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The Undeclared "Cyber Cold War" With China

First time accepted submitter lacaprup writes "Chinese-based hacking of 760 different corporations reflects a growing, undeclared cyber war. From giants like Intel and Google to unknowns like iBahn, the Chinese hackers are accused of stealing everything isn't nailed down. Simply put, it is easier and cheaper to steal rather than develop the legal way. China has consistently denied it has any responsibility for hacking that originated from servers on its soil, but — based on what is known of attacks from China, Russia and other countries — a declassified estimate of the value of the blueprints, chemical formulas and other material stolen from U.S. corporate computers in the last year reached almost $500 billion"

20 of 260 comments (clear)

  1. Didn't the chinese adapt cracking from the States by Synerg1y · · Score: 5, Interesting

    Yep pretty sure us Yankees invented the concept, along w the personal computer and the internet, shame some of us are getting schooled on it, a glimpse into American decay? Or the start of a security renaissance?

  2. It's not a cyber cold war by Marxist+Hacker+42 · · Score: 4, Interesting

    It's a hot trade war, with one side believing the rules don't apply to them, and the other side letting them get away with it.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    1. Re:It's not a cyber cold war by Skewray · · Score: 4, Insightful

      If you hang you underwear out to dry, the neighbors will see it. Same with trade secrets. In order to be protected by law, one is required to make reasonable efforts to protect trade secrets. Obviously nowadays, when $500 billion worth of trade secrets are being stolen, these trade secrets are not being adequately protected. These secrets are, in effect, out on the line in plane sight, just like the aforementioned underwear. Too bad our government is more interested in stopping movie downloads.

    2. Re:It's not a cyber cold war by PickyH3D · · Score: 4, Insightful

      What?

      That's the exact same thing as saying, because your safe can be cracked, then your trade secrets that you held in it are in plain site. In other words, because someone was able to steal them, then they are not covered.

      Requiring a spy to steal your details, or for you entire computer system to be hacked in certainly a reasonable-enough effort at protecting your trade secrets.

      People should be stopped from illegal downloads as it is stealing, but the level of focus definitely makes no sense in comparison to other issues facing the nation. The entire entertainment industry has a nonsensical amount of power, but that does not change the lunacy of the rest of your--hopefully--sarcastic point.

    3. Re:It's not a cyber cold war by lightknight · · Score: 5, Insightful

      Won't ever happen. If we tried that, Britain would come tapping us on the shoulder, and presenting a bill for all the trade secrets we lifted during the Industrial Revolution from them.

      What China is doing to us is the same thing we've been done to other nations, albeit when this country was younger.

      --
      I am John Hurt.
  3. The "Chinese Hacker" myth is overblown by MetricT · · Score: 5, Informative

    I'm sure the Chinese government has their crack team of hackers, just like we do. Having said that...

    I run a honeypot at work. 70% of the attacks do come from Chinese machines, but I suspect that's because the Chinese buy those $2 pre-hacked warez'd Windows CD's at the market and don't install security updates.

    Of the actual living, breathing hackers that log into my honeypot, 1/3 of them come from Romanian IP's, and another 1/3 come from other eastern European countries, but the text files/strings in their utilities are Romanian. Wired has a good article which partly corroborates this.

          http://www.wired.com/magazine/2011/01/ff_hackerville_romania/all/1

    I see two modes of attack. 98% are single machines launching 100's of attacks. 70% of those are in China. The other 2% are distributed attacks. These are more likely to be major power intelligence agencies, and don't have anywhere near the geographic concentration as the single-machine attacks (Chinese IP's are 15% of distributed attacks, same as Brazil).

    1. Re:The "Chinese Hacker" myth is overblown by MetricT · · Score: 5, Informative

      Here's a little write-up about some of the hacking I've seen.

      http://binkley.accre.vanderbilt.edu/documents/hack-stats.txt

  4. It's impossible to blame China by GameboyRMH · · Score: 5, Insightful

    Every black hat is probably running their operations through proxies in China these days so that the Western companies they break into will just say "damn dirty Chinese!" and never suspect someone in Europe or maybe just a few blocks away. China is a jurisdictional black hole.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
    1. Re:It's impossible to blame China by Anonymous Coward · · Score: 5, Insightful

      You mean technologies that China is already producing for the USA? No R and D needed when you are already doing the manufacturing.

  5. Undeclared? by Oxford_Comma_Lover · · Score: 4, Insightful

    Undeclared my ass. It's in the media, it's widely known, and pretty much the only rule is not to do something to the other side's infrastructure that kills people directly or gets too much of the population upset. That's like calling the intelligence war undeclared because the sides don't admit that they try to get plans of the other side's military hardware--only more so. We don't declare war, and this isn't a physical war, and there are certain proportionality requirements--and we argue for a pretension of deniability, but not plausible deniability.

    --
    -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    1. Re:Undeclared? by HelioWalton · · Score: 5, Funny

      1,2,3,4, I declare a cold war!

  6. Been there, seen that. by Anonymous Coward · · Score: 5, Insightful

    This is probably going to sound racist, when I don't really intend it to. It's more "culturist" than anything else.

    I work for a post-secondary institution with a large international student program. Most of our international students come from China, and when we break down the stats, the Chinese students are the most likely students to plagiarize others work, both in our online learning management system and in our face to face classroom environments.

