Hack or Hoax? China Dismisses US Treasury Cyberattack Claims

Beijing has strongly rejected claims that a China state-sponsored hacker was behind a recent cyberattack on the US Treasury Department, labelling the allegations as “groundless.” This response came after a letter to Congress revealed that the breach resulted in unauthorized access to certain Treasury workstations.

Details of the Cyber Breach

According to the Treasury Department, the incident occurred earlier this month when a third-party cybersecurity service provider, BeyondTrust, was compromised. This breach allowed the attacker to remotely access some Treasury workstations and unclassified documents. Upon discovering the attack, the Treasury contacted the US Cybersecurity and Infrastructure Security Agency (CISA) and began working with law enforcement to assess the scope and impact of the breach.

The Treasury has taken the compromised BeyondTrust service offline. A Treasury spokesperson stated that there is no evidence suggesting the threat actor retains access to its systems or information.

In a letter addressed to the Senate Banking Committee, the Treasury attributed the incident to a China state-sponsored Advanced Persistent Threat (APT) actor. APT attacks involve cybercriminals maintaining unauthorized access to targeted systems for extended periods, often evading detection. However, the department has not disclosed specific details about the extent of the breach but promised to provide further updates in a supplemental report.

China Dismisses US Treasury Cyberattack Claims

China’s foreign ministry was quick to refute the allegations. Foreign ministry spokeswoman Mao Ning reiterated Beijing’s stance, saying, “China has always opposed all forms of hacker attacks, and we are even more opposed to the spread of false information against China for political purposes.” Mao dismissed the accusations as baseless and lacking evidence, emphasizing that similar claims have been repeatedly refuted by Beijing.

A Pattern of Allegations

The breach has reignited concerns about cyber threats allegedly linked to Chinese actors. The US and other nations have frequently accused Beijing of sponsoring hacking activities targeting governments, military institutions, and businesses worldwide. China, however, denies these accusations and maintains that it actively opposes all forms of cyberattacks.

Earlier instances of alleged Chinese cyber activities include the US Justice Department’s dismantling of a global cyberattack network in September, believed to involve Chinese-backed hackers. In February, US authorities took down the “Volt Typhoon” group, which reportedly targeted critical infrastructure, including water treatment facilities and transportation systems.

In 2023, Microsoft reported that Chinese hackers, identified as Storm-0558, accessed the email accounts of approximately 25 organizations, including US government agencies. Victims included the State Department and Commerce Secretary Gina Raimondo, raising alarm over Beijing’s alleged efforts to obtain intelligence data.

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A Growing Concern

The Treasury Department reaffirmed its commitment to protecting its systems and sensitive data, emphasizing the seriousness with which it addresses cybersecurity threats. As investigations also continue, the incident highlights the ongoing challenges governments face in securing critical digital infrastructure against sophisticated cyber threats.

While Beijing dismisses these claims as politically motivated, the recurring accusations underscore the growing tensions between the US and China in the digital domain. The resolution of this issue will likely depend on further investigations and international dialogue on cybersecurity norms.