The Star Beacon; Ashtabula, Ohio

World, nation, state

February 20, 2013

Administration developing penalties for cybertheft

(Continued)

WASHINGTON —

Henry, the president of the security firm CrowdStrike, said that rather than tell companies to increase their cybersecurity, the government needs to focus more on how to deter the hackers and the nations that are backing them.

James Lewis, a cybersecurity expert at the Center for Strategic and International Studies, said that in the past year the White House has been taking a serious look at responding to China. “This will be the year they will put more pressure on, even while realizing it will be hard for the Chinese to change. There’s not an on-off switch,” Lewis said.

In denying involvement in the cyberattacks tracked by Mandiant, China’s Foreign Ministry said China too has been a victim of hacking, some of it traced to the U.S. Foreign Ministry spokesman Hong Lei cited a report by an agency under the Ministry of Information Technology and Industry that said that in 2012 alone foreign hackers used viruses and other malicious software to seize control of 1,400 computers in China and 38,000 websites.

“Among the above attacks, those from the U.S. numbered the most,” Hong said at a daily media briefing, lodging the most specific allegations the Chinese government has made about foreign hacking.

Cybersecurity experts say U.S. authorities do not conduct similar attacks or steal data from Chinese companies but acknowledge that intelligence agencies routinely spy on other countries.

China is clearly a target of interest, said Lewis, noting that the U.S. would be interested in Beijing’s military policies, such as any plans for action against Taiwan or Japan.

In its report, Mandiant said it traced the hacking back to a neighborhood in the outskirts of Shanghai that includes a white 12-story office building run by the army’s Unit 61398.

Mandiant said there are only two viable conclusions about the involvement of the Chinese military in the cyberattacks: Either Unit 61398 is responsible for the persistent attacks, or they are being done by a secret organization of Chinese speakers, with direct access to the Shanghai telecommunications infrastructure, who are engaged in a multi-year espionage campaign being run right outside the military unit’s gates.

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