China Accused of Major Cyber Hack Against US Treasury: Implications and Denials

Chinese state-sponsored hackers have reportedly infiltrated the US Treasury Department, accessing employee workstations and unclassified documents in a significant breach labeled a “major incident” by US officials. The breach was disclosed to lawmakers, prompting investigations alongside the FBI and other agencies. Although the hackers gained access via a third-party remote support application called BeyondTrust, the Treasury stated that no further unauthorized access had been detected post-breach.

China has dismissed the allegations as “baseless” and made claims of a smear campaign against it, emphasizing its opposition to hacking. This incident follows a troubling series of cybersecurity breaches attributed to Chinese actors, such as a recent hack affecting telecom companies. US officials suspect the involvement of a China-based Advanced Persistent Threat (APT) group, specifically targeting information rather than financial theft.

The breach raises concerns about the security of America’s financial systems, especially given the recent sanctions against China by the Treasury. The US agency was alerted to the breach on December 8, while the suspicious activity had reportedly been detected back on December 2. A detailed report on the nature and impact of the breach is expected to be provided to lawmakers within 30 days.