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Jonathan Greig
Martin Matishak
December 4th, 2024
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AT LEAST 8 US TELCOS, DOZENS OF COUNTRIES IMPACTED BY SALT TYPHOON BREACHES,
WHITE HOUSE SAYS

The scope of the Chinese government hacking campaign came into further focus on
Wednesday, as senior White House officials revealed that eight
telecommunications giants in the U.S. were breached and that companies in
multiple other countries were also hacked.

The breaches are part of the Salt Typhoon campaign, which first came to light
after threat actors intercepted the correspondence of senior officials within
both presidential campaigns, including from President-elect Donald Trump and his
running mate JD Vance.

Anne Neuberger, the U.S. deputy national security adviser for cyber and emerging
technologies, reiterated to reporters on Wednesday that Chinese actors are still
inside the breached systems. 

Neuberger said President Joe Biden has been briefed on the incident several
times, and the White House has created a Unified Coordination Group that meets
daily to discuss the issue. 

The campaign “has been underway … likely one to two years” and has compromised
telecoms in the Indo-Pacific region, Europe and elsewhere.

“Our understanding is that a couple dozens of countries were impacted,” she
said. “We believe this is intended as a Chinese espionage program focused,
again, on key government officials, key corporate IP, so that will determine
which telecoms were often targeted, and how many were compromised as well.”

Neuberger added that the “Chinese access was broad in terms of potential access
to communications of everyday Americans” but she said the hackers only targeted
prominent individuals. 

“As you know, the communications of US government officials relies on these
private sector systems, which is why the Chinese were able to access the
communications of some senior US government and political officials. At this
time, we don't believe any classified communications have been compromised,” she
said.

As the Cybersecurity and Infrastructure Security Agency (CISA) and FBI said
Tuesday, the companies have not been able to fully remove the hackers from their
systems so, Neuberger said, “there is a risk of ongoing compromises to
communications until U.S. companies address the cybersecurity gaps.”

The agencies published guidance on Tuesday to help engineers and network
defenders identify and remove Salt Typhoon actors. They told reporters that one
complicating factor is that the hackers likely breached companies through
different vectors, and also had broad aims and targets.

Officials with the National Security Council did not respond to several
questions about how senior officials are communicating with one another safely
if Chinese actors are still in each network, or whether telecommunications
companies will notify every American who may have had their data caught up in
the incident. 

But Neuberger said the agency believes “a large number of Americans' metadata
was taken as part of a campaign to identify the specific individuals that the
Chinese government was really interested in actually gaining particular access
to individual calls, listening to those calls, etc."

She urged the affected telecom giants — which allegedly include Verizon, AT&T,
T-Mobile, Lumen and others — to work together and share information they may be
seeing in systems both in the U.S. and abroad. 

At a recent meeting with the heads of those companies, senior U.S. officials
stressed that each of them needed to take a range of steps to further harden
their systems against compromise and “make real changes to architect telecom
networks to be able to look for the unexpected and reduce the blast radius of
events,” Neuberger said. 

She noted that several departments within the government, most notably the
Commerce Department, are coordinating to help telecom companies respond to the
incident.

Neuberger went on to compare the incident to the ransomware attack on Colonial
Pipeline and said it should spur a similar regulatory push for minimum
cybersecurity standards that telecommunications companies must abide by. 

“To prevent ongoing intrusions, we need to require similar minimum cybersecurity
practices at telecoms … That’s what other countries are doing, from Australia to
the UK, mandating cybersecurity practices for the most critical companies to
defend against Chinese and other sophisticated cyber programs,” she said. 

“We believe that if the companies had in place minimum practices — secure
configurations, up-to-date patching, architecting to monitor for anomalous
behavior that would have detected this earlier, managing administrator accounts
with multi-factor authentication — that would make it far riskier, harder and
costlier for the Chinese to gain access and maintain access.”

The international community also needs to come together to have “open, honest
discussions about the PRC’s [People’s Republic of China] destabilizing behavior
in cyberspace and steps the global community can take to strengthen its defenses
and ultimately influence the PRC to end its destabilizing behavior.”


‘NO ACCOUNTABILITY’

Also on Wednesday, a swath of agencies briefed senators on the incident.
Director of National Intelligence Avril Haines spoke alongside the FBI, Federal
Communications Commission, NSC and the Cybersecurity and Infrastructure Security
Agency, after which several senators criticized the Biden administration for not
having enough answers on the incidents. 

“There's no accountability. We have not heard a plan of how they're going to fix
it. That's unacceptable,” said Sen. Rick Scott (R-FL).

Sen. Ron Wyden (D-OR) told reporters that he is now working on legislation to
address the Salt Typhoon campaign but declined to explain what would be in the
bill or how it would address the cybersecurity of telecom companies. 

Wyden and another senator sent a letter on Wednesday asking the Defense
Department’s top watchdog to scrutinize how the agency is shoring up its
communications against spying in light of the Salt Typhoon breaches. 

Mike Rounds (R-S.D.), who is expected to lead the Senate Armed Services
Committee's cyber sub-panel next Congress, said one difficulty is that the
country’s telecommunications systems were “built for efficiency.”

“They were not built for security necessarily,” he said, adding that it will
take “months” for the government to give direction on the changes that need to
be made. 

He backed calls for cybersecurity standards governing the telecoms industry but
said senators are still working out the best way for them to be enacted in a
feasible way. 

“The challenge is, how do we go about affecting that with private telecom
companies and how quickly can they put those security measures in place?” he
said. “We are not talking about a short period of time because of the amount of
work it's going to take to actually go through and to impact stuff. It's not
like getting a new phone. It's a structure that these cell phone systems have
been built on.”

As he walked out of the briefing room, Senate Intelligence Committee Chair Mark
Warner (D-VA), a former telecommunications executive, told reporters the
incident is “far and away the worst telecom hack.”

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Tags
 * Salt Typhoon
 * China
 * National Security Council (NSC)
 * telecommunications
 * espionage

Previous article
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Jonathan Greig

is a Breaking News Reporter at Recorded Future News. Jonathan has worked across
the globe as a journalist since 2014. Before moving back to New York City, he
worked for news outlets in South Africa, Jordan and Cambodia. He previously
covered cybersecurity at ZDNet and TechRepublic.



Martin Matishak

is the senior cybersecurity reporter for The Record. Prior to joining Recorded
Future News in 2021, he spent more than five years at Politico, where he covered
digital and national security developments across Capitol Hill, the Pentagon and
the U.S. intelligence community. He previously was a reporter at The Hill,
National Journal Group and Inside Washington Publishers.




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