In battle against cyberattacks, these hackers wear the 'white hats'

The Seattle TimesMay 2, 2013 

He's 26, likes industrial and electronic music, has a bleached-blond Mohawk haircut and sometimes, Mikhail Davidov said, he starts his day "at the crack of noon."

The late hours are in front of a computer, working on reverse engineering, tearing apart computer programs to find their vulnerabilities.

Sometimes he works 18 hours straight. "There are few hackers out there who are 'morning people,' " Davidov said.

These days, the front lines for security don't only include soldiers carrying weapons.

They include computer whiz kids like Davidov, who works for the Leviathan Security Group, a 20-person firm that operates out of second-floor offices in a renovated 1918 building in Seattle.

Chad Thunberg, chief operating officer of Leviathan, said he can relate to Davidov, remembering his own younger days.

Thunberg, who is 35 and married with two children, said, "I'm considered a grandpa in my industry. There was a time when I was the Mikhail equivalent. You live and breathe security."

Cyberattacks are costing corporations -- and consumers -- a lot. In a six-year span starting in 2005, data breaches in 33 countries, including the U.S., cost the firms involved more than $156 billion, according to the nonprofit Digital Forensics Association.

Every second, in various parts of the world, there are 18 cybercrime victims -- some 1.6 million a day -- according to a 2012 Norton by Symantec study.

On Friday, the Wenatchee World newspaper reported that a Leavenworth, Wash., hospital said hackers stole more than $1 million from the hospital's electronic bank account. The Chelan County, Wash., treasurer said it had been able to retrieve about $133,000 by notifying recipient bank accounts, most in the Midwest and East Coast.

And the Associated Press reported that LivingSocial, an online deals site, said Friday that its website was hacked and the personal data of more than 50 million customers may have been affected -- names, email addresses, date of birth of some users and

encrypted passwords.

Then there are the Chinese hackers, who blasted into the news in February when Mandiant, an Internet security firm, released a report saying that a group linked to the People's Liberation Army had systemically stolen confidential data from at least 141 American firms.

In his State of the Union address, President Barack Obama warned, "Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions and our air traffic control systems."

That makes Internet security a booming industry, at an estimated nearly $1 billion a year in 2012, according to the consulting firm Frost & Sullivan.

For the white hats, their unique skill at finding where a program is vulnerable and how to close the digital doors that the black hats use to penetrate a website is worth $120,000 to $130,000 a year, Thunberg said.

"Companies are being attacked by bad people, and if they want to defend themselves, they have to attract these scarce people," he said. "There are maybe 1,000 individuals of this nature in the world. They have this unique hacker mind-set."

Their clients aren't exactly keen to publicize that they seek Internet security, said Thunberg, and that's often written into their contracts with Leviathan. Thunberg said his company's average contract size is for around $70,000. Citing privacy, he said only that most are Fortune 1000 companies.

But one client that didn't mind talking is a Washington, D.C.-based company called Silent Circle. For $20 a month, it offers a service that encrypts voice, text and video on a user's smartphone, tablet or computer.

Their customers, said Jon Callas, Silent Circle's chief technical officer, include U.S. businesses "doing work in China and Eastern Europe and other places where they don't want their phone calls tapped."

His company, Callas said, hired Leviathan to evaluate the encrypting software for vulnerabilities and fix them.

"They helped us find problems before anybody else did," said Callas.

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