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

Jump to discussion page: 1 2 3 4 ... 10

The Obama administration will totally ignore this, they are scared too death of China.

  • 2 votes
Reply#26 - Tue Feb 19, 2013 8:45 AM EST

Interesting that you would make a claim about something of which you have absolutely no knowledge. Actually less than nothing.

Interesting but not surprising.

  • 4 votes
#26.1 - Tue Feb 19, 2013 8:52 AM EST

Mark.....your post is very un-interesting.....but not surprising.

    #26.2 - Tue Feb 19, 2013 9:28 AM EST

    Mark.....your post is very un-interesting.....but not surprising.

      #26.3 - Tue Feb 19, 2013 9:28 AM EST

      I find it interesting that you possess the ability to know what education I have on any subject ?

        #26.4 - Tue Feb 19, 2013 10:48 AM EST
        Reply

        WHAT??!?!?

        “APT1” allegedly swiped data from 141 companies in 20 industries ranging from aerospace to telecommunications

        Huh?!?!

        U.S. computer-security firm Mandiant Corp. said in a 74-page report released on Tuesday

        Who/Which help U.S. computer security firm Mandiant Corp identifty hacking incidents in 141 companies since 2006? That's 141 count of who/which help release corporate data that is usually consider private data.

        That is to say, a firm like Mandiant Corp, that does business using private corporate data has to engage in various level corporate espionage and therefore has to engage in corporate espionage. A business should be doing business and not government work.

        I believe executives and employees employed and working at Mandiant corp. should be arrested for corporate espionage if they are unable to account for 141 identified count of using private corporate data without explicit permission; and also for allegedly posing as a business to doing government work with corporate espionage.

        • 1 vote
        Reply#27 - Tue Feb 19, 2013 8:52 AM EST
        Guia Ghanvia FacebookDeleted

        And meanwhile our store shelves are stocked with their goods. It's like we're working against ourselves... and the same goes for their alliance with North Korea.

        • 3 votes
        Reply#29 - Tue Feb 19, 2013 8:52 AM EST

        Problem is: While you may be able to name the Chinese, you cannot shame the Chinese. There is simply no ethical fall-back position from a corrupt national culture whereby "the ends justify the means," always.

        • 1 vote
        Reply#30 - Tue Feb 19, 2013 9:01 AM EST

        I work in computer R&D, and my company gets literally hundreds of hacking attempts from southeast China every day. It is an ongoing battle trying to keep ahead of their efforts. What is so crazy is that if the Chinese would put as much effort and money into their own research as they do in attempted theft, they may actually be able to contribute in a positive way to progress instead of just being parasites with nothing worthwhile to offer...

        • 4 votes
        Reply#31 - Tue Feb 19, 2013 9:09 AM EST

        I wonder if the stuff they steal is in the "one-off" category. Useful for today but not tomorrow and it doesn't address their lack of ability to innovate and so it doesn't really solve their problems.

          #31.1 - Tue Feb 19, 2013 9:15 AM EST

          jerryb: Does your company have sensitive or secret data on computers that are accessible from the internet? If so, for god's sake, why? Because it is convenient? I would find it hard to believe it is of necessity. Please explain. I'd really like to know. Potentially vulnerable data on internet connected computers is so common that I sometimes think there must be a good reason. Please, educate me.

            #31.2 - Tue Feb 19, 2013 12:21 PM EST
            Reply

            No problem if we do infact find they did this pull their plug say thanks for the loans were even now and get out of America You LOSE

              Reply#32 - Tue Feb 19, 2013 9:13 AM EST

              And in spite of this, each and every member of our bought and paid for congress is lining up to kiss as much chinese butt as possible so they can continue to get their money from china so they will continue to work for them instead of working for the american people.

              Our congress has not represented the american people for decades, they represent other nations, especially the chines crooks.

              • 1 vote
              Reply#33 - Tue Feb 19, 2013 9:15 AM EST

              Jim: "And in spite of this, each and every member of our bought and paid for congress is lining up to kiss as much chinese butt as possible so they can continue to get their money from china so they will continue to work for them instead of working for the american people."

              Yeah, Jim......the kissing azz doesn't just STOP in Congress though. Obozo and Hillary did their fair share of "nuzzling and cooing" with the Red Threat. Wouldn't want to piss off their Primary Credit Line would they? As that would circumvent the Obama ideology of "Spend it ALL!!""

              • 1 vote
              #33.1 - Tue Feb 19, 2013 9:24 AM EST
              Reply

              The NSA has been hacking other countries for decades and we should all be in shock that another country is doing it?

