KEY POINTS

  • Hackers broke into the systems of more than a dozen global telecommunications companies and taken large amounts of personal and corporate data.
  • U.S.-Israeli cybersecurity firm Cybereason says it identified links to previous Chinese cyber-espionage campaigns.
  • Western countries have moved to call out Beijing for its actions in cyberspace, warning that Chinese hackers have compromised companies and government agencies around the world.

Hackers have broken into the systems of more than a dozen global telecommunications companies and taken large amounts of personal and corporate data, researchers from a cyber security company said on Tuesday, identifying links to previous Chinese cyber-espionage campaigns.

Investigators at U.S.Israeli cyber security firm Cybereason said the attackers compromised companies in more than 30 countries and aimed to gather information on individuals in government, law-enforcement and politics.

The hackers also used tools linked to other attacks attributed to Beijing by the United States and its Western allies, said Lior Div, chief executive of Cybereason.

“For this level of sophistication it’s not a criminal group. It is a government that has capabilities that can do this kind of attack,” he told Reuters.

China has repeatedly denied involvement in any hacking activity.

Cybereason declined to name the companies affected or the countries they operate in, but people familiar with Chinese hacking operations said Beijing was increasingly targeting telcos in Western Europe.

Western countries have moved to call out Beijing for its actions in cyberspace, warning that Chinese hackers have compromised companies and government agencies around the world to steal valuable commercial secrets and personal data for espionage purposes.

Div said this latest campaign, which his team uncovered over the last nine months, compromised the internal IT network of some of those targeted, allowing the attackers to customize the infrastructure and steal vast amounts of data.

In some instances, they managed to compromise a target’s entire active directory, giving them access to every username and password in the organisation. They also got hold of personal data, including billing information and call records, Cybereason said in a blog post.

“They built a perfect espionage environment,” said Div, a former commander in Israel’s military intelligence unit 8200.

“They could grab information as they please on the targets that they are interested in.”

Cybereason said multiple tools used by the attackers had previously been used by a Chinese hacking group known as APT10.

The United States indicted two alleged members of APT10 in December and joined other Western countries in denouncing the group’s attacks on global technology service providers to steal intellectual property from their clients.

The company said on previous occasions it had identified attacks it suspected had come from China or Iran but it was never certain enough to name these countries.



Hackers have quietly infiltrated more than a dozen mobile carriers around the world, gaining complete control of networks behind the companies’ backs. The attackers have been using it over the last seven years to steal sensitive data, but have so much control, they could shut down communications at a moment’s notice, according to Cybereason, a security company based in Boston. 

Security researchers from the company on Tuesday said they’ve been investigating the campaign it’s named Operation Softcell, where hackers targeted phone providers in Europe, Asia, Africa and the Middle East. The hackers infected multiple mobile carriers since 2012, gaining control and siphoning off hundreds of gigabytes of data on people. 

It marks a potentially massive breach — with more fallout still to come — as companies across different industries struggle with how to protect their customers’ data. The hackers also had high-privileged access to do more than steal information.

“They have all the usernames and passwords, and created a bunch of domain privileges for themselves, with more than one user,” said Amit Serper, Cybereason’s head of security research. “They can do whatever they want. Since they have such access, they could shut down the network tomorrow if they wanted to.” 

Gigabytes of data theft

Cyberattacks on infrastructure are a national security concern, as hackers have found ways to shut down electrical power grids and access water dams. The US Department of Homeland Security has created its own center for dealing with attacks on infrastructure, which it acknowledged was a frequent target for hackers. If an attacker shut down phone networks, it could cause massive disruption and communication issues.

Serper said he didn’t find any US mobile carriers that were affected, but the hacking campaign is ongoing and it’s possible that could change. While they were able to disrupt network signals, the hackers were more focused on espionage than disruption, Cybereason found. 

After gaining access to mobile carriers’ internal servers, the hackers would have access to call data records on hundreds of millions of customers. That would provide information like geolocation data, call logs and text message records.

While the hackers had access to millions of people’s data, they had only stolen data from less than 100 highly targeted victims. The attackers likely targeted high-profile victims involved in government and the military, said Mor Levi, Cybereason’s vice president of security practices.

That data could update in real time, as long as mobile carriers didn’t catch on that they had been hacked. 

“Hacking a company that has mountains of data that is always updating is the holy grail for an intelligence agency,” Serper said. “It’s not just about gaining that access; it’s about maintaining it.” 

How the attacks happened

Cybereason’s researchers found that the attackers gained access to more than a dozen mobile carriers by exploiting old vulnerabilities, like malware hidden in a Microsoft Word file or finding an exposed public server belonging to the company. 

Once they slipped in, the malware then spreads by searching for all the computers on the same network and attempting to gain access by flooding them with login attempts. It continues to spread as long as the credentials work, until the hackers reach the caller data records database. 

Using that access, the hackers also created accounts for themselves with escalated privileges, essentially hiding among the company’s actual staff. Even if the companies take measures to close up its vulnerabilities, the hackers could still remain in the network for years after the fix.

Because the attack method was this sophisticated and targeted, Cybereason researchers believe the hackers were backed by a nation-state. All digital forensics signs point to China — the malware used, the method of attack and the servers the attacks are on are tied to APT10, China’s elite hacking group.

But there’s no smoking gun tying the nation-state’s hackers to this hacking campaign. Despite the hackers using Chinese malware and servers, it’s possible the attacker is a group attempting to frame APT10, researchers said.

“Because the tools that we saw were leaked and are publicly available to anyone who’s looking to get those tools, it could be anyone who wants to look like APT10,” Levi said.   

What to do

Cybereason said it’s reached out to all the affected mobile carriers, though it’s unclear what fixes they may have implemented to stop the intrusion. 

Levi recommended that all mobile carriers strictly monitor their internet-facing properties, especially servers. Mobile carriers should also look for accounts that have high privilege access.

Serper said the investigation is on-going, and he continues to find more companies hacked by this group by the day. The hackers’ servers are still up and running, he noted.

For people being tracked through this data theft, there’s almost nothing they can do to protect themselves from espionage, he noted. Victims wouldn’t even be able to know that their call data records are being stolen from mobile carriers. 

“There is no residue on your phone. They know exactly where you are and who you’re talking to, and they didn’t install any piece of code on your phone,” Serper said.

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