‘Malicious Smears’: China Rejects Hacking Claims As ‘Fabricated’ After Biden Admin Blames CCP For Microsoft Cyber-Attack

The Chinese Communist Party has denied involvement in a major cyber-attack which targeted Microsoft in March, despite the Biden administration blaming hackers with links to China for the attack.

“The United States and countries around the world are holding the People’s Republic of China (PRC) accountable for its pattern of irresponsible, disruptive, and destabilizing behavior in cyberspace, which poses a major threat to our economic and national security,” Secretary of State Antony Blinken said Monday. 

He then called out China’s main intelligence service, the Ministry of State Science (MSS) specifically, saying they had “fostered an ecosystem of criminal contract hackers who carry out both state-sponsored activities and cybercrime for their own financial gain.”

China described the accusations as “fabricated.”

“The U.S. has mustered its allies to carry out unreasonable criticisms against China on the issue of cybersecurity,” foreign ministry spokesman Zhao Lijian told reporters, as reported by the BBC.

On Monday, a spokesman for the Chinese Embassy in Washington said that the “U.S. has repeatedly made groundless attacks and malicious smear[s] against China on cybersecurity,” and that “This is just another old trick, with nothing new in it.”

In March, Microsoft first claimed that a hacking group backed by the Chinese government was reportedly using the security deficiencies in their common email system utilized by many American businesses.

“Microsoft has detected multiple 0-day exploits being used to attack on-premises versions of Microsoft Exchange Server in limited and targeted attacks,” the company announced in a blog post. “In the attacks observed, the threat actor used these vulnerabilities to access on-premises Exchange servers which enabled access to email accounts and allowed installation of additional malware to facilitate long-term access to victim environments. Microsoft Threat Intelligence Center (MSTIC) attributes this campaign with high confidence to HAFNIUM, a group assessed to be state-sponsored and operating out of China, based on observed victimology, tactics, and procedures.”

“We are sharing this information with our customers and the security community to emphasize the critical nature of these vulnerabilities and the importance of patching all affected systems immediately to protect against these exploits and prevent future abuse across the ecosystem,” the post added. “This blog also continues our mission to shine a light on malicious actors and elevate awareness of the sophisticated tactics and techniques used to target our customers.”

According to Microsoft, “HAFNIUM primarily targets entities in the United States across a number of industry sectors, including infectious disease researchers, law firms, higher education institutions, defense contractors, policy think tanks, and NGOs.”

“HAFNIUM has previously compromised victims by exploiting vulnerabilities in internet-facing servers, and has used legitimate open-source frameworks, like Covenant, for command and control. Once they’ve gained access to a victim network, HAFNIUM typically exfiltrates data to file sharing sites like MEGA,” the post explained. “In campaigns unrelated to these vulnerabilities, Microsoft has observed HAFNIUM interacting with victim Office 365 tenants. While they are often unsuccessful in compromising customer accounts, this reconnaissance activity helps the adversary identify more details about their targets’ environments.”

“HAFNIUM operates primarily from leased virtual private servers (VPS) in the United States,” Microsoft concluded.

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