US says Chinese hackers broke into Justice Department, NASA, Federal Reserve, Senate, and more

• Multiple US agencies and departments were breached by Chinese state-sponsored hackers
• The hackers use a massive botnet of compromised IoT devices to obscure the origin of their traffic
• The hackers breached computers belonging to NASA, the Federal Reserve, the Senate, the Department of Justice, and more

As part of a disclosure into the Justice Department and FBI operations to prevent Chinese threat actors from accessing a malicious botnet and hacking platforms, the US Office of Public Affairs has revealed that the hackers managed to breach computers belonging to multiple US government departments.

The disclosure said the victims of “computer intrusion” included the National Aeronautics and Space Administration, Federal Reserve, Department of Energy, Department of Justice, Department of Health and Human Services, National Institutes of Health, and the US Senate.

The Chinese hackers created a platform that provides paid-for hacking services on behalf of its customers. The two services, QScan and QTRouter, detect and infect internet-connected devices to use as part of a proxy network that obscures the origins of internet traffic, allowing Chinese hackers to slip into networks without detection.

US seizes hacking domains to prevent access

The Chinese state-sponsored hacking group the Justice Department and FBI have disrupted is named in court documents - unsealed by the Southern District of California - as “QTFY”.

QTFY was apparently hired by the Nanjing Xinjiuwei Network Technology Company, to create and operate the QScan and QTRouter operations, while using both systems to infiltrate US critical infrastructure.

“Today we announced the disruption of a global botnet and hacking platform used by Chinese state-sponsored hackers to target U.S. critical infrastructure,” said FBI Director Kash Patel.

“These tools were used by PRC cyber actors to hide the origin of their attacks. Thanks to the work of FBI San Diego, FBI Cyber Division, and DOJ partners, we seized adversary infrastructure and shut these platforms down. Today’s action is just the latest technical operation against PRC-sponsored hacking - and in support of President Trump’s Cyber Strategy for America, the FBI is surging efforts to shape adversary behavior and defend the homeland in cyberspace.”

The authorization to disrupt the operation of QTFY comes as part of a range of technical operations designed to disrupt the ability of the People’s Republic of China to launch hacking activities on US government systems and critical infrastructure

Previous operations include the removal of the PlugX malware from thousands of US computers, alongside operations to disrupt Chinese botnets leveraging millions of unsecured IoT devices.

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