Wednesday, 3 February 2010

Chinese gifts are ‘bugged’, claims MI5

Britain’s domestic intelligence service MI5 has accused China of bugging British business executives using memory sticks which provide access to users’ computers.

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Chinese gifts are ‘bugged’, claims MI5

British spy agency accuses China of spying on business executives

01 February 2010

LONDON: Britain’s domestic intelligence service MI5 has accused China of bugging British business executives using memory sticks which provide access to users’ computers.

MI5 also believes China is setting up ‘honeytraps’ in an attempt to blackmail compromised executives into betraying commercial secrets, British newspaper The Sunday Times reported.

The newspaper says a leaked MI5 document claims that undercover intelligence officers from the People’s Liberation Army and the Ministry of Public Security have also approached British businessmen at trade fairs with the offer of ‘gifts’ and ‘lavish hospitality’.

The gifts, such as cameras and memory sticks, have been found to contain electronic ‘Trojan’ bugs, which allow Chinese intelligence services remote access to any computer they are connected to, the newspaper said.

MI5 also accused China of employing electronic hacking to obtain sensitive commercial information. The Chinese government ‘represents one of the most significant espionage threats’ to Britain, the report added.

‘Chinese intelligence services have also been known to exploit vulnerabilities such as sexual relationships and illegal activities to pressurise individuals to cooperate with them,’ the newspaper reported.

The 14-page MI5 report is likely to further strain diplomatic ties between London and Beijing. Relations between Britain and China were damaged in December after China’s decision to execute a mentally ill British man for alleged drug trafficking.

Last month, the United States demanded that China investigate a sophisticated hacking attack on Google and a further 30 American companies from Chinese soil.

Written by MI5’s Centre for the Protection of National Infrastructure, the ‘restricted’ report describes how China has attacked British defence, energy, communications and manufacturing companies in a concerted hacking campaign.

It claims China has also gone much further, targeting the computer networks and e-mail accounts of public relations companies and international law firms. ‘Any British company might be at risk if it holds information which would benefit the Chinese,’ the report said.

In a warning to British businessmen, the report added: ‘Hotel rooms in major Chinese cities, such as Beijing and Shanghai, which are frequented by foreigners, are likely to be bugged...hotel rooms have been searched while the occupants are out of the room.’

It warns that British executives are being targeted in China and in other countries. ‘During conferences or visits to Chinese companies, you may be given gifts such as USB devices or cameras. There have been cases where these ‘gifts’ have contained Trojan devices and other types of malware.’

In 2007, Mr. Jonathan Evans, the director-general of MI5, had written privately to 300 chief executives of banks and other businesses warning them that their IT systems were under attack from ‘Chinese state organisations’.

China has repeatedly denied spying on Britain. The Sunday Times said China’s London embassy did not comment on the allegations.