Confronted with Chinese hacking threat, industrial cybersecurity pros ask: What else is new? | CyberScoop<\/title> <meta name=\"description\" content=\"At the world's largest industrial cybersecurity conference, Beijing\u2019s operations targeting U.S. critical infrastructure was just one concern among many.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/s4x24-volt-typhoon-critical-infrastructure\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Confronted with Chinese hacking threat, industrial cybersecurity pros ask: What else is new? \"> <meta property=\"og:description\" content=\"At the world's largest industrial cybersecurity conference, Beijing\u2019s operations targeting U.S. critical infrastructure was just one concern among many.\"> <meta property=\"og:url\" content=\"https:\/\/cyberscoop.com\/s4x24-volt-typhoon-critical-infrastructure\/\"> <meta property=\"og:site_name\" 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readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.253369272237\">\n<div class=\"single-article__header-content\" readability=\"31.215017064846\">\n<p> At the world’s largest industrial cybersecurity conference, Beijing\u2019s operations targeting U.S. critical infrastructure was just one concern among many. <\/p>\n<\/p><\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img 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(Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"98.461305314205\"><body readability=\"199.81777965031\"><\/p>\n<p><strong>MIAMI \u2014<\/strong> In recent months, U.S. intelligence officials have issued a series of pitched warnings about Chinese hacking operations targeting American critical infrastructure, but at a gathering last week of the world\u2019s foremost industrial cybersecurity experts, the conversations among those charged with protecting these systems were anything but alarmed when it came to China.<\/p>\n<p>Instead, conversations on panels and in hallways at the S4X24 conference focused on a lack of information from Washington about Beijing\u2019s operations and what they believe are warnings from the intelligence community about an obvious threat from China that many in the industry regard as the status quo. <\/p>\n<p>According to many in attendance at the conference, Chinese hacking operations targeting critical infrastructure entities like the electric grid and ports shouldn\u2019t come as a surprise, and thinking otherwise would simply be naive.<\/p>\n<p>Dale Peterson, a security pioneer who founded the S4 conference series, argued during one panel appearance that the Chinese hacking operations known as Volt Typhoon \u2014 which American intelligence officials believe aim to give China the ability to disrupt communications between the United States and Asia in the event of a conflict \u2014 are \u201cnot shocking\u201d and \u201cshouldn\u2019t be overstated.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cWhy would you not pick strategic targets?\u201d Peterson wondered aloud.<\/p>\n<p>Peterson <a href=\"https:\/\/dale-peterson.com\/2013\/02\/18\/offensive-cyber-weapons-construction-development-and-employment-paper\/\">has been warning since 2013<\/a> that critical infrastructure entities are likely to be targeted by disruptive state-backed cyber operations, and he sees the latest warnings about Volt Typhoon as merely the latest development in a long-running story. \u201cVolt Typhoon isn\u2019t important,\u201d he <a href=\"https:\/\/dale-peterson.com\/2024\/02\/15\/volt-typhoon-is-new-status-quo-for-ics\/\">wrote last month<\/a>. \u201cThe recognition and acceptance that this is the status quo is what\u2019s critical.\u201d<\/p>\n<p>But this perspective frustrated others in attendance at the security confab. <\/p>\n<p>Victor Atkins, the former lead for cyber intelligence at the Department of Energy, told CyberScoop that \u201cas an industry or maybe as a sector, we\u2019re getting a little complacent.\u201d The industry\u2019s \u201cgeneral malaise\u201d regarding the threat posed by hackers leads too many security experts to dismiss recent alerts as something they already know.<\/p>\n<p>But when intelligence officials warn of an unprecedented Chinese hacking operation, Atkins, now the global director of executive advisory services for industrial cybersecurity at 1898 & Co., wondered aloud if people really \u201cknow what this is.\u201d <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The warnings about the threat posed by China come at a time when industrial systems, such as water utilities, are being rapidly digitized, a trend that is likely to result in a higher volume of successful cyberattacks. At the same time, security is rarely prioritized, resulting in amateurish opportunistic attacks, like when Iranian hackers targeted an Israeli-made programmable logic controller and were able to <a href=\"https:\/\/cyberscoop.com\/pennsylvania-water-facility-hack-iran\/\">breach a water utility in Pennsylvania<\/a> because it failed to change a default password. <\/p>\n<p>This trend toward digitization cuts across sectors. Today\u2019s automobile companies are <a href=\"https:\/\/cyberscoop.com\/fleet-management-vulnerability-digitial-communications-technologies\/\">as much software companies<\/a> as they are firms that shape steel and assemble physical components, and in this new era Atkins argues that treating cybersecurity as a <a href=\"https:\/\/www.atlanticcouncil.org\/blogs\/new-atlanticist\/to-combat-chinese-cyber-threats-the-us-must-spearhead-a-new-indo-pacific-intelligence-coalition\/\">wholly defensive enterprise is insufficient<\/a>. The possible attack vectors are nearly endless, and it\u2019s simply not feasible for owners and operators of critical infrastructure to defend themselves against China.