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Industryweek 7526 Cyberwar

China Cyber-Crime Costing US Billions

Oct. 6, 2014
"There are two kinds of big companies in the United States," FBI director James Comey said. "There are those who've been hacked by the Chinese and those who don't know they've been hacked by the Chinese."

WASHINGTON - China is waging an aggressive cyber-war against the United States which costs American business billions of dollars every year, Federal Bureau of Investigation director James Comey said Sunday.

The FBI chief told CBS television's "60 Minutes" program China topped the list of countries seeking to pilfer secrets from U.S. firms, suggesting that almost every major company in America had been targeted.

"There are two kinds of big companies in the United States," Comey said. "There are those who've been hacked by the Chinese and those who don't know they've been hacked by the Chinese."

Annual losses from cyber-attacks launched from China were "impossible to count," Comey said, but measured in "billions."

Asked which countries were targeting the United States, Comey replied: "I don't want to give you a complete list. But...I cant tell you top of the list is the Chinese."

Comey cited the historic case of five members of China's People's Liberation Army indicted with hacking U.S. companies for trade secrets, a move which outraged China when announced in May.

The case is the first-ever federal prosecution of state actors over cyber-espionage.

The PLA unit is accused of hacking into U.S. computers to benefit Chinese state-owned companies, leading to job losses in the United States in steel, solar and other industries.

"They are extremely aggressive and widespread in their efforts to break into American systems to steal information that would benefit their industry," Comey said of China's hackers.

Comey said China was seeking to obtain "information that's useful to them so they don't have to invent."

"They can copy or steal to learn about how a company might approach negotiations with a Chinese company all manner of things," he said.

But China's hacking efforts were often easy to detect, Comey said.

"I liken them a bit to a drunk burglar. They're kickin' in the front door, knocking over the vase, while they're walking out with your television set," he said.

"They're just prolific. Their strategy seems to be, "We'll just be everywhere all the time. And there's no way they can stop us."

Copyright Agence France-Presse, 2014

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