Intell report says China, Russia stealing US secrets

After years of suspicions and mounting evidence, the United States has formally called out China and Russia on cyber espionage, accusing the countries of stealing U.S. economic and technology secrets. China quickly denied the accusation.

In a report, “Foreign Spies Stealing U.S. Economic Secrets in Cyberspace,” the Office of the National Counterintelligence Executive also said U.S. allies have used online methods to help themselves to sensitive information, although the report does not name those countries.

“Chinese actors are the world’s most active and persistent perpetrators of economic espionage,” the report states. It contains a list of significant attacks that have been traced to servers in China, although it does say, “the [intelligence community] cannot confirm who was responsible.”


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Russia also is active in cyber espionage, according to the report, which says that country’s “intelligence services are conducting a range of activities to collect economic information and technology from U.S. targets.”

A spokesman for the Chinese Foreign Ministry issued a denial, citing the difficulty of proving the source of online attacks and calling the reports “unprofessional and irresponsible,” Reuters reported.

The United States’ leadership in technology and economic development makes it a target, and the fact that information is stored and shared electronically creates the vector for online attacks, the report states. “Cyber tools have enhanced the economic espionage threat, and the Intelligence Community judges the use of such tools is already a larger threat than more traditional espionage methods,” it says.

At a news conference to release the report, Robert “Bear” Bryant, the national counterintelligence executive, called online spying “a quiet menace to our economy with notably big results,” The Washington Post reported. “Trade secrets developed over thousands of working hours by our brightest minds are stolen in a split second and transferred to our competitors.”

Those competitors also include U.S. allies and partners, the report says, which have used “their broad access to U.S. institutions to acquire sensitive U.S. economic and technology information, primarily through aggressive elicitation,” a reference to social engineering and phishing attacks.

“Other countries with closer ties to the United States have conducted [computer network exploitation] and other forms of intelligence collection to obtain U.S. economic and technology data, often taking advantage of the access they enjoy as allies or partners to collect sensitive military data and information on other programs,” the report states.

U.S. officials have long hinted at China’s apparently growing involvement in cyber espionage, but until very recently any specific accusations have come from outside the government.

Among some recent high-profile attacks, the report says, VeriSign iDefense accused the Chinese government of being behind a hack into Google’s networks; McAfee traced the theft of data from energy companies to an IP address in China; and a number of U.S. companies, particularly those doing business with China, have reported the thefts of sensitive information.

But in the last two weeks, a report to Congress cited China as the probable source of the hack earlier this year of RSA Security, and said 760 companies, government agencies and other organizations may have been hit by the same operation. 

And a congressional commission said China may have been behind the hack several years ago of two U.S. Earth observation satellites.

The report also notes several insider thefts of corporate information by people with ties to China.

Attacks against U.S. business and government organizations will continue, as China, Russia and other countries focus on economic growth and the number of IP connections grows, the report concludes, while recommending a list of best practices for U.S. organizations, including improved education, monitoring and data management.

About the Author

Kevin McCaney is editor of Defense Systems. Follow him on Twitter: @KevinMcCaney.

Reader Comments

Tue, Nov 8, 2011 Smurf DC

Now this is news to me. I'm really scared. I thought Russia and China were our best friends. If I were the US government, I might be tempted to just spy right back on them, but that would be bad, wouldn't it. But I really don't see what all the fuss is about - I still get a very nice picture on my TV.

Mon, Nov 7, 2011

Do they really have to steal it? I submit that, through errors in policy, we have essentially given the store away. They can acquire technology by the purchase of IP that would have taken decades to develop on their own. All because they have become our 'creditors'. We (politicians, banksters, et al) are our own worst enemy.

Mon, Nov 7, 2011 Greg Florida

If I were in charge, I'd create a second, truly secure network for our intelligence and then put bad information in the old system for foreigners to steal. I mean really - we can't use this to our tactical advantage? Maybe our 'intelligence' isn't all that intelligent. Or maybe, they've already done this. You have to allow the public perception to be off for the ruse to work. We'll never really know...

Mon, Nov 7, 2011

That is what China is so smart and ahead of us cause they just steal it, don't have to actually think of it. Our own goverment puts us down that we are not keeping up with the rest of the country, I guess we are not taking other information enough or keep what we do have to show that we are still ahead of any country out there. Sometime the U. S. just needs to get there head out of the sand and quit lying to everyone all the time.

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