China denies Pentagon cyber-raid
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China dismisses reports that its military hacked into the Pentagon's computer network.
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The Chinese government has denied involvement in a series of hacks carried out against IT systems at the Pentagon in June this week, but the threat of technology-driven espionage has forced the FBI to push businesses and academic institutions to better prepare for such attacks.
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Chinese state media on Sunday blasted a Pentagon report on Beijing's defense plans as misleading and insulting, and said China had to pursue military modernization to avoid falling further behind the United States.
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Japanese prosecutors have decided not to press charges against four military instructors investigated over the leak of sensitive defense data in violation of a security pact with the United States, officials said Friday.
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China's Foreign Ministry spokesman dismissed U.S. allegations of Chinese spying as "Cold War thinking" and said the arrests of four Chinese nationals on espionage charges were "groundless".
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China has been the target of a big  increase in cyber-attacks in recent years and faces more of a  threat from hackers than any country in the West, a military  researcher said on Saturday.
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The Defense Department took as many as 1,500 computers off line because of a cyber attack, Pentagon officials said Thursday.
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(InfoWorld) - China Tuesday denied allegations that its militaryÂ hacked a Pentagon networkÂ in JuneÂ -- the second time in as many weeks that the country has responded to charges of sponsoring computer attacks. "Some people are making wild accusations against China and wantonly saying the Chinese military attacked the Pentagon's computer network," Jiang Yu, a foreign ministry spokeswoman said in Beijing, according to the state-controlled Xinhua news service. "These are totally groundless and also reflect a Cold War mentality," she added. Jiang was responding to a story published by the Financial Times this weekend that quoted American officials who said the People's Liberation Army (PLA) was behind the June hack. One person familiar with the incident told the Financial Times that there was a "very high level of confidence... trending towards total certainty" that the PLA was responsible. Other sources told the publication that Chinese hackers probed the Pentagon system for months before the attacks, which forced the U.S. to take the network offline for more than a week. The Department of Defense downplayed the attack, but declined to point the finger at any one country or group. The attack on an unclassified e-mail network in the Office of the Secretary of Defense required that the systems be taken offline, spokesman Bryan Whitman acknowledged today, but backup networks kicked in. He would not confirm that China hackers were behind the assault, saying only that it's often difficult to pinpoint the origin of an intrusion into computer systems. But the Pentagon did not stand idly by, he said. "Cyber or non-kinetic type threats to military computer networks are viewed as just as real and just as significant as physical or kinetic threats," Whitman said in a statement. "The department aggressively responds to deter all intrusions to defend what is known as the GIG, the global information grid." Just a month before the attack, the Department of Defense had issued a report claiming that the PLA fieldsÂ first-strike cyberwarfareÂ units whose arsenals include computer viruses they might unleash on enemy networks. When the Pentagon released its annual report on the state of China's military strength in late May, Jiang, the same foreign ministry spokeswoman who blasted the story today, took exception to its overall tone, although she didn't mention cyberwarfare specifically. The U.S., she said then, "continues to spread myth of the 'China Threat' by exaggerating China's military strength and expenses out of ulterior motives." Last week, Angela Merkel, Germany's chancellor, raised the same issue during her visit to Beijing after the popular weekly Der Spiegel said systems at several government ministries, including Merkel's own office, had beenÂ infected with spywareÂ planted by Chinese hackers. In statements made during a press conference Aug. 27, Chinese premier Wen Jiabao called the reports of "grave concern" and promised that China would cooperate with Germany in its investigation. Today, Jiang seemed to echo Wen's comments. "The Chinese government has always opposed any Internet-wrecking crime, including hacking, and cracked down on it according to the law," she said. The Chinese military has been involved with hacking and viruses since at least the early 1990s, according to a 2000 paper written by Timothy Thomas of the Foreign Military Studies Office at Fort Leavenworth. Coincidentally, the president of both China and the U.S. will face off this week in Australia during meetings of the Asia-Pacific Economic Cooperation (APEC) forum. Hu Jintao, China's president, arrived in the country yesterday, while President George W. Bush arrived in Sydney today. Trade and climate change are expected to lead the agenda during the 21-country talks. Hu and Bush are scheduled to meet one-on-one during the conference. Â  Computerworld is an InfoWorld affiliate.
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China on Tuesday rejected a report that hackers controlled by its military had successfully entered a Pentagon network, calling the claim a product of dangerous "Cold War" thinking.
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The Pentagon on Tuesday said  computer hackers gained access to an unclassified e-mail system  in the office of Defense Secretary Robert Gates, but declined  comment on a report that the Chinese army was responsible.
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"We strongly deny" the report, a spokesman for EADS in Munich told Dow Jones Newswires.Comment
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The Chinese government called allegations that its military hacked the Pentagon's computer network over the summer "groundless", the state-run Xinhua news agency reported late Tuesday.
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For the second time in two weeks, China finds itself denying allegations that state-sponsored hackers have attacked another country's computers.
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Although he had hinted he might ask Chinese President Hu Jintao about allegations that the Chinese military hacked into Pentagon computers, the issue did not come up in face-to-face talks today.
