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Dutch Intelligence Warns of Extensive Chinese Cyber-Espionage Campaign


 

The Dutch Military Intelligence and Security Service (MIVD) has issued a warning about the far-reaching consequences of a Chinese cyber-espionage operation disclosed earlier this year. According to the MIVD, the scale of this campaign is "much larger than previously known," impacting numerous systems across multiple sectors. 

In a joint report with the General Intelligence and Security Service (AIVD) released in February, the MIVD described how Chinese hackers exploited a critical vulnerability in FortiOS/FortiProxy (CVE-2022-42475). This remote code execution flaw was used over several months between 2022 and 2023 to deploy malware on susceptible Fortigate network security devices. During this "zero-day" period, about 14,000 devices were compromised. Targets included various Western governments, international organizations, and many companies within the defense industry. 

The malware, identified as the Coathanger remote access trojan (RAT), was detected on a network used by the Dutch Ministry of Defence for research and development (R&D) of unclassified projects. However, network segmentation prevented the attackers from spreading to other systems. The MIVD highlighted that this previously unknown malware strain could persist through system reboots and firmware upgrades. It was used by a Chinese state-sponsored hacking group in a political espionage campaign targeting the Netherlands and its allies. 

This persistent access allowed the state actor to maintain control over compromised systems even after security updates were applied. "The exact number of victims with malware installed is unknown," stated the MIVD. "However, the Dutch intelligence services and the NCSC believe that the state actor could potentially expand its access to hundreds of victims worldwide and engage in further actions such as data theft." Since February, the Dutch military intelligence service discovered that the Chinese threat group had accessed at least 20,000 FortiGate systems globally over a span of a few months in 2022 and 2023, beginning at least two months before Fortinet disclosed the vulnerability. 

The Coathanger malware's ability to intercept system calls to avoid detection and its resilience against firmware upgrades make it particularly difficult to remove. Fortinet disclosed in January 2023 that the CVE-2022-42475 vulnerability was exploited as a zero-day to target government organizations and related entities. The MIVD's findings mirror the characteristics of another Chinese hacking campaign that targeted unpatched SonicWall Secure Mobile Access (SMA) devices with cyber-espionage malware designed to withstand firmware updates. 

The revelations from Dutch intelligence underscore the increasing sophistication and persistence of state-sponsored cyber-espionage campaigns. As cyber threats continue to evolve, the importance of robust cybersecurity measures and vigilant monitoring becomes ever more critical to protect sensitive information and infrastructure from these advanced persistent threats.

AIVD says they face cyber attacks from Russia and China every day

According to the head of the country's General Intelligence and Security Service, these hackers break into the computers of companies and educational institutions

The head of the General Intelligence and Security Service of the Netherlands (AIVD), Erik Akerboom, said that the country's special services allegedly "every day" catch hackers from China and Russia, who, according to him, break into the computers of companies and educational institutions. At the same time, the head of the AIVD did not provide any evidence.

"Every day we catch hackers from both China and Russia hacking into the computers of companies and educational institutions," the head of AIVD said in an interview with Vu Magazine.

According to Akerboom, the target of these hackers is vital infrastructure, such as drinking water, banks, telecommunications, and energy networks." However, he did not give an example of any specific cyberattack.

In 2018, the Ministry of Defense of the Netherlands said that the country's special services prevented a hacker attack on the Organization for the Prohibition of Chemical Weapons (OPCW), which four Russian citizens allegedly tried to carry out. According to the head of department Ankh Beyleveld, the suspects with diplomatic passports were expelled from the Netherlands on April 13. The Russian Foreign Ministry called such accusations "another staged propaganda" action and said that the unleashed "anti-Russian espionage campaign" causes serious harm to bilateral relations.

Besides, in December 2020, the Netherlands was accused of the espionage of two Russian diplomats, calling them employees of the Foreign Intelligence Service undercover. The Russians were declared persona non grata. In response, Moscow sent two employees of the Dutch Embassy from Russia. The accusations of activities incompatible with the diplomatic status of the Russians were called "unfounded and defamatory".

Recall that recently Washington accused Moscow of large-scale cyber attacks, which were allegedly carried out in order to get intelligence data. The representative of the Russian Ministry of Foreign Affairs, Maria Zakharova, said in response that such statements by the United States about hacker attacks allegedly by Russia have already become routine.