Chinese Government Suspected of Hacking into FDIC Computers

WASHINGTON — The Chinese government is believed to have hacked into computers at the Federal Deposit Insurance Corp. in 2010, 2011 and 2013, including the workstation of then-FDIC Chair Sheila Bair, a congressional report says.

The report issued Wednesday by the Republican majority staff of the House Science, Space and Technology Committee cites a May 2013 memo from the FDIC inspector general to agency Chairman Martin Gruenberg. The memo described an “advanced persistent threat,” said to have come from the Chinese government, which compromised 12 computer workstations and 10 servers at the FDIC.

In addition to those incidents, the committee staff has been investigating the FDIC’s response to a number of what it calls major data breaches at the agency and whether it is properly safeguarding consumers’ banking information.

FDIC spokeswoman Barbara Hagenbaugh declined to comment on the report. Gruenberg is scheduled to testify Thursday at a hearing by the committee on cybersecurity at the agency.

Zhu Haiquan, the spokesman at the Chinese Embassy in Washington, said he didn’t have detailed information on the report’s findings. “China firmly opposes and is committed to combatting all forms of cybercrimes,” Haiquan said in a statement. “China and the United States have already established a high-level joint dialogue mechanism on fighting cybercrime and related issues. This is the best channel for both sides to address this challenge. Making unfounded accusations is counterproductive.”

The issue of suspected Chinese government hacking has been sensitive since the disclosure last year of a massive breach of the U.S. Office of Personnel Management’s databases, which the U.S. believed was carried out by Chinese cyber spies. In one of the worst data breaches in U.S. history, the personal files of 21 million Americans were stolen, and the federal personnel agency came under fire for neglecting to put in basic cybersecurity protections to prevent the plunder.

The OPM breach dealt the U.S. a major national security blow, experts say, by exposing the personal information and foreign contacts of millions of people with security clearances.

Source: Chinese government suspected of hacking into FDIC computers – The Washington Post

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