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Digital Dragons: Exposing Chinese Cyberespionage Tactics

BY Guy D. McCardle

In the shadowy world of global cyberespionage, a startling leak unravels China’s vast digital infiltration efforts, shining a rare light on the covert operations of cyber mercenaries and the intricate web of international intelligence gathering.

China's "digital dragon" has a long reach and sees all. Original illustration by the SOFREP News Team

In a stunning revelation, a series of documents linked to a cyberespionage outfit connected to the Chinese state has been uncovered, shedding light on Beijing’s extensive digital intrusion efforts against international entities. This discovery made public through a GitHub post, comprises over 570 pieces of evidence, including files, visuals, and communication logs, providing a rare peek into the covert operations spearheaded by entities contracted by the Chinese government for data harvesting missions on a grand scale.

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The documents, which cybersecurity professionals have authenticated despite the anonymity of the source, detail a comprehensive campaign to siphon data from foreign governments, corporations, and critical infrastructure, pinpointing vulnerabilities in the software products of tech behemoths like Microsoft, Apple, and Google. These findings underscore the sophisticated and expansive nature of China’s intelligence and military cyber operations, which are now laid bare in an unprecedented manner.

A Rare and Troubling Insight

John Hultquist of Mandiant Intelligence, a subsidiary of Google Cloud, emphasized the rarity of such an extensive insight into an intelligence operation, highlighting the significance of this leak as it pertains to understanding China’s cyberespionage capabilities. Said Hulquist,

“We rarely get such unfettered access to the inner workings of any intelligence operation. We have every reason to believe this is the authentic data of a contractor supporting global and domestic cyber espionage operations out of China.” 

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This sentiment is echoed by US intelligence, which has long regarded China as a formidable cyber threat, particularly in light of its focused hacking campaigns against American interests.

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It Originated From iSoon

Originating from iSoon, also known as Auxun, a Shanghai-based firm engaged in third-party hacking and data collection for Chinese government agencies and state-owned entities, the leaked cache does not contain data harvested from these cyber intrusions but rather outlines the scope, targets, and some outcomes of these operations. Among the disclosed targets are over 20 foreign governments and territories (including the UK, India, Taiwan, and Malaysia), revealing the extent and focus of China’s cyberespionage activities.

The documents reveal iSoon’s success in breaching 80 international targets, including significant data hauls like immigration records from India and telecom data from South Korea’s LG U Plus. This information not only underscores the strategic interests of Chinese intelligence but also the vulnerabilities exploited in global digital infrastructure.

The revelations also highlight the competitive landscape within China’s cybersecurity industry, where firms vie for government contracts by promising increasingly sophisticated access to sensitive information. This competition fuels a relentless pursuit of vulnerabilities in global software systems, posing a continuous challenge to Western technology companies.

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Chinese Cyber Mercenaries

The leak provides insight into the operational dynamics and challenges faced by these cyber mercenaries, including dissatisfaction with pay and working conditions, suggesting tensions within the ranks of China’s patriotic hacker community. Despite these internal issues, the leaked documents attest to the significant capabilities and ambitions of Chinese cyber operations aimed at both domestic surveillance and international espionage.

iSoon’s role as a conduit between state agencies and the digital battlefield exemplifies China’s strategic approach to cyber warfare, blending state oversight with the entrepreneurial zeal of private contractors. This model not only amplifies China’s cyber capabilities but also highlights the blurred lines between state-sponsored espionage and the global cybersecurity threat landscape.

Profound Implications

The implications of this leak are profound, offering a glimpse into the mechanics of China’s cyberespionage efforts and the global challenges posed by state-sponsored hacking. As the international community grapples with the ramifications of this disclosure, the spotlight on China’s cyber activities intensifies, underscoring the need for robust cybersecurity measures and international cooperation to counteract these sophisticated threats.

This incident sheds light on the intricate web of cyberespionage that underpins international relations in the digital age, revealing the lengths to which states will go to gather intelligence and assert their dominance on the global stage. As the world digests the magnitude of these revelations, the conversation around cybersecurity, state-sponsored hacking, and the protection of critical digital infrastructure takes on new urgency, prompting a reassessment of strategies to safeguard against such pervasive and sophisticated threats.

