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China Behind 96% of All Cyber-Espionage Data Breaches, Verizon Report Claims

colinneagle writes "Verizon's 2013 Data Breach Investigation Report is out and includes data gathered by its own forensics team and data breach info from 19 partner organizations worldwide. China was involved in 96% of all espionage data-breach incidents, most often targeting manufacturing, professional and transportation industries, the report claims. The assets China targeted within those industries included laptop/desktop, file server, mail server and directory server, in order to steal credentials, internal organization data, trade secrets and system info. A whopping 95% of the attacks started with phishing to get a toehold into their victim's systems. The report states, 'Phishing techniques have become much more sophisticated, often targeting specific individuals (spear phishing) and using tactics that are harder for IT to control. For example, now that people are suspicious of email, phishers are using phone calls and social networking.' It is unknown who the nation-state actors were in the other 4% of breaches, which the report says 'may mean that other threat groups perform their activities with greater stealth and subterfuge. But it could also mean that China is, in fact, the most active source of national and industrial espionage in the world today.'" The report also notes that financially-motivated incidents primarily came from the U.S. and various Eastern European countries.

16 of 96 comments (clear)

  1. I must admit a begrudging respect for China by TWiTfan · · Score: 5, Funny

    I kind of envy having a government so willing to go to bat for its native industry that it's willing to go as far as to steal IP for them. In my country, the government is more than happy to sit back and watch all its industries outsource and lay off everyone, and nationalism is regarded as a bad word. China, if nothing else, believes in China.

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    1. Re:I must admit a begrudging respect for China by gl4ss · · Score: 3, Funny

      they just have so many people and not so many things to order them to do. but imagine the disappointment when they spend two man years to phish something trivial they then notice they already had since they had been producing the fucking thing for five years!

      aaanyhow.. even westerners would be better off bouncing their attacks through china.

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    2. Re:I must admit a begrudging respect for China by Anonymous Coward · · Score: 4, Insightful

      You're drawing a false distinction between China's government and it's industries. Companies in China essentially *are* part of the government.

    3. Re:I must admit a begrudging respect for China by AmiMoJo · · Score: 2, Interesting

      What makes you think the US isn't doing the same? There have been complaints from European companies for decades that the US was spying on them, and it is safe to assume that anything worth stealing that China develops would be a target as well.

      There was an article today about how China is well ahead of the US in renewable energy. China is deploying a deep water thermal differential power plant, the largest of its kind. China has faster trains than anything in the US, even if the signalling system isn't so good... You can bet your bottom dollar that the US government is keeping a close eye on these developments.

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    4. Re:I must admit a begrudging respect for China by cayenne8 · · Score: 2
      The difference is, in countries like China (and I think #2 is actually Israel, or at least they used to be WAY up there in espionage in the US)...it is state sponsored.

      In the US, it is largely left up to the private industry. Any US spying, stays mostly in govt hands, things learned by the US govt isn't given freely to US industries.

      The opposite is true in these other countries.

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    5. Re:I must admit a begrudging respect for China by gtall · · Score: 5, Insightful

      Your whole reply was pure speculation, unless the government has been giving you the memos, stop reading Mother Jones. You whole argument is that (1) you don't know what the government is doing, (2) therefore it is lying to you. Brilliant, Einstein.

    6. Re:I must admit a begrudging respect for China by jandrese · · Score: 2

      I always think it is weird when people applaud China for playing the long game, when so many of their policies seem focused on making them look explosive in the short term but crippling them in the long term. The One Child policy for instance has created an enormous glut of working age people with few dependents that will become a tremendous burden on the country when they reach retirement age. The One Child policy combined with traditional values is also creating a tremendous imbalance in the genders, with almost 20% more boys than girls born. Societies with enormous gender imbalances like that become unstable as unattached and disaffected males become restless. Historically (this also happens in polygamous cultures) the only solution is to go to war with your neighbors to kill off the excess men. The completely lax environmental regulation is allowing them to attract manufacturing from around the world, but at the cost of enormous medical and cleanup expenses down the road.

      Anybody who thinks China is some unstoppable juggernaut based on their recent performance isn't thinking the situation all the way through. The communist party can only ignore these issues for so long before they boil over.

      That said, China is and should be a major economic power. With a population that large you should be a major player in all global issues. The problem is that the government seems more interested in declaring themselves the winner in everything that they're not bothering to actually solve the real looming domestic issues.

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    7. Re:I must admit a begrudging respect for China by ackthpt · · Score: 3, Insightful

      People joke and laugh about Chinese aggression, but please never forget, China is the oldest nation on the planet and arguably the second largest in size (depending on definition).

      They have arguably existed in continuous (but evolving) national form since approximately 200 BC -- possibly longer if you consider the Qin takeover a civil war and treat the dynasties as more western city states.

      You don't last 2000+ years as a nation without a long term plan.

      I don't want to be fearmongering about Asian cultures -- but it is important to pay a potential foe respect where it's due. China knows what they're doing.

