution
could be very quick because we
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need to decrypt the Iranian code
because they are threatening us
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with nuclear weapon, or the
possibility of nuclear weapon.
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We need to hack into the
computer of that jihadist
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because he's planning
the next suicide bombing.
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That's a great responsibility.
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And you get as young as 18
or 19 years old to deal with
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the most exciting stuff
that anyone can deal with:
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espionage.
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Is there ever a thought within
Israeli society that all this
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innovation is coming from a
game played by these kids that's
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actually pretty lethal and
has real world implications?
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These innovations are
coming out of wars.
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This innovation
saved the country.
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I will say it again:
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the innovation of these
young kids saved Israel.
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I wanted to meet some of the kids
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destined for the cyber units of Israel's armed forces.
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After turning 18, most Israelis are obliged
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to serve in the military for 2 to 3 years.
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Many teenagers hope to join Unit 8200,
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the signals intelligence branch, and the largest single
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military unit in the Israeli Defense Forces.
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But they don't actually get to choose where they're drafted.
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In 2013, the Ministry of Defense helped create
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a national program for promising high school students
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aiming to be future cyber warriors.
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There are 10 high schools offering this program
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across the country,
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and Amal Lady Davis High School is one of the them.
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Toby Stupp has been teaching here for the past 10 years.
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- Hello.
- Hi!
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- Nice to meet you.
- Welcome!
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Thank you. Is this Hacking 101?
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Well, actually we're not
really teaching them hacking,
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because we don't want to
emphasize how to steal things
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or how to break into things.
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That's not what we're into.
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- So more defensive stuff?
- It's more defensive.
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Many of the students I spoke to were aiming to get into
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Unit 8200, or Talpiot, an elite program
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with the IDF's research and development arm.
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And it's not just because they want to serve their country.
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What they learn in the military can also set them up for
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a pretty baller career after their service is all done.
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Yair Ben Shimol and Jonatan Wallenstein
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are students in the cyber program.
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Why'd you do this class?
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To benefit us in the army.
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So something like Unit 8200.
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- Hmm?
- Unit 8200.
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Yes, 8200.
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Is that something
that people wanna do?
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I'm aiming more for
like another program.
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It's called Talpiot,
which is pretty much
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the elite of the elite.
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And if you get there,
you're pretty much
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set up for your life.
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Just go to a walk-in place
and say, "I was Talpiot,"
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throwing your money about it.
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- Start making it rain.
- Yeah, making it rain.
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- Everybody wants you.
- Girls, money...
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- Girls, money, cars.
- Cars.
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Sex, drugs, and rock and roll.
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(Laughing)
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I don't know if hackers
are... get all that.
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BEN: With fresh recruits every year and an annual turnover
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of 25%, Unit 8200, the Israeli Military's
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signals intelligence branch, is like a revolving door.
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Many former soldiers come out of the unit
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and head straight for private cyber security companies.
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Well, it's brand new.
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I'm in Tel Aviv to meet with Nadav Zafrir.
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He's a former commander of Unit 8200.
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Today, he's the CEO of Team 8, a multi-million dollar
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private cyber security company in Tel Aviv.
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We are a nation
of entrepreneurs.
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And so the high tech scene
here has been booming
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for many years already.
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We've also been able
to create innovation,
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creativity, and talent creation
through the military service,
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which used to be a burden on
our economy but lately is almost
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becoming a part of the
strength of our economy.
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And you know, it's no
secret you were in Unit 8200.
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'Cause it's funny, we've been
talking to a lot of these kids,
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and they're not wanting
to be Israeli Rambo.
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Like they want to be in
Unit 8200, it's this thing.
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Yeah, 'cause it's almost
a mixture between going to
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an Ivy League university
and doing your internship
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all at once, while you're
serving your country.
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They come with
all their naivety,
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with all their faith
in what they're doing,
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with all their motivation,
and together they create
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something which
is truly exceptional.
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They may come in with naivety and faith,
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but they don't all leave that way.
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In 2014, 43 reserve soldiers wrote an open letter
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to the Israeli prime minister
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criticizing some of Unit 8200's surveillance practices.
