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Covert Espionage: Overseas Spies Exploit Chinese Network Engineers, Targeting Defense and High-Tech Enterprises

November 27, 2023
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On Monday, the National Security Department released a statement disclosing a case of espionage and theft of secrets. It revealed that overseas intelligence agencies, posing as software developers, had been in contact with Chinese network technology service engineers. Through this connection, they conducted cyber-attacks and espionage activities against dozens of Chinese defense and military technology units, as well as high-tech enterprises.

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According to the National Security Department, earlier this year, an overseas intelligence agency disguised as a “foreign software developer” proactively contacted an engineer, referred to as “Xiao Wang,” who was involved in network technology services. They invited Xiao Wang to configure dozens of software applications related to “digital signature certificates” and “antivirus software testing” in bulk. This was to ensure smooth passage through mainland network security certification tests, with the promise of substantial financial rewards.

The “foreign software developer” later insisted that Xiao Wang use specified software and encrypted channels to communicate. Xiao Wang realized that this was no ordinary commercial entity and that providing “technical services” to them would circumvent mainland network security monitoring, potentially allowing their software to enter the domestic market. Despite recognizing the security risks, Xiao Wang succumbed to the temptation of economic benefits and provided “technical services” for dozens of software applications.

The article explains that the software for which Xiao Wang provided “technical services” was bundled with special Trojan horse virus programs. Once activated, these programs would infiltrate and control computers, servers, and other network devices, stealing documents, data, and information. The intelligence agency utilized these “poisoned” software applications to conduct cyber-attacks and espionage against numerous Chinese defense and military technology units, as well as high-tech enterprises.

After discovering and investigating the situation, the national security agencies promptly reported the matter to relevant authorities and took legal actions to address the issue, preventing significant harm and losses. Xiao Wang also faced administrative penalties in accordance with the law.

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