The Commercial Appeal

Fireeye CEO: Reckless hack unusual for China

- Frank Bajak and Nathan Ellgren

RESTON, Va. – Cyber sleuths have already blamed China for a hack that exposed tens of thousands of servers running Microsoft’s Exchange email program to potential hacks. The CEO of a prominent cybersecur­ity firm says it now seems clear China also unleashed an indiscrimi­nate, automated second wave of hacking that opened the way for ransomware and other cyberattac­ks.

The second wave, which began Feb. 26, is highly uncharacte­ristic of Beijing’s elite cyber spies and far exceeds the norms of espionage, said Kevin Mandia of Fireeye. In its massive scale it diverges radically from the highly targeted nature of the original hack, which was detected in January.

“You never want to see a modern nation like China that has an offense capability – that they usually control with discipline – suddenly hit potentiall­y a hundred thousand systems,” Mandia said Tuesday in an interview with The Associated Press.

Mandia said his company assesses based on the forensics that two groups of Chinese state-backed hackers – in an explosion of automated seeding – installed backdoors known as “web shells” on an as-yet undetermin­ed number of systems. Experts fear a large number could easily be exploited for second-stage infections of ransomware by criminals, who also use automation to identify and infect targets.

Across the globe, cybersecur­ity teams are scrambling to identify and shore up hacked systems. The National Governors Associatio­n sent a rare alert to governors on Tuesday asking them amplify “both the severity of the threat and the next steps” local government­s, businesses and operators of critical infrastruc­ture should take.

The White House has called the overall hack an “active threat,” but so far has not urged tough action against China or differentiated between the two waves – at least not publicly. Neither the White House nor the Department

of Homeland Security offered comment on whether they attribute the second wave to China.

The assessment of Mandia, who has been dealing with Chinese statebacke­d hackers since 1995 and has long had the ear of presidents and prime ministers, squares with that of Dmitri Alperovitc­h, former chief technical officer of Crowdstrik­e, the other cybersecur­ity powerhouse in the Washington, D.C., area. Alperovitc­h says China needs to be immediatel­y put on notice: Shut down those web shell implants and limit collateral.

The explosion of automated backdoor-creating hacks began five days before Microsoft issued a patch for the vulnerabil­ities first detected in late January by the cybersecur­ity firm Volexity. It had found evidence of the vulnerabil­ities being used as far back as Jan. 3 by Chinese state-backed hackers, who researcher­s say targeted think tanks, universiti­es, defense contractor­s, law firms and infectious-disease research centers.

Suddenly, all manner of organizati­ons that run email servers were infected with web shells associated with known Chinese groups, who – knowing the patch was imminent – rushed to hit everything they could, said Mandia.

 ?? NATHAN ELLGREN/AP ?? Fireeye CEO Kevin Mandia says 550 of his employees are working remotely and responding to a recent barrage of cyber breaches, including four different “zero-day” attacks against Microsoft Exchange.
NATHAN ELLGREN/AP Fireeye CEO Kevin Mandia says 550 of his employees are working remotely and responding to a recent barrage of cyber breaches, including four different “zero-day” attacks against Microsoft Exchange.

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