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McAfee Report Outlines Global Cyber Spying Operation

Cyber Spying

First Posted: 08/03/11 01:15 PM ET Updated: 10/03/11 06:12 AM ET

More than 70 companies, governments and non-profit organizations around the world were attacked by hackers in a massive cyberspying operation that experts say was likely conducted by China.

In a report released Wednesday, the security firm McAfee said the five-year mission included a wide range of victims, including the United Nations, the International Olympic Committee, a Department of Energy Research Laboratory and nearly two dozen defense contractors. The victims were spread across more than a dozen countries, though 49 of the 72 identified targets were located in the United States.

The data stolen included closely-guarded national secrets, source code, email archives, negotiation plans and exploration details for new oil and gas field auctions, the report said.

Dmitri Alperovitch, McAfee's vice president of threat research, said it was unclear what the data was being used for, but if even a small amount was used to compete against other companies, "the loss represents a massive economic threat not just to individual companies and industries, but to entire countries that face the prospect of decreased economic growth."

The report comes in the wake of a string of high-profile cyber-attacks against corporations and government agencies, including Sony, Lockheed Martin and the Central Intelligence Agency. Last month, the Defense Department said foreign hackers infiltrated the network of a defense contractor in March, stealing 24,000 military files in one of the most devastating data breaches suffered by the Pentagon to date.

Alperovitch said the report's findings represent a different motivation than the immediate financial gratification sought by many online criminals.

"The adversary is motivated by a massive hunger for secrets and intellectual property," he said. "What we have witnessed over the past five to six years has been nothing short of a historically unprecedented transfer of wealth."

Alperovitch said the attacks were not new and that most victims had fixed the computer viruses that caused them. He said McAfee gained access to a server used by the intruders and collected logs dating back to 2006.

Alperovitch said the attacks were launched by common hacking methods like "spear phishing," in which hackers gain access to networks by sending targeted emails to employees who open virus-laden attachments.

The report found the cyber-attacks also focused on political nonprofit groups, including an unidentified western organization focused on promoting democracy. For nearly two years, the hackers also targeted one major U.S. news organization at its New York and Hong Kong bureaus. The report did not name the news outlet, though the Washington Post cited experts who said it was the Associated Press.

The security firm did not identify who was behind the cyber-attacks, though it said a foreign government may have been behind them because there was likely no commercial benefit from intrusions into groups such as the International Olympic Committee.

However, James A. Lewis, a cybersecurity expert at the Center for Strategic and International Studies, said the culprit was likely China. He said only five or six countries have the capabilities to wage a cyberspying mission of this scale, but the list of targets reflects the interest of China more than any other country.

"The evidence does point to China," he said. "Who else is going to spy on Taiwan?"

It is not the first time that hacking victims have pointed the finger at China. Last year, Google announced that Chinese hackers had stolen the company's source code. Then earlier this year, Google claimed that hackers based in China tried to break into Gmail accounts of U.S. government officials, Chinese activists and foreign journalists.

Lewis said China is focused on gaining intellectual property through hacking to give their companies a competitive advantage. He also said they get blamed often for hacking because they do not cover their tracks well.

"The Chinese get a lot of heat because we're afraid of them and they're the least skillful," Lewis said. "We catch them more often because they're not as good."

At a press conference in June, Chinese Foreign Ministry Spokesperson Hong Lei said the Chinese government "staunchly opposes" computer hacking.

"Hacker attack is an international issue, to which China also falls victim," he said.

In Wednesday's report, the security firm nicknamed the cyber-attacks "Operation Shady RAT" after a common industry acronym for a remote access tool, which allows users to access computer networks remotely.

"This is a problem of massive scale that affects nearly every industry and sector of the economies of numerous countries," Alperovitch said. "The only organizations that are exempt from this threat are those that don't have anything valuable or interesting worth stealing."

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More than 70 companies, governments and non-profit organizations around the world were attacked by hackers in a massive cyberspying operation that experts say was likely conducted by China. In a re...
More than 70 companies, governments and non-profit organizations around the world were attacked by hackers in a massive cyberspying operation that experts say was likely conducted by China. In a re...
 