The US National Security Agency

Of course, the US is not just sitting back and letting the Chinese do whatever they want out there in Cyberland. The National Security Agency (NSA) employs a variety of methods and technologies to detect and counteract international cyber espionage efforts. While specific operational details are often classified, I can outline general practices and strategies here based on publicly available information. These include:

  1. Cyber Surveillance and Monitoring: The NSA monitors global internet traffic, including emails, social media, and other forms of digital communication, to identify potential cyber threats. This involves analyzing vast amounts of data to detect patterns and signatures associated with malicious activities. Ask Ed Snowden about this.
  2. Intrusion Detection Systems (IDS): These systems are deployed across critical infrastructure and government networks to detect unauthorized access or attempts to breach security protocols. IDS can alert cybersecurity teams to potential threats in real time.
  3. Threat Intelligence Sharing: The NSA collaborates with other intelligence agencies, both domestically (like the CIA and FBI) and internationally (through alliances such as the Five Eyes), to share intelligence related to cyber threats. This collaboration helps in understanding the tactics, techniques, and procedures (TTPs) used by cyber spies.
  4. Advanced Cryptography: Protecting the integrity and confidentiality of information is key to national security. The NSA develops and employs advanced cryptographic techniques to secure communications and data against interception and decryption by unauthorized parties.
  5. Cyber Counterintelligence: This involves identifying, deceiving, exploiting, disrupting, or protecting against espionage activities. It includes countermeasures to neutralize or mitigate the impact of cyber spies, such as feeding them false information or identifying and patching vulnerabilities in networks and systems before they can be exploited.
  6. Cyber Operations: The NSA also conducts offensive cyber operations to disrupt foreign cyber espionage activities. This can include hacking into the systems used by cyber spies to gather intelligence or disrupt their operations.
  7. Workforce and Training: Investing in skilled cybersecurity professionals and ongoing training is crucial. The NSA employs some of the world’s most skilled cryptologists, cyber analysts, and engineers to defend against and respond to cyber threats.
  8. Research and Development: The NSA invests in research and development to stay ahead of technological advancements and emerging threats. This includes developing new tools and technologies for cybersecurity and espionage.

Due to the sensitive nature of its work, the NSA operates under strict legal and ethical guidelines, with oversight from various government bodies to ensure that its activities are in line with national and international laws. However, the balance between national security, privacy, and civil liberties continues to be a topic of public debate and scrutiny.

We Are Guilty of It As Well

One would be naive to think that the US has not been caught with in fingers stuck in the cyber spying pie as well.

Ed Snowden’s disclosures in 2013 highlighted the extent of global surveillance activities, including those by the NSA targeting foreign governments and companies, which has influenced the ongoing debate around privacy, surveillance, and cyber espionage. For instance, Snowden’s leaks revealed that the NSA had targeted Huawei, a Chinese telecommunications giant, as part of its surveillance activities, aiming to monitor its communications and potentially exploit Huawei’s technology for intelligence-gathering purposes. These actions were justified by the NSA as necessary for national security, highlighting the blurred lines between national security interests and commercial espionage in the realm of cyber activities.

Speaking of Leaking Intel

And while we are talking about leakers, Julian Assange is back in the news. Julian Assange, the WikiLeaks founder, is facing a critical moment in his long-standing legal battle against extradition to the United States. His possible final legal challenge to prevent his extradition is scheduled to be held at London’s High Court this month. Assange is wanted in the US on 18 counts, including charges under a spying act related to WikiLeaks’ release of a vast amount of confidential US military records and diplomatic cables. This release has been contentious, with US authorities claiming it endangered lives, while supporters argue it exposed US wrongdoings.

If Assange is extradited to the United States and found guilty on all counts, the 52-year-old could face a prison sentence of up to 175 years.

The US Department of Justice’s indictment specifies that Assange faces a maximum penalty of 10 years in prison on each count, except for the conspiracy to commit computer intrusion charge, for which he faces a maximum penalty of five years. These charges relate to allegations of Assange’s involvement in one of the largest compromises of classified information in US history.

If he is extradited to the US, stay tuned for another “trial of the century.”

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