China in Cyber Attacks

Cyber attacks are a daily event worldwide. Most are just hackers showing their technical skills, but more and more issues are companies spying on other companies and using information they find to destroy the abilty of a company to get new customers by undercutting them or by copying the offer. China has always been the No. 1 suspect, and the U.S. especially has warned China to behave itself and stop.

Most of the evidence suggests it is China and China is showing no slow down on its non-stop cyber attacks. It is easy to become complacent about this sort of news. Companies spying on companies and the big directors losing their fat bonuses. But, it goes much further than that as global companies employ 100,000 of employees. Imaging Boeing not getting an order because of internet espionage, the knock-on effect of this would mean 1000s of employees will be laid off and maybe three times that number in the crucial supply chains feed Boeing.

So, China not only can be stealing vital information and by default destroying 1000s of jobs. Therefore, it is no wonder that the governments around the world are trying to force China to stand down from this behaviour. But, what can be done? Apart from higher security protocols what else can be done to protect that information and more importantly those jobs.

McAfee engaged one of the world’s preeminent international policy institutions for defense and security, theCenter for Strategic and International Studies (CSIS) to build an economic model and methodology to accurately estimate these losses, which can be extended worldwide. “Estimating the Cost of Cybercrime and Cyber Espionage” posits a $100 billion annual loss to the U.S. economy and as many as 508,000 U.S. jobs lost as a result of malicious cyber activity.

Global-Cyber-Attacks

From Network World

Instead, the sanctions are primarily in response to Chinese companies that have been accused over the past few months of breaking into American companies and stealing intellectual property, client lists, trade secrets, and other sensitive information in order to gain an economic advantage in the marketplace.

“It sends a signal to Beijing that the administration is going to start fighting back on economic espionage, and it sends a signal to the private sector that we’re on your team,” an administration official told the Washington Post. “It tells China, enough is enough.”

The sanctions follow the president’s Executive Order from April, which gave the U.S. Department of Treasury the authority to freeze assets and bar other financial transactions of entities engaged in destructive cyber-attacks. The order targeted individuals and groups outside the United States that use cyber-attacks to threaten U.S. foreign policy, national security or economic stability. This doesn’t mean, however, that the government will abandon diplomatic channels, trade policy tools, and law enforcement actions to go after individuals and entities engaged in malicious activity

Article U.S. readies sanctions against China for cyber-spying