Sun Sentinel Palm Beach Edition
Chinese swipe data from Navy contractor
Sub warfare plans part of breaches, U.S. officials say
Chinese government hackers have compromised the computers of a Navy contractor, stealing massive amounts of highly sensitive data related to undersea warfare — including secret plans to develop a supersonic anti-ship missile for use on U.S. submarines by 2020, according to American officials.
The breaches occurred in January and February, the officials said, speaking on the condition of anonymity to discuss an ongoing investigation.
The hackers targeted a contractor who works for the Naval Undersea Warfare Center, a military organization headquartered in Newport, R.I., that conducts research and development for submarines and underwater weaponry.
The officials did not identify the contractor.
Taken were 614 gigabytes of material relating to a closely held project known as Sea Dragon, as well as signals and sensor data, submarine radio room information relating to cryptographic systems, and the Navy submarine development unit’s electronic warfare library.
The Washington Post agreed to withhold certain details about the compromised missile project at the request of the Navy, which argued that their release could harm national security.
The data stolen was of a highly sensitive nature despite being housed on the contractor’s unclassified network.
The officials said the material, when aggregated, would be considered classified, a fact that raises concerns about the Navy’s ability to oversee contractors tasked with developing cutting-edge weapons.
The breach is part of China’s long-running effort to blunt the U.S. advantage in military technology and become the pre-eminent power in east Asia.
The news comes as the Trump administration is seeking to secure Beijing’s support in persuading North Korea to give up nuclear weapons, even as tensions persist between the United States and China over trade and defense matters.
The Navy is leading the investigation into the breach with the assistance of the FBI, officials said.
“There are measures in place that require companies to notify the government when a ‘cyber incident’ has occurred that has actual or potential adverse effects on their networks that contain controlled unclassified information,” Navy spokesman Cmdr. Bill Speaks said.
Speaks said “it would be inappropriate to discuss further details at this time.”
Details on hundreds of mechanical and software systems were compromised — a significant breach in a crucial area of warfare that China has identified as a priority, both for building its own capabilities and challenging those of the United States.
“The United States consistently has been able to use highly compartmented security systems to protect its most innovative and dynamic defense advancements, and any time one of those is penetrated you give up an enormous advantage in surprise,” said James Stavridis, dean of the Fletcher School of Law and Diplomacy at Tufts University and a retired admiral who served as supreme allied commander at NATO.
“So if it is true that this was a penetration of one of those very compartmented systems, that is a significant reversal for the United States,” he said.
Stavridis had no independent knowledge of the breach.
The Sea Dragon project is an initiative of a special Pentagon office set up in 2012 to adapt existing U.S. military technologies to new applications.
The Defense Department, citing classification levels, has released little information about Sea Dragon other than to say that it will introduce a “disruptive offensive capability” by “integrating an existing weapon system with an existing Navy platform.”
The Pentagon has requested or used more than $300 million for the project since late 2015 and has said it plans to start underwater testing by September.
Military experts fear that China has developed capabilities that could complicate the Navy’s ability to defend U.S. allies in Asia in the event of a conflict with China.
The Chinese are investing in a range of platforms, including quieter submarines armed with increasingly sophisticated weapons and new sensors, Adm. Philip Davidson said during his April nomination hearing to lead U.S. IndoPacific Command.
And what they cannot develop on their own, they steal — often through cyberspace, he said.
“One of the main concerns that we have,” he told the Senate Armed Services Committee, “is cyber and penetration of the dot-com networks, exploiting technology from our defense contractors, in some instances.”
In February, Director of National Intelligence Daniel Coats testified that most of the detected Chinese cyber-operations against U.S. industry focus on defense contractors or tech firms supporting government networks.
In recent years, the United States has been scrambling to develop new weapons or systems that can counter a Chinese naval buildup that has targeted perceived weaknesses in the U.S. fleet.