The Times has a great piece on cyber warfare and the recent attack on Google and other company's servers. Many people suspect the Chinese government was behind these attacks, though no one can prove it, and the whole thing is what caused Google to announce that it would stop censoring search results in China.
The situation is pretty fucking scary. Not only are we generally powerless to stop these attacks and do we have no great options for retaliation or deterrent, but since we can't be sure where these attacks come from, it wouldn't even help much if we did.
The results could be big, obvious nightmare scenarios—electric grid failures, air traffic control shut down—or much smaller, but equally problematic (and harder to spot) things like installations of trojan horses, manipulation of markets, search results, etc. The big systems like military networks and banks are relatively well protected, but as the Times article points out, it's a modern Maginot Line. Run into a hardened network? Go around.
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