Chinese State-Sponsored Cyber Espionage Activity Supports Expansion of These elements of tradecraft included specially designed smartphone software for secure covert communications (U.S. vs. Kevin Mallory); third country meetings, or use of third parties (cutouts) in the United States for communicating information between the in-country handler and recruited asset, or the in-country handler and Chinese intelligence services. Cyber criminals often operate through online forums, selling illicit goods and services, including tools that lower the barrier to entry for aspiring criminals and that can be used to facilitate malicious cyber activity. This report presents initial findings from analysis of 274 documented cases of Chinese worldwide espionage since the year 2000. And this is a pervasive reality. The Trump administration has also begun to deploy targeted trade measures against Chinese beneficiaries of IP theft. Asia, Pacific Foreign Intelligence Agency-What do they want? The FITF is also working with international partners to exchange intelligence and strategies for combating what is a shared threat. In recent years, prolific use of social media by FTOs has greatly enhanced their ability to disseminate messages. We also handle intelligence operations and oversight. The distribution pattern shows activity concentrations occurring in high-tech sectors, manufacturing hubs, and business centers. Hostile actors conducting cyber espionage can target the government, military, business and individuals. Detecting an anomaly requires a degree of suspicion Over the last year, the FBI has met with top social media and technology companies several times, provided them with classified briefings, and shared specific threat indicators and account information, so they can better monitor their own platforms. The world of espionage is facing tremendous technological, political, legal, social, and commercial changes. More deaths were caused by domestic violent extremists than international terrorists in recent years. This Committee and the Congress as a whole should consider legislative reforms to expand the reach of FARA or to adopt other disclosure legislation that would ensure that Chinese activities related to universities and other non-profits are fully subject to public disclosure requirements. If Beijing sees no path to a cooperative economic relationship with Washington and instead believes that it will face mounting U.S. pressure regardless of any concessions Beijing may offer, Beijing will have little incentive to curb its efforts to steal U.S. technology. When in doubt, report it, See something say something The attack was attributed to Russian hackers and caused an estimated $10 billion in damages. Individual U.S. government agencies understand that increasing investment is the most important element to maintaining Americas technological edge. Intelligence and Espionage in the 21st Century Due to online recruitment, indoctrination, and instruction, FTOs are no longer dependent on finding ways to get terrorist operatives into the United States to recruit and carry out acts of terrorism. Which of the following is an example of an anomaly? Global Terrorism: Threats to the Homeland FBI At a minimum, there is no indication that the CCP or Chinese government have taken any measures to impede the illegal activities (illegal in the United States) of their state corporations and citizens. According to the New York Times, Congress received an intelligence report last month that underscored at . An analysis ofoperational activities reveals a wide range of tradecraft practices (see Figure 5): As illustrated, the most frequently employed elements of tradecraft include using false names or documents to ship information or technology. How Congress can confront the growing Chinese espionage threat Despite the statutes broad language, the DOJ has faced significant hurdles in pursuing 951 prosecutions outside the traditional espionage context, and particularly where the alleged foreign agents activity involves ostensibly legitimate international business dealings. In recent years a number of members of Congress have introduced legislation that would amend the CFAA to authorize hacking back by victim companies under certain circumstances. The definition of 'foreign principal' (proposed section 90.2) includes a 'foreign government principal' and in the Bill as introduced, the definition of 'foreign government principal' (proposed section 90.3) included a 'foreign political organisation'. We're looking at $200 billion to. The FBI is most concerned about lone offender attacks, primarily shootings, as they have served as the dominant lethal mode for domestic violent extremist attacks. Chinese economic espionage, on the other hand, is an unconventional threat and requires an unconventional response. As former Cisco CEO John Chambers once said, There are two types of companies: those who have been hacked, and those who don't yet know they have been hacked.. Investigate and prosecute espionage activity against the United States This is due, in part, to their lack of a direct connection with an FTO, an ability to rapidly mobilize, and the use of encrypted communications. But theres just as much, if not more, tracking in the virtual world.". The scale and scope of China-nexus targeted intrusion activity is unlikely to contract in 2023, as cyber espionage remains a critical instrument to support the CCP's strategic and economic. Congressional cybersecurity legislation enacted in 2014 has also played an important role in improving U.S. government efforts to harden U.S. defenses against Chinese and other attacks. These malign activities can include assassinations, kidnappings and disinformation operations, alongside traditional espionage activities, but with far more aggressive use of proxies: Think of . The final aspects of Chinese espionage activities are their use of specific clandestine collection techniques commonly known as espionage tradecraft. Chinese government agencies, SOEs, companies and individuals employ varying levels of sophistication of espionage tradecraft. Nation States' Espionage and Counterespionage | CSO Online Many foreign terrorist organizations use various digital communication platforms to reach individuals they believe may be susceptible and sympathetic to violent terrorist messages. Recent prosecutions, however, have relied on 951. frequent questionable foreign travel As a result, the FBI must remain vigilant. The United States charged the group with stealing airline engine technology from French and U.S. companies. The two use similar language to talk about China, but that doesn't mean their positions are the same. Terminating employment The new era of counterintelligence must shift focus to the gray zone This was often the case in illegal export of military technology, source code, large-scale agricultural and industrial production and manufacturing techniques. Virtually every national security threat and crime problem the FBI faces is cyber-based or facilitated. In modern day, it's been used against those . On the military side, the Peoples Liberation Army (PLA) General Staff Headquarters, Second Department is responsible for collecting military information, including related foreign technology. In addition, the same erratic performance by recruited agents illustrates nonstandardized agent training, protocols, and practices. Intelligence & Espionage. