Cyber Espionage Report Implicates Hackers In China

The same Internet security analysts who identified andand Project Shakti.
revealed the surveillance ring known as GhostNetIn addition, over 1,500 letters sent from the Office of
published another report today, revealing a vastthe Dalai Lama between January and November of
"Shadow network" of online espionage based inlast year were among those files recovered.
China's Sichuan Province.When questioned about the report on Monday,
The report, titled "Shadows in the Cloud: InvestigatingChengdu's propaganda official Ye Lao dismissed the
Cyber Espionage 2.0," is the product of a collaborativenotion of Chinese government involvement as
effort between Canada's Information War Monitor and"ridiculous."
America's Shadowserver Foundation. The Information"The Chinese government considers hacking a cancer
War Monitor is a public-private joint venture linking theto the whole society," he went on to say.
Citizen Lab at the University of Toronto's Munk SchoolWhile the report does not directly implicate the
for International Studies to Ottawa-based think tankgovernment in Beijing, it does maintain a critical stance
The SecDev Group. The Shadowserver Foundation istowards the overall Internet environment which it
a group of volunteer Internet security professionalsbelieves is permitted to thrive in China.
that gather, track, and report on malware, botnet"We have no evidence in this report of the
activity, and electronic fraud.involvement of the People's Republic of China or any
While operating from the Munk School, the internationalother government in the Shadow network," the report
Internet security team has monitored a complexsaid. "But an important question to be entertained is
ecosystem of cyber espionage originating in thewhether the PRC will take action to shut the Shadow
Chinese city of Chengdu over an eight month period.network down. Doing so will help to address
Using popular online social-media tools such as Twitter,long-standing concerns that malware ecosystems are
Google Groups, Blogspot, Baidu Blogs, blog.com, andactively cultivated, or at the very least tolerated, by
Yahoo Mail, the hackers breached and compromisedgovernments like the PRC who stand to benefit from
computer networks within India, the Offices of thetheir exploits through the black and grey markets for
Dalai Lama, the United Nations, and several otherinformation and data."
countries and organizations. The Indian governmentThis illustrates the underlying propellant of cyber
and the Dalai Lama, however, were undoubtedly theespionage operations like those uncovered in China;
parties most affected by the attacks.where even if the information isn't being stolen under
Among the documents recovered by the onlinethe direction of the government, there remains a
security analysts in Toronto were several encryptedlucrative market for the data to be sold to interested
confidential files belonging to the Indian government.parties. And while the authors of the report admit that
"These documents contain sensitive information takenit is out of their realm to speculate as to the motives
from a member of the National Security Councilof the hackers, there is one particular party that
Secretariat concerning secret assessments of India'scomes to mind that may be interested in acquiring the
security situation in the states of Assam, Manipur,correspondence of the Dalai Lama and confidential
Nagaland and Tripura, as well as concerning thereports belonging to the Indian government.
Naxalites and Maoists," the report said. "In addition, they"It's like the world of art theft, where you steal things
contain confidential information taken from Indianthat have a very high value, as long as you can find a
embassies regarding India's international relations withbuyer," said Rafal Rohozinski, senior research adviser
and assessments of activities in West Africa, Russiaat Citizen Lab and CEO of SecDev Group, according
Commonwealth of Independent States and the Middleto The Globe and Mail.
East, as well as visa applications, passport office"So the question of course is, who's the buyer? Is the
circulars and diplomatic correspondence."buyer paying the thief to go after this stuff, or is the
The hackers may have also obtained confidentialthief doing it themselves because they know they can
information from Indian military personnel on thefind a buyer? That's one of those things that we don't
Pechora Missile System, the Iron Dome Missile System,really have a good answer for," said Rohozinski.