 
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06:28 AM on 08/07/2011
The original article is at:
http://blogs.mcafee.com/mcafee-labs/revealed-operation-shady-rat

Dmitri Alperovitch, the author, was asked what operating system was targeted. He responded “All the malware we’ve seen was Windows-based.” As I've said on countless occasions; Linux in inherently more secure than M$. It's like someone whining about their car being repeatedly stolen when they insist on leaving the keys in the ignition. Running buggy, insecure, update hungry, over priced proprietary software has seriously jeopardized our nation's security. This is no laughing matter. At some future date American military personnel will pay dearly for our failure to address this. The irony is that it will cost NOTHING to make our systems much more secure. In fact, it will save our country billions of dollars every year. Linux is free; free to install and free to use. You pay no royalties to anyone. If you have an android phone, you're already using Linux.

How did these hackers find the vulnerabilities? It has been reported that M$ disclosed their source code to just about the entire planet including China! Well, everyone except their poor trusting users. Way to go Bill, pin a medal on. I would suggest anything except the Purple Heart; we may need them when our adversaries decide to stop hacking and start shooting.
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Littlewords
My micro bio was outsourced to my nano-bio: I'm me
03:03 PM on 08/05/2011
Article Excerpt:
At a press conference in June, Chinese Foreign Ministry Spokesperson Hong Lei said the Chinese government "staunchly opposes" computer hacking.

They left off key words from the end of the last sentence.... 'stanchly opposes ***admitting to***' computer hacking.
05:48 AM on 08/04/2011
china and ussr russia are the highly HACKERS on the computers in america
01:15 AM on 08/04/2011
so is the US still going ahead with its "smart grid" plan to connect major infrastructure to the network?
12:41 AM on 08/04/2011
A bit off topic, but if every American who complains about China instead made an effort to support Corporations who manufacture their goods using North American labor, our economic problems would melt away in very short order.

Case in point: I just purchased a lawnmower - I paid a bit more but got myself a solid Cub Cadet that is made in the USA. Additionally, I am looking for some audiophile headphones - will likely go with Grado as it is made in the USA. If we all did this instead of complaining, imagine the multiplier effect...
09:58 PM on 08/03/2011
I can't believe such a shameless publicity stunt (a white paper from a security software company) is being treated as some sort of news. This is pretty low. Advertising should be displayed as such
03:13 AM on 08/04/2011
I used to refer to myself as a liberal, but it's this HP garbage that makes me embarrassed to use the moniker.

THE CHINESE ARE STEALING OUR MOST VALUABLE ASSETS AND YOU PEOPLE CAN ONLY THINK OF REASONS TO IGNORE IT.

YOU HAVE A DISEASE.
08:16 PM on 08/03/2011
And the US government didn't plant a worm in the Iranian Government computer network to destroy the centrifuges used in atomic research, plus they have been doing this to the rest of the world for decades.
What goes around comes around!
09:41 PM on 08/03/2011
I believe it's much more likely that Israeli hackers were responsible for that worm. But nobody actually knows! It was too well covered up to actually do more than speculate about who was to blame.
03:15 AM on 08/04/2011
The Iranians are building a nuclear bomb which we don't want them to have. Our actions are rational.

If China wants to steal our stuff, then we should response.

Please, let me come buy your house and steal your computer and laugh while you pontificate about the morality of it all. I'll use that computer to mock people on HP.
03:48 PM on 08/04/2011
Do we have nuclear bombs?
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07:14 PM on 08/03/2011
I know what you did last summer-;)
06:57 PM on 08/03/2011
Halfway through reporting this story, your newsanchor looks up, smiles into the camera, and says

"I, for one, welcome our wily marxoconfucianist overlords."
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HUFFPOST SUPER USER
raviandsonia
04:17 PM on 08/03/2011
Anyone think's China cares? Anyone?
If they can set up fake Apple stores, anything is possible.
They already own a ton of US Treasury obligations.
What is the US going to do about it. What can they do?

