The Cyber Strategy released earlier this week by DoD has mentioned an increase in the state-sponsored cybercrime from People's Republic of China (PRC), particularly against sensitive targets that could affect military responses.
According to the agency, this is done in order to "to counter US conventional military power and degrade the combat capability of the Joint Force."
The DoD claims in their report that the PRC "poses a broad and pervasive cyberespionage threat," monitoring movements of individual beyond its borders, and further acquiring technology secrets, and eroding the capabilities of the military-industrial complex. However, the NSA cautioned that the operation goes beyond routine information collecting.
"This malicious cyber activity informs the PRC's preparations for war[…]In the event of conflict, the PRC likely intends to launch destructive cyberattacks against the US Homeland in order to hinder military mobilization, sow chaos, and divert attention and resources. It will also likely seek to disrupt key networks which enable Joint Force power projection in combat," the report stated.
The notion that cyber activities can signal impending military action is consistent with predictions made earlier this year in the wake of the Volt Typhoon attacks by Microsoft and others. With a series of compromises that targeted telecom networks, power and water controls, US military bases at home and abroad, and other infrastructure whose disruption would interfere with actual military operations, the Beijing-backed advanced persistent threat (APT) made national headlines in the US in May, June, and July.
However, the operational technology (OT) used by the victims has not yet been impacted by the compromises. But, CISA Director Jen Easterly warned at Black Hat USA in August that if the US gets involved in a potential invasion of Taiwan, the Chinese government may be positioning itself to launch disruptive attacks on American pipelines, railroads, and other critical infrastructure.
"This APT moves laterally into environments, gaining access to areas in which it wouldn't traditionally reside[…]Additionally, this threat actor worked hard to cover their tracks by meticulously dumping all extracted memory and artifacts, making it difficult for security teams to pinpoint the level of infiltration," says Blake Benson, cyber lead at ABS Group Consulting.
Taking into account the military-focused cyber activities that can potentially entail collateral damage to bystander business, there could also be a sort of ‘anti-halo effect’ at work, according to John Gallagher, vice president of Viakoo Labs at Viakoo.
"Virtually all exploits launched by nation-states 'leak' over to non-nation-state threat actors[…]That means organizations who depend on IoT/OT systems will be direct targets at some point to the same threats being launched against national critical infrastructure," warns Gallagher.
Marketers of these companies have been pin pointing locations these groups are originating from, warning users of these ‘advanced persistent threat’ groups (APTs). The groups have majorly been tracked back to Russia, China, North Korea and Iran.
Russia’s most popular cyber company Kaspersky were made to investigate its own employees when several staff members’ mobile phones begin distributing their information to some shady parts of the internet.
"Obviously our minds turned straight to spyware but we were pretty sceptical at first[…]Everyone's heard about powerful cyber tools which can turn mobile phones into spying devices but I thought of this as a kind of urban legend that happens to someone else, somewhere else," said chief security researcher Igor Kuznetsov.
Igor came to the conclusion that his intuition had been correct and that they had in fact discovered a sizable sophisticated surveillance-hacking effort against their own team after painstakingly analyzing "several dozen" infected iPhones. Apparently, the attackers had found a way to infect iPhones by simply sending an iMessage, that after installing malware to devices, deleted itself from the device.
In the operation to tackle the issue, the victims’ phone contents were tracked back to the hackers at regular intervals. This included messages, emails, pictures, and even access to cameras and microphones.
Once the issue was solved, on being asked, Kaspersky did not tell the origin of the attack, saying they are not interested “in from where this digital espionage attack was launched.”
The incident raised concerns of the Russian government. Russian security agencies released an urgent advisory the same day Kaspersky reported their discovery, claiming to have "uncovered a reconnaissance operation by American intelligence services carried out using Apple mobile devices.”
The bulletin even accused Apple of being involved in the campaign, however the conglomerate denied the accusation. Neither did the firm in question, the US National Security Agency (NSA), comment on the accusations.
In addition to this, the US Government issues a statement with Microsoft last month, confirming that the Chinese state-sponsored hackers have been found “lurking inside energy networks in US territories”.
In response to this, China denied the accusations saying the "story was a part of a disinformation campaign" from the Five Eyes countries – the UK, Australia, Canada and New Zealand.
Chinese Foreign Ministry official Mao Ning added China's regular response: "The fact is the United States is the empire of hacking."
But as with Russia, China now appears to be taking a more assertive stance in criticizing Western hacking.
According to China Daily, China’s official news source, the foreign government-backed hackers are currently the biggest threat to the nation's cyber security.
Additionally, the Chinese company 360 Security Technology included a statistic with the warning, stating that it has found "51 hacker organizations targeting China." Requests for comments from the business received no response.
China also charged the US with hacking a government-funded university in charge of space and aviation research last September.
While many would brush off the accusation of China, there might could be some truth to it.
According to researchers, there are reasons why the western hacking groups never come to light. We are listing some of these reasons below: