China increases espionage activity as suspected hackers breach US firms

A suspected Chinese cyber effort has compromised four more US defence and technology corporations in the last month, and hundreds more US organisations are running the susceptible software that the Chinese hackers have attacked, according to the evidence shared with CNN. In a report released Thursday, cybersecurity firm Palo Alto Networks claims at least 13 organisations in domains such as defence, health care, energy, and transportation have been compromised.

The alleged Chinese espionage activity, which the National Security Agency assisted in investigating when it first surfaced in recent months, is far more widespread than previously thought, with hackers stealing credentials from targeted firms in order to collect key communications. CNN reported in November that the cybersecurity researchers had publicly acknowledged only one damaged US corporation, but they now say there are at least five and that the number could climb.

Palo Alto Networks discovered approximately 600 systems in the United States that were running vulnerable software that the hackers had compromised. According to the researchers, there are installations at 23 universities, 14 state or local administrations, and ten health care organisations. It's the kind of digital surveillance that the US government has been trying to reveal for years in the hopes of preventing the exposure of important national security or trade secrets data.

Hackers attempt to get long-term access to computers in order to steal sensitive data

Palo Alto Networks said the hacking operation is similar to the approaches used by a group Microsoft has recognised as working in China. Because the investigations into the breaches are still underway, the eventual impact of the computer attacks is unknown. However, analysts at Palo Alto Networks' Unit 42 believe the hackers are attempting to get long-term access to computer systems in order to steal sensitive data from US firms.

CNN reported, Palo Alto Networks' Unit 42 division's vice president, Ryan Olson, said, "this adversary has aggressively targeted organizations in the United States and elsewhere in defense, technology and other critical sectors."

Palo Alto Networks was referred inquiries by the US Cybersecurity and Infrastructure Security Agency, which has also attempted to mitigate the consequences of the hacking attack. While Beijing has consistently denied undertaking hacking operations, cybersecurity has been a source of friction between the US and China for years. In July, the Biden administration blamed China for various hacking activities that attacked Microsoft email software and, according to experts, exposed firms around the world to cybercriminal follow-on hacking.

The new suspected Chinese cyberactivity does not appear to pose a risk of such serious consequences. Senior US cybersecurity officials, however, are still paying notice, and have collaborated with the researchers to alert potential victims, reportedly. In recent weeks, the hackers have changed from targeting one popular piece of software to another in their attempt to corrupt more firms. 

(With inputs from agencies)

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