This is your Cyber Sentinel: Beijing Watch podcast.
Listeners, it’s Ting here on Cyber Sentinel: Beijing Watch, and if you thought the last week in Chinese cyber activity felt like a string of zero days—well, I brought my fire extinguisher and a pan for all the frying! Let’s dive right in. The big headline: suspected Chinese state-backed hackers breached the Congressional Budget Office. This is fresh, happening amid a record 37-day federal government shutdown, thinning America’s cyber defense ranks. Caitlin Emma at the CBO says they’ve contained the threat and staffed up monitoring, but the reality is gnarlier. According to CNN, compromised accounts might still be active, sensitive lawmaker communications and cost projections are at heightened risk, and the suspected attackers are going for juicy legislative intel during tense trade negotiations.
The wild part? This isn’t a one-off. Remember Wiley Rein, the DC law firm handling U.S.-China trade disputes, hit back in July. And Treasury lost data in December, including Secretary Janet Yellen’s emails. Attribution is always tricky, but incident forensics finger APT41 subgroups like Earth Longzhi, Kelp (aka Salt Typhoon), and Space Pirates. They’re not just hacking—they’re sharing toolkits like it’s Chinese New Year. The usual suspects: scanning for legacy flaws—Atlassian (CVE-2022-26134), Log4j, Apache Struts, GoAhead—and automating persistent scheduled tasks with elevated SYSTEM privileges. One recent technique saw attackers use Microsoft’s msbuild.exe and DLL sideloading with legitimate VipreAV files to sneak in payloads under the radar, reminiscent of Deed RAT deployments from Space Pirates.
The strategy is “long game.” They probe, perform network recon with netstat, establish scheduled persistence, and exploit credential-dumping tools like Dcsync. Once inside, it’s credential harvest, lateral movement, and exfiltration. Not just government—finance, energy, healthcare, and IT saw the highest spike in software supply chain attacks in October, up more than 30 percent since April. Cyble’s data has Qilin, Akira, and Kyber ransomware groups leading this charge. Kyber just leaked 141GB from a major U.S. defense contractor, including project files and backup archives. Akira snatched 23GB from an open-source project, including employee records. Qilin’s greatest hits include three energy cooperatives and a fintech backbone company.
Meanwhile, other Chinese groups target misconfigured IIS servers globally, dropping powerful web shells like TOLLBOOTH and Godzilla, and using Mimikatz for credential snatching. A fresh wave of AitM attacks is hijacking software update mechanisms on networks from Central Asia’s power grids to Ecuador’s public sector, using tools like BLOODALCHEMY, kidsRAT, and RustVoralix.
Congress is sounding alarms. The bipartisan DISRUPT Act aims to unite agencies to disrupt adversarial collaboration—China, Russia, Iran, North Korea—not just on cyber, but across military, trade, and disinformation ops. The big takeaway this week: the attack surface is your supply chain. Every vendor, cloud provider, software update, and misconfigured server is a potential entry. Tactical defense means patch management, MFA everywhere, vendor risk audits, and regular credential rotation. Strategically, it’s about resilience planning, unified governance, and sharing threat intel across sectors. And don’t count on unpatched legacy systems as your moat—the attackers are counting on them.
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