In a world of cybertheft, U.S. names China, Russia as main culprits

Online industrial spying presents a growing threat to the U.S. economy and national security, American intelligence agencies warned Thursday in a report to Congress that publicly accused China and Russia of responsibility for cyber-espionage.

Tens of billions of dollars of trade secrets, technology and intellectual property are being siphoned each year from the computer systems of U.S. government agencies, corporations and research institutions, said the Office of the National Counterintelligence Executive, which focuses on espionage against the United States.

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A U.S. intelligence report accuses China and Russia of using cyber attacks on American companies. A National Counterintelligence Executive says the countries are the most active in attempting to "hack" into corporate and military technology sites. (Nov. 3)

A U.S. intelligence report accuses China and Russia of using cyber attacks on American companies. A National Counterintelligence Executive says the countries are the most active in attempting to "hack" into corporate and military technology sites. (Nov. 3)

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This accelerating theft of information, at a time when the American economy is suffering, has prompted U.S. officials to single out countries that conduct online spying for economic advantage. While hackers come from scores of countries and range from foreign intelligence services to corporations to criminals, the source of U.S. concern mainly has been China and Russia.

“Chinese actors are the world’s most active and persistent perpetrators of economic espionage,” said the report, “Foreign Spies Stealing U.S. Economic Secrets in Cyberspace,” which was based on the work of 14 U.S. intelligence agencies. The report also notes that “Russia’s intelligence services are conducting a range of activities to collect economic information and technology from U.S. targets.”

Robert “Bear” Bryant, the national counterintelligence executive, said at a news conference that online spying is “a quiet menace to our economy with notably big results. . . . Trade secrets developed over thousands of working hours by our brightest minds are stolen in a split second and transferred to our competitors.”

Chinese Embassy spokesman Wang Baodang rejected the U.S. contentions, saying that China opposes “any form of unlawful cyberspace activities.” In a 2009 survey of Chinese computer security professionals, 89 percent said they were most worried about the United States penetrating their networks, but the U.S. government says its policy is not to conduct such espionage.

A Russian Embassy spokesman declined to comment on the report.

Experts say the data loss occurs in part because companies have not shored up their defenses effectively and because the government cannot easily share threat information that it considers secret. Most companies do not share details of intrusions into their systems with U.S. officials, making it hard for the government to warn others or to build defenses.

The trend also illustrates a truism of cyberspace: Defense is more difficult than offense. Whether in cyberwar or cyber-­espionage, the advantage lies with the attacker or hacker.

Bryant said the government’s unusual candor in naming particular countries was driven by the severity of the threat and a desire to foster solutions, including deeper partnerships between the public and private sectors.

With the domestic and world economies lagging and U.S. unemployment above 9 percent, cutting-edge technology is key to U.S. economic growth. But it is that very technology that is being targeted by countries such as China, as part of a broader strategy to build its own economy and become a global powerhouse.

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