There was a big U.S. cyberattack exercise this week. We didn't do so well: In a press release issued today, the Bipartisan Policy Center (BPC) -- which organized "Cyber Shockwave" using a group of former government officials and computer simulations -- concluded the U.S is "unprepared for cyber threats." [...] ...the U.S. defenders had difficulty identifying the source of the simulated attack, which in turn made it difficult to take action. "During the exercise, a server hosting the attack appeared to be based in Russia," said one report. "However, the developer of the malware program was actually in the Sudan. Ultimately, the source of the attack remained unclear during the event." The simulation envisioned an attack that unfolds during a single day in July 2011. When the council convenes to face this crisis, 20 million of the nation's smartphones have already stopped working. The attack -- the result of a malware program that had been planted in phones months earlier through a popular "March Madness" basketball bracket application -- disrupts mobile service for millions. The attack escalates, shutting down an electronic energy trading platform and crippling the power grid on the Eastern seaboard.

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