- Associated Press - Wednesday, December 14, 2011

As few as 12 Chinese groups, largely backed or directed by the government, commit the bulk of the China-based cyberattacks, stealing critical data from U.S. companies and government agencies, according to U.S. cybersecurity analysts and experts.

The aggressive but stealthy attacks, which have stolen billions of dollars in intellectual property and data, often carry distinct signatures, enabling U.S. officials to link them to certain hacker teams.

Analysts say the U.S. often gives the attackers unique names or numbers and at times can tell where the hackers are and even who they may be.

Sketched out by analysts who have worked with U.S. companies and the government on computer intrusions, the details illuminate recent claims by U.S. intelligence officials about the escalating cyberthreat emanating from China.

The widening expanse of targets, coupled with the expensive and sensitive technologies they are losing, is putting increased pressure on the U.S. to take a much harder stand against the communist giant.

It is largely impossible for the U.S. to prosecute hackers in China because that requires reciprocal agreements between the two countries, and it is always difficult to provide ironclad proof that the hacking came from specific people.

Several analysts described the Chinese attacks, speaking on condition of anonymity because of the sensitivity of the investigations and to protect the privacy of clients. China routinely has rejected allegations of cyberspying and says it also is a target.

“Industry is already feeling that they are at war,” said James Cartwright, a retired Marine general and former vice chairman of the Joint Chiefs of Staff.

A recognized expert on cyber-issues, Gen. Cartwright has come out strongly in favor of increased U.S. efforts to hold China and other countries accountable for the cyberattacks that come from within their borders.

“Right now we have the worst of worlds,” Gen. Cartwright said. “If you want to attack me, you can do it all you want, because I can’t do anything about it. It’s risk-free, and you’re willing to take almost any risk to come after me.”

The U.S., he said, “needs to say, if you come after me, I’m going to find you, I’m going to do something about it. It will be proportional, but I’m going to do something … and if you’re hiding in a third country, I’m going to tell that country you’re there. If they don’t stop you from doing it, I’m going to come and get you.”

Cyber-experts say companies are frustrated that the U.S. government isn’t doing enough to pressure China to stop the attacks or go after hackers in that country.

Much like during the Cold War with Russia, officials say the U.S. needs to make it clear that there will be repercussions for cyberattacks.

The government “needs to do more to increase the risk,” said Jon Ramsey, head of the counterthreat unit at the Atlanta-based Dell SecureWorks, a computer-security consulting company.

“In the private sector, we’re always on defense. We can’t do something about it, but someone has to. There is no deterrent not to attack the U.S.,” Mr. Ramsey said.

Cyberattacks originating in China have been a problem for years, but until a decade or so ago, analysts said the probes focused mainly on the U.S. government - a generally acknowledged intelligence-gathering activity similar to Americans and Russians spying on each other during the Cold War.

But in the past 10 to 15 years, the attacks have broadened gradually to target defense companies and then other critical industries, including energy and finance.

According to Mr. Ramsey and other cyber-analysts, hackers in China have different digital fingerprints, often visible through the computer code they use or the command-and-control computers that they use to move their malicious software.

U.S. officials have been reluctant to tie the attacks to the Chinese government, but analysts and officials quietly say they have tracked enough intrusions to specific locations to be confident they are linked to Beijing - either the government or the military. They add that they sometimes can glean who benefited from a particular stolen technology.

One of the analysts said investigations show that the dozen or so Chinese teams appear to get “taskings,” or orders, to go after specific technologies or companies within a particular industry.

At times, two or more of the teams appear to get the same shopping list and compete to be the first to get them or to pull off the greatest haul.

Analysts and U.S. officials agree that a majority of the cyberattacks seeking intellectual property or other sensitive or classified data are done by China-based hackers. Many of the cyberattacks stealing credit card or financial information come from Eastern Europe or Russia.



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