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The covert SIGINT unit targets so-called enemies of the state
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outside the country.
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But Palestinians in the occupiedterritories are also surveilled,
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even if they haven't been identified as a threat.
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In their letter, the reservists said
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they refused to take part in actions against Palestinians
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if they were called back to active duty.
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Israel's defense minister denounced them as criminals.
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Gilad, who asked we not use his last name
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and not reveal his face, signed the letter
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and served in the top secret Unit 8200.
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So were there any restrictions
given to operators on
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who they could target
and who they couldn't?
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Part of the letter talks about
the fact that you would use some
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of this intelligence to turn
Palestinians against each other.
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So let's say if you're a
homosexual and you're involved
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with Hamas, and you don't
want that to come out...
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Gilad regrets his role in the surveillance
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of Palestinian civilians.
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But what's it like to be on theother side of that surveillance?
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BEN: The Israeli military is well-known around the world
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for its cyber surveillance capabilities.
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Closer to home, Palestinians are all too aware
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of the country's power.
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Residents of the occupied territories
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may use local telecommunications companies
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like Paltel for their phones and internet,
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but the system relies on Israeli infrastructure.
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Israelis did not
only occupy the land,
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they occupied the sky
also and the air around us.
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Safa Nasser Eldin is a former Minister of Telecommunications
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and IT in the Palestinian Authority,
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which governs the West Bank.
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I met her at a hotel in Jerusalem.
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How do you compare Palestinian
Authority cyber security
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versus Israeli government?
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I don't think that
we can compare it,
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because we are
new to this field.
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We created the
government network in 2010,
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and we took it from Paltel.
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So it was a network of...
a Paltel network where
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parts of it is
leased from Israel.
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00:13:31,711 --> 00:13:35,947
So it was always like open to
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Israeli measures
or any security.
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00:13:38,952 --> 00:13:41,686
So does every average
Palestinian just accept that
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every email, text message,
can or could be intercepted
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00:13:46,326 --> 00:13:48,059
and read by Israeli
intelligence?
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00:13:48,094 --> 00:13:51,963
They don't accept, but
they know that it happens.
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We are occupied, we cannot
do anything about it.
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Since all communications systems in the West Bank
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route through Israel, it's hard for Palestinians
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00:14:03,676 --> 00:14:06,044
to escape Israeli surveillance.
251
00:14:06,079 --> 00:14:09,213
But some people are trying to change that.
252
00:14:09,249 --> 00:14:12,717
I went to Ramallah to meetHanna Kreitem and Samer Shawar.
253
00:14:12,752 --> 00:14:14,786
They're cofounders of a Palestinian hacker space
254
00:14:14,821 --> 00:14:17,088
called Vecbox.
255
00:14:17,123 --> 00:14:18,923
This is a bunker practically.
256
00:14:18,958 --> 00:14:20,892
Yes, a kind of bunker.
257
00:14:20,927 --> 00:14:22,960
Instead of a bunker
it's a hackspace.
258
00:14:22,996 --> 00:14:27,031
What we did, as part of
a project is establishing
259
00:14:27,067 --> 00:14:33,604
an intersection point to allow
exchange of information
260
00:14:33,640 --> 00:14:38,409
to stay local, without
having to go through Israel
261
00:14:38,445 --> 00:14:41,279
and then through
other operators.
262
00:14:41,314 --> 00:14:43,815
So you think that all of
the internet essentially
263
00:14:43,850 --> 00:14:46,651
in the West Bank and Ramallah
is being clearly creeped on?
264
00:14:46,686 --> 00:14:47,985
Yes.
265
00:14:48,021 --> 00:14:49,153
And why... why is that?
266
00:14:49,189 --> 00:14:50,588
Why do you think that?
267
00:14:50,623 --> 00:14:53,357
We have the PA and Israel
both who would like to...
268
00:14:53,393 --> 00:14:55,059
to know what's going on.
269
00:14:55,095 --> 00:15:01,132
And Israel uses the
excuse of security.
