China Hackers Raid Canada

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By Douglas A. McIntyre Published

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The keen investigative journalists at the CBC have discovered that cyber-hackers, probably based in China, made at least two raids on Canadian government servers and databases.

The network said “Sources have confirmed that the attackers successfully penetrated the computer systems at the federal government’s two main economic nerve centres, the Finance Department and Treasury Board.” The target of the activity may have been passwords that would allow further access to Canadian government data.

What will the Canadians do about the outrage?  Nothing.

The Canadian government has already begun to equivocate about the nature of the trouble. The attacks probably came from inside China. Ottawa is not ready to say so officially. Hackers, especially the best ones, can cover their tracks well so it is hard to make a clear set of charges.

Canada will also let the matter go for another reason. It has no recourse it is willing to take other than objection.

The US has complained on a number of occasions that hackers, presumably of Chinese origin, have broken into the online systems of government agencies and large America companies. The broad problem has gained widening attention in Congress. The Cybersecurity Enhancement Act was just introduced in the Senate. The legislation will enable the National Science Foundation, the Department of Defense, and Department of Homeland Security to develop cyber attack prevention plans, if it is signed into law.

The federal money from the The Cybersecurity Enhancement Act  may help develop better means to find and counter threats. That has not done much to help the private sector where malicious programmers seem to be consistently one step head of online security.

What the Canadian and US governments need to do to offset China’s efforts is to specifically identify the nature and source of each attack. The evidence has to be clear and nearly iron-clad. And, there has to be some significant sanction.

China and its hacker communities, which may be supported by the government or not, do not have much to fear. The moment a Western government releases the any real details of a series of attacks, it give malicious programmers another edge, if only a modest one, as they search for weaknesses in cyber-defenses. The challenge to China would also have to carry a specific and harsh set of consequences. The US has not been willing to take that path with the problem of yuan manipulation or barriers to some American exports set by the People’s Republic.

The US, Canada and other Chinese trade partners continue to back away from a full-scale challenge of the business practices of the Communist central government. That may be the most prudent route and the one least likely to unsettle global trade. In the meantime, China will do as it sees fit with the way it allows its own citizens to use the Internet and how it utilizes the worldwide web as a weapon against other countries.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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