<\/p>\n<p>\u201cThe goal is not to keep the Chinese out \u2014 they\u2019re in, and they have many, many dedicated resources over many, many years focused on just getting in,\u201d Akins said. \u201cThe goal, now, is not to secure the environment; the goal is to survive an attack. And that is a different mentality.\u201d<\/p>\n<p>Atkins said he sees owners and operators \u201cimplementing what they can afford when they can, but I just don\u2019t think it\u2019s enough.\u201d<\/p>\n<p>There are also deeper divides between intelligence officials and those charged with protecting critical infrastructure from attacks by foreign states. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cThe idea that this is a China and Russia problem is stupid,\u201d argued Robert M. Lee, the CEO and founder of the industrial cybersecurity firm Dragos. \u201cEvery state actor worth their salt, including the U.S., is targeting industrial infrastructure.\u201d <\/p>\n<p>A former Air Force officer who participated in U.S. hacking operations, Lee finds the warnings from American intelligence officials \u201chypocritical.\u201d <\/p>\n<p>\u201cYou can\u2019t sit there and clutch your pearls and say, \u2018I can\u2019t believe they\u2019re doing what we\u2019ve been doing,\u2019\u201d he said. <\/p>\n<p>During a congressional hearing at the end of January, FBI Director Christopher Wray <a href=\"https:\/\/www.cnn.com\/2024\/02\/01\/politics\/wray-china-hacking-analysis\/index.html\">called<\/a> the Chinese hacking campaign and China\u2019s growing clout as \u201cthe defining threat of our generation.\u201d In a subsequent <a href=\"https:\/\/www.cisa.gov\/sites\/default\/files\/2024-02\/aa24-038a-jcsa-prc-state-sponsored-actors-compromise-us-critical-infrastructure_1.pdf\">advisory<\/a>, U.S. and allied intelligence agencies warned that Chinese hackers have lurked in critical infrastructure networks for as long as five years, access that they might use to create \u201cdisruptive effects in the event of potential geopolitical tensions and\/or military conflicts.\u201d<\/p>\n<p>Peterson argues that while the U.S. intelligence community\u2019s most dire warnings are reserved for a hypothetical Chinese hacking threat, ransomware operations carried out by criminal groups are causing real harm today. An ongoing ransomware attack on a payment processor has crippled <a href=\"https:\/\/cyberscoop.com\/alphv-website-ransomware-attack-change-healthcare\/\">huge swathes of the U.S. health care system<\/a>, and while Russia may allow ransomware groups to operate with impunity within its borders, such groups are primarily criminal rather than political actors. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cEither they\u2019re going to be right and we\u2019re going to see some big significant compromises or they\u2019re going to have cried wolf,\u201d Peterson said of the U.S. intelligence community\u2019s warnings. <\/p>\n<p>In the absence of Chinese operations disrupting the grid, cyber defenders would like more information from the federal government to help build appropriate protections. Grant Geyer, chief product officer of the cybersecurity firm Claroty, said it remains difficult to convince clients of the threat without overstating and sowing fear, uncertainty and doubt. <\/p>\n<p>\u201cWhat organizations need to understand is: How critical is our organization to national security? Based on that criticality, it\u2019s not, \u2018What do we need to do in general?\u2019 It\u2019s, \u2018What do we need to do specifically?\u2019\u201d Geyer said. \u201cAsset owners are also questioning the urgency they have to act on. It\u2019s not that they\u2019re not taking it seriously. But seriousness requires specificity.\u201d<\/p>\n<p>Cybersecurity experts continue to complain that the federal government remains too lax in its information sharing, an issue that the intelligence community has been working to address.<\/p>\n<p>Marco Ayala, president of the Houston chapter of the InfraGard National Members Alliance, an information-sharing body, said he is tired of \u201cturning on C-SPAN to find out, \u2018Hey we may be breached, but we don\u2019t know.’