A .gov website belongs to an official government organization in the United States. Almost 25 percent of cases target commercial interests. Chairman Thompson, Ranking Member Rogers, and members of the committee, thank you again for this opportunity to discuss the FBIs efforts to combat the myriad of threats it faces. Fifth, I would encourage Congress to carefully study proposals to enable U.S. companies who are victims of Chinese economic espionage to hack back. There are significant concerns about hacking back proposals but I believe the concept merits careful study. But the interconnectedness of the modern world, combined with the anonymity of the Internet, have changed the nature of the threat and how the FBI and its partners must address it. Unexplained absences In 2018, CCP leader and Chinese President Xi Jinping directed all SOEs to amend their bylaws to ensure the concepts of service to the CCP as well as national and economic security are placed above profit. Do not leave equipment unattended, in hotel safes or left in vehicles. As a country we should work to capture that talent here and make sure that it stays in the U.S. Much research and development also works more effectively when scientists and engineers are able to collaborate across borders. It is absolutely essential to stop Chinese unconventional espionage. We have also been confronting a surge in terrorist propaganda and training available via the Internet and social media. Advocating violence for terrorist organization Regardless, it seems likely that China will continue to deploy hacking as a tool of gaining U.S. IP as U.S. policy developments like export control reform and new restrictions on Chinese investment in the U.S. restrict Chinas ability to legally and overtly acquire its desired technologies. Lastly, in 27 cases, roughly 9 percent of the total, case officers and/or agents displayed a more sophisticated level of tradecraft. Chinese economic espionage, on the other hand, is an unconventional threat and requires an unconventional response. Ultimately, many of the individuals drawn to ISIS seek a sense of belonging. Similarly, even as the U.S. increases pressure on Chinas unconventional espionage, we should make sure that we do not inadvertently shut down or prevent valuable academic study, research and development, and other activities that benefit the U.S. For example, the U.S. derives major benefits from the hundreds of thousands of highly-skilled foreigners, including from China, who come to the U.S. to study, to work, and to start businesses. Al Qaeda maintains its desire for large-scale, spectacular attacks. Don't miss the crucial news and insights you need to make informed legal decisions. On October 30, 2018 the U.S. Department of Justice announced the indictment of 10 Chinese intelligence officers and cyber hackers from the Ministry of State Security (MSS), Chinas main civilian espionage organization. Advertisement. In addition to FTOs, domestic violent extremists collectively pose a steady threat of violence and economic harm to the United States. As a result, the FBI must remain vigilant. U.S. Trade Representative Lighthizer and President Trump need to demand major, systematic changes in a range of Chinese trade abuses before relenting on the tariffs and other measures the U.S. has imposed. These troubled cases raise caution flags for future DOJ criminal prosecutions of non-traditional foreign influence cases. conduct intelligence activities to acquire information about the United States, block or impair intelligence collection by the U.S. Government, influence United States policy, or disrupt systems and programs owned or operated by or within the United States. Unusual interest in information outside the scope of assigned duties Most of Chinas espionage activities are not traditional espionage, yet they are having a profoundimpact on Americas economic wellbeing, national security, and potentially our political and governance processes. The U.S. government has steadily increased its response to the threat of China's unconventional espionage. But government tools must also be an important part of the U.S. government response. 1101 riveredge rd, connellsville, pa 15425; traditional espionage activity includes foreign government. CI-21 proposes significant changes in the way the United States government approaches, and organizes itself to meet, the threat of foreign espionage and intelligence gathering. This has taken several forms. Email Email. Concealing foreign travel As the committee is well aware, the frequency and severity of malicious cyber activity on our nations private sector and government networks have increased dramatically in the past decade when measured by the amount of corporate data stolen or deleted, the volume of personally identifiable information compromised, or the remediation costs incurred by U.S. victims. Unusual work hours P.C. We continue to actively coordinate with our private and public partners to pierce the veil of anonymity surrounding cyber based crimes. If this is in fact the case then MSS performance is not likely to improve anytime soon. Traditional espionage encompasses a government's efforts to acquire clandestinely classified or otherwise protected information from a foreign government. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. The FBI is working closely with partners in the Intelligence Community and in the federal government, as well as with state and local partners, to establish a common operating picture. The Company Man: Protecting Americas Secrets, Economic Espionage: Protecting America's Trade Secrets, The Insider Threat: An Introduction to Detecting and Deterring and Insider Spy, Intellectual Property Protection: Safeguard Your Company's Trade Secrets, Proprietary Information, and Research, Safety and Security for the Business Professional Traveling Abroad, Safety and Security for U.S. Students Traveling Abroad, Higher Education and National Security: The Targeting of Sensitive, Proprietary, and Classified Information on Campuses of Higher Education, Best Practices in Supply Chain Risk Management for the U.S. Government, Two U.S. Citizens Arrested for Illegally Exporting Technology to Russia, Civil Forfeiture Complaint Filed Against Six Luxury Real Estate Properties Involved in Sanctions Evasion and Money Laundering, Russian National Charged with Supplying U.S. Technology to the Russian and North Korean Governments, Corrected: Four Florida Men Arrested in Plot to Kill Haitian President, Grand Jury Returns Indictment Against 11, U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of Iran, Associate of Sanctioned Oligarch Indicted for Sanctions Evasion and Money Laundering, Chinese National Sentenced to Eight Years in Prison for Acting Within the