U.S. Subject to Increased IPR-Motivated Cyber Attacks, Especially from China
During the October 4, 2011 House Intelligence Committee hearing on cyber threats, Chairman Mike Rogers (R) stated that cyber espionage, especially from China, is threatening major losses of U.S. private sector intellectual property (IP). The Office of Management and Budget has previously estimated that the number of cyber incidents affecting federal agencies increased 39% in 2010. McAfee Inc., a computer security firm, has also noted the cyber targeting of U.S. firms for IP theft in a recently published report.
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(The House Committee on Oversight and Government Reform states it is holding a series of hearings to examine the nature and extent of the current threat to the U.S. digital infrastructure. The first of these hearings was held on July 7, 2011.)
Chair Says Criminals & Countries Are Stealing IP from their Foreign Competitors
Chairman Rogers stated that organized criminals and nation states now drive industrial-scale cyber espionage, with espionage activities focused on IP theft from foreign commercial competitors. The CEO of Mandiant Corporation, which provides cyber incident response and computer forensics, also stated that attackers have shifted the application of their tactics from U.S. government targets to corporations. However, Rogers and other private sector executives testifying at the hearing, said attackers have little to fear because the U.S. has no practical deterrents.
Also Says Many of IP Attacks from China Indicate Nation-State Support
Chairman Rogers stated that many firms, like Google1, have been penetrated by Chinese cyber espionage and have lost valuable corporate IP. Many of these companies have not discussed the attacks with the press, but have described the attacks as originating in China and having a level of sophistication that shows they are supported by a level of resources that can only be provided by a nation-state entity.
Cyber Attacks Impact Mnfrs. & Service Providers, and Include more from Malware
The CEO of Mandiant also testified that cyber security intrusions have impacted most industries, including law firms, financial services, blue chip U.S. manufacturers, retailers, the defense industrial base, telecommunications, space and satellite and imagery, cryptograph and communications, government, mining, software, and many others.
The CEO also noted that more attacks are coming from the “inside" -- attacks that originate or pass through hundreds, if not thousands, of trusted, reputable, blue chip U.S. companies through the insertion of malware or other malicious programs onto existing corporate networks.
McAfee Details Single Source Cyber Attacks on 70 Global Firms, Gov’ts, & Orgs
McAfee Inc., a large U.S. security technology firm, has published a report which states that over 70 global companies, governments, and organizations were targets of cyber intrusions by a single source over the past five years, with attacks being more motivated by intellectual property than immediate financial gain.
According to the report, U.S.-based companies and organizations had the highest number of infiltrations (49), followed by Canada (4) and Taiwan (3). Defense contractors were subject to the most attacks, with the U.S. federal government, U.S. state government agencies, and various industries also among the types of organizations subject to attacks.
1In December 2010, Google detected a highly sophisticated and targeted attack on its corporate infrastructure originating from China that resulted in the theft of intellectual property from Google. Google stated this attack was not just on Google; at least 20 other large companies from a wide range of businesses--including the Internet, finance, technology, media and chemical sectors--were similarly targeted. Official Google Blog post on this attack is available here.
(See ITT's Online Archives 11063021 for BP summary of U.S. officials discussing recent efforts to improve IP enforcement, including penalty collection and overseas IPR enforcement.)
Intelligence Committee hearing statements are available here.
Committee on Oversight and Government Reform press release is available here.
McAfee report on cyber attacks is available here.