tv Justice Department Press Conference on Chinese Hacking CSPAN December 20, 2018 4:17pm-4:45pm EST
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recess, deputy attorney general rod risen stein, fbi director christopher way and u.s. torn for the southern disk of new york, announce chargers against two hockers associated before the chinese government. this is 25 minutes. >> [inaudible conversation] >> good morning. i'm honored be joined this more than by fbi director chris wray, assistant attorney general and the united states attorney general, very bur home from the season ticket of new york. the justice depth is announcing criminal indictment of two hackers associated with the chinese government.
the charges include conspiracy to commit computer intrusion against dozen of companies in the united states and around the world. as with all american criminal charges, individual defendants are presumed innocent unless and until approach guilty in court. this case is significant because the defendants are accused of targeting and compromising managed service provide ifs or msps. msps are firms trusted to store, process and protect commercial data, including intellectual property and other confidential business information. when hackers gain access to msps in, they can steal sensitive business information that gives come pet tore an unfair advantage. indictment alleges the defendants worked for a group known to cyber security experts as apt10. these groups are designated as apts or advanced persistent
threats because they use malware to game access to computer network and steal data over an stenned period of time. these differents allegedly compromised msp clients in at least a dozen countries, the united states and 11 other countries. the victims included companies in banking and finance, telecommunications and computer -- consumer electronics, medical equipment pack acknowledging, manufacturing, consulting healthcare biotechnology, automotive, oil and gas explore asia and mining. the defendants allegedly committed these crimes in association with chinese intelligence agency known as the ministry of state security. this is not the first time that the department of justice has accused chinese state actors of stealing commercial information. since the indictment of five uniformed members of the people's liberation army in
2014, our department has repeatedly cast a spotlight on china for its state sponsored criminal activity, targeting american corporations. more than 90% of the department's cases alleging economic espionage or stenyears, involve china. more than two-thirds of the department's cases involving threats of trade secrets are connected to china. in the last few months of this year alone, our department has announced charges in three separate cases, alleging crimes committed at the behest of a branch of the communicates ministry of state security. it is unacceptable that we continue to uncover cyber crime committed by china, against members and other nations. in 2015, china promised to stop dealing trade secrets and other confidential business information through computer hacking with the intent of
providing competitive advantage but the activity in this indictment violates the commit immigrant china made to members of the international community to the united states, and to the g20 and apec. we want china to cease its illegal cyber activities and honor its commitment to the international community, but the evidence suggests that china may not intend to abide by its promises. for example, chinese industrial policy, known as made in china 2025, lists strategic advanced manufacturing industries that the nation has targeted for promotion and development. many of the companies allegedly targeted recently by chinese defendants operate in sectors identified in the official chinese policy, whether for computer hackers, operating for china or chinese national recruited to steal trade secrets from other companies, the goal
is the same. dominate production the industries by stealing ideas from other nation. just as if they had (into american companies and taken the information out physically. they're doing it through cyber means. today's charges mark an important step in revealing to the world china's continued practice of stealing commercial data. responding to that conduct requires a strategic whole of government approach and the threats that china poses. that is why the department of justice recently announced an initiative to address a full range of threats. they have been leaders of the effort. one tactic is to increase enforcement efforts. another is to conduct foreign investment reviews, to protect against china improperly acquiring sensitive information through the acquisition of american companies. a third is to find ways to better protect orotate
communings infrastructure. china stances accuse of engaging in criminal activity and victimizing individuals and companies in the united states, violates our laws, and departs from international norms of responsible state behavior. exposing these actions through the criminal justice statement is a valuable tool and n the department of justice arsenal. faced with the detailed factual allegations today and the corroborating statements, not just from the united states but from other victimized nations, china will find it difficult to pretend it is not responsible for these actions. america and its many allies know what china i doing, why, and we even know exactly who is sitting at the keyboard person perpetrating these crimes, in association with the china government. the alleged criminals are named
wua and jon. we hope the day will come when those defendants face justice under the rule of law, in an american courtroom. until then, they and other hackers, who steal from our companies for the apparent benefit of chinese industries, should remember, there is no free pass to violate american laws because they do so under the protection of a foreign state. the department of justice and the fbi will continue to use all available tools to respond to china's economic aggression and the threat that these actions pose to the prosperity and security of the united states and other nations that respect the rule of law. i want to introduce next chris wray, the director of the fbi to make remarks, followed by jeff burman, distinct attorney from
southern knick. >> as evidenced by this investigation, the threats we face has never been more severe or more pervasive or more potentially damaging to our national security and no country poses a broader, more severe, long-term threat, to our nation's economy and cyber infrastructure that china. china's goal simply put, is to replace the u.s. as the world residents leading super power and they are using illegal methods to get there. they are using an expanding set of nontraditional and illegal methods. china's state sponsored actors are the most active perpetrators of economic espionage against us. in short, to strengthen themselves and to weaken the united states. and while we welcome fair competition we cannot and will not tolerate illegal hacking,
stealing, or cheating. we're not talking about the chinese people as a whole. we're talking about state-sponsored actors engaged in illegal behavior. these aren't just chinese officials employed by the chinese government. they can be hackers, businessmen, researchers or front companies, acting on behalf of state actors. and often they're recruiting or co-opting insiders, employees of american companies, trusted, as noted, the actors named in this indictment were members of a hacking group operated in china, and associated with the chinese ministry of state security, a group known as apt10. the members of apt10 conducted major computer intrusion campaigns targeting u.s. government agencies, and companies, both around the country and across the world.