              I do get a kick out of people either blaming big government or big business. The reality is Big business doesn't exist without Big governments help and people in big government don't get there without the help of big business. A mutual love-fest (or greed-fest).

              • 3 votes
              Reply#34 - Tue Feb 19, 2013 9:18 AM EST

              Sue: You are correct. We should not be shocked that another country is doing it. We should be shocked that sensitive data is on computers connected to the internet making them vulnerable to hacking.

              • 1 vote
              #34.1 - Tue Feb 19, 2013 12:25 PM EST
              Reply

              The US Can control Chinese immigration, visa's and births of children here and Hawaii. Maybe not 100% but enough to catch people's attention. What will they do? Nothing.

                Reply#35 - Tue Feb 19, 2013 9:18 AM EST

                Well - when you have 1.3 billion people, a government that has no regard for human rights of their OWN people and obviously have issues "creating and thinking" on their own - what is a challenged super power to do? Steal !!!!!!!! Trust a china man as far as you can throw 'em

                  Reply#36 - Tue Feb 19, 2013 9:18 AM EST

                  Let's all start practicing our Mandarin dialect.

                  • 1 vote
                  Reply#37 - Tue Feb 19, 2013 9:18 AM EST

                  @ItsAboutTime: "Funny.. Republicans are the ones who support tax credits for corporations that MOVE AMERICAN jobs to China. OH my bad... we are not supposed to know that"

                  Actually, numbnut, Republicans support Corporate Tax Credits to entice them to retain manufacturing in the U.S....The DimoCRAPS, meanwhile, TAX THE CORPORATIONS to the hilt driving them to foreign manufacturing sites. Case in Point: GENERAL ELECTRIC, headed by the now defunct "CZAR OF JOBS" Jeff Immelt. Guess you really DON'T know that , windbag.

                    Reply#38 - Tue Feb 19, 2013 9:19 AM EST

                    Demo-socialist horse shiite.

                      #38.1 - Tue Feb 19, 2013 9:22 AM EST
                      Reply

                      I am shocked to hear that a foreign country would do that.

                        Reply#39 - Tue Feb 19, 2013 9:20 AM EST

                        As a retired 30 year Military Officer, I have sat and not said anything in regards to China, but folks here me now loud and clear... If the U.S. does not realize pretty quickly that China is our enemy in more ways than one, they will eventually control everything that is worth anything in this country. We owe them billions of dollares that we have borrowed already. China continues to buy business after business in this country.

                        We are on a swift downhill slide to internal financial destruction and countries like China are licking their lips.

                        Jesus people... these people are COMMUNISTS! Our leadership better figure this all out and figure it out ASAP. period.

                        • 3 votes
                        Reply#40 - Tue Feb 19, 2013 9:23 AM EST

                        Hey pops we are told that we own them billions...I dont own them squat.Maybe its the American people who they voted for (Government) or maybe its Corporate America.I dont know about you pops, but i am tired paying for people mistakes..Oh pops China people despise their own Government just like we do here..Not sure what Communist country you are talking about..It seems like to me the USA is heading or all ready in socialism.That sir = Communist..

                          #40.1 - Tue Feb 19, 2013 9:39 AM EST
                          Reply

                          What is the USA going to do about it? Arrest them? LOL The USA won't do squat. China is to big and the USA never won a war on its own...

                            Reply#41 - Tue Feb 19, 2013 9:25 AM EST

                            I bet tons of the data the Chinese collected is erroneous. If you think US corporations don't know this is happening and corrupting or misleading the data grabbers than you are wrong. Let the Chinese waste their time grabbing crap data. If the US was having a problem it wouldn't be in the news. The govt only lets the news get what they want them to say.

                              Reply#42 - Tue Feb 19, 2013 9:27 AM EST

                              The trick would be to hide small pieces of a slew of viruses in programs that would not trigger virus alerts with the key piece in one of several programs that would trigger the viruses all at one time then feed them piece meal to these hackers. Imagine their surprise when many programs they have downloaded and deemed as safe suddenly went viral attacking their systems all at one time from different sources. This method could also be used to open doors into their systems to retrieve data.

                              • 2 votes
                              Reply#43 - Tue Feb 19, 2013 9:30 AM EST

                              I would bet things along that vein are happening as well as tracking where the crap data goes. We want them to believe they are one up on us.

                                #43.1 - Tue Feb 19, 2013 9:38 AM EST
                                Reply

                                And of course the U.S. would NEVER intrude on another country's computer systems. Of course not, because WE are righteous and pure. GOP = God's Only People.

                                • 1 vote
                                Reply#44 - Tue Feb 19, 2013 9:30 AM EST

                                Really? We cannot believe our own government anymore to tell the truth!

                                Also, everything we use is made in China!