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. Journalists, military veterans, and judicial figures are being targeted by foreign espionage agencies at "unprecedented" levels, with the country's intelligence chief revealing a "hive of spies . Historically, economic espionage has targeted defense-related and high-tech industries. Former U.S. Defense Secretary Robert Gates said in an interview that there are probably a dozen or 15 countries that steal our technology. In 2015 a South Korean company plead guilty to conspiring to steal proprietary DuPont information about Kevlar, the body armor material, and paid more than $300 million in fines and restitution. That type of understanding takes evidence based off detailed analysis of a sufficient body of data. Inside the U.S.-China Espionage War - The Atlantic The Intelligence Authorization Act further specifies three aspects of the threat to US industry to be reported and any trends in that threat to include (1) the number and identity of the foreign governments conducting foreign industrial espionage; (2) the industrial sectors and types of information and technology targeted by such espionage; and In October, the U.S. passed sweeping new export controls on China. For example, China and Chinese companies have repeatedly paid off corporate insiders at U.S. and western companies to simply walk out the door with high-value trade secrets. Click here to subscribe for full access. Belgian authorities placed him in custody on arrival and put him on a plane to the United States (most likely with an FBI escort). Counterintelligence Awareness and Reporting - PreTest JKO - Quizlet Spies from 20 foreign intelligence agencies, including Nato allies such as France and Germany, are attempting to steal Britain's most sensitive secrets. The foreign intelligence threat to the United States is expanding, becoming more complex and less predictable. The term APT is commonly used in reference to the cyber threat posed by foreign intelligence services, or hackers working on behalf of such entities, but is not limited just to this and can equally be applied to other threat actors such as organized crime syndicates and those involved in traditional espionage. An adversary uses technical countermeasures to block a previously undisclosed or classified U.S. intercept technology. Any unprotected trade secret can be illegally stolen. The first is economic espionage, which is intended to provide China with commercial advantage over U.S. firms. Chinas defense industry is working to develop a comparable engine. Second, I will assess the policy responses that the U.S. has pursued to date to respond to this threat. Emily Kilcrease & Michael Frazer. Failure to report may result in Judicial and/or Administrative Action All Rights Reserved. Media is waiting where a sensitive DoD program will be tested. Southeast Power, Crossroads Second, Congress should study ways to expand prohibitions on the import into the U.S. of items made with stolen U.S. IP, and the Trump Administration should work with allies to keep such products out of foreign markets. Lastly, in 27 cases, roughly 9 percent of the total, case officers and/or agents displayed a more sophisticated level of tradecraft. ), Next Generation National Security Fellows, The Shawn Brimley Next Generation National Security Leaders Fellowship, Joseph S. Nye, Jr. National Security Internship and Mentoring Program, 2022 CNAS National Security Conference: Security in the Balance, Sanctions by the Numbers: SDN, CMIC, and Entity List Designations on China, Since Russia Invaded Ukraine, Allies Levied More Than 11,000 Sanctions on Russia, Calling Check: Technology Competition with China. The threats posed by foreign fighters, including those recruited from the U.S., are very dynamic. Individuals used true names and open communications including emails, text messages, and phone calls. Congress enacted the Espionage Act on June 15, 1917, two months after the U.S. entered World War I, to stifle dissent of U.S. involvement in the war. If the United States does not continue to make and expand R&D here in the U.S., China will eventually overtake our technological edge, regardless of how effective we are at preventing China from stealing, buying, or otherwise acquiring U.S. IP. WASHINGTON - Russian government hackers breached the Treasury and Commerce departments, along with other U.S. government agencies, as part of a global espionage campaign that stretches back months . Practice good Operations security In a major coup, this past October Justice for the first time managed to extradite a suspected Chinese spy from a third country to the U.S. to face trial for his involvement in stealing U.S. trade secrets. Although the Obama administration never sanctioned any Chinese individuals or companies using these authorities, it did use the potent threat of sanctions, as well as criminal prosecutions and significant high-level diplomatic engagement, to convince China to enter into a 2015 agreement in which Chinese President Xi agreed that China would not knowingly support cyber-enabled theft intellectual property for commercial gain. APT41 has been active since as early as 2012. The objective of this espionage was to steal intellectual data and confidential business information about the engine. Victims of Chinas espionage efforts include major defense and aerospace companies, pharmaceutical firms, technology research companies, manufacturers, and universities. The Director of National Intelligence report, Foreign Economic Espionage in Cyberspace (2018) identifies key industries and technologies that are frequent targets of foreign espionage. These information objectives are also tied to national defense and economic priorities. Store information in Secure Facilites Share sensitive information only on official, secure websites. Therefore, when it comes to national security, it is vital that the men and women of our national intelligence community collect reliable domestic and foreign intelligence information involving criminal, clandestine and warlike activity. China is drawing lessons from Russias invasion of Ukraine. A lock () or https:// means you've safely connected to the .gov website. Thank you again for the opportunity to testify today and I look forward to your questions. Espionage is now addressed by 3 offences in the Bill: obtaining or disclosing protected information; obtaining or disclosing trade secrets; and assisting a foreign intelligence service. NPR's Leila Fadel talks to Rachel Ziemba of the Center for a New American Security about sanctions which have failed to dramatically weaken Russia's economy, and its ability t By Beginning under President Obama and continuing under President Trump, the Department of Homeland Security (DHS) has launched programs to encourage the private sector to harden defenses. But Congress should examine whether the existing statutory provisions are broad enough and whether resources for Section 337 investigations are adequate.