US charges Chinese officials with hacking

Published: 5:41AM Tuesday May 20, 2014 Source: AP

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  Wanted posters for Chinese officals accused of hacking. -Source: AP

The United States has brought first-of-its kind cyber-espionage charges against five Chinese military officials accused of hacking into US companies to gain trade secrets.

According to the indictment, hackers targeted the US nuclear power, metals and solar products industries and are accused of stealing trade secrets and economic espionage. The victims are Alcoa World Alumina, Westinghouse Electric Co., Allegheny Technologies, US Steel Corp., United Steelworkers Union, and SolarWorld, Attorney General Eric Holder said.

The charges underscore a long-time Obama administration goal of prosecuting state-sponsored cyber threats.

"The alleged hacking appears to have been conducted for no other reason than to advantage state-owned companies and other interests in China at the expense of businesses here in the United States," Mr Holder told a news conference at the Justice Department. "This is a tactic that the United States government categorically denounces."

Said Bob Anderson Jr, executive assistant director of the FBI's criminal, cyber response and services division: "This is the new normal. This is what you're going to see on a recurring basis."

In a statement, China's Foreign Ministry said the US charges were based on "fabricated facts" and jeopardize China-US"cooperation and mutual trust."

"China is steadfast in upholding cybersecurity," said the statement. "The Chinese government, the Chinese military and their relevant personnel have never engaged or participated in cyber theft of trade secrets. The US accusation against Chinese personnel is purely ungrounded and absurd."

The charges against the Chinese military officials come on the heels of a separate worldwide operation over the weekend that resulted in the arrest of 97 people in 16 countries who are suspected of developing, distributing or using malicious software called BlackShades, Mr Holder said.

The software allows criminals to gain surreptitious control of personal computers. An announcement on those arrests was expected for later Monday in New York.

The hackers allegedly stole emails and other communications that could have helped Chinese firms learn the strategies and weaknesses of American companies involved in litigation with the Chinese government or Chinese firms.

"These two cases show that we are stepping up our cyber enforcement efforts really around the globe," Mr Holder said, adding that the US will not tolerate these activities.

US officials have previously asserted that China's army and China-based hackers had launched attacks on American industrial and military targets, often to steal secrets or intellectual property. China has said that it faces a major threat from hackers, and the country's military is believed to be among the biggest targets of the NSA and US Cyber Command.