Not with a bang but a whimper
The department said it was alerted to the incident on December 8th by BeyondTrust, an identity security services provider that offers remote technical support to Treasury employees.
Further investigation revealed that the breach originated within BeyondTrust's systems, where attackers infiltrated some of the company's Remote Support SaaS instances by making use of a compromised Remote Support SaaS API key. As a result, the attackers were able to bypass the service's security and access employee workstations and unclassified documents.
On January 6th, the Cybersecurity and Infrastructure Security Agency (CISA) announced that there was no indication that the cyberattack had affected other federal agencies. However, this is one of the latest examples of cybersecurity breaches attributed to Chinese state-sponsored groups.
"Dripping water penetrates the stone, not by force but by persistence." – Chinese proverb
Last year, agencies from the United States (CISA, NSA, FBI), Australia (ACSC), Canada (CCCS), and New Zealand (NCSC-NZ) warned that Chinese hackers were targeting global telecommunications providers. According to Deputy National Security Advisor Anne Neuberger revealed, the federal government launched an investigation into a major incident, revealing that the Chinese campaign targeted the networks of AT&T, Verizon, T-Mobile, and other telecoms.
FBI Director Christopher Wray described the telecom breach as China’s “most significant cyber espionage campaign in history.” Officials believe that a large number of Americans (mostly from the Washington-Virginia area) may have had their metadata compromised, including users' calls, text messages, date and time stamps, source and destination IP addresses, and phone numbers. The Chinese government has denied the allegations, and its Ministry of Foreign Affairs said Beijing condemns all forms of hacking and foreign interference.
Globally, the incident serves as a wake-up call for public and private organizations that manage sensitive or critical data. The increasing frequency of state-sponsored attacks demonstrates the need to adopt advanced cybersecurity architectures, such as Zero Trust, combined with real-time threat intelligence sharing and cross-border incident response capabilities.
The pragmatic approach
To improve cybersecurity in key industries, organizations need to be prepared for an increased level of malicious activities. When an incident occurs, business continuity and resilience are essential. The former is about preventing or minimizing the impact of adversity on the normal state of operations, while the latter is about addressing challenges and adapting to changing conditions.
As analysts, our goal is to provide practical advice.
Here are some recommendations:
- Network Segmentation: Use network segmentation to limit an attacker's lateral movement. Keep sensitive data and systems isolated.
- Implement Zero Trust Architecture: This model treats every user, application, or resource as untrusted and enforces strict security, access control, and comprehensive auditing to ensure visibility and accountability of all user activities.
- Leverage ITDR: ITDR is a crucial component of a comprehensive cybersecurity strategy, as identities have become the primary targets of attackers looking to gain unauthorized access to sensitive systems and information. For more on ITDR.
- Prioritize Monitoring and Threat Detection: Organizations can use advanced monitoring tools such as EPDR and XDR to detect unusual activity and respond to emerging risks proactively.
- Supply Chain Security: Verify that vendors and partners meet stringent cybersecurity requirements. Find more on SSCS here.
- Mobile Network Security Frameworks: If you're a telecom, adopt industry-recognized security frameworks and collaborate on shared standards with global organizations.
- Engage in Public-Private Partnerships: Work closely with government agencies to access resources and expertise.
Since we all face the same threats, the private sector must embrace transparency and mutual support. As discussed in this previous KuppingerCole blog post, the culture of silence must be left behind - we must share insights, exchange knowledge and work together to strengthen our collective defenses. Cybersecurity is a shared responsibility. No single organization can predict where the next threat will emerge or how far it will spread. As Horace, the Roman poet, wisely said, "It is your business when your neighbor's wall is on fire."
In today's interconnected world, to protect one is to protect all.