Report: Chinese army tied to widespread US hacking

Carlos Barria / Reuters

A general view of 'Unit 61398,' a secretive Chinese military unit on the outskirts of Shanghai on Feb. 19. The unit is believed to be behind a series of hacking attacks, a U.S. computer security company said, prompting a strong denial by China and accusations that it was in fact the victim of U.S. hacking.

BEIJING – A group of hackers linked to the Chinese military has stolen reams of sensitive data from more than 100 prominent American companies and organizations, according to an explosive new report.

“The details we have analyzed during hundreds of investigations convince us that the groups conducting these activities are based primarily in China and that the Chinese Government is aware of them,” U.S. computer-security firm Mandiant Corp. said in a 74-page report released on Tuesday.

The story was first reported by The New York Times.

One group originating from China that Mandiant had been tracking since 2006 and identified in the study as “APT1” allegedly swiped data from 141 companies in 20 industries ranging from aerospace to telecommunications, according to the report. More than 110 of those companies were American, according to Mandiant.

Mandiant said that the data suggests that the hacker group was either working for or sponsored by China’s People’s Liberation Army. Indeed, according to the organization’s information, APT1’s activity originated from a People’s Liberation Army cyberware division known as “Unit 61398.”

“Our research found that People’s Liberation Army (PLA’s) Unit 61398 is similar to APT1 in its mission, capabilities, and resources,” it said, according to the report.  “PLA Unit 61398 is also located in precisely the same area from which APT1 activity appears to originate.”

Mandiant said that the hacking originated from a drab 12-story office building on the outskirts of Shanghai. Hundreds, maybe even thousands, of operatives performed covert corporate espionage and extracted trade secrets, blueprints, pricing data and other corporate information from countless American servers from the innocuous tower, according to Mandiant.

The Wall Street Journal and The New York Times reported on Thursday that Chinese hackers repeatedly penetrated their computer systems. NBC's Pete Williams reports.

The hackers used techniques like “spear-phishing” -- using spoof emails to trick users into granting access to internal servers --demonstrating a strong proficiency in the English language and advanced understanding of computer security and network operations, the organization said.

Media blackout
Though the story exploded on Twitter and in the foreign news media, it has hardly made any waves in China. Twitter has long been blocked in the country and foreign media companies that broadcast on the mainland like CNN were blacked out when the report was mentioned on air. 

Coverage of Mandiant’s report was also absent from Chinese news websites, but some discussion of the report could still be found on China’s Twitter-like service, Weibo.

“Chinese hackers are so capable! I always thought Americans are very powerful!” exclaimed one user.

“Reports by foreign media cannot be fully trusted,” warned another user, “but there must be something.”

Related: Wall Street Journal infiltrated by Chinese hackers

This was a sentiment partly shared by China’s Foreign Ministry spokesman, Hong Lei, who responded today to questions about the hacking report by calling them “groundless” and reiterating the government’s unwavering position on the matter.

“To make groundless accusations based on some rough material is neither responsible nor professional,” he said, before noting that China was also the victim of hacking attacks.

Hong also argued that the new evidence provided by Mandiant and the New York Times will not withstand closer scrutiny.

But China’s cyber activities have been under increasingly closer scrutiny in recent weeks, as a slew of news stories have come out about Beijing’s reported hacking ambitions. Last month, the New York Times reported that its own servers had been attacked by hackers originating in China, possibly in response to an embarrassing expose it published showing the hidden riches of out-going Chinese premier, Wen Jiabao.

While the White House has largely remained silent on the hacking issue -- President Barack Obama mentioned hacking in his State of the Union but did not specifically cite China -- the government has been noticeably increasing efforts to strengthen cyber security.

Last week Obama issued an Executive Order calling for the improving of critical infrastructure tied to cyber security. That the move came on the eve of the publication of two similar exposes -- last week Bloomberg printed another story demonstrating PLA hacking of American systems -- suggests the administration could be taking a long called for tougher stance on Chinese hacking by “naming and shaming” known mainland hacking groups.  

NBC News' Le Li contributed to this report.

Related:

Congress urged to probe Chinese cyber-espionage

Internet Explorer zero-day exploit linked to China

Discuss this post

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Say..?

what's That Soup..you're Eating All the Time..?

It's CHINESE.... Joe.....,.Love This Stuff..

What it is ..what's it Called..?

ahh.....SUM-DUM-LUC...

