http://www.cbsnews.com/news/opm-china-and-the-threat-of-state-sponsored-hacking/
Combatting the threat of state-sponsored hacking

A massive cyberattack against the U.S. government may have compromised the
personal information of as many as 14 million people -- possibly every
single current or retired employee of the federal government
<http://www.cbsnews.com/news/union-hackers-stole-data-on-every-federal-worker/>,
and up to one million former employees. Social security numbers, security
clearances, foreign contacts and other sensitive data may have been
included.

Though the U.S. has not officially pointed the finger at China, many
experts and politicians believe the Chinese government likely was behind
the attack on the Office of Personnel Management (OPM), the federal
government's human resources department.

House Homeland Security Committee Chairman Michael McCaul, R-Texas, said as
much
<http://www.cbsnews.com/news/mccaul-federal-data-breach-most-significant-history/>
on CBS' "Face the Nation," and called the hack "the most significant breach
of federal networks in U.S. history."

Beyond exposing individuals' private data, the attack highlights the
pervasive threat to national security posed by state-sponsored hackers.

Of all the facets of cybersecurity, "the problem that is the most daunting
is the state-funded attacks," Michael DeCesare, CEO of network security
company ForeScout, told CBS News.

Without commenting specifically on the likelihood of China's involvement in
the OPM breach, DeCesare said that while it's often unclear whether
perpetrators of cyber crimes were individuals, governments or individuals
contracted by governments, the scope of certain major attacks suggests a
large and well-financed backer.

"If something came from Russia, as an example, it's difficult to know if it
was the Russian government or just a group inside of Russia," he said. "But
when you look at the technological sophistication of the malware -- the
millions of lines of code that go into a piece of malware that comes after
a company -- it's hard to imagine that could be generated by anybody except
a state-funded attack."

It is known that the Chinese have been attacking both government and
private systems in the U.S. for years, "trying to compile as much data as
possible," according to CBS News Senior National Security Analyst Juan
Zarate.

China denied accusations it was responsible for the Anthem health insurance
company hack
<http://www.cbsnews.com/news/is-china-behind-the-massive-hack-on-anthem/>
in February that compromised the personal records of 80 million people.

"The reality is the Chinese government, though they deny it, have been
engaged in official hacking and parastatal hacking using non-state hackers
and individuals to get into systems and to exfiltrate data," Zarate said.

What's particularly scary is that we don't know what they're doing with the
data. On the more benign end of the spectrum, said Zarate, stolen data
could be used for economic espionage -- mining research and development
files for a leg up in the global market place. On the other end: espionage,
extortion, or plots to find and exploit U.S. vulnerabilities.

And there are myriad access points to get in and start gathering digital
fodder.

"It's asynchronous warfare," DeCesare said. "The good guys need to protect
everything that's online. The bad guys just need to find one way in."

That could be through familiar avenues
<http://www.cbsnews.com/news/5-counterintuitive-ways-to-protect-against-hackers/>
like computers or web-connected phones, or through any number of other
networked devices
<http://www.cbsnews.com/news/secure-your-new-tech-toys-against-hacking/>,
including printers, even a building's HVAC system. "Everything is on the
network, and every one of those becomes an attack vector," he said.

"The U.S. government needs to step up, corporations need to step up, and
security companies need to step up, and we have to figure out how to
combine resources to go up against a technically sophisticated adversary."

Obviously, it's important to fortify computer networks
<http://www.cbsnews.com/news/massive-hack-of-federal-govt-spurs-critical-concerns/>
to try to block or at least more quickly detect data breaches, but tackling
the bigger problem of nation-state hacking
<http://www.cbsnews.com/news/how-should-the-us-respond-to-chinese-hacking/>
will require diplomatic as well as digital efforts.

Important steps have been taken so far, including the indictment last May
<http://www.cbsnews.com/news/u-s-government-files-economic-espionage-charges-against-chinese-hackers-sources-say/>
of five Chinese military hackers accused of stealing trade secrets, and
President Obama's executive order in April allowing the use of financial
sanctions against those who perpetrate or benefit economically from hacking.

"China continues to engage in these activities," Zarate said, "and we need
to demonstrate that we can bite back and we're willing to push back."






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