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(InfoWorld) - The Chinese government has denied involvement in a series of hacks carried out against IT systems at the Pentagon in June this week, but the threat of technology-driven espionage has forced the FBI to push businesses and academic institutions to better prepare for such attacks. Little publicly-available evidence exists to prove that foreign governments have backed or planned to launch attempts to steal intellectual property from U.S. corporations and researchers, but officials with the FBI claim that the problem is real and that American organizations must begin policing their operations more aggressively today to prevent valuable data from being stolen tomorrow. In October, the FBI's Counterintelligence Domain Program -- which aims to foster cooperation between the agency and private entities to help organizations identify and protect potential intelligence risks -- will mark its first year in existence. The program is already making significant steps in helping to close the gap between businesses and law enforcement to defend intellectual property from being left vulnerable to potential theft, FBI officials maintain. "In the past, we've always been reactive to this type of scenario and essentially showed up after the fact to bring resources to bear on this type of crime, but we want to be more proactive to help businesses and academic institutions protect themselves before an incident occurs," said Tom Mahlik, who serves as chief of the Domain program for the FBI. "We've always responded aggressively to traditional espionage with investigation, such as with the theft of national secrets, but those cases really represent counterintelligence failures where the secrets are already in Beijing or Moscow and where valuable new technologies or intellectual property would already be gone," he said. Counterintelligence efforts rank second on FBI Director Robert S. Mueller's current strategic agenda, sandwiched below counterterrorism work and above the fight against all forms of cyber-crime, according to Mahlik. Thus far, the Domain project has materialized primarily in the form of relationships built between the leaders of the agency's 56 individual divisions and the leading corporate entities and research groups identified by those units as organizations that control data that criminals and governments could try to get their hands on. For instance, companies handling sensitive government work -- such as defense contractors and large IT systems integrators -- have already joined in the effort, Mahlik said. The program will be expanded over time to pull more companies into the fold that are developing cutting-edge technologies and other products that are considered to give the U.S. a technological or business-related advantage. Those relationships, and training seminars held by the FBI in the name of expanding Domain, are aimed at identifying any research, information, or technologies that might be targeted by U.S. adversaries -- and to establish an ongoing information exchange among the program's members to improve protections and reduce opportunities for theft. As for the current state of involvement of foreign nation states, including large terrorist groups, in intellectual property theft, the FBI refuses to share specific examples or hard data, but Mahlik said there should be little doubt that the problem exists. "The FBI is well aware of deliberate targeted attacks that were aimed at stealing sensitive data from organizations, including NASA, the Department of Defense, and individual defense contractors," said the FBI expert. "We're still trying to deduce the magnitude of the problem, and a lot of that has to do with what we've dealt with in terms of investigating any ex-filtration of data and where it has ended up." Mahlik said that two of the most significant trends feeding the need for corporate counterintelligence are offshore outsourcing and the heavy flow of foreign engineering talent into U.S. corporations and research institutions. While it remains hard to prove that foreigners are being trained specifically with the purpose of infiltrating U.S organizations to steal valuable data, he said that the concept is very real. "This isn't about traditional spies anymore; the engineer, student, or business partner are the threat now, and these people are being given increased access to corporate secrets, intellectual property, and pre-patent research information at universities," Mahlik said. "These types of people are being actively used to ex-filtrate key pieces of information back to their homelands as there is always a race to establish a competitive advantage." Data security in a global market David Drab, principal for the Information & Content Security group at Xerox, said that companies are increasingly coming to the imaging giant looking for new ways to label sensitive information and track its flow among users in the workplace and throughout their supply chains. Before joining Xerox, Drab served at the FBI for 27 years and observed, among other things, the flow of former KGB agents in former Soviet states into criminal organizations. A good number of those intelligence experts were trained in the art of finding holders of sensitive corporate and national defense information and trying to liberate the data, he said, and many are likely employed in efforts to steal whatever plans they can sell to others for a profit today. "This is why you have Wal-Mart hiring former government intelligence officers. It's not about spying so much as it's about identifying business risk and what is occurring with competitors in the global environment," Drab said. "These companies are creating separate entities from traditional security or IT security to allow management to identify people internally who might have access to high-level information or might be targeted by competitors or foreign entities." Drab points to the 2001 indictment of two Japanese-born individuals accused of stealing research on Alzheimer's disease from the Lerner Research Institute (LRI) in Cleveland as proof of the need for enterprise counterintelligence. One of the accused researchers subsequently pled guilty to charges of misleading investigators looking into the situation, while another, who returned to Japan to work for a quasi-government agency working on Alzheimer's research, was unsuccessfully sought for extradition to the U.S. to face trial. Among the tools developed by Xerox to help trace the use of paper documents, one of the hardest data formats to track, are gloss marks and infrared stamps used to create a trail of evidence as to who might have accessed, printed and walked off with sensitive data when copies of any stolen documents are recovered. Large companies like financial services institutions have also begun speaking publicly about the problem of international cyber-theft, saying that they are already working to deal with the problem. At the Usenix Security Symposium held in Boston in August, Jerry Brady, global head of IT security at New York-based financial giant Morgan Stanley, outlined the threat of foreign attack as a current business reality. He specifically cited emerging activity in the Far East as worrisome. "Sometimes the threats are coming from the governments themselves in different parts of the world," said Brady. "The people who want to harm us drives a lot about how we think of security awareness. We do a lot of monitoring and threat intelligence to tell who our adversaries are today and who they will be tomorrow." When asked if the government has done enough to help companies like Morgan Stanley deal with the issue, Brady said that the firm's relationship with law enforcement officials has improved over the last several years, specifically around intelligence gathering regarding new threats. However, he said that companies cannot rely on the government alone to watch out for their interests overseas. "It's popular to pin this issue on the government, but we in private industry need to play an even bigger role in addressing the problem," said Brady. "Every time we go into a new country we have to do a risk assessment, every country has its own IP protections and concepts and we know that; we know the countries where ex-KGB Soviet Bloc resources have ended up, and where we need to be even more vigilant."
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China's recent success at destroying a satellite in low-Earth orbit is a threat to the interests of all space-faring nations and posed dangers to human space flight, the Pentagon said Friday.
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Taiwan&#39;s foreign minister on Sunday denied allegations that the island sent money to former Costa Rican President Miguel Angel Rodriguez, who is being investigated for his role in a bribery scandal.