Franklin, Andrews, Kramer & Edelstein

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Microsoft Exchange hack caused by China, US and allies say

By ERIC TUCKER
17 minutes ago
https://apnews.com/article/microsoft-exchange-hack-biden-china-d533f5361cbc3374fdea58d3fb059f35

WASHINGTON (AP) — The Biden administration and Western allies formally blamed China on Monday for a massive hack of Microsoft Exchange email server software and accused Beijing of working with criminal hackers in ransomware attacks and other cyber operations.

The announcements, though not accompanied by sanctions against the Chinese government, were intended as a forceful condemnation of activities a senior Biden administration official described as part of a “pattern of irresponsible behavior in cyberspace.” They highlighted the ongoing threat from Chinese government hackers even as the administration remains consumed with trying to curb ransomware attacks from Russia-based syndicates that have targeted critical infrastructure.

The broad range of cyberthreats from Beijing disclosed on Monday included ransomware attacks from government-affiliated hackers that have targeted victims — including in the U.S. — with demands for millions of dollars. U.S officials allege that China’s Ministry of State Security has been using criminal contract hackers who have engaged in cyber extortion schemes and theft for their own profit, officials said.

Meanwhile, the Justice Department on Monday announced charges against four Chinese nationals who prosecutors said were working with the Ministry of State Security in a hacking campaign that targeted dozens of computer systems, including companies, universities and government entities. The defendants are accused of stealing trade secrets and confidential business information.

most damaging and high-profile recent ransomware attacks have involved Russian criminal gangs. Though the U.S. has sometimes seen connections between Russian intelligence agencies and individual hackers, the use of criminal contract hackers by the Chinese government “to conduct unsanctioned cyber operations globally is distinct,” the official said.

The Microsoft Exchange hack that months ago compromised tens of thousands of computers around the world was swiftly attributed to Chinese cyber spies by private sector groups. An administration official said the government’s attribution to hackers affiliated with China’s Ministry of State Security took until now in part because of the discovery of the ransomware and for-profit hacking operations and because the administration wanted to pair the announcement with guidance for businesses about tactics that the Chinese have been using.

An advisory Monday from the FBI, the National Security Agency and the Cybersecurity and Infrastructure Security Agency laid out specific techniques and ways that government agencies and businesses can protect themselves.

A spokesperson for the Chinese Embassy in Washington did not immediately return an email seeking comment Monday. But a Chinese Foreign Ministry spokesperson has previously deflected blame for the Microsoft Exchange hack, saying that China “firmly opposes and combats cyber attacks and cyber theft in all forms” and cautioned that attribution of cyberattacks should be based on evidence and not “groundless accusations.”

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Kelvin Chan in London contributed to this report.

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Follow Eric Tucker on Twitter at http://www.twitter.com/etuckerAP.

https://apnews.com/article/microsoft-exchange-hack-biden-china-d533f5361cbc3374fdea58d3fb059f35