                                • 1 vote
                                Reply#45 - Tue Feb 19, 2013 9:33 AM EST

                                Hope you are enjoying your cheap crap products. You will be paying a higher price for them, very soon.

                                What Government, in any other nation, would allow millions of it's jobs, to be shipped to a Communist country, without a way to employ them again ? Corporate greed, in a Corporate controlled Government.

                                • 1 vote
                                Reply#46 - Tue Feb 19, 2013 9:35 AM EST

                                Yea well, when Bubba pulled them into the WTO at the end of his term the writting was on the wall

                                • 1 vote
                                #46.1 - Tue Feb 19, 2013 9:38 AM EST
                                Reply

                                Yet most Americans continue to purchase Chinese goods without a second thought. The stolen technology just being sold back to us. If we had a president who owned a pair he would shut off all Chinese exports by leveling a 40% tariff on all imported Chinese goods. Just like the Middle Easterners the Chinese lie to us on a regular basis openly blatantly. Still we ignore the obvious facts and try to believe them. Then we act shocked after we finally accept the fact that these rogue nations are nothing more than liars and thieves. We must say no to both regions concerning doing any business with them. We have plenty of oil resources in and around this country, and we can get our trinkets from Mexico if we need them so badly.

                                  Reply#47 - Tue Feb 19, 2013 9:35 AM EST

                                  Just don't forget that the knife in our back had both Republican AND Democrat hands on it - Nixon was the president who pushed for trade with China, then the Chinese gave big money to Bill Clinton for his campaign. Clinton repaid the Chinese by selling them American missile guidance and defence computers. Treason?

                                    #47.1 - Tue Feb 19, 2013 9:50 AM EST
                                    Reply

                                    I think its about time that Anonymous hits these slopey eyed little bastards with a taste of their own medicine. All these people can do is copy other peoples ideas. No originality, what do you expect from people that have such a blank look on their faces.

                                    • 2 votes
                                    Reply#48 - Tue Feb 19, 2013 9:37 AM EST

                                    Of course they have a blank look - do not question, comrade, or you go to the re-education complex. And those who fail re-education go to the organ and blood bank.

                                      #48.1 - Tue Feb 19, 2013 9:47 AM EST

                                      LOL, how true.

                                        #48.2 - Tue Feb 19, 2013 9:49 AM EST

                                        We arrested many Anonymous members already. Anonymous are without borders or countries. Not some patriotic fools.

                                          #48.3 - Tue Feb 19, 2013 11:55 AM EST
                                          Reply

                                          Who among you is not aware that the Chinese make an honorable living by hacking information, reverse engineering products of value from the whole world, produce huge quantities of fake goods that are blatant copyright infringements and the list goes on.

                                          They have got to be one of the most disgusting cultures infesting the planet Earth today.

                                            Reply#49 - Tue Feb 19, 2013 9:37 AM EST

                                            And we elected the idiot (Ted Cruz) who represents a Chinese company accused of patent infringement. Another reason we need campaign finance reform. The only reason he go elected was out-of-state TeaPublican money pumped into his campaign. If you think those clowns in Washington have your best interests in mind, you are sorely mistaken.

                                              Reply#50 - Tue Feb 19, 2013 9:39 AM EST

                                              Of course, Congress is already on it:

                                              An 11-day, all-expenses-paid, luxury trip to China for a dozen Congressional
                                              staffers was financed by the Beijing government, it was revealed on
                                              Monday.

                                              Only two days were spent on items related to national security —
                                              the official theme of the trip — with the others taken up by visits to tourist
                                              traps such as the Great Wall and the Forbidden City, the Washington Post
                                              reports.

                                              And it was all totally legal as part of a growing trend in which
                                              foreign governments sponsor such trips.

                                              The Post says 803 overseas trips
                                              were reported by congressional staffers in the six years up to 2011. However,
                                              the paper says the actual number is almost certainly higher as only members of
                                              Congress and their most senior staffers have to report their
                                              trips.

                                              Lawmakers themselves are going on the trips with more frequency,
                                              the Post reports.

                                              “The trips highlight inconsistencies in tough ethics
                                              rules Congress set for itself,” the paper notes. “Although registered foreign
                                              lobbyists can’t buy a $2 cup of coffee for a congressional staffer in
                                              Washington, they are allowed to invite, plan and accompany a staffer on a trip
                                              costing $10,000 or more.” Copeid from Newsmax.

                                              So, when we have security problems, we will just ask the Chinese government to help us out, or buy some software from the Russians (Kaspersky). We be rele smart!

                                              • 1 vote
                                              Reply#51 - Tue Feb 19, 2013 9:43 AM EST
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