In a shocking cybersecurity breach, Chinese hackers infiltrated a critical US government office (CFIUS) that assesses foreign investments for national security risks. This office, called the Committee on Foreign Investment in the United States (CFIUS), has the power to block investments if they pose threats to the nation. The attack highlights China’s interest in monitoring US efforts to protect sensitive areas, especially as tensions between the two countries remain high.
The breach occurred as part of a broader attack on the US Treasury Department’s unclassified computer systems. Although no classified data was reportedly stolen, experts worry that the hackers may piece together unclassified information to gain insights into US security strategies. This is particularly alarming because, in December, CFIUS gained new powers to examine real estate sales near military bases, fearing such acquisitions could enable spying activities.
Spying Concerns and Growing Risks
The hack has drawn significant attention because CFIUS plays a crucial role in protecting the US from foreign threats. For example, lawmakers and national security officials have raised alarms about Chinese companies buying land near sensitive military bases. These deals could potentially allow foreign entities to spy on US military activities.
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The hackers also targeted another sensitive part of the Treasury Department: the sanctions office. This office plays a key role in penalizing foreign entities involved in cyberattacks, including Chinese companies. While it is unclear exactly what information was stolen, the fact that both CFIUS and the sanctions office were breached raises significant concerns about national security.
US officials are now carefully reviewing the documents accessed by the hackers to assess the potential impact. Even though classified information was not taken, officials are worried that even unclassified data, when analyzed carefully, could still help foreign governments understand US strategies.
How the Hack Happened
The hackers gained access to Treasury systems by compromising a third-party service provider in late December. This allowed them to remotely access several Treasury computers and view certain unclassified documents. While officials say there is no evidence that the hackers still have access to these systems, the incident has sparked a flurry of activity within the US government to prevent future attacks.
A Treasury spokesperson confirmed the breach and stated that they are working with law enforcement to understand its impact. The spokesperson also emphasized that the department has improved its cybersecurity defenses in recent years and continues to protect sensitive information.
China-linked Hack Targets US Treasury in Major Cybersecurity Incident
China’s Denials and Rising Tensions
Meanwhile, Chinese officials have denied any involvement in the hacking incident, repeating long-standing claims that China does not engage in cyberattacks. However, US officials remain skeptical, especially as this attack is part of a pattern of alleged Chinese hacking campaigns targeting US government and private sector systems over the past year.
The breach has further strained the already tense relationship between the US and China. US officials, including Treasury leaders, have raised the issue with their Chinese counterparts, warning that such incidents harm diplomatic ties.
The hacked office, CFIUS, has become increasingly important in recent years due to rising concerns about Chinese influence and espionage through business transactions. The committee is responsible for reviewing deals, such as foreign companies purchasing US land or businesses, to ensure they don’t threaten national security. In one notable case, CFIUS reviewed a company that purchased large amounts of land near a critical Air Force base in California.
This incident is one of several recent cyberattacks attributed to Chinese hackers. In another case, hackers targeted US telecom networks to spy on senior political figures, including members of the US government. These repeated breaches demonstrate the growing cyber threats facing the US and the challenges of safeguarding sensitive information.
