A new approach to China
1/12/2010 03:00:00 PM
Like many other well-known organizations, we face cyber attacks of varying degrees on a regular basis. In mid-December, we detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China that resulted in the theft of intellectual property from Google. However, it soon became clear that what at first appeared to be solely a security incident--albeit a significant one--was something quite different.

First, this attack was not just on Google. As part of our investigation we have discovered that at least twenty other large companies from a wide range of businesses--including the Internet, finance, technology, media and chemical sectors--have been similarly targeted. We are currently in the process of notifying those companies, and we are also working with the relevant U.S. authorities.

Second, we have evidence to suggest that a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists. Based on our investigation to date we believe their attack did not achieve that objective. Only two Gmail accounts appear to have been accessed, and that activity was limited to account information (such as the date the account was created) and subject line, rather than the content of emails themselves.

Third, as part of this investigation but independent of the attack on Google, we have discovered that the accounts of dozens of U.S.-, China- and Europe-based Gmail users who are advocates of human rights in China appear to have been routinely accessed by third parties. These accounts have not been accessed through any security breach at Google, but most likely via phishing scams or malware placed on the users' computers.

We have already used information gained from this attack to make infrastructure and architectural improvements that enhance security for Google and for our users. In terms of individual users, we would advise people to deploy reputable anti-virus and anti-spyware programs on their computers, to install patches for their operating systems and to update their web browsers. Always be cautious when clicking on links appearing in instant messages and emails, or when asked to share personal information like passwords online. You can read more here about our cyber-security recommendations. People wanting to learn more about these kinds of attacks can read this U.S. government report (PDF), Nart Villeneuve's blog and this presentation on the GhostNet spying incident.

We have taken the unusual step of sharing information about these attacks with a broad audience not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech. In the last two decades, China's economic reform programs and its citizens' entrepreneurial flair have lifted hundreds of millions of Chinese people out of poverty. Indeed, this great nation is at the heart of much economic progress and development in the world today.

We launched Google.cn in January 2006 in the belief that the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing to censor some results. At the time we made clear that "we will carefully monitor conditions in China, including new laws and other restrictions on our services. If we determine that we are unable to achieve the objectives outlined we will not hesitate to reconsider our approach to China."

These attacks and the surveillance they have uncovered--combined with the attempts over the past year to further limit free speech on the web--have led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.

The decision to review our business operations in China has been incredibly hard, and we know that it will have potentially far-reaching consequences. We want to make clear that this move was driven by our executives in the United States, without the knowledge or involvement of our employees in China who have worked incredibly hard to make Google.cn the success it is today. We are committed to working responsibly to resolve the very difficult issues raised.

Posted by David Drummond, SVP, Corporate Development and Chief Legal Officer

"Google's decision Tuesday to risk walking away from China (Um, the world's largest Internet market) may have come as a shock, but security experts see it as the most public admission of a top IT problem for US companies: ongoing corporate espionage originating from China. It's a problem that the US lawmakers have complained about loudly. In the corporate world, online attacks that appear to come from China have been an ongoing problem for years, but big companies haven't said much about this, eager to remain in the good graces of the world's powerhouse economy. Google, by implying that Beijing had sponsored the attack, has placed itself in the center of an international controversy, exposing what appears to be a state-sponsored corporate espionage campaign that compromised more than 30 technology, financial and media companies, most of them global Fortune 500 enterprises. The US government is taking the attack seriously. Late Tuesday, US Secretary of State Hillary Clinton released a statement asking the Chinese government to explain itself, saying that Google's allegations 'raise very serious concerns and questions.' She continued: 'The ability to operate with confidence in cyberspace is critical in a modern society and economy.'"

A series of online attacks on Google and dozens of other American corporations have been traced to computers at two educational institutions in China, including one with close ties to the Chinese military, say people involved in the investigation.

They also said the attacks, aimed at stealing trade secrets and computer codes and capturing e-mail of Chinese human rights activists, may have begun as early as April, months earlier than previously believed. Google announced on Jan. 12 that it and other companies had been subjected to sophisticated attacks that probably came from China.

Computer security experts, including investigators from the National Security Agency, have been working since then to pinpoint the source of the attacks. Until recently, the trail had led only to servers in Taiwan.

If supported by further investigation, the findings raise as many questions as they answer, including the possibility that some of the attacks came from China but not necessarily from the Chinese government, or even from Chinese sources.

Tracing the attacks further back, to an elite Chinese university and a vocational school, is a breakthrough in a difficult task. Evidence acquired by a United States military contractor that faced the same attacks as Google has even led investigators to suspect a link to a specific computer science class, taught by a Ukrainian professor at the vocational school.