\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cIn the current state, we\u2019re getting a lot of stuff that is late to the game and late to the party,\u201d he said, adding that he would like to see the government make better use of organizations like InfraGard and information-sharing and analysis centers to distribute information to vetted communities. <\/p>\n<p>But sharing information about the current Chinese hacking threat is made more difficult by the fact that Beijing\u2019s operations have been growing more quiet. <\/p>\n<p>China has been interested in disruptive targeting of critical infrastructure as early as 2012, when CISA\u2019s predecessor \u2014 the National Protection and Programs Directorate \u2014 and the FBI released an alert about <a href=\"https:\/\/www.cisa.gov\/news-events\/cybersecurity-advisories\/aa21-201a\">intrusions into 23 U.S. pipelines<\/a>. The Chinese-sponsored campaign relied on spearphishing emails and social engineering, including calling network engineers to request information related to security practices.<\/p>\n<p>Volt Typhoon, by contrast, appears focused on stealth and long-term access.<\/p>\n<p>Marty Edwards was director of the Department of Homeland Security\u2019s Industrial Control Systems Cyber Emergency Response Team at the time the pipeline alert was issued. He said that because the intrusions by Volt Typhoon rely on living off the land techniques \u2014 the use of legitimate services already present on a breached system to carry out operations \u2014 traditional indicators of compromise are not as readily available. Instead, defenders have to look for anomalous behavior in networks, which is difficult at best.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>That tactical shift by Chinese operators means that the government likely doesn\u2019t have more to share with industry than it already has. \u201cI don\u2019t think the government\u2019s hiding anything here. I think they genuinely don\u2019t have additional information,\u201d Edwards said.<\/p>\n<p>Since tensions between the United States and China are unlikely to go away, at least one key industry official urged critical infrastructure operators in attendance to wake up to the fact that they are pawns in a much larger geopolitical game. <\/p>\n<p>\u201cWhat we\u2019re really dealing with, but no one\u2019s really talking about\u201d is the \u201cconcept of cyber as mutually assured destruction,\u201d said Megan Samford, vice president and chief product security officer for energy management at Schneider Electric. Many of China\u2019s intrusions have been spotted, Samford argues, because China wants to be seen. \u201cThis is exactly how [mutually assured destruction] and nuclear warfare and nuclear proliferation works.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"1.2555831265509\">\n<div class=\"author-card\" readability=\"9\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/confronted-with-chinese-hacking-threat-industrial-cybersecurity-pros-ask-what-else-is-new-1.jpg?w=640&ssl=1\" alt=\"Christian Vasquez\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Christian Vasquez<\/h4>\n<p> Christian covers industrial cybersecurity for CyberScoop News. He previously wrote for E&E News at POLITICO covering cybersecurity in the energy sector. 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What<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[413,452,669,578,272,288],"tags":[415,454,671,580,278,294],"class_list":["post-2726","post","type-post","status-publish","format-standard","hentry","category-critical-infrastructure","category-cybersecurity-and-infrastructure-security-agency-cisa","category-federal-bureau-of-investigation-fbi","category-industrial-control-systems-ics","category-nsa","category-threats","tag-critical-infrastructure","tag-cybersecurity-and-infrastructure-security-agency-cisa","tag-federal-bureau-of-investigation-fbi","tag-industrial-control-systems-ics","tag-nsa","tag-threats"],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","chromenews-featured":"","chromenews-large":"","chromenews-medium":""},"author_info":{"display_name":"Cyber 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tag\">Threats<\/a>","tag_info":"Threats","comment_count":"0","jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts\/2726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/comments?post=2726"}],"version-history":[{"count":0,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts\/2726\/revisions"}],"wp:attachment":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/media?parent=2726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/categories?post=2726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/tags?post=2726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

{"id":2726,"date":"2024-03-15T15:23:25","date_gmt":"2024-03-15T20:23:25","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=79715"},"modified":"2024-03-15T15:23:25","modified_gmt":"2024-03-15T20:23:25","slug":"confronted-with-chinese-hacking-threat-industrial-cybersecurity-pros-ask-what-else-is-new","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/03\/15\/confronted-with-chinese-hacking-threat-industrial-cybersecurity-pros-ask-what-else-is-new\/","title":{"rendered":"Confronted with Chinese hacking threat, industrial cybersecurity pros ask: What else is new?\u00a0"},"content":{"rendered":"