China denies carrying out cyberattack on Microsoft, calls allegations 'groundless'

Chinese officials on July 20, Tuesday, denied carrying out a massive hack of key Microsoft servers and described US allies’ allegations as “groundless” and “irresponsible”. The US and several allies formally blamed China for a massive hack of Microsoft Exchange email server software and asserted that criminal hackers associated with the Chinese government have carried out ransomware and other illicit cyber operations. In China’s first official response, embassies in Australia and New Zealand then issued fiery statements of denial. 

The Chinese Embassy in Wellington described the allegations as “totally groundless and irresponsible” and a “malicious smear”. According to a press release, China expressed “strong dissatisfaction” and “firm opposition”. It also said that the Chinese government is a staunch defender of cybersecurity and firmly opposes and fights all forms of cyber attacks and crimes in accordance with the law.

“Given the virtual nature of cyberspace, one must have clear evidence when investigating and identifying cyber-related incidents. Making accusations without prove is malicious smear,” the Chinese embassy in NZ said. 

The embassy in Canberra, on the other hand, accused Australia of "parroting" US rhetoric and described Washington as "the world champion of malicious cyber attacks". As per a press note, it said, “Australia also has a poor record, including monitoring the mobile phone of the president of its biggest neighbour country, not to mention acting as an accomplice for the US’ eavesdropping activities under the framework of Five Eyes alliance”. It added, “What the Australian government has done is extremely hypocritical, like a thief crying ‘stop the thief’”.

China accused of fostering ‘ecosystem of criminal hackers’

Meanwhile, US President Joe Biden’s administration accused China of fostering an "ecosystem of criminal contract hackers who carry out both state-sponsored activities and cybercrime for their own financial gain". According to AP, the move, though not accompanied by sanctions against the Chinese government, was intended as a forceful condemnation of activities a senior Biden administration official described as part of a “pattern of irresponsible behaviour in cyberspace”. They reportedly highlighted the ongoing threat from Chinese hackers even as the administration remains consumed with trying to curb ransomware attacks from Russia-based syndicates that have targeted critical infrastructure.

The broad range of cyber threats from Beijing disclosed included a ransomware attack from government-affiliated hackers that targeted victims - including in the US - with demands for millions of dollars. US officials also alleged that criminal contract hackers associated with China’s Ministry of State Security have engaged in cyber-extortion schemes and theft for their own profit.

(Image: AP/Unsplash)