270
00:15:01,167 --> 00:15:04,502
So you also said that it's not
just the Israelis spying on you,
271
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it's the PA.
272
00:15:06,172 --> 00:15:10,875
We... We have some
concerns about that,
273
00:15:10,910 --> 00:15:12,810
and we think that they do, yes.
274
00:15:14,714 --> 00:15:16,280
So it might not be just the Israelis
275
00:15:16,316 --> 00:15:18,349
who are monitoring Palestinians.
276
00:15:18,384 --> 00:15:20,318
Many believe the Palestinian Authority
277
00:15:20,353 --> 00:15:23,521
also uses Israeli technology to keep an eye on its population.
278
00:15:25,225 --> 00:15:27,725
But when it comes to cyber security, Israel's influence
279
00:15:27,760 --> 00:15:30,995
extends well beyond the territory it occupies.
280
00:15:31,030 --> 00:15:33,698
In 2015, its cyber security exports
281
00:15:33,733 --> 00:15:37,001
totalled around $4 billion.
282
00:15:37,036 --> 00:15:38,669
But what does all this cyber success mean
283
00:15:38,705 --> 00:15:40,838
for Israel's economy?
284
00:15:40,874 --> 00:15:43,875
I'm in Tel Aviv for CyberTech.
285
00:15:43,910 --> 00:15:46,043
It's an annual conference serving as a showcase
286
00:15:46,079 --> 00:15:48,846
for Israel's cyber security companies.
287
00:15:48,882 --> 00:15:51,883
Israel's overall economy is one of the strongest in
288
00:15:51,918 --> 00:15:55,753
the Middle East, and the cyber security sector is booming.
289
00:15:55,788 --> 00:15:58,589
And some consider the IDF's Unit 8200 to be
290
00:15:58,625 --> 00:16:01,526
Israel's internal R&D hub.
291
00:16:01,561 --> 00:16:05,096
Consider this: its alumni are said to have founded
292
00:16:05,131 --> 00:16:07,932
more than a thousand companies.
293
00:16:07,967 --> 00:16:10,268
I stopped at a booth where a tech company called Cyberbit
294
00:16:10,303 --> 00:16:12,837
was selling its battle-tested products,
295
00:16:12,872 --> 00:16:15,540
which are used for both security and surveillance.
296
00:16:15,575 --> 00:16:17,508
(Chattering)
297
00:16:17,544 --> 00:16:19,377
And its key technology was developed by veterans
298
00:16:19,412 --> 00:16:22,079
of Unit 8200.
299
00:16:22,115 --> 00:16:24,048
Adi Dar is the CEO of Cyberbit.
300
00:16:25,818 --> 00:16:27,785
Who are you selling
to internationally?
301
00:16:27,820 --> 00:16:31,355
We are selling in North
America, we are selling in Asia,
302
00:16:31,391 --> 00:16:35,092
we are selling in Europe a lot,
and of course in Israel.
303
00:16:35,128 --> 00:16:37,695
I can say that basically
we have customers from
304
00:16:37,730 --> 00:16:40,431
all the different sectors:
financial sector, utilities,
305
00:16:40,466 --> 00:16:43,534
health care,
governments of course...
306
00:16:43,570 --> 00:16:45,136
So law enforcement as well?
307
00:16:45,171 --> 00:16:46,571
Yeah, of course, of course.
308
00:16:46,606 --> 00:16:50,741
Law enforcement is one
significant part of what we do.
309
00:16:50,777 --> 00:16:53,711
Cyberbit sells a product called PSS,
310
00:16:53,746 --> 00:16:56,948
which stands for PC Surveillance System.
311
00:16:56,983 --> 00:16:59,617
It's a suite of tools that infects computer with malware
312
00:16:59,652 --> 00:17:01,919
in order to gather intelligence.
313
00:17:01,955 --> 00:17:04,255
Why don't you tell me
about the PSS system.
314
00:17:04,290 --> 00:17:06,324
Basically it's the
opposite of what we do in
315
00:17:06,359 --> 00:17:08,392
the cyber security arena, okay?
