China spends massively on cyberspying, US Congress told

Mar 20, 2013 by Rob Lever
A man walks past a building alleged, in a report on February 19, 2013 by the Internet security firm Mandiant, to be the base of a Chinese military-led hacking group in Shanghai. China is pouring massive amounts of money and resources into cyberattacks aimed at stealing business secrets, security researchers have told a congressional panel.

China is pouring massive amounts of money and resources into cyberattacks aimed at stealing business secrets, security researchers told a congressional panel.

Cyberattacks purported to come from China, a topic which has drawn the attention of US President and other top officials, are part of "an extensive effort to pilfer intellectual property," said Kevin Mandia, head of the Mandiant.

"It's been supported monetarily," said Mandia, whose firm released a report earlier this year linking the People's Liberation Army to a long-running cyber campaign.

"It would take thousands of people, thousands of systems... the mere infrastructure alone, and the time, and duration and scope of this effort to steal our secrets has gone on for so long that there's a large amount of investment in it."

Mandia told a hearing of the Senate Armed Services Committee that "based on that investment, it's hard to conclude anything other than that there's an advantage being gained from that investment."

Richard Bejtlich, Mandiant's chief security officer, said the army unit identified in the report is "just one element of a large campaign."

Graphic showing reported attacks by an alleged Chinese government-backed cyber espionage group dubbed APT1, according to a report by US security firm Mandiant.

"There are other teams working in other cities in other parts of the country that, in some cases, target other areas of the economy," he added.

Based on the firm's investigation, "We can say with confidence that they're Chinese units... I would say they're at least government sanctioned. We can't say for sure these other units, whether they are uniform-wearing military or if they're contractors or if they're outsourced third parties."

Mandia said the methods of the attacks suggest clear economic goals.

"These attacks are against companies," he said. "They're not against individuals at the highest levels. It's to steal corporate secrets; it's not individual secrets, necessarily."

He added that most of the attacks are carried out by luring people to open infected emails which allow outsiders access to networks.

"But they are not targeting an individual at home. And it's very clear to us after responding to Chinese intrusions for nearly 15 years now in my career, the attacks do follow a rule of engagement," he said.

"I've never witnessed Chinese intruders—other than breach the confidentiality of your documents, I've never seen them change things."

Obama earlier this month pledged "some pretty tough talk" with China and added that "we've made it very clear to China and some other state actors that, you know, we expect them to follow international norms and abide by international rules."

China has consistently denied the charges, and also claimed that it was a victim of such attacks.

In its report, alleged that APT1—known also as "Comment Crew" for its practice of planting viruses on the comment sections of websites—has stolen hundreds of terabytes of data from at least 141 organizations spanning 20 industries.

Explore further: US, China trade charges on cyberattacks

add to favorites email to friend print save as pdf

Related Stories

US, China trade charges on cyberattacks

Feb 19, 2013

The United States and China on Tuesday traded charges over cyberattacks after a security firm alleged that Beijing controled hackers who have penetrated the US government, companies and media.

China's PLA controls hackers: US IT security firm

Feb 19, 2013

China's army controls hundreds if not thousands of virulent and cutting-edge hackers, according to a report Tuesday by a US Internet security firm that traced a host of cyberattacks to an anonymous building ...

Recommended for you

Kim Dotcom slams Megaupload 'data massacre'

10 hours ago

Megaupload founder Kim Dotcom Thursday condemned a Dutch company's decision to delete million of files belonging to users of his defunct website, calling it "the largest data massacre in the history of the ...

States scramble to attract suddenly hot cybersecurity firms

18 hours ago

As data dragnets and information breaches dominate the news, states are scrambling to cash in on a rapidly expanding business sector by offering tax incentives to firms that protect sensitive information from outside attacks.

A year on, Assange stays put in Ecuadorean Embassy

Jun 19, 2013

A year ago, Julian Assange skipped out on a date with Swedish justice. Rather than comply with a British order that he go to the Scandinavian country for questioning about sex crimes allegations, the WikiLeaks ...

Google asks US secret court to lift gag order (Update)

Jun 18, 2013

Google on Tuesday sharply challenged the U.S. government's gag order on its Internet surveillance program, citing what it described as a constitutional free speech right to divulge how many requests it receives ...

User comments : 0

More news stories

Sony chief says time needed to study proposal

Sony Corp. needs more time to study a key proposal from a U.S. hedge fund to spin off a part of its entertainment unit as a way to propel its fledgling revival, the chief executive told shareholders Thursday.

Multiview 3-D photography made simple

Computational photography is the use of clever light-gathering tricks and sophisticated algorithms to extract more information from the visual environment than traditional cameras can.

Tech companies eye security that goes beyond passwords

In late February, a thief or thieves cracked into Evernote's digital vault filled with log-ins, passwords and email addresses belonging to 50 million users. It was a shocking cyberattack considering the Redwood City, Calif., ...

Panic over MERS virus fades in Saudi

People in Saudi Arabia's Eastern Province have again started greeting friends with the traditional kiss on the cheek, and face masks in public are becoming rarer, as panic subsides over the outbreak of a deadly respiratory ...

Philippines financial capital bans plastic bags

The Philippines financial capital banned disposable plastic shopping bags and styrofoam food containers on Thursday, as part of escalating efforts across the nation's capital to curb rubbish that exacerbates ...

Singapore haze at worst yet, Malaysia schools shut

Singapore urged people to remain indoors amid unprecedented levels of air pollution Thursday as a smoky haze wrought by forest fires in neighboring Indonesia worsened dramatically. Nearby Malaysia closed ...

French firemen test hypnosis to help victims

"Look me straight in the eye. Your mind is emptying, your body is relaxing," says the fireman, using the calming words of hypnosis to help a trauma victim—a technique being pioneered by fire crews in the eastern French ...