  • 2 votes
Reply#239 - Tue Feb 19, 2013 3:15 PM EST

The US government allows China too do what ever the sweet f---k it wants, but Iran, Iraq, Syria, Libya, Afghanistan, North Korea, Pakistan, the American population, get f---ked up the A$$ while Wall Street, the big banking firms, Israel, and yes those mother f---king China loving bastar-ds can do what ever they f--king please.

Oh how wonderful the president is too this country while he bashes and bombs the hell out of every one else that is too small to fight back.

Yep that is the true Obama US f---ker.............take the rights screw the Constitution while drone spying on the mother land while he continues too f---k with other nations but never will this cu-nt ever say a bad word about China god forbid he would ever do something really American just for once.

I hope that one day China rips that f---king US flag off the White House and puts there own in its place then Obama will bow like a true China man and say nookie dogie mow wow me bend it like Beckham up the yin yang.

  • 1 vote
Reply#240 - Tue Feb 19, 2013 3:18 PM EST

Every President from Both Parties, without exception, from Carter on has let Communist China win the game.

    #240.1 - Tue Feb 19, 2013 8:02 PM EST
    Reply

    they already own us, and now they are stealing what we have left?? we need to separate ourselves from these people, they are getting too big for us to handle???? we already buy more from them than we make ourselves???

    not a real good venture is it????

    • 2 votes
    Reply#241 - Tue Feb 19, 2013 3:20 PM EST

    Saying goes..

    if OBAMA don't Getcha'..the Chinese will...

    Whichever comes first...?

    • 2 votes
    Reply#242 - Tue Feb 19, 2013 3:21 PM EST

    Funny, if the header of this article had the word Anonymous instead of Chinese hackers, there would be doofuses in here proclaiming "Right on Anonymous, you are my hero!".

      Reply#243 - Tue Feb 19, 2013 3:47 PM EST

      HEY..That's No way..To treat Your LOAN SHARK..?

        Reply#244 - Tue Feb 19, 2013 4:03 PM EST

        When we allowed many of our corporations to move to China or share technology with them in order to have key components manufactured by their industries we opened the door for most of this to happen. No country is going to allow any foreign company to manufacture goods and components on their shores without confirming whether or not it would be a threat to their government. This would include the design and function of what is produced. Notice that I did not say a threat to the welfare of their citizens because their welfare is not a consideration by government or business. This is like farming out our credit card information to India only to find out that some of these companies are selling or using that information. Talk about putting the funny farm in charge of our finances.

        • 1 vote
        Reply#245 - Tue Feb 19, 2013 4:03 PM EST

        But China is our friend. We even owe them money -- lots and lots of money.

        China is obviously ignoring the idea we're supposed to be friends and is trying to figure out how to cripple our country, just exactly like those Muslim radicals we're trying to convert to a democracy. I suggest we get our troops home and start figuring out how many nukes we can build to annihilate Russia and China when North Korea and Iran start world war three.

        • 1 vote
        Reply#246 - Tue Feb 19, 2013 4:28 PM EST

        The idiots we have elected to represent us are to blame..we are NOT the super power we think we are..the chinese have a bigger, better and more educated military and they have the balls to use it. Unfortunately we will continue to be lied to and "punked out" by our own government until we have been destroyed economically and militarily. Pompus Lazy Americans

          Reply#247 - Tue Feb 19, 2013 4:50 PM EST

          I think we have a nation of whiners.

            #247.1 - Tue Feb 19, 2013 4:56 PM EST
            Reply

            Whew, didn't see that coming! China doesn't care about their own, just imagine outsiders from other countries. They waged war years and years ago and it wasn't with the use of military force, get the hint. What's worse, there isn't any one person or country that can be blamed, we all have contributed to their strength as the #2 economy of the world and frankly, they produce nothing but junk, cheap trash that we all get sucked into buying. It it were me and my bottom line, I would get my company, my people and my money out of there in a New York Minute. They are nothing but trouble and are on the way to being #1 at their current pace. Bring our men and women home along with our jobs and economy so we can take care of each other.

              Reply#248 - Tue Feb 19, 2013 4:57 PM EST

              fellow,

              You just figured out that the Chinese waged an economic war on the US and won?

              BTW, there is nothing wrong with Chinese quality assurance and quality control.

              You get what you pay for. If you buy cheap goods, you get low quality. If you pay for quality, you get it. The answers are in the specifications.

                #248.1 - Tue Feb 19, 2013 5:22 PM EST
                Reply

                So it's not enough that they took all our manufacturing jobs and left many of our small towns in economic ruin.

                Now, they have to hack into our stuff and put our security at risk?

                Man, this is just adding insult to injury.

