Microsoft: Chinese Hackers Breached US Govt Email Accounts

FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Microsoft: Chinese Hackers Breached US Govt Email Accounts

FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Chinese-based hackers seeking intelligence information breached the email accounts of a number of US government agencies, computer giant Microsoft said.

"The threat actor Microsoft links to this incident is an adversary based in China that Microsoft calls Storm-0558," the company said in a blog post late Tuesday.

Microsoft said Storm-0558 gained access to email accounts at approximately 25 organizations including government agencies, AFP said.

Microsoft did not identify the targets but a US State Department spokesperson said the department had "detected anomalous activity" and had taken "immediate steps to secure our systems."

"As a matter of cybersecurity policy, we do not discuss details of our response and the incident remains under investigation," the spokesperson said.

According to The Washington Post, the breached email accounts were unclassified and "Pentagon, intelligence community and military email accounts did not appear to be affected."

But the paper reported Wednesday evening, quoting US officials, that State Department email accounts and that of Commerce Secretary Gina Raimondo were hacked. Raimondo's agency has angered China by imposing tough export controls on Chinese technologies.

CNN, citing sources familiar with the investigation, said the Chinese hackers targeted a small number of federal agencies and the email accounts of specific officials at each agency.

In the blog post, Charlie Bell, a Microsoft executive vice president, said "we assess this adversary is focused on espionage, such as gaining access to email systems for intelligence collection.

"This type of espionage-motivated adversary seeks to abuse credentials and gain access to data residing in sensitive systems," Bell said.

US National Security Adviser Jake Sullivan addressed the hack in an appearance on Wednesday on ABC's Good Morning America, and said it had been detected "fairly rapidly."

"We were able to prevent further breaches," Sullivan said.

"The matter is still being investigated, so I have to leave it there because we're gathering further information in consultation with Microsoft and we will continue to apprise the public as we learn more," Sullivan said.

Espionage and data theft
Microsoft said Storm-0558 "primarily targets government agencies in Western Europe and focuses on espionage, data theft, and credential access."

The Redmond, Washington-based company said it had launched an investigation into "anomalous mail activity" on June 16.

"Over the next few weeks, our investigation revealed that beginning on May 15, 2023, Storm-0558 gained access to email accounts affecting approximately 25 organizations including government agencies as well as related consumer accounts.

"They did this by using forged authentication tokens to access user email using an acquired Microsoft account consumer signing key," the company said. "Microsoft has completed mitigation of this attack for all customers."

US Senator Mark Warner, chairman of the Senate Select Committee on Intelligence, said the panel is "closely monitoring what appears to be a significant cybersecurity breach by Chinese intelligence."

"It's clear that the PRC is steadily improving its cyber collection capabilities directed against the US and our allies," Warner said in a statement.

Disclosure of the Chinese hacking comes on the heels of trips to China by US Secretary of State Antony Blinken and Treasury Secretary Janet Yellen and the shooting down by the United States of a Chinese surveillance balloon.

In May, Microsoft said state-sponsored Chinese hackers called "Volt Typhoon" had infiltrated critical US infrastructure networks.

Microsoft highlighted Guam, a US territory in the Pacific Ocean with a vital military outpost, as one of the targets in that attack, but said "malicious" activity had also been detected elsewhere in the United States.

"Microsoft assesses with moderate confidence that this Volt Typhoon campaign is pursuing development of capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises," the company said at the time.

Microsoft's May statement coincided with an advisory released by US, Australian, Canadian, New Zealand and British authorities warning that the hacking was likely occurring globally.

China denied the allegations, describing the Microsoft report as "extremely unprofessional" and "scissors-and-paste work."

"It is clear that this is a collective disinformation campaign of the Five Eyes coalition countries, initiated by the US for its geopolitical purposes," foreign ministry spokeswoman Mao Ning said, referring to the security alliance of the United States and its Western allies that wrote the report.



China Smartphone Sales Drop 13% During 618 Festival as Memory Costs Limit Discounts

A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. (Reuters)
A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. (Reuters)
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China Smartphone Sales Drop 13% During 618 Festival as Memory Costs Limit Discounts

A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. (Reuters)
A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. (Reuters)

Smartphone sales in China fell 13% year-on-year during the month-long 618 shopping festival, as brands raised prices to offset higher memory costs, according to data from Counterpoint Research.

