Chinese state-sponsored hackers were allegedly responsible for breaching the US Navy as part of a wider campaign aimed at disrupting communication in the Pacific region in preparation for a potential crisis, cyber security experts have claimed.
The hacking group, known as Volt Typhoon, has also been accused of targeting government, manufacturing, IT and communications organisations. According to Microsoft, the group had gained access to targets in the US and Guam, which is home to a key US military installation in the Pacific.
Microsoft has said it had “moderate confidence” the breaches were designed to upend communication systems in the event of a future crisis. The move comes amid growing fears that China is considering a military response to its claim to Taiwan.
Intelligence agencies from the Five Eyes alliance, which comprises the US, UK, Australia, New Zealand and Canada, have shared more details on Volt Typhoon with the US navy.
While China denies the hacking allegations, cybersecurity experts have said that the allegations offer refreshing insights into potential sabotage attempts by Chinese hackers, who are more known for theft of intellectual property and espionage functions.
Unlike the documented Russian attacks on critical infrastructures such as the hacks of the power grid in Ukraine, the alleged attacks by Volt Typhoon offer rare insights into potential sabotage efforts by Chinese hackers in addition to their theft of intellectual property and espionage capabilities.
According to John Hultquist, chief analyst at Mandiant Intelligence, there may be multiple reasons why private companies need a head start in defending themselves against these hackers. It is crucial that intelligence sharing makes its way to the private sector to help in defending networks, otherwise it is practically useless.
It remains unclear why Microsoft and the Five Eyes alliance decided to draw attention to the group at the moment. However, it is believed that giving private businesses a head start in defending against Volt Typhoon is an important preventative measure that needs to be taken before any potential conflict between China and the US over Taiwan.