                I would strongly suggest all Americans read "The Art of War" by Sun Tzu and tell me if you don't think we have been at war with China.

                  Reply#249 - Tue Feb 19, 2013 5:19 PM EST

                  So if the Chinese say they know nothing about the cyber attacks coming from that building, they shouldn't mind if we send in a Drone and blow up the building. Right? Or let us go in and arrest the hackers.

                  Look if we don't start protecting our borders and our country from EVERYBODY, sooner rather than later someones going to attack us for REAL! Every country in the world wants to see us fall. Whether or not they say they are our friend and ali, they are all out there trying to find a way to take us down, covertly or not. All of those soldiers coming back from overseas need to be put at our borders and our airports. We all think its fun and games but its gonna happen.

                    Reply#250 - Tue Feb 19, 2013 5:31 PM EST

                    AHHHH!!!

                    FEAR! TERROR!

                    they are COMING to KILL US ALL!!!!!!!!!

                    (Yaaaawn)

                      #250.1 - Tue Feb 19, 2013 7:17 PM EST
                      Reply

                      The biggest enemy to America besides the criminals in Washington DC are the Chinks. And who do we kiss ass to? The Chinks!

                      • 1 vote
                      Reply#251 - Tue Feb 19, 2013 5:49 PM EST

                      Wait a minute! China "angrily denies" it's behind all of this hacking? Is this supposed to be a surprise?! Of course, they're going to "angrily deny" it! What are they supposed to do? Happily admit it?! Of course, the China is behind the hacking. They are testing and probing all of our government and corporate assets in practice for the coming war with the U.S. Remember, China is not backing down from getting Taiwan back. And, when it feels it is strong enough to take on the U.S. military, it will certainly launch an offensive to regain the island - and everything else wants, in what it considers its backyard. So, the U.S. - my country - had better be preparing.

                        Reply#252 - Wed Feb 20, 2013 10:14 AM EST

                        The Chinese go about conquering through manipulating economies to suit themselves. They’re having a hay day in Africa. Currently, they hold our war debt. Being as they have hacked into our systems, we should hack away some of that war debt and take our case to the United Nations.

                        Congress does not have the intelligence, integrity, creativity or drive to do much of anything. They sold us down the river for cheap goods. They didn't even bother to read the flawed intelligence reports on the wars.

                        So now we have the best congress anyone can buy. They're not going to change anything. They made that quite clear.

                        Wake up and make things right. Start with criminal prosecution of China for international hacking and criminal prosecution of our own so-called representatives for criminal negligence and bribery. We need to demand accountability of our representatives. If they lie, they should be fired. End of story. Make them omnipotent, and this is the crap we get. Instead of acting like sheep, we need to get ourselves together and check this corruption.

                        We are the oversight. We can and will pay our debts. And we will not be bullied by China or our good for ? Congress. We have the will to make things right and just. No more double standards. No more loopholes. Crime comes with consequences… for everyone.

                        According to Amnesty International, China holds the largest recorded number of imprisoned journalists and cyber-dissidents in the world for such crimes as communicating with groups abroad, signing online petitions calling for reform and an end to corruption. The Chinese government has a stranglehold on the internet and therefore a stranglehold on their own people. They are the chief supplier of arms to the Somali pirates. They are the ones carving up roads and building infrastructure in Africa to “help” the Africans. Seen that before…

                        And what about us? What about our mistakes? It’s the same old story. I tell you, the day when the peoples of the world can communicate freely with each other and find that we are much more alike than different will be a wonderful epoch. That is, if we could have governments that strive to treat people justly and with respect. A great book to read: The Spirit Level – Why Greater Equality Makes Societies Stronger is a great book. Highly recommended for its research on nations around the world and showing scatter-plot graph correlations between equality and crime, obesity, life span, economic mobility, homicide, suicide, mental illness, cancer and more. And guess what? America is not doing so hot.

                        Seems we do much better when we can be gracious and kind to one another. And with that, trust is cultivated. Betrayal is a horrible thing that can be best mitigated by people striving to be just and not cruel. Ashoka the Great is a wonderful role model of a cruel dictator gone benevolent when confronted by the excesses of war. I’m not obsessed with any one type of government, however, it is wise for both the government and the people to treat each other the way they would like to be treated, with equanimity and justice. Everyone, the world over, would benefit.

                          Reply#253 - Wed Feb 20, 2013 1:47 PM EST

                          The army? Are you serious? The army?

                            Reply#254 - Fri Mar 15, 2013 4:09 PM EDT
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