and stealing hundreds of gig abites of intellectual profit and confidential business information. the list of victim companies read like a who's you. from buy bogey technology, agriculture, healthcare, oil and gas exploreation to nasa. healthy come pigs is good for the world economy, criminal conduct is not. rampant theft is not. cheating is not. there's no light on this issue between the united states and our law-abiding international partners. we're all standing shoulder to shoulder to condemn this conduct. the scope of this investigation was broad, as you might imagine, involving field offices from new orleans, new york, sacramento, san antonio, and houston, and
we're incredibly grateful not on to our doj colleagues but our partners in the naval investigative service. the defense investigative service and the department of homeland security. we appreciate our partners the department of defenses who worked with us as we analyzed hundreds of malware samples. with this malware, fbi and ncis investigators found key links between major victims and apt10s command and control infrastructure. after identifying additional victims here in the united states and around the world, the fbi's cyber action team, our elite rapid deployment force and our cyber court parts of dhs, deployed to multiple locations to provide technical support and investigative assistance. we also worked with our counterparts in the ncis to
investigate apt10s theft of personally identifiable information from more than 100,000 u.s. naval service members. we are deeply concerned about american innovation ending up in the wrong hands, including by nation states like china intent on stealing the fruits of our research, our economic investment, our development, our hard work, for their gain. ... but let me be perfectly clear. no country should be able to flout the rule of law. so we are going to keep tackling this illegal behavior with
everything we've got. every investigative technique, every piece of intelligence, every partnership from federal, state, global and international partners to your community and academic partners. and we're going to keep calling out the state-sponsored behavior for what it is. illegal, unethical and unfair. it's going to take all of us working together to protect our economic security and our way of life. the american people expect and deserve no less. thank you. >> good morning. i'm just burning from a u.s. attorney for southern district of new york. today we announced charges against two chinese hackers, july john shirt long in the
massive theft of intellectual property and information from u.s. foreign companies as well as u.s. government agencies. the extent and types of data is by the defendants is shocking and outrageous. as the deputy attorney general and the director noted, the they are alleged to have been members of a hacking group operating in china called apt 10 an association of the chinese ministry of state security peered over the past 12 years, apt 10 has mounted a series of sophisticated computer intrusion campaign that targeted more than 45 commercial and defense technology companies in the united states as well as managed service providers and their clients across the globe. as the indictment alleges, defendants use spearfishing to install now where that still usernames and passwords of employees of the big companies.
once in the systems, the defendant using methods to rewrite detection transferred valuable information and data to computer servers that they controlled. a more recent phase of the can her say targeted manner service providers or msp is by compromising the computer systems msp they gain a foothold to more easily compromised the numerous clients across the globe. as the deputy attorney general noted, they compromise the data of msp clients located in 12 countries. brazil, canada, france, finland, germany, india, japan, sweden, switzerland, the united, the united arab emirates, united kingdom and the united states. the defendants hacking campaign also targeted the u.s. government agencies including a
laboratory that nasa, the united states department of energy in the u.s. navy. members of apt 10 stole personal confidential information including social security numbers and dates of birth from over 100,000 navy personnel. it is calling american agencies spent countless dollars to develop their intellectual properties while the defendant simply stole it and got it for free. as a nation we cannot and will not allow such brazen theft to go unchecked. i have a message for these defendant. the other members of apt 10 as well as their associates in the chinese ministry of state security. the u.s. government will work relentlessly to identify you and bring you to justice. you cannot remain anonymous even if you are halfway across the
world. bobby's defendants remain at-large, they are now fugitives from the american justice system, which has a long memory. we look forward to the day when these defendants will be in a courtroom in the southern district of new york to be held to account. i want to thank director wray and the fbi peered at us to think the investigative service and the native untreated colonel message service. her work on the case has been extraordinary and served as an example of what can be accomplished by collaboration among u.s. law enforcement agencies. we are very lucky to have partners. i'd also like to thank prosecutors in my office who investigated and prosecuted this case, a u.s.a. as well as the coach used of our complex rotten cybercrime unit timothy howard and daniel noble.
