China’s Changing Tactics in Cyber Espionage: A Focus on Zero Day Exploit

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a forensic accounting evangelist based out of Pune. He regularly contributes to the Regtechtimes. He is the forensic accounting and financial crimes evangelist in India who is instrumental in designing india's first certification program in Anti Money Laundering. He is the author of 7 books on the financial crimes and compliance subjects.
In recent years, China has faced increased scrutiny and condemnation for its state-sponsored cyber espionage activities targeting governments, businesses, and critical infrastructure worldwide. To evade detection and enhance their capabilities, Chinese hackers have shifted their focus towards zero day exploit, as revealed by a report from a Google-owned security firm.

What is Zero Day Exploit?

A zero-day exploit refers to a cyber attack that targets a previously unknown vulnerability in software or hardware. The term “zero-day” indicates that the vulnerability is exploited on the same day it is discovered before the software developer has had a chance to create a patch or fix for it.
Zero day exploit are particularly dangerous because they can be used to gain unauthorized access to systems, steal sensitive information, or disrupt operations without being detected. These exploits are highly sought after by cybercriminals and state-sponsored hackers due to their effectiveness and the challenge they pose to cybersecurity defences.

China is widely regarded as a significant threat to governments and private networks worldwide. According to the US cyber defence agency, Chinese state-backed hackers are classified as the most expansive, active, and persistent cyber threat to US infrastructure.

The M-Trends 2024 Special Report by Mandiant highlights that cyber espionage groups from the People’s Republic of China (PRC) were the most active in exploiting zero-day vulnerabilities in 2023. These groups showed a strong emphasis on stealth in their zero-day exploitation campaigns.

The Significance of Zero Day Exploit in Cyber Espionage

Zero day exploit target vulnerabilities in software that are not yet known to the software developer or antivirus vendors, making them highly effective and difficult to defend against.
Anti-virus software is generally not effective against zero-day vulnerabilities. Zero-day vulnerabilities are security flaws in software that are unknown to the software vendor and, therefore, have no available fix or patch. Since anti-virus programs rely on known signatures or patterns to detect and block threats, they are not designed to detect or protect against zero-day exploits.
However, some advanced security solutions, such as behaviour-based detection or heuristic analysis, may be able to detect and block zero-day exploits by identifying suspicious behaviour or patterns that match the characteristics of an exploit. These methods can offer some level of protection against zero-day vulnerabilities, but they are not foolproof.
Zero day exploit play a crucial role in cyber espionage as they allow attackers to gain unauthorized access to systems and networks without being detected. By exploiting vulnerabilities that are not yet patched, attackers can steal sensitive information, disrupt operations, and compromise security. This tactic is particularly concerning as it demonstrates China’s increasing sophistication in cyber warfare and its ability to adapt to evolving cybersecurity measures.

The Targeting of Edge Devices and High-Value Targets

A notable trend identified in the report is the targeting of edge devices, such as VPN appliances, firewalls, routers, and Internet of Things (IoT) devices. These devices serve as entry points for data flow between networks, making them prime targets for cyber attacks. By compromising these devices, attackers can gain a foothold in networks and launch further attacks. Additionally, Chinese hackers have been observed targeting high-value individuals and organizations, including government agencies, defence contractors, and financial institutions, further highlighting the strategic nature of their cyber espionage operations.

Implications for Global Cybersecurity

The shift towards zero day exploits by Chinese hackers has significant implications for global cybersecurity. It underscores the need for organizations to adopt proactive cybersecurity measures, such as regularly patching software, implementing network segmentation, and deploying advanced threat detection technologies. Moreover, it highlights the importance of international cooperation and information sharing to effectively combat cyber threats. As cyber-attacks continue to evolve in sophistication, it is imperative for organizations and governments to remain vigilant and adaptive in their cybersecurity strategies.
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