🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

China tried to hack U.S. firms even after cyber pact: CrowdStrike

Published 10/19/2015, 07:56 PM
© Reuters. Illustration file picture shows a man typing on a computer keyboard in Warsaw
ELV
-
MNDT
-

By Joseph Menn

(Reuters) - Hackers associated with the Chinese government have tried to penetrate at least seven U.S. companies in the three weeks since Washington and Beijing agreed not to spy on each other for commercial reasons, according to a prominent U.S. security firm.

CrowdStrike Inc said software it placed at five U.S. technology and two pharmaceutical companies had detected and rebuffed the attacks, which began on Sept. 26.

On Sept. 25, President Barack Obama said he and Chinese President Xi Jinping had agreed that neither government would knowingly support cyber theft of corporate secrets to support domestic businesses. The agreement stopped short of restricting spying to obtain government secrets, including those held by private contractors.

CrowdStrike Co-founder Dmitri Alperovitch said in an interview that he believed the hackers who attacked the seven companies were affiliated with the Chinese government based in part on the servers and software they used.

The software included a program known as Derusbi, according to Alperovitch. Other analysts have said Derusbi previously turned up in attacks on Virginia defense contractor VAE Inc and health insurer Anthem Inc (N:ANTM). Alperovitch said the hackers came from a variety of groups including one that CrowdStrike had previously named Deep Panda.

The "primary benefits of the intrusion seem clearly aligned to facilitate theft of intellectual property and trade secrets, rather than to conduct traditional, national-security-related intelligence collection," CrowdStrike said in a blog post to be published on Monday.

Chinese Foreign Ministry spokeswoman Hua Chunying repeated that the Chinese government opposed all forms of hacking or stealing commercial secrets.

"Internet hacking attacks are marked by their secretive, cross border nature," she told a daily news briefing on Monday.

CrowdStrike said it had notified the White House of its findings but would not identify the targeted companies.

White House spokesman Josh Earnest declined to comment on CrowdStrike's findings but said that Obama had "made clear that the United States would judge China not based on its words, not based on any verbal commitments, but based on its actions."

"You can rest assured that the relevant agencies in the United States government are closely monitoring China's actions in this regard," Earnest said on Monday.

Another U.S. cyber security company, FireEye Inc (O:FEYE), said the state-sponsored Chinese hackers that it monitored were still active but it was too soon to say whether their aims had shifted.

"It is premature to conclude that activity during this short time frame constitutes economic espionage," FireEye spokesman Vitor De Souza said.

Shortly before Xi's trip to the United States last month, Chinese officials told their American counterparts that Beijing had detained at least two hackers who breached U.S. computer networks, according to Jim Lewis of the Center for Strategic and International Studies and two other sources close to the Obama administration.

The arrests were reported by the Washington Post a week ago, though the paper gave no names or other details.

China said it believed one of the suspects was involved in the data breach at the U.S. Office of Personnel Management, according to Lewis and one of the sources. The OPM hack had compromised the data of 21.5 million government workers.

© Reuters. Illustration file picture shows a man typing on a computer keyboard in Warsaw

The other person who was detained by Beijing was suspected of hacking for commercial gain, said Lewis and the other source.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.