>> what can you tell us about the nature with the hackers stole and how much damage it did to the company? >> i can tell you that describes the types of industries that were affect it. we don't have a lot of detail in there about the particular information. we do work with victims and they're able to take any appropriate action. we'll talk about that in more detail. >> so is the deputy attorney general said we do work closely with the m. but we don't want to compound their harm. what i would say is we had great cooperation from a whole number of companies and organizations ominous so that they can take appropriate steps. the kind of information we are talking about here is confidential information and by definition valuable, very valuable information for these companies.
one way to think of what is alleged in this indictment is you've all heard about situations where you see somebody essentially the cyberequivalent of breaking into a house. this is more like raking in two in getting the keys from the maintenance supervisor who has keys to hundreds and hundreds of apartments and all the residents in those apartments and that is why this is so significant. >> can you tell us what sense mr. whitaker as -- [inaudible] >> we'll have more for you on that later today. in terms of my roles we described previously as we have in the past. bob mueller or rod rosen being or whitaker have investigations handled appropriately by the department of justice. [inaudible] which you mind the memo that was revealed last night bill martha
waited on the investigation calling it fatally missed it the and also given the nomination, should we ask back the alternate report on the more investigation will be deferred? >> nomar was an excellent attorney general during the 14 months he served in 1991 until 1993. komar will be an outstanding attorney general and he's come for next year. the memo you made reference to reflect the personal opinion in a shared his personal opinion. they don't influence their decision-making. we have very experienced lawyers and obvious er decisions aren't armed by our knowledge of the actual facts of the case. i didn't share any confidential information with mr. barr. he never requested to provide any nonpublic information to him
in the memo had no impact on our investigation. >> can you give us a sense of the number like this operating in the second question is on the rule of law. the president of the united states put a photograph of you behind bars cooperating sp in a row. can you assure the american public that this department will make sure -- [inaudible] >> the second question first at this department operates under the rule of law. to make our decisions based on the facts and circumstances of each individual case without regard to partisan political consideration. the first question i think it's important people understand this group is referred to as threat 10. it is not the only one in director wray can talk about
working with american businesses to deter and disrupt attacks. >> the one thing i would add to what the deputy attorney general said is that in addition to these apt 10 groups one through nine or a pta of the future, we have lot and lots of criminal hackers working in varying ways than coordination with on behalf of nationstates, what we call a blended threat. think of it as just outsourcing your criminal or espionage activity to mercenaries. china's not the only country we say and do it, but people in this country and around the world need to understand china is the most active and aggressive in this space and so it's not just chinese officials with epaulets on their uniforms. these are state owned enterprises, obsessively private companies. hackers of all shapes and sizes, researchers, businessmen. people working for a variety of
reasons. on behalf of the chinese government and it's a very serious threat this country needs to take very serious. >> deputy attorney general, what you say to critics who argue the justice department is being used for political purposes between the u.s. and china come especially when you have a president coming out in signaling he may be want to interfere [inaudible] >> first of all, what i say to critics is always going to have critics the mother will be doing taller people and what director wray [inaudible] all of our officials understand that we have a responsibility to do her job. we have a responsibility to investigate cases based on the fact the money to apply the law to make independent decisions about what steps to take. our decisions about whether or not a case merits prosecution are not affected by any other political considerations. >> deputy attorney general why did you decide --
[inaudible] to interfere in a free and fair election. >> i'm not going to address that question here. >> lawmakers have tried with little luck to enact perfection for robert mueller. do you believe that protection is necessary -- [inaudible] >> the investigation is being made in accordance with the department of regulation and nothing anybody says is going to affect that. i believe that investigation is being handled appropriately under the existing department of regulations. thank you very much.
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