US Says Chinese Military Behind Vast Aerial Spy Program

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China’s balloon that crossed the United States was equipped to collect intelligence signals and was part of a huge, military-linked aerial spy program that targeted more than 40 countries, the Biden administration said Thursday, outlining the scope and capabilities of the huge balloon that captivated the country’s attention before being shot down.

The fleet of balloons operates under the direction of the People’s Liberation Army and is used specifically for spying, outfitted with high-tech equipment designed to collect sensitive information from targets across the globe, the U.S. said. Similar balloons have floated over five continents, it U.S. said.

The statement from a senior State Department official offered the most detail to date linking China’s military to the balloon that traversed the U.S. before being shot down last Saturday over the Atlantic Ocean. The public details are meant to refute China’s persistent denials that the balloon was used for spying, including a claim Thursday that U.S. accusations about the balloon amount to “information warfare” against Beijing.

In Beijing, before the U.S. offered new information, Chinese Foreign Ministry spokesperson Mao Ning repeated her nation’s insistence that the large unmanned balloon was a civilian meteorological airship that had blown off course and that the U.S. had “overreacted” by shooting it down.

“It is irresponsible,” Mao said. The latest accusations, he said, “may be part of the U.S. side’s information warfare against China.”

China’s defense minister refused to take a phone call from Defense Secretary Lloyd Austin to discuss the balloon issue on Saturday, the Pentagon said. China has not answered questions as to what government department or company the balloon belonged to, or how it planned to follow up on a pledge to take further action over the matter.

The U.S. offered a flatly contradictory characterization of the balloon and its purpose. It said imagery of the balloon collected by American U-2 spy planes as it crossed the country showed that it was “capable of conducting signals intelligence collection” with multiple antennas and other equipment designed to upload sensitive information and solar panels to power them.

The official said an analysis of the balloon debris was “inconsistent” with China’s explanation that it was a weather balloon that went off course. The U.S. is reaching out to countries that have also been targeted, the official said, to discuss the scope of the Chinese surveillance program, and is looking into potential action that “supported the balloon’s incursion into U.S. airspace.”

The official provided details to reporters by email on condition of anonymity due to the sensitive nature of the matter, which had already forced the cancellation of a planned visit to China earlier this week by Secretary of State Antony Blinken.

The official said the U.S. has confidence that the manufacturer of the balloon shot down on Saturday has “a direct relationship with China’s military and is an approved vendor of the” army. The official cited information from an official PLA procurement portal as evidence for the connection between the company and the military.

This is not the first time the U.S. government has publicly called out alleged activities of the People’s Liberation Army. In a first-of-its-kind prosecution in 2014, the Obama administration Justice Department indicted five accused PLA hackers of breaking into the computer networks of major American corporations in an effort to steal trade secrets.

Alleged hackers with the PLA were also charged in 2020 with stealing the personal data of tens of millions of Americans in a breach of the credit-reporting agency Equifax.

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UK Gov Warns of Phishing Attacks Launched by Iranian, Russian Cyberspies

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The United Kingdom’s National Cyber Security Centre (NCSC) has published an advisory to warn organizations and individuals about separate spearphishing campaigns conducted by Russian and Iranian cyberespionage groups.

The advisory focuses on activities conducted by the Russia-linked Seaborgium group (aka Callisto, Blue Callisto and Coldriver) and the Iran-linked TA453 (aka Charming Kitten, APT35, Magic Hound, NewsBeef, Newscaster and Phosphorus). 

Russian and Iranian phishing

The NCSC noted that the two groups covered by the advisory have similar tactics, techniques and procedures (TTPs) and they target the same types of entities, but there is no evidence that their campaigns are connected or that the two APTs are collaborating. 

The goal of these attacks has been to collect information from government organizations, academia, defense firms, NGOs, think tanks, politicians, activists and journalists.

The general public has not been targeted, but it’s worth pointing out that the Iranian group has also been observed launching what appeared to be financially motivated ransomware attacks.

Seaborgium and TA453’s attacks start with a reconnaissance phase that involves using open source intelligence to research their targets. This phase can involve creating fake social media accounts, email accounts impersonating well-known individuals in the target’s field of interest, fake websites, and event invitations. The goal is to gain the victim’s trust.

The hackers don’t immediately deliver malicious content to the victim and instead take their time to build trust, which increases their chances of success. After trust is established, they deliver a malicious link that leads the victim to a phishing page.

These phishing pages are designed to harvest credentials that the Russian and Iranian hackers can then use to access the victim’s email accounts, which can store valuable information. 

The attackers have also been observed setting up forwarding rules in compromised email accounts in an effort to monitor the victim’s correspondence. In addition, they have used contact lists for further phishing attacks.

“Although spear-phishing is an established technique used by many actors, Seaborgium and TA453 continue to use it successfully and evolve the technique to maintain their success,” the NCSC said in its advisory. 

In August 2022, Microsoft said it had caused significant disruption to Seaborgium’s operations, cutting off the hackers’ access to accounts used for reconnaissance and phishing. 

Related: Iranian Hackers Impersonate British Scholars in Recent Campaign

Related: Russian Espionage APT Callisto Focuses on Ukraine War Support Organizations

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