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How China Became America's Top Cyber ​​Threat

2021-07-22T07:23:58.120Z


In the past decade, China reorganized its hacking operations, becoming a sophisticated and mature adversary.


Nicole perlroth

07/20/2021 10:51

  • Clarín.com

  • The New York Times International Weekly

Updated 07/20/2021 10:51 AM

Nearly a decade ago, the United States began naming and exposing China for an onslaught of online espionage, most of which was carried out via

low-level

phishing emails

against US companies for theft of data. intellectual property.

On Monday, the United States again accused China of cyberattacks.

But these attacks were very aggressive and reveal that China has become a

far more sophisticated and mature digital adversary

than the one that puzzled US officials a decade ago.

Anne Neuberger, deputy national security adviser for cyber and emerging technology, formally indicted the Chinese government.

Photo Pete Marovich / The New York Times.

The Biden administration's indictment of the cyber attacks, along with interviews with dozens of current and former US officials, show that China has

reorganized

its hacking operations in the intervening years.

Whereas previously it carried out relatively unsophisticated hacks of foreign companies, think tanks and government agencies, China is now perpetrating

stealth and decentralized digital assaults

on American companies and interests around the world.

The attacks that were carried out via poorly worded phishing emails by units of the People's Liberation Army are now carried out by an

elite satellite network

of contractors at front companies and universities working under the direction of the

Ministry of Defense.

China's

State Security

, according to US officials and the indictment.

While

phishing

attacks

continue, spy campaigns have gone underground and employ sophisticated techniques.

These include the exploitation of "zero days," or unknown security holes, in widely used programs such as

Microsoft's Exchange

email service

and

Pulse VPN

security appliances

,

which are harder to defend and allow hackers Chinese operate undetected for longer.

"What we've seen in the last two or three years is a level rise" from China, said

George Kurtz,

CEO of cybersecurity company

CrowdStrike

.

"What we've seen in the last two or three years is a level up" from China, said George Kurtz, CEO of CrowdStrike.

Photo Mike Blake / Reuters

"They operate more like a professional intelligence service than the

smash and grab

operators

we have seen in the past."

China has long been one of the biggest digital threats to the United States.

In a 2009 classified National Intelligence Estimate, a document representing the consensus of all

16

US

intelligence agencies

, China and Russia topped the list of US online adversaries.

However, China was considered to be the

most immediate

threat

due to the volume of its robberies in industrial trade.

But that threat is even more worrisome now due to China's renewed hacking operations.

Additionally, the Biden administration has turned cyber attacks - including ransomware attacks - into a major

diplomatic front

with superpowers like Russia, and the United States' relations with China have steadily deteriorated over issues such as

trade and technological supremacy.

China's role in hacking first came to the fore in 2010 with the attacks on

Google

and the security company

RSA

, and again in 2013 with the hack of

The New York Times.

Those violations and thousands more prompted the Obama administration to target hackers from the Chinese People's Liberation Army in a series of indus- trial theft indictments in 2014.

A single unit of the Shanghai-based People's Liberation Army, known as

Unit 61398

, was responsible for hundreds - some estimate thousands - of breaches of US companies, the Times reported.

In 2015, Obama officials threatened to greet President

Xi Jinping

of China with a

sanctions

announcement

on his first visit to the White House, after a particularly aggressive breach of the US Office of Personnel Management.

In that attack, Chinese hackers seized

sensitive personal information

, including more than 20 million

fingerprints

, from Americans who had been granted a security clearance.

It didn't take long for White House officials to reach an agreement for China to stop hacking American companies and interests for the benefit of its industry.

During the 18 months of the Obama administration, security researchers and intelligence officials saw a

notable decline

in Chinese hacking.

After President

Donald Trump

took office and accelerated trade conflicts and other tensions with China, the hacking resumed.

In 2018, US intelligence officials had noticed a change:

Hackers from the People's Liberation Army had withdrawn and been replaced by operatives working at the behest of the

Ministry of State Security

, which handles China's intelligence, security and secret police.

The intellectual property hacks, which benefited China's economic plans, did not come from the PLA, but from a

more flexible

network

of front companies and contractors, including engineers working for some of the main technology companies in the country. country, according to intelligence officials and investigators.

It was unclear how exactly China was working with these loosely affiliated hackers.

Some cybersecurity experts speculated that engineers received cash to moonlight for the state, while others said that network members

had no choice but

to do what the state asked of them.

In 2013, a classified memo from the United States National Security Agency read:

"The exact affiliation with Chinese government entities is unknown, but their activities indicate a likely feeding of intelligence requirements from the Chinese Ministry of State Security."

On Monday, the White House provided more clarity.

In its detailed indictment, the United States accused China's Ministry of State Security of being behind an

aggressive assault

on

Microsoft's Exchange

email systems

this year.

The Justice Department separately accused

four Chinese nationals

of coordinating the hacking of trade secrets of companies in

aviation, defense, biopharmacy and other sectors.

According to the allegations, Chinese citizens operated from front companies, such as

Hainan Xiandun

, which the Ministry of State Security created to give Chinese intelligence agencies a plausible denial.

The indictment included a photo of one of the defendants, Ding Xiaoyang, an employee of Hainan Xiandun, receiving an

award

in 2018 from the Ministry of State Security for his work overseeing hacks by the front company.

The United States also accused Chinese universities of playing a pivotal role, recruiting students for front companies and running their key business operations, such as payroll.

The indictment also singled out Chinese hackers "affiliated with the government" for carrying out ransomware attacks that extort millions of dollars from companies.

Until now, the attention of ransomware attackers had mostly fallen on Russia, Eastern Europe, and North Korea.

Secretary of State

Antony Blinken

said in a statement Monday that China's Ministry of State Security "has fostered an ecosystem of paid criminal hackers who carry out both state-sponsored activities and cybercrime for their own financial gain."

China has also cracked down on research into widely used hardware and software vulnerabilities, which could benefit state surveillance, counterintelligence and cyber espionage campaigns.

Last week, it announced a new policy requiring Chinese security investigators to notify the state within two days when they find security holes, such as the "

zero days

" the country relied on to breach

security

systems. Microsoft Exchange.

The policy is the culmination of Beijing's five-year campaign to seize its own zero days.

In 2016, authorities abruptly shut down China's best-known private platform that reports on "zero days" and arrested its founder.

Two years later, the Chinese police announced that they would begin enforcing laws prohibiting "unauthorized disclosure" of

vulnerabilities.

That same year, Chinese hackers, who were a regular presence at large Western hacking conventions, stopped attending, by order of the state.

"If they continue to maintain this level of access, with the control that they have, their intelligence community is going to benefit," Kurtz said of China.

"It is an

arms race

in cyberspace."

c.2021 The New York Times Company

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Source: clarin

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