Sales declined from May 26 to June 21, with all major Chinese brands except Huawei posting double-digit drops as fewer promotions compared to last year weighed on demand. Honor sales dropped 33%, while Xiaomi's fell 24%.

Higher memory prices amid a rapid ‌build-out of ‌AI infrastructure have pushed up handset costs this year, leaving brands ‌with ⁠less room to ⁠offer steep discounts during the 618 festival, seen as a barometer for the country's booming e-commerce sector.

"Some older and newer models from Chinese smartphone brands were priced higher than comparable models a year earlier, while discounts during this year's 618 festival were generally less aggressive, both in terms of the size of price cuts and the range of products covered," said Ivan Lam, senior analyst at Counterpoint Research.

"Apple's prices ⁠were broadly unchanged, but its discounts were also smaller."

Huawei Technologies ‌led the market with a 21% share, ‌and was the only major brand to record year-on-year growth during the 618 period, with ‌sales rising 19%.

Its Enjoy 90 Pro Max was its best-selling model. ‌The Mate 80 also performed well, supported by promotions.

Apple's sales fell 9% from a year earlier, although the US tech giant climbed to the No. 2 spot after rolling out incentives about a month ahead of June 18.

The discounts offered savings of up ‌to 2,000 yuan ($295) on the iPhone 17 Pro series through a mix of official price cuts, platform subsidies and trade-in ⁠deals.

Still, Apple's sales ⁠remained lower than a year earlier, partly because promotions for the iPhone 16 series were more aggressive during the same period last year.

The 618 festival, which began as a one-day event marking JD.com's founding on June 18, 1998, has since grown into a month-long sales campaign, with major e-commerce platforms competing for consumer spending.

In recent years, however, China's biggest shopping festivals have struggled to generate their former buzz, as extended discount periods and weak consumer sentiment have curbed appetite for non-essential spending, even at reduced prices.

Counterpoint said the 618 festival helped smartphone sales recover in June from the previous month. But it added that the market was likely to enter a seasonal slowdown afterward and post a double-digit decline in shipments for the year.


Microsoft Announces 4,800 Job Cuts as it Revamps Xbox

FILED - 30 January 2026, Bavaria, Munich: FILE PHOTO - The Microsoft logo can be seen on the Microsoft Germany headquarters building in Munich. Photo: Sven Hoppe/dpa
FILED - 30 January 2026, Bavaria, Munich: FILE PHOTO - The Microsoft logo can be seen on the Microsoft Germany headquarters building in Munich. Photo: Sven Hoppe/dpa
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Microsoft Announces 4,800 Job Cuts as it Revamps Xbox

FILED - 30 January 2026, Bavaria, Munich: FILE PHOTO - The Microsoft logo can be seen on the Microsoft Germany headquarters building in Munich. Photo: Sven Hoppe/dpa
FILED - 30 January 2026, Bavaria, Munich: FILE PHOTO - The Microsoft logo can be seen on the Microsoft Germany headquarters building in Munich. Photo: Sven Hoppe/dpa

Microsoft said Monday it was eliminating about 4,800 jobs -- roughly two percent of its global workforce -- in a sweeping restructuring concentrated in its Xbox gaming divisions, AFP reported.

The cuts include the deepest overhaul in Xbox's history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said.


UN Chief Warns AI is Developing Faster than Rules Can Keep Up

United Nations Secretary-General Antonio Guterres delivers a statement during a media conference at the EU summit in Brussels, March 19, 2026. (AP)
United Nations Secretary-General Antonio Guterres delivers a statement during a media conference at the EU summit in Brussels, March 19, 2026. (AP)
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UN Chief Warns AI is Developing Faster than Rules Can Keep Up

United Nations Secretary-General Antonio Guterres delivers a statement during a media conference at the EU summit in Brussels, March 19, 2026. (AP)
United Nations Secretary-General Antonio Guterres delivers a statement during a media conference at the EU summit in Brussels, March 19, 2026. (AP)

The United Nations secretary general on Monday warned that AI is developing faster than anyone can keep up, ‌urging the ‌need for ‌globally ⁠harmonized rules to reduce ⁠potential risks - especially to children, Reuters said.

"A technology that can reshape ⁠economies, transform the world ‌of ‌work, sway ‌elections and tilt ‌the balance of security is being deployed faster than ‌anyone – including the people building it – ⁠can ⁠keep up," Antonio Guterres told delegates at the first-ever government-level global dialogue on AI in Geneva.