U.S. as an Unregistered Agent of the Peoples Republic of China, Former Special Agent in Charge of the FBI New York Counterintelligence Division Charged with Violating U.S. Sanctions on Russia, FBI.gov is an official site of the U.S. Department of Justice, Protect the secrets of the U.S. Intelligence Community, Protect the nations critical assets, like our advanced technologies and sensitive information in the defense, intelligence, economic, financial, public health, and science and technology sectors, Keep weapons of mass destruction from falling into the wrong hands. But this is not just an election-cycle threat. Currently there are open investigations with a foreign influence nexus spanning FBI field offices across the country. Recruiting personnel for a terrorist organization In many respects, the goals of this kind of espionage are similar to economic espionageto capture technological advances that could prove valuable to Chinese firms and potentially to the Chinese military. We remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda have the intent to carry out large-scale attacks in the U.S. U.S. federal research and development (R&D) spending as a percentage of U.S. GDP, meanwhile, suffered through a multi-year decline before Congress finally began to reverse the trenda welcome developmentfor fiscal year 2018, which saw the largest federal research spending increase in a decade. WASHINGTON - Russian government hackers breached the Treasury and Commerce departments, along with other U.S. government agencies, as part of a global espionage campaign that stretches back months . The two countries appeared to quietly reaffirm the agreement in October 2017. We expect this trend to continue. In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. However, cases attributed to the Ministry of State Security show an astounding nine cases where case officers and recruited agents demonstrated no discernible tradecraft. In 2016 broad bipartisan majorities of Congress passed the Defend Trade Secrets Act, which expanded the rights of U.S. companies to sue Chinese firms and other foreign competitors that steal their IP. Defense, China The U.S. government has steadily increased its response to the threat of Chinas unconventional espionage. Do not probe for information For guidance on "suspicious activities," refer to the Espionage Indicators Guide (see Appendix A to this Order). Examples of PEI include, Unexplained affluence, concealing foreign travel, unusual work hours, avoiding polygraph We also handle intelligence operations and oversight. But targeted sanctions against Chinese entities engaged in economic espionage or benefiting from stolen U.S. IP would send a powerful deterrent against such activities. The Trump administration should also expand these efforts by deploying the sanctions authorities under E.O.s 13757 and 13694, which authorize Treasury to sanction people, companies, and entities that engage in a cyber-enabled espionage and other cyberattacks. The activities include assistance with specifications, forecasting, financing, procurement, quality assurance, order management, delivery, inventory management, distribution, human resources, information systems and reporting to improve the design and performance of country FP/RH supply chains (whether stand-alone or integrated) that manage and . Our adversaries are continuously trying to undermine our country, whether it is election season or not. The US government has taken a range of measures to counter Chinese espionage and protect American interests. The first is economic espionage, which is intended to provide China with commercial advantage over U.S. firms. In collaboration with the National Counterintelligence and Security Center, the FBI released a short film to educate anyone with a trade secret about how they can protect it. Southeast The International Trade Commission (ITC) has authority to ban the import of products that are made with stolen U.S. IP, and in recent years U.S. companies have successfully petitioned the ITC to ban such products from entering the U.S. market. Twenty years ago, I testified before a U.S. congressional committee on Chinas espionage operations in the United States. Other U.S. agencies are also working to expand cutting-edge U.S. R&D. The United States has progressively expanded the scope of sanctions and entity-based export controls on Chinese persons (i.e., individuals and entities), primaril By The statistics show Chinese private companies adopt an aggressive posture in conducting economic espionage activities, resulting in 60 cases prosecuted just in the United States. Congressional cybersecurity legislation enacted in 2014 has also played an important role in improving U.S. government efforts to harden U.S. defenses against Chinese and other attacks. The 1986 Computer Fraud and Abuse Act (CFAA) makes it illegal for Americans to access a computer without authorization. It has not been as easy for the United States to gain buy-in as some in Washington expected. Cyber espionage (cyberespionage) is a form of cyber attack that is carried out against a competitive company or government entity. An official website of the United States government. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. Foreign Intelligence Agency-What do they want? PLA collection capabilities include military attachs conducting overt and clandestine collection and collectors under other government and commercial covers. Nations have been spying on the United States (and us on them) since the American Revolution. Traditional espionage encompasses a government's efforts to acquire clandestinely classified or otherwise protected information from a foreign government. The alleged scheme ran from 2010 to 2015 and targeted turbofan engine technology developed through a U.S.-French partnership. I will address three issues in my testimony before you this morning. Practice Communications Security The CCPs Organization Department makes all senior personnel appointments within these business organizations. For most daily Internet uses, the hidden world of international cyber espionage may seem too distant to be of any real importance. Within the FBI, we are focused on the most dangerous malicious cyber activity: high-level intrusions by state-sponsored hackers, global organized crime syndicates, and other technically sophisticated and dangerous actors. Our adversary seeks to expand its Good morning Chairman Thompson, Ranking Member Rogers, and members of the committee. This has allowed U.S. companies such as Micron Technologies to sue Chinese companies in federal court for the Chinese companies theft of U.S. IP. Figure 6: Espionage Tradecraft Techniques by Specific PRC Entities.
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