Accusations of state-sanctioned hacking took center stage this past week
following a detailed report by a U.S.-based Internet security firm Mandiant. It
added to growing suspicions that the Chinese military is not only stealing
national defense secrets and harassing dissidents but also pilfering information
from foreign companies that could be worth millions or even billions of dollars.
Experts say Chinese hacking attacks are characterized not only by their
brazenness, but by their persistence. "China conducts at least an order of
magnitude more than the next country," said Martin Libicki, a specialist on
cyber warfare at the Rand Corporation, based in Santa Monica, California. The
fact that hackers take weekends off suggests they are paid, and that would belie
"the notion that the hackers are private," he said. Libicki and other cyber
warfare experts have long noted a Monday-through-Friday pattern in the intensity
of attacks believed to come from Chinese sources, though there has been little
evidence released publicly directly linking the Chinese military to the attacks.
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Mandiant went a step further in its report Tuesday saying that it had traced
hacking activities against 141 foreign entities in the U.S. Canada, Britain and
elsewhere to a group of operators known as the "Comment Crew" or "APT1," for
"Advanced Persistent Threat 1," which it traced back to the People's Liberation
Army Unit 61398. The unit is headquartered in a nondescript 12-story building
inside a military compound in a crowded suburb of China's financial hub of
Shanghai. Attackers stole information about pricing, contract negotiations,
manufacturing, product testing and corporate acquisitions, the company said.
Hacker teams regularly began work, for the most part, at 8 a.m. Beijing time.
Usually they continued for a standard workday, but sometimes the hacking
persisted until midnight. Occasionally, the attacks stopped for two-week
periods, Mandiant said, though the reason was not clear. China denies any
official involvement, calling such accusations "groundless" and insisting that
Beijing is itself a major victim of hacking attacks, the largest number of which
originate in the U.S. While not denying hacking attacks originated in China,
Foreign Ministry spokesman Hong Lei said Thursday that it was flat out wrong to
accuse the Chinese government or military of being behind them. Mandiant and
other experts believe Unit 61398 to be a branch of the PLA General Staff's Third
Department responsible for collection and analysis of electronic signals such as
emails and phone calls. It and the Fourth Department, responsible for electronic
warfare, are believed to be the PLA units mainly responsible for infiltrating
and manipulating computer networks. China acknowledges pursuing these
strategies as a key to delivering an initial blow to an opponent's
communications and other infrastructure during wartime -- but the techniques are
often the same as those used to steal information for commercial use. China
has consistently denied state-sponsored hacking, but experts say the office
hours that the cyberspies keep point to a professional army rather than mere
hobbyists or so-called hacktivists inspired by patriotic passions. Mandiant
noticed that pattern while monitoring attacks on the New York Times last year
blamed on another Chinese hacking group it labeled APT12. Hacker activity began
at around 8:00 a.m. Beijing time and usually lasted through a standard workday.
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The Rand Corporation's Libicki said he wasn't aware of any comprehensive
studies, but that in such cases, most activity between malware embedded in a
compromised system and the malware's controllers takes place during business
hours in Beijing's time zone. Richard Forno, director of the University of
Maryland Baltimore County's graduate cybersecurity program, and David Clemente,
a cybersecurity expert with independent analysis center Chatham House in London,
said that observation has been widely noted among cybersecurity specialists.
"It would reflect the idea that this is becoming a more routine activity and
that they are quite methodical," Clemente said.
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The PLA's Third Department is brimming with resources, according to
studies commissioned by the U.S. government, with 12 operation
bureaus, three research institutes, and an estimated 13,000
linguists, technicians and researchers on staff. It's further
reinforced by technical teams from China's seven military regions
spread across the country, and by the military's vast academic
resources, especially the PLA University of Information Engineering
and the Academy of Military Sciences.
The PLA is believed to have made cyber warfare a key priority in its
war-fighting capabilities more than a decade ago. Among the few
public announcements of its development came in a May 25, 2011 news
conference by Defense Ministry spokesman Geng Yansheng, in which he
spoke of developing China's "online" army.
"Currently, China's network protection is comparatively weak," Geng
told reporters, adding that enhancing information technology and
"strengthening network security protection are important components
of military training for an army."
Unit 61398 is considered just one of many such units under the Third
Department responsible for hacking, according to experts.
Greg Walton, a cyber-security researcher who has tracked Chinese
hacking campaigns, said he's observed the "Comment Crew" at work,
but cites as equally active another Third Department unit operating
out of the southwestern city of Chengdu. It is tasked with stealing
secrets from Indian government security agencies and think tanks,
together with the India-based Tibetan Government in Exile, Walton
said.
Another hacking outfit believed by some to have PLA links, the "Elderwood
Group," has targeted defense contractors, human rights groups,
non-governmental organizations, and service providers, according to
computer security company Symantec.
It's believed to have compromised Amnesty International's Hong Kong
website in May 2012, although other attacks have gone after targets
as diverse as the Council on Foreign Relations and Capstone Turbine
Corporation, which makes gas microturbines for power plants.
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Civilian departments believed to be involved in hacking include
those under the Ministry of Public Security, which commands the
police, and the Ministry of State Security, one of the leading
clandestine intelligence agencies. The MSS is especially suspected
in attacks on foreign academics studying Chinese social issues and
unrest in the western regions of Tibet and Xinjiang.
Below them on the hacking hierarchy are private actors, including
civilian universities and research institutes, state industries in
key sectors such as information technology and resources, and
college students and other individuals acting alone or in groups,
according to analysts, University of Maryland's Forno said.
China's government isn't alone in being accused of cyber espionage,
but observers say it has outpaced its rivals in using military
assets to steal commercial secrets.
"Stealing secrets is stealing secrets regardless of the medium,"
Forno said. "The key difference is that you can't easily arrest such
electronic thieves since they're most likely not even in the
country, which differs from how the game was played during the Cold
War."
[Associated
Press; By CHRISTOPHER BODEEN]
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