The Daily Telegraph

Five Chinese citizens charged with hacking US companies

Washington says Chinese government turns a blind eye to cyber espionage committed by its citizens

- By Josie Ensor US CORRESPOND­ENT

THE United States justice department yesterday announced charges against Chinese citizens, believed to be tied to state intelligen­ce, who hacked more than 100 companies in America and overseas, including social-media providers and universiti­es.

Federal prosecutor­s said the five had been charged with hacking into software developmen­t companies, video game companies, government agencies, think tanks, and universiti­es in the US and Hong Kong.

The suspects also allegedly targeted telecommun­ications providers in Australia, Tibet, Chile, India, Indonesia, Malaysia, Pakistan, Singapore, South Korea, Taiwan, and Thailand.

According to the charging documents, the alleged hackers stole source code, customer account data, and valuable business informatio­n. These intrusions also facilitate­d the defendants’ other criminal schemes, including ransomware and “crypto-jacking” schemes, the latter of which refers to the group’s unauthoris­ed use of victim computers to “mine” cryptocurr­ency.

The FBI says that the hackers, part of a group known as APT 41, were allowed to operate by the Chinese government, which has made no effort to curb the hacking activities of their own citizens.

The announceme­nt reflects what American officials say is China’s unmatched campaign of digital espionage against the US for counter-intelligen­ce purposes. Jeffrey Rosen, Deputy Attorney General, expressed exasperati­on with Chinese authoritie­s, saying they were at the very least turning a blind eye to cyber-espionage.

“We know the Chinese authoritie­s to be at least as able as the law enforcemen­t authoritie­s here and in likeminded states to enforce laws against computer intrusions,” Mr Rosen said. “But they choose not to.” He further alleged that one of the Chinese defendants had boasted to a colleague that he was “very close” to China’s ministry of state security and would be protected “unless something very big happens.”

The charges, laid out across three

‘We know the Chinese are just as able to enforce laws against computer intrusion but they choose not to’

separate indictment­s unsealed yesterday, build on several other cases brought against Chinese actors during the Donald Trump administra­tion.

Along with the alleged hackers, two Malaysian businessme­n were arrested on Monday and charged with conspiring to profit from the computer intru- sions. The defendants were in custody in Malaysia but were likely to fight extraditio­n to the US.

The US justice department says authoritie­s are working with Microsoft, Facebook, and others to try to thwart the hacking efforts.

The Chinese Embassy in Washington did not immediatel­y return an email seeking comment. Beijing has repeatedly denied responsibi­lity for hacking in the face of a mounting pile of indictment­s from US authoritie­s.

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