316
00:17:08,428 --> 00:17:11,729
In the cyber security, we are
trying to find those hackers,
317
00:17:11,764 --> 00:17:15,266
to find those Trojan Horses, and
in the cyber intelligence part
318
00:17:15,301 --> 00:17:20,004
we are using Trojans in
order to collect information.
319
00:17:20,039 --> 00:17:21,906
So offensive and
defensive technologies.
320
00:17:23,176 --> 00:17:26,277
But CyberTech isn't just aplatform for private companies.
321
00:17:26,312 --> 00:17:28,479
The conference is also a place where Israel
322
00:17:28,514 --> 00:17:31,616
and its Prime Minister, Benjamin Netanyahu, can show off
323
00:17:31,651 --> 00:17:34,919
the country's cyber strength to the rest of the world.
324
00:17:34,954 --> 00:17:38,656
One of the first conferences
that we held here,
325
00:17:38,691 --> 00:17:40,925
I said that we intend to be
326
00:17:40,960 --> 00:17:45,529
one of the five leading
cyber powers in the world.
327
00:17:45,565 --> 00:17:49,233
And I think we've achieved
that, but I don't think
328
00:17:49,269 --> 00:17:52,703
we should be #5 or #4,
and I don't think we are.
329
00:17:57,043 --> 00:17:58,576
BEN: Be'er Sheva is at the northern edge
330
00:17:58,611 --> 00:18:00,278
of Israel's Negev desert.
331
00:18:00,313 --> 00:18:02,580
Once a quiet town, it's now a thriving city
332
00:18:02,615 --> 00:18:04,949
at the heart of Israel's cyber boom.
333
00:18:04,984 --> 00:18:07,251
The Prime Minister wants Israel to remain one of the world's
334
00:18:07,287 --> 00:18:10,488
cyber super powers, and that means bringing together
335
00:18:10,523 --> 00:18:13,124
the expertise of academics, the armed forces,
336
00:18:13,159 --> 00:18:15,126
and private business.
337
00:18:15,161 --> 00:18:17,662
That's something the government is investing in.
338
00:18:17,697 --> 00:18:20,164
Soon a new tech park will actually share office space
339
00:18:20,199 --> 00:18:22,533
with units of the Israeli military.
340
00:18:22,568 --> 00:18:24,635
This might be where the next Duqu is created.
341
00:18:26,005 --> 00:18:28,039
Yuval Elovici is the director of
342
00:18:28,074 --> 00:18:32,076
the Cyber Security ResearchCentre at Ben-Gurion University.
343
00:18:32,111 --> 00:18:37,315
And in this lab we have the
people working on malware.
344
00:18:37,350 --> 00:18:38,783
So this is our malware lab.
345
00:18:38,818 --> 00:18:40,351
What kind of malware
are they working on?
346
00:18:40,386 --> 00:18:43,020
Both on mobile and on PC.
347
00:18:43,056 --> 00:18:44,555
So why don't you show me
348
00:18:44,590 --> 00:18:47,224
how you can activate
malware with a laser.
349
00:18:47,260 --> 00:18:52,063
It's our assumption in this type
of attack that there is already
350
00:18:52,098 --> 00:18:55,633
a malware inside the
organization, and the malware
351
00:18:55,668 --> 00:18:59,537
has an access to a scanner
inside the organization.
352
00:18:59,572 --> 00:19:02,039
Now, if the attacker will
communicate with the malware
353
00:19:02,075 --> 00:19:05,843
via the internet,
it may be intercepted
354
00:19:05,878 --> 00:19:08,079
by various different mechanisms.
355
00:19:08,114 --> 00:19:10,715
So here we came up with a
totally different concept,
356
00:19:10,750 --> 00:19:13,250
and the idea was to use a laser.
357
00:19:13,286 --> 00:19:17,988
So now here you can see
we set up the software,
358
00:19:18,024 --> 00:19:20,424
and then we can just
press one button.
359
00:19:20,460 --> 00:19:24,228
The scanner is scanning,
receiving the message.