Answer: Cry foul and do NOTHING !!
05:52 PM on 08/03/2011
China needs the US more than the US needs China. There are definitely things they can do economically, the problem is the US is in no position to concern themselves with it. And your suggestion that they can do anything if they can build fake retail stores is slightly exaggerated.
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HUFFPOST SUPER USER
raviandsonia
06:30 PM on 08/03/2011
NickfromCalgary:

The metaphor of the fake apple stores is to highlight the fact that Chinese business people are so emboldened at the lack of oversight by the authorities since many of the authorities are paid under the table. Why do you think China is the number 1 country in the world for knock offs.
03:53 PM on 08/03/2011
["The Chinese get a lot of heat because we're afraid of them and they're the least skillful," Lewis said. "We catch them more often because they're not as good."]

What an idiot Lewis is. If the Chinese are so unskillful, then why are they so successful at penetrating high importance organizations and agencies? Perhaps it is the work of other hackers else who make it appear that the attacks originate from China? It seems to be very convenient to China bash nowadays.
03:16 AM on 08/04/2011
If the Chinese are 'skilled' then they wouldn't need to steal our tech.

The Chinese do not have the ability to build anything themselves - trains, planes, automobiles, software - they - steal - everything.
09:52 AM on 08/04/2011
Why don't you look into the research labs of IBM, Apple, Google, Boeing, etc... I will bet you there is a significant amount of Chinese scientists developing new technologies. Check before you speak.
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J0E1
Phil Hill 2012
03:48 PM on 08/03/2011
The best part is, we couldn't launch a military operation against them if we wanted to.  Half of our economy is selling Chinese products and a sizable chunk of our debt is owned by China.  If China stopped buying up US debt, we wouldn't have enough funds to fund the department of defense.  This country is on it's way out and there is nothing we as the people can do to stop it.
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06:46 PM on 08/03/2011
Their ICBMs might also have a tad to do with us not wanting to strike militarily against them, the same reason why no one wants to start a conflict with Russia, which does not have the same creditor status as China.

We tend to prefer our cities not smoldering with radioactive fallout.
10:00 PM on 08/03/2011
Why would a military operation be launched? Because a security software company wrote a white paper about security and it is tagged as some sort of news here?
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Blu Steel
I Love Voice dialogue
03:47 PM on 08/03/2011
When are they giving our jobs back? lol
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JohnnyWalkerBlueLabel
527HP, 12.4@112mph 1/4 mile
03:40 PM on 08/03/2011
I hope we have a better cyber attack organization. One might assume, with our vast military spending, the CIA or NSA would have a top flight group for both defense against hacking and offensive hacking. I guess in 50 years, we'll find out from FOI requests.
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theveggiedude
my body is a temple, not a living graveyard
05:58 PM on 08/03/2011
Yes, we do. Didn't you hear the Pentagon plans to spend over $42 million to spy on us via FaceBook, Twitter and other social networks?
06:15 PM on 08/03/2011
not that I disagree with you at all, I just want to note that $42million is a tiny portion of the Cyber-Pie:

"The combined DHS/DOD cyber budget proposals for 2012 exceed $4.2 billion with DHS nearly $1 billion and DoDrequesting over $3 billion."

not to mention the multi-billion dollar cyber command centers/data centers being built around the nation.
10:01 PM on 08/03/2011
Better than what?
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Jim Michael
My Micro Bio gave me MRSA
03:17 PM on 08/03/2011
I wouldn't call is spying. Just a little pre-foreclosure research. ya know, so they can kinda know just what they're going to run into as our new owners/landlords.
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07:08 PM on 08/03/2011
LOL! I like this: "...pre-forclosure research."
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dngrwill
The Past, by definition, must lose
08:22 PM on 08/04/2011
the thing that china runs is a highly-repressive government, the sky is not falling, china is not taking over (why would they want to, we buy so much product from them)