      Also don't forget modern China is mostly populated and run by Han Chinese. Many of the earlier tribes of China were driven out by Han expansion and presently populate Southeast Asia and Japan. In claiming Tibet the government has effectively declared it lebensraum. Tibetans are already a minority in their own land.

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    8. Re:I must admit a begrudging respect for China by Solandri · · Score: 5, Informative

      The difference is that from what I've seen of Asian corporate culture (I worked there for a couple years), it is not taboo to steal IP from competitors. In fact it's more or less considered normal albeit unspoken. It's not unusual for an employee who refuses to do it to be let go for other unspecified reasons.

      You've seen the stories over and over. Like how the Chinese government required Siemens to contract with Chinese companies to manufacture high speed trains, then once the companies had "acquired" enough technical knowledge to do it themselves they dumped Siemens. It makes me facepalm every time I read about some naive Western tech company eager to do business in China bending over backwards to please the Chinese government, like lambs to the slaughter, thinking that a few pieces of paper promising their IP is safe will protect them.

      In the late 20th century, this behavior was pretty much localized to the region. But now with the Internet, the behavior can reach around the globe. Those of you who think Western companies are the epitome of evil are in for a rude shock, once you see the no-holds-barred style of capitalism practiced in the East.

    9. Re:I must admit a begrudging respect for China by ebno-10db · · Score: 4, Insightful

      You don't last 2000+ years as a nation without a long term plan.

      China has fallen apart, and been glued back together, many times in the last 2000+ years. Emperor/Chinese party gets too greedy, peasants revolt, place falls apart for a few centuries, new peasant leader comes along and makes himself emperor (e.g. Mao) and it stays glued together for some time, until the cycle repeats.

      I'll buy that they're thinking longer term than the US, but that's also true of a hyperactive three year old. No country thinks 2000 years ahead. BTW Egypt has been around a lot longer and has at least as good of a claim to continuity.

    10. Re:I must admit a begrudging respect for China by cavreader · · Score: 2

      They have been at it for +2000 years and they still come in 2nd place to a country that has been a going concern for 250 years. China is facing the inevitable consequences of creating a growing economy. Their only advantage in world trade has been their reliance on cheap labor and not quality or innovation. This is why China is borrowing technology from everyone and not giving a damn about things such as patents. They now have to compete with other countries in South East Asia because they also can use lower labor costs to make their exports more affordable. China has also manipulated their currency to make their exports as cheap as possible but currency manipulation has it's limits. On the whole I think China entering the global market place is just fine. Every country has it's own little quirks to massage their economies while trying not to piss off to many countries in the process.

  2. the other 4 percent by nimbius · · Score: 4, Funny

    was divided among local, state and federal government in their tireless quest to shit all over the middle east and shred the constitution.

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  3. Block all of China? by Anonymous Coward · · Score: 5, Interesting

    I have a dumb question: If your company does not depend on doing business with China, why not block their entire country within your firewall? My current company has no dealings with China, so I've blocked their national IP address range. My spam/attacks have gone down almost 90% since doing so. I did the same with Russia and most of the former Soviet nations.

  4. DenyHosts Report by Sloppy · · Score: 5, Informative

    Added the following hosts to /etc/hosts.deny:
     
    [chinese address]

    [repeat dozens of times per day]

    At some point, you realize that the only time you ever communicate with that part of the Net, is when you're receiving an attack of some sort. Before long, "The Great Firewall of China" isn't going to be something installed by the Chinese government; it's something the rest of us will have done.

    Hmm... maybe that was the government's devious plan to combat internal dissent and external influences, all along!

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  5. Re:I only have one question... by plover · · Score: 5, Interesting

    I realize you were probably asking this in jest, but Verizon Business Security is independent of their cell phone business. What happened is their investigators got pretty darn good at rooting out hackers, both internal and external. Helping customers find external hackers in their networks led them to offering these investigation services to other corporations. I'm pretty sure that their security team is a profitable self-sustaining division these days.

    The most important thing to the rest of us is they created a schema for recording incidents, and they publish the data (after anonymizing it.) With the number of investigations they perform, it becomes a statistically significant source of information about breaches, which had been a real black hole of information before.

    Most companies are reluctant to announce anything about their breaches. They're always negative publicity, they lead to accusations of wrongdoing or incompetence, and they may reveal other sensitive internal information about the kinds of data they keep. By being anonymized through the DBIR, we all get to learn much more about the threat landscape without being able to blame a specific company for a specific loss.

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    John
  6. China may just be a stepping stone for Hackers. by PenguinJeff · · Score: 2

    While watching ssh brute force on some of my systems I found myself blocking whole subnets based in China. I also discovered some in the US. Long before this one of my machines (old slax bootable CD) at home had been attacked itself and used as a stepping stone for hacker for the few hours it had gone unnoticed, a slow internet has the advantage of when I hacker was on it would get unbearably slow. I rebuilt that machine even looking for MBR trojans. However a sufficiently fast internet might not be bogged down enough for people to notice and hackers can use machines as stepping stones. Couldn't we give China the benefit of doubt and suspect they are hacked? Just a thought.