    What's more, they make no effort to hide their "enhanced group work" skills from their instructors. We've asked several of the students about this behaviour and have been told "that's how things work in China. It's commonplace there."

    So it doesn't surprise me that Chinese hackers are trying to steal information from western companies.

    1. Re:Been there, seen that. by c0lo · · Score: 4, Interesting

      What's more, they make no effort to hide their "enhanced group work" skills from their instructors. We've asked several of the students about this behaviour and have been told "that's how things work in China. It's commonplace there."

      In regards with intellectual creation: a culture of sharing in clash with a culture of artificial scarcity?

      --
      Questions raise, answers kill. Raise questions to stay alive.
  7. Re:Didn't the chinese adapt cracking from the Stat by LordLucless · · Score: 4, Insightful

    Also, patent violations were an American concept back in the day (see Hollywood). Countries (and companies) on the way up view patents as a hindrance, shackling their energy and creativity. Countries on the way down view them as a benefit, holding on to their accumulated wealth and power even once they're no longer earning it.

    --
    Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  8. Well, we wanted it by Anonymous Coward · · Score: 4, Interesting

    We wanted the "information economy", we got it. We ignored material progress and persisted in keeping an antiquated notion of "work" going for what? The work week was about 100 hours in the 19th century and was closer to 50 by the beginning of the 20th century. Despite all the "progress" I keep hearing about and how "productive" we all are sitting at our computers, the work week hasn't reduced, and it still takes 25 years to pay for a house built out of standard parts in six weeks.

    We insist on performing theater for each other while farmers feed us, instead of really analyzing what gets done by who and FOR who.

  9. This war is hundreds of years old. by bmo · · Score: 4, Insightful

    And it's perpetrated by every nation on the planet.

    It's no secret that the Industrial Revolution got a kickstart in the US via "stolen IP." The legend is that Samuel Slater memorized drawings across the pond in Blighty and came here with them in his head.

    Another example would be dumpster diving at your competitor's company. Cutting up start strips from stamping operations is not because you want them to fit in the recycling dumpster better. The same for shredding code printouts and printed spreadsheets.

    To suddenly be surprised that this is being done electronically on a systematic scale is to be utterly ignorant of history. And frankly, singling out China smells of hypocrisy, especially after two decades of US manufacturing companies willingly transferring their core manufacturing to China completely oblivious to the long term effects.

    Why reinvent the wheel from scratch when you can simply snag the wheel.dwg from your competitor's computer?

    --
    BMO

  10. more american saber rattling, as per usual. by nimbius · · Score: 5, Insightful

    "it is easier and cheaper to steal rather than develop the legal way."
    this sentiment is emanating from a nation that has no credibility on 'the legal way' to develop anything in the 21st century. A nation comprised of just a few megacorporations that hover over an infinite sea of frivolous patents, casting them forth like pokemon at the slightest sight of national or international competition that cannot be bought, licensed, bribed, or outlawed by their pre-pay capitalist representatives in government.

    information assets amount to the brainfarts of talented engineers and scientists who are in many cases ostracized entirely from the most meaningful components of their work such as the revenue stream and general application.
    yeah, its an ideological battle that americans immediately jump around and compare to the cold war, but its the ideology of
    ideas come from people, and they must be nurtured and encouraged for the good of all humankind
    versus
    ideas come from people, and they must be incarcerated, exploited, litigated and profiteered until a group of old white men get another yacht.

    --
    Good people go to bed earlier.
  11. Re:Didn't the chinese adapt cracking from the Stat by Grishnakh · · Score: 4, Insightful

    Though the strange thing with "financial experts" seems to be that you will allways find another "expert" who tells you the exact opposite of what the previous guy said.
    I have the feeling those finance gurus are more close to fortune-tellers than to scientists.

    I'm sure you're correct about that feeling. "Economics" simply isn't a real science, it's pseudoscience as it doesn't produce any theories that can actually be tested. Unfortunately, our societies depend greatly on economics, so even though it's really not much different than shamans trying to cure diseases with chants and incantations and potions, it's the best we've got.

  12. Re:Welcom to Shitty Wok by lennier · · Score: 5, Funny

    China is the Han race.

    The Han shot first!

    --
    You are not a brain: http://books.google.com/books?id=2oV61CeDx-YC
  13. Re:Welcom to Shitty Wok by ediron2 · · Score: 4, Insightful

    Am usually right there with y'all in demanding a complete redo on IP law, but not here.

    Take anything we do well in America. Trace it down to materials science or some other obscure technological detail.

    Now, *GIVE* that info to another country. Whoosh, there go a billion dollars of competitive advantage, or whatever the equivalent engineering/prototyping cost is.

    In the cases of media, biology and pharm, it's a cost that some corp won't recoup. Bad juju. But in the case of weapons, armor and nuclear reactor designs, it's a cost that keeps china from marching on another nation. It doesn't take a huge amount of paranoia to suspect that Taiwan, South Korea, the Philippines, Indonesia, India and Japan remain sovereign partly because China isn't capable of our level of weaponry, submarine reactor longevity, space-based intelligence, etc.

    There's no easy answer, and I'm not buying the cyberwarfare jingoism rants, but taking cybersecurity more seriously is important.