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Microsoft Exchange hack: Australia, US and allies blame China, condemn cyberattacks

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Australia has joined with the US and other allies to blame China for a massive cyberattack тАУ and issue a stark warning.

Australia has joined with the United States and other allied nations to condemn ChinaтАЩs тАЬmalicious cyber activitiesтАЭ, directly blaming it for a massive hack of Microsoft Exchange software earlier this year.

In a joint statement on Monday night, Foreign Minister Marise Payne, Home Affairs Minister Karen Andrews and Defence Minister Peter Dutton said ChinaтАЩs actions in cyberspace had тАЬundermined international stability and securityтАЭ.

They said the Australian government was тАЬseriously concernedтАЭ about reports from allies that ChinaтАЩs Ministry of State Security (MSS) was тАЬengaging contract hackersтАЭ to steal intellectual property from other countries.

тАЬAustralia calls on all countries, including China, to act responsibly in cyberspace,тАЭ said Ms Payne, Ms Andrews and Mr Dutton.

тАЬChina must adhere to the commitments it has made in the G20, and bilaterally, to refrain from cyber-enabled theft of intellectual property, trade secrets and confidential business information with the intent of obtaining competitive advantage.тАЭ

They said AustraliaтАЩs cyber security posture was тАЬstrongтАЭ, but there was тАЬno room for complacencyтАЭ and the government would continue to work with its international partners to strengthen security.

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The Microsoft Exchange hack, first identified in January, compromised tens of thousands of computers around the world. Private sector groups quickly pointed the finger at China, though it had not been publicly accused by governments until now.

The Australian ministersтАЩ joint statement was released in co-ordination with the US, United Kingdom, European Union and NATO.

US Secretary of State Antony Blinken said China was being held accountable for a тАЬpattern of irresponsible, disruptive and destabilising behaviour in cyberspaceтАЭ.

тАЬChinaтАЩs Ministry of State Security has fostered an ecosystem of criminal contract hackers who carry out both state-sponsored activities and cybercrime for their own financial gain,тАЭ said Mr Blinken.

тАЬIn addition, the US government alongside our allies and partners has formally confirmed that cyber actors affiliated with the MSS exploited vulnerabilities in Microsoft Exchange Server in a massive cyber espionage operation that indiscriminately compromised thousands of computers and networks, mostly belonging to private sector victims.

тАЬAs evidenced by the indictment of three MSS officers and one of their contract hackers unsealed by the Department of Justice today, the US will impose consequences on Chinese malicious cyber actors for their irresponsible behaviour in cyberspace.тАЭ

Mr Blinken said the international community had laid out clear expectations and guidelines for what constitutes тАЬresponsible behaviourтАЭ in cyberspace.

тАЬResponsible states do not indiscriminately compromise global network security nor knowingly harbour cyber criminals, let alone sponsor and collaborate with them,тАЭ he said.

тАЬThese contract hackers cost governments and businesses billions of dollars in stolen intellectual property, ransom payments and cybersecurity mitigation efforts, all while the MSS had them on its payroll.тАЭ

He added that the US and its allies would work together to oppose тАЬdigital authoritarianismтАЭ, and тАЬenhance global security and stabilityтАЭ in cyberspace.

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The indictment Mr Blinken mentioned concerns four Chinese nationals working with the MSS. A grand jury in San Diego has charged each of them with conspiracy to commit computer fraud and conspiracy to commit economic espionage, which carry a maximum combined prison sentence of 20 years.

They were allegedly part of a тАЬworldwide hacking and economic espionage campaignтАЭ to hack into the computer systems of dozens of companies, universities and government entities in the US and elsewhere between 2011 and 2018.

The cyberattacks were focused on stealing information тАЬof significant economic benefit to ChinaтАЩs companies and commercial sectorsтАЭ, including information that would allow them to circumvent тАЬresource-intensive research and development processesтАЭ.

тАЬThese charges once again highlight that China continues to use cyber-enabled attacks to steal what other countries make, in flagrant disregard of its bilateral and multilateral commitments,тАЭ said Deputy Attorney General Lisa Monaco.

тАЬThe breadth and duration of ChinaтАЩs hacking campaigns, including these efforts targeting a dozen countries across sectors ranging from healthcare and biomedical research to aviation and defence, remind us that no country or industry is safe.тАЭ

FBI Deputy Director Paul Abbate said the US would not allow the Chinese government to тАЬobtain unfair economic advantageтАЭ through тАЬcriminal intrusion and theftтАЭ.

RELATED: China threatens to nuke Japan if it interferes

British Foreign Minister Dominic Raab described a тАЬpervasive pattern of hackingтАЭ from China, saying the Microsoft Exchange cyberattack was тАЬrecklessтАЭ but тАЬfamiliarтАЭ.

тАЬThe Chinese government must end this systematic cyber sabotage and can be expect to be held to account if it does not,тАЭ Mr Raab said.

The co-ordinated international effort to apply pressure to China comes in the wake of US President Joe BidenтАЩs summit with Russian President Vladimir Putin last month, where Mr Biden warned Mr Putin he would face тАЬconsequencesтАЭ if cyberattacks continued to be launched from Russia.

Russia has been blamed for a series of ransomware attacks, in which criminals steal companiesтАЩ data and then demand payment to return it.

The US imposed sanctions on Russia in response to the hacking in April. It has yet to announce any sanctions against China.

Speaking to reporters at the White House today, Mr Biden suggested that was because the investigation into the Microsoft Exchange hack was still ongoing.

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