Digital Dragon Watch: Weekly China Cyber Alert

China's Cyber Scandal: US Sanctions Beijing Firm Linked to Flax Typhoon Hackers


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This is your Digital Dragon Watch: Weekly China Cyber Alert podcast.

Hey there, I'm Ting, and welcome to Digital Dragon Watch, your weekly dose of China cyber alerts. Let's dive right in.

Over the past few days, we've seen some significant developments in the world of cybersecurity, particularly when it comes to China-related threats. On January 5th, the US Department of Treasury's Office of Foreign Assets Control (OFAC) sanctioned a Beijing-based cybersecurity company, Integrity Technology Group, accusing it of supporting a group of hackers known as Flax Typhoon[4].

According to the OFAC, Flax Typhoon has been active since at least 2021, targeting organizations within US critical infrastructure sectors, including those in North America, Europe, Africa, and Asia, with a particular focus on Taiwan. They exploit publicly known vulnerabilities to gain initial access to victims' computers and then leverage legitimate remote access software to maintain persistent control over their networks.

The Chinese Foreign Ministry has, of course, denied these allegations, with spokesperson Mao Ning stating that China opposes all forms of hacking and spreading disinformation motivated by political agendas. However, the evidence suggests otherwise.

In a joint statement from November 2024, the FBI and CISA revealed that PRC-affiliated actors have compromised networks at multiple telecommunications companies, enabling the theft of customer call records data and the compromise of private communications of individuals involved in government or political activity[2].

So, what can you do to protect yourself? First and foremost, it's essential to stay up-to-date with the latest security patches and updates. Ensure that your systems and software are configured to automatically receive and install updates.

Additionally, be cautious when using remote access software, and implement robust authentication and authorization measures to prevent unauthorized access. It's also crucial to monitor your networks and systems for any suspicious activity and have incident response plans in place.

In the words of Bradley Smith, acting undersecretary of the Treasury for Terrorism and Financial Intelligence, "The US will use all available tools to disrupt these threats as we continue working collaboratively to harden public and private sector cyber defenses."

That's all for today's Digital Dragon Watch. Stay vigilant, and we'll catch you in the next episode.

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Digital Dragon Watch: Weekly China Cyber AlertBy Inception Point Ai