U.S. Charges China With Cyber-Spying on American Firms
The Justice Department filed criminal charges against five hackers in the Chinese military Monday, accusing them of stealing American trade secrets through cyber-espionage.
The efforts were directed at six American victim companies in the nuclear power, metals and solar products industries: Westinghouse Electric, U.S. subsidiaries of SolarWorld AG, U.S. Steel, Allegheny Technologies and Alcoa. The United Steel Workers union was also targeted.
“This is a case alleging economic espionage by members of the Chinese military and represents the first-ever charges against a state actor for this type of hacking,” Attorney General Eric Holder said.
"Enough is enough," Holder said at a press conference.
FBI Director James Comey told NBC News, “For too long, the Chinese government has blatantly sought to use cyber-espionage to obtain economic advantage for its state-owned industries.”
The FBI tracked the computer attacks to Unit 61398 of the Third Department of the People's Liberation Army, headquartered in a building in Shanghai, officials said.
Authorities said what amounted to "21st century burglary" benefited the Chinese competitors of the U.S. victims, including state-run enterprises, and led to the loss of American jobs.
As one example, the hackers stole cost, pricing and strategy information from SolarWorld at the very time the company was losing market share to Chinese rivals, officials said.
"These victims are tired of being raided," said Assistant Attorney General John Carlin.
He said that in the past, when the U.S. has complained about the hacking to China, "they repsonded by publicly challenging us to provide hard evidence of their hacking that could cstand up in court.
"Well, today we are," Carlin said.
It's unclear how the hackers would be brought to justice in the United States. The feds also have charged the makers of the malicious software the Chinese allegedly used to steal information from the American firms.
In a statement, Alcoa said "no material information was compromised" during the Chinese intrusion. The United Steel Workers said, "we find the matter troubling and take it quite seriously."
"To our knowledge, no material information was compromised during this incident which occurred several years ago. Safeguarding our data is a top priority for Alcoa and we continue to invest resources to protect our systems."
The Obama administration has long considered China the most aggressive nation in obtaining industrial secrets through spying.
"Chinese actors are the world's most active and persistent perpetrators of economic espionage," said the Office of the National Counterintelligence Executive, a U.S. government agency, in a 2011 report.
A year ago, several U.S. newspapers, including The New York Times and The Wall Street Journal, said hackers traced to China attacked their newsroom computer systems.
A spokesman for China's foreign ministry called any suggestion that the Chinese were involved in those intrusions "irresponsible," though U.S. security experts said China targeted news organizations in the U.S. and overseas to try to identify the sources of news leaks within the Chinese government.
Those disclosures prompted a computer security expert and former Justice Department lawyer, Marc Zwillinger to say, "the only computers these days that are safe from Chinese government hackers are computers that are turned off, unplugged, and thrown in the back seat of your car."
Does the legal doctrine of "clean hands" apply to Holder, et al?
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