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."



China’s Foreign Minister Warns Philippines over US Missile Deployment

 China's Foreign Minister Wang Yi attends the 14th EAST Asia Summit Foreign Ministers' Meeting in the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos July 27, 2024. (Reuters)
China's Foreign Minister Wang Yi attends the 14th EAST Asia Summit Foreign Ministers' Meeting in the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos July 27, 2024. (Reuters)
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China’s Foreign Minister Warns Philippines over US Missile Deployment

 China's Foreign Minister Wang Yi attends the 14th EAST Asia Summit Foreign Ministers' Meeting in the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos July 27, 2024. (Reuters)
China's Foreign Minister Wang Yi attends the 14th EAST Asia Summit Foreign Ministers' Meeting in the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos July 27, 2024. (Reuters)

Chinese Foreign Minister Wang Yi has warned the Philippines over the US intermediate-range missile deployment, saying such a move could fuel regional tensions and spark an arms race.

The United States deployed its Typhon missile system to the Philippines as part of joint military drills earlier this year. It was not fired during the exercises, a Philippine military official later said, without giving details on how long it would stay in the country.

China-Philippines relations are now at a crossroads and dialogue and consultation are the right way, Wang told the Philippine Foreign Secretary Enrique Manalo on Friday during a meeting in Vientiane, the capital of Laos where top diplomats of world powers have gathered ahead of two summits.

Wang said relations between the countries are facing challenges because the Philippines has "repeatedly violated the consensus of both sides and its own commitments", according to a Chinese foreign ministry statement.

"If the Philippines introduces the US intermediate-range missile system, it will create tension and confrontation in the region and trigger an arms race, which is completely not in line with the interests and wishes of the Filipino people," Wang said.

The Philippines' military and its foreign ministry did not immediately respond to requests for comment on Wang's remarks.

China and the Philippines are locked in a confrontation in the South China Sea and their encounters have grown more tense as Beijing presses its claims to disputed shoals in waters within Manila's its exclusive economic zone.

Wang said China has recently reached a temporary arrangement with the Philippines on the transportation and replenishment of humanitarian supplies to Ren'ai Jiao in order to maintain the stability of the maritime situation, referring to the Second Thomas Shoal.

Philippine vessels on Saturday successfully completed their latest mission to the shoal unimpeded, its foreign ministry said in a statement.