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http://www.theage.com.au/news/national/chinese-waging-online-spy-war/2008/02/09/1202234232007.html



By Jason Koutsoukis

The Age

February 10, 2008



CHINESE computer hackers have launched several targeted attacks on

highly classified Federal Government computer networks, prompting an

internal review of IT security.



The cyber attacks are believed to be part of a co-ordinated

international espionage operation to glean intelligence from Western

countries.



Senior Australian intelligence figures are also believed to be concerned

at an increasing level of industrial espionage directed at local

companies.



The targeted cyber attacks are believed to have occurred late last year

but are not believed to have succeeded in stealing any sensitive

information.



Chinese authorities are believed to be using sophisticated hacking

technology to glean information on a range of subjects including

sensitive military secrets and the prices Australian companies will seek

for resources such as coal, iron ore and natural gas.



"I wouldn't characterise the attempts as necessarily malicious, just

routine espionage aimed at getting an advantage," a Canberra-based

intelligence source told The Sunday Age.



"It's important to recognise that this is not a direct threat aimed at

destabilising our government, nor is this a wilful effort to hinder or

discredit government activity.



"But, do we have secrets that other governments would like to know? Yes.

Are they trying? Yes. Espionage over the internet is a major

battleground of the future."



So concerned are senior intelligence figures that the Federal Government

will this year spend $70 million to improve IT security, a figure that

could be increased after the recent spate of cyber attacks.



A spokesman for the Department of Defence refused to confirm or deny the

recent cyber attacks on key government agencies.



A Chinese government spokesman denied that Beijing had authorised any

cyber espionage against any Australian agencies.



A December 2007 report on virtual criminology by the international

antivirus software and computer security company McAfee Inc confirmed

that government computer systems in Australia, New Zealand, the United

States, Germany and India had been attacked.



It predicted that growth in virtual espionage would be among the main

online threats in 2008.



"The Chinese have publicly stated that they are pursuing activities in

cyber-espionage," the McAfee report stated.



The report estimated that about 120 countries around the world were

working on cyber attack plans.





What they want



* Australian military secrets.



* Intelligence provided to Australia by other Western nations,

particularly the United States.



* Corporate secrets, such as the prices Australian companies will ask

for resources such as coal, iron ore and natural gas.





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