The revelations were shared by the contractor at a meeting of computer security specialists.

The Chinese schools involved are Shanghai Jiaotong University and the Lanxiang Vocational School, according to several people with knowledge of the investigation who asked for anonymity because they were not authorized to discuss the inquiry.

Jiaotong has one of China’s top computer science programs. Just a few weeks ago its students won an international computer programming competition organized by I.B.M. — the “Battle of the Brains” — beating out Stanford and other top-flight universities.

Lanxiang, in east China’s Shandong Province, is a huge vocational school that was established with military support and trains some computer scientists for the military. The school’s computer network is operated by a company with close ties to Baidu, the dominant search engine in China and a competitor of Google.

Within the computer security industry and the Obama administration, analysts differ over how to interpret the finding that the intrusions appear to come from schools instead of Chinese military installations or government agencies. Some analysts have privately circulated a document asserting that the vocational school is being used as camouflage for government operations. But other computer industry executives and former government officials said it was possible that the schools were cover for a “false flag” intelligence operation being run by a third country. Some have also speculated that the hacking could be a giant example of criminal industrial espionage, aimed at stealing intellectual property from American technology firms.

Independent researchers who monitor Chinese information warfare caution that the Chinese have adopted a highly distributed approach to online espionage, making it almost impossible to prove where an attack originated.

“We have to understand that they have a different model for computer network exploit operations,” said James C. Mulvenon, a Chinese military specialist and a director at the Center for Intelligence Research and Analysis in Washington. Rather than tightly compartmentalizing online espionage within agencies as the United States does, he said, the Chinese government often involves volunteer “patriotic hackers” to support its policies.

Spokesmen for the Chinese schools said they had not heard that American investigators had traced the Google attacks to their campuses.

If it is true, “We’ll alert related departments and start our own investigation,” said Liu Yuxiang, head of the propaganda department of the party committee at Jiaotong University in Shanghai.

But when asked about the possibility, a leading professor in Jiaotong’s School of Information Security Engineering said in a telephone interview: “I’m not surprised. Actually students hacking into foreign Web sites is quite normal.” The professor, who teaches Web security, asked not to be named for fear of reprisal.

“I believe there’s two kinds of situations,” the professor continued. “One is it’s a completely individual act of wrongdoing, done by one or two geek students in the school who are just keen on experimenting with their hacking skills learned from the school, since the sources in the school and network are so limited. Or it could be that one of the university’s I.P. addresses was hijacked by others, which frequently happens.”

At Lanxiang Vocational, officials said they had not heard about any possible link to the school and declined to say if a Ukrainian professor taught computer science there.

A man named Mr. Shao, who said he was dean of the computer science department at Lanxiang but refused to give his first name, said, “I think it’s impossible for our students to hack Google or other U.S. companies because they are just high school graduates and not at an advanced level. Also, because our school adopts close management, outsiders cannot easily come into our school.”

Mr. Shao acknowledged that every year four or five students from his computer science department were recruited into the military.

Google’s decision to step forward and challenge China over the intrusions has created a highly sensitive issue for the United States government. Shortly after the company went public with its accusations, Secretary of State Hillary Rodham Clinton challenged the Chinese in a speech on Internet censors, suggesting that the country’s efforts to control open access to the Internet were in effect an information-age Berlin Wall.

A report on Chinese online warfare prepared for the U.S.-China Economic Security Review Commission in October 2009 by Northrop Grumman identified six regions in China with military efforts to engage in such attacks. Jinan, site of the vocational school, was one of the regions.

Executives at Google have said little about the intrusions and would not comment for this article. But the company has contacted computer security specialists to confirm what has been reported by other targeted companies: access to the companies’ servers was gained by exploiting a previously unknown flaw in Microsoft’s Internet Explorer Web browser.

Forensic analysis is yielding new details of how the intruders took advantage of the flaw to gain access to internal corporate servers. They did this by using a clever technique — called man-in-the-mailbox — to exploit the natural trust shared by people who work together in organizations.

After taking over one computer, intruders insert into an e-mail conversation a message containing a digital attachment carrying malware that is highly likely to be opened by the second victim. The attached malware makes it possible for the intruders to take over the target computer.

US analysts believe they have identified the Chinese author of the critical programming code used in the alleged state-sponsored hacking attacks on Google and other western companies, making it far harder for the Chinese government to deny involvement...

A freelance security consultant in his 30s wrote the part of the program that used a previously unknown security hole in the Internet Explorer web browser to break into computers and insert the spyware, a researcher working for the US government told the Financial Times. Chinese officials had special access to the work of the author, who posted pieces of the program to a hacking forum and described it as something he was “working on”...