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China denies allegations of having targeted the US Treasury in a cyberattack

Beijing responded on Tuesday to allegations that a state-sponsored Chinese actor was responsible for a cyber breach at the US Treasury Department, labeling the accusations as “baseless.”

The Treasury Department reported that the breach allowed unauthorized access to several of its workstations, as detailed in a letter to Congress.

The incident reportedly occurred earlier this month when the actor infiltrated a third-party cybersecurity service provider, enabling remote access to workstations and certain unclassified documents.

In response, China’s foreign ministry rejected the allegations, asserting that Beijing “has consistently opposed all forms of hacking and is particularly against the dissemination of false information aimed at discrediting China for political gain.”

Foreign ministry spokeswoman Mao Ning emphasized, “We have repeatedly expressed our stance on these unfounded accusations that lack supporting evidence.”

Following the alert from its provider BeyondTrust, the Treasury reached out to the US Cybersecurity and Infrastructure Security Agency and has been collaborating with law enforcement to evaluate the situation’s impact.

A spokesperson for the department confirmed, “The compromised BeyondTrust service has been deactivated, and there is no indication that the threat actor retains access to Treasury systems or information.”

In a communication to the Senate Banking Committee leadership, the Treasury Department stated: “Current indicators suggest that the incident is linked to a state-sponsored Advanced Persistent Threat (APT) actor from China.”

An APT is characterized by a cyber intrusion where an attacker gains and maintains unauthorized access to a target, often remaining undetected for an extended duration.

While the department did not disclose specific details regarding the impact of the breach, it indicated that additional information would be provided in a forthcoming supplemental report.

“The Treasury is committed to addressing all threats to our systems and the data we manage,” the spokesperson emphasized.

Concerns over cyberattack

In recent years, numerous nations, particularly the United States, have expressed significant concern regarding what they describe as hacking activities supported by the Chinese government, targeting their governmental, military, and commercial sectors.

China has denied these accusations, asserting its opposition to and efforts to combat all forms of cyberattacks.

In September, the U.S. Justice Department announced the dismantling of a cyber-attack network that had compromised 200,000 devices globally, claiming it was operated by hackers affiliated with the Chinese government.

In February, US officials announced the dismantling of a hacker network referred to as “Volt Typhoon.” This group was reportedly focused on compromising critical public sector infrastructure, including water treatment facilities and transportation systems, under the direction of China.

In 2023, Microsoft, a leading technology company, reported that hackers based in China had infiltrated the email accounts of several US government agencies in search of intelligence. The group, known as Storm-0558, successfully accessed email accounts across approximately 25 organizations and government entities. Notably, the accounts of the State Department and Commerce Secretary Gina Raimondo were among those affected in this incident.


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Asif Shahid
Asif Shahidhttps://defencetalks.com/
Asif Shahid brings twenty-five years of journalism experience to his role as the editor of Defense Talks. His expertise, extensive background, and academic qualifications have transformed Defense Talks into a vital platform for discussions on defence, security, and diplomacy. Prior to this position, Asif held various roles in numerous national newspapers and television channels.

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