Chinese Hackers Compromised Multiple Canadian Government Networks For Years, Stole Info: Security Agency

Authored by Andrew Chen via The Epoch Times (emphasis ours),

Cyber threat actors from the People’s Republic of China (PRC) have been implicated in multiple breaches of networks associated with federal government agencies and departments, according to a report from the national cybersecurity agency.

CSE chief Caroline Xavier appears at the Foreign Interference Commission in Ottawa on Sept. 26, 2024. The Canadian Press/Adrian Wyld

“Over the past four years, at least 20 networks associated with Government of Canada agencies and departments have been compromised by PRC cyber threat actors,” said the National Cyber Threat Assessment 2025-2026, released Oct. 30 by the Canadian Centre for Cyber Security.

The centre identifies China as the top threat actor targeting Canada, noting that its cyber operations are “second to none” in scale, technique, and ambition. Beijing’s objectives include espionage, intellectual property theft, malign influence, and transnational repression, the centre says. 

While the report highlights China’s hacking of 20 federal government networks in the past four years, information elsewhere in the report shows that Chinese hackers have had access to multiple government networks longer than that. The report says that Chinese agents have compromised Canadian government networks over the past five years, collecting communications and other valuable information.

While all known federal government compromises have been resolved, it is very likely that the actors responsible for these intrusions dedicated significant time and resources to learn about the target networks,” the report reads.

At a press conference on Oct. 30, Caroline Xavier, chief of the Canadian Communications Security Establishment (CSE), would not  comment on the details of the breaches, but said mitigation measures had been “effective.”

“The key message for us—when there are incidents that occur—is really being focused on ensuring [we] minimize the impact to the government department that may have been compromised. And that is exactly where our focus has been,” she told reporters. “We do feel that the measures were taken to be able to mitigate any of the risks, and to address the incidents in an effective manner.”

The cyber centre is hosted within CSE, Canada’s electronic spy agency, which is responsible for collecting signals intelligence and defending against cyberattacks.

China Targets

In addition to federal agencies, provincial and territorial governments are also seen as valuable targets for Beijing, the report said, noting that these governments hold decision-making power over regional trade and commerce, including the extraction of critical minerals and other natural resources.

Xavier said this targeting indicates Beijing is a “sophisticated, consistent, and persistent actor,” and that Canada needs to address the threat with a more comprehensive approach.

“We have work to do as a nation, to continue to work, in particular with the provinces, territories, indigenous communities, because we recognize that we’re all vulnerable, or we all could be vulnerable, and we really want to continue to raise Canada’s cyber resilience,” she said.

The cyber centre also echoed previous reports from various human rights groups, warning that Beijing’s transnational repression has primarily targeted five specific communities, referred to by the regime as the “five poisons.” These include Falun Gong practitioners, Uyghurs, Tibetans, supporters of Taiwanese independence, and pro-democracy activists.

PRC actors very likely facilitate transnational repression by monitoring and harassing these groups online and tracking them using cyber surveillance,” the report said. “For example, the PