Chinese Hackers Spying on US Critical Infrastructure, Western Intelligence Says

REUTERS/Kacper Pempel
REUTERS/Kacper Pempel
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Chinese Hackers Spying on US Critical Infrastructure, Western Intelligence Says

REUTERS/Kacper Pempel
REUTERS/Kacper Pempel

A state-sponsored Chinese hacking group has been spying on a wide range of US critical infrastructure organizations, from telecommunications to transportation hubs, Western intelligence agencies and Microsoft said on Wednesday.

The espionage has also targeted the US island territory of Guam, home to strategically important American military bases, Microsoft said in a report, adding that "mitigating this attack could be challenging."

While China and the United States routinely spy on each other, analysts say this is one of the largest known Chinese cyber-espionage campaigns against American critical infrastructure, Reuters said.

The Chinese embassy in Washington did not immediately respond to a Reuters request for comment.

It was not immediately clear how many organizations were affected, but the US National Security Agency (NSA) said it was working with partners including Canada, New Zealand, Australia, and the UK, as well as the US Federal Bureau of Investigation to identify breaches. Canada, UK, Australia and New Zealand warned they could be targeted by the hackers too.

Microsoft analysts said they had "moderate confidence" this Chinese group, which it dubbed as 'Volt Typhoon', was developing capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises.

"It means they are preparing for that possibility," added said John Hultquist, who heads threat analysis at Google's Mandiant Intelligence.

The Chinese activity is unique and worrying also because analysts don't yet have enough visibility on what this group might be capable of, he added.

"There is greater interest in this actor because of the geopolitical situation."

As China has stepped up military and diplomatic pressure in its claim to democratically governed Taiwan, US President Joe Biden has said he would be willing to use force to defend Taiwan.

Security analysts expect Chinese hackers could target US military networks and other critical infrastructure if China invades Taiwan.

The NSA and other Western cyber agencies urged companies that operate critical infrastructure to identify malicious activity using the technical guidance they issued.

"It is vital that operators of critical national infrastructure take action to prevent attackers hiding on their systems," Paul Chichester, director at the UK's National Cyber Security Center said in a joint statement with the NSA.

Microsoft said the Chinese hacking group has been active since at least 2021 and has targeted several industries including communications, manufacturing, utility, transportation, construction, maritime, government, information technology, and education.

NSA cybersecurity director Rob Joyce said the Chinese campaign was using "built-in network tools to evade our defenses and leaving no trace behind." Such techniques are harder to detect as they use "capabilities already built into critical infrastructure environments," he added.

As opposed to using traditional hacking techniques, which often involve tricking a victim into downloading malicious files, Microsoft said this group infects a victim's existing systems to find information and extract data.

Guam is home to US military facilities that would be key to responding to any conflict in the Asia-Pacific region. It is also a major communications hub connecting Asia and Australia to the United States by multiple submarine cables.

Bart Hoggeveen, a senior analyst at the Australian Strategic Policy Institute who specializes in state-sponsored cyber attacks in the region, said the submarine cables made Guam "a logical target for the Chinese government" to seek intelligence.

"There is high vulnerability when cables land on shore," he said.

New Zealand said it would work towards identifying any such malicious cyber activity in its country.

"It's important for the national security of our country that we're transparent and upfront with Australians about the threats that we face," Australia's Minister for Home Affairs and Cyber Security Clare O'Neil said.

Canada's cybersecurity agency said it had no reports of Canadian victims of this hacking as yet. "However, Western economies are deeply interconnected," it added. "Much of our infrastructure is closely integrated and an attack on one can impact the other."



Grossi Wants to Meet with Iran’s Pezeshkian ‘at Earliest Convenience’

International Atomic Energy Agency (IAEA) Director General Rafael Grossi speaks to the media at the Dupont Circle Hotel in Washington, US, March 15, 2023. (Reuters)
International Atomic Energy Agency (IAEA) Director General Rafael Grossi speaks to the media at the Dupont Circle Hotel in Washington, US, March 15, 2023. (Reuters)
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Grossi Wants to Meet with Iran’s Pezeshkian ‘at Earliest Convenience’

International Atomic Energy Agency (IAEA) Director General Rafael Grossi speaks to the media at the Dupont Circle Hotel in Washington, US, March 15, 2023. (Reuters)
International Atomic Energy Agency (IAEA) Director General Rafael Grossi speaks to the media at the Dupont Circle Hotel in Washington, US, March 15, 2023. (Reuters)

Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi announced he intends to visit Tehran through a letter he addressed to Iranian President Masoud Pezeshkian.

Iranian Mehr Agency reported that Grossi sent a congratulatory message to the Iranian president-elect, which stated: “I would like to extend my heartfelt congratulations to you on your election win as President of the Islamic Republic of Iran.”

“Cooperation between the International Atomic Energy Agency and the Islamic Republic of Iran has been at the focal attention of the international circles for many years. I am confident that, together, we will be able to make decisive progress on this crucial matter.”

“To that effect, I wish to express my readiness to travel to Iran to meet with you at the earliest convenience,” Iran’s Mehr news agency quoted Grossi as saying.

The meeting – should it take place - will be the first for Pezeshkian, who had pledged during his election campaign to be open to the West to resolve outstanding issues through dialogue.

Last week, American and Israeli officials told the Axios news site that Washington sent a secret warning to Tehran last month regarding its fears of Iranian research and development activities that might be used to produce nuclear weapons.

In May, Grossi expressed his dissatisfaction with the course of the talks he held over two days in Iran in an effort to resolve outstanding matters.

Since the death of the former Iranian president, Ibrahim Raisi, the IAEA chief refrained from raising the Iranian nuclear file, while European sources said that Tehran had asked to “freeze discussions” until the internal situation was arranged and a new president was elected.