360
00:19:24,263 --> 00:19:27,431
And you know, even if there
is not a line of sight,
361
00:19:27,467 --> 00:19:28,999
it's no problem.
362
00:19:29,035 --> 00:19:31,669
As you can see,
it's very light to put
363
00:19:31,704 --> 00:19:33,771
all the attack
platform on a drone.
364
00:19:33,806 --> 00:19:34,905
That's crazy.
365
00:19:34,941 --> 00:19:36,540
(Laughing)
366
00:19:36,576 --> 00:19:39,944
Israel's a small country,
and yet it's connected to
367
00:19:39,979 --> 00:19:43,180
some of the most
sophisticated malware ever.
368
00:19:43,216 --> 00:19:46,884
We are really, really
threatened by other countries,
369
00:19:46,919 --> 00:19:50,688
and we need to find innovative
ways how to defend ourselves.
370
00:19:50,723 --> 00:19:54,291
And you know, for me, sometimes
I am very, very frustrated
371
00:19:54,327 --> 00:19:56,794
when I know that somebody
is waking up in the morning,
372
00:19:56,829 --> 00:20:00,164
and his main goal in life is
just to try to damage us.
373
00:20:00,199 --> 00:20:03,801
We are very, very lucky that
cyber help us to be secured.
374
00:20:05,571 --> 00:20:07,605
Israel's success in cyber security comes out of
375
00:20:07,640 --> 00:20:10,107
the collaboration between the school system,
376
00:20:10,143 --> 00:20:12,910
the military, and the private sector.
377
00:20:12,945 --> 00:20:17,081
The Israeli dream in old times
was to be a general in the army.
378
00:20:17,116 --> 00:20:21,452
The dream today, the Israeli
dream of every Jewish mother
379
00:20:21,487 --> 00:20:26,056
is for her son not to be a
pilot, not to be a physician,
380
00:20:26,092 --> 00:20:30,728
but to go to 8200, serve
for few years, then retire,
381
00:20:30,763 --> 00:20:33,998
open a start-up,
and then sell it
382
00:20:34,033 --> 00:20:35,900
for hundreds of
millions of dollars.
383
00:20:35,935 --> 00:20:37,768
But not all Israelis are comfortable with the role that
384
00:20:37,804 --> 00:20:40,304
Unit 8200 is playing in Israel's economy.
385
00:21:08,334 --> 00:21:10,434
And it's not just a domestic issue.
386
00:21:10,470 --> 00:21:13,637
Israel's reported surveillance of the Iranian nuclear talks
387
00:21:13,673 --> 00:21:16,273
was also a thorn in the side of American officials.
388
00:21:16,309 --> 00:21:19,777
And the irony is of course
that the US helped the Israelis
389
00:21:19,812 --> 00:21:23,647
develop the capability of spying
on the Iranians the way they do.
390
00:21:23,683 --> 00:21:27,384
So for some people within the US
intelligence agency, this was
391
00:21:27,420 --> 00:21:32,223
not a happy moment when they
realized or they concluded
392
00:21:32,258 --> 00:21:36,694
that the Israelis were using
American capability to spy on
393
00:21:36,729 --> 00:21:39,663
American negotiations and
diplomacy with the Iranians.
394
00:21:39,699 --> 00:21:44,168
And while they have this healthy
respect for the Israelis,
395
00:21:44,203 --> 00:21:46,971
you know, for a foreign
government to be doing that
396
00:21:47,006 --> 00:21:49,740
was for the Americans
a bridge too far.
397
00:21:51,844 --> 00:21:54,745
The economic perks of Israel's cyber security expertise
398
00:21:54,780 --> 00:21:57,348
are obvious across the country.
399
00:21:57,383 --> 00:21:59,183
But those capabilities are designed to support
400
00:21:59,218 --> 00:22:02,086
a very unique security agenda.
401
00:22:02,121 --> 00:22:04,822
An agenda that can includespying on everyone from friends
402
00:22:04,857 --> 00:22:07,491
and allies to even innocent and vulnerable civilians.
403
00:22:09,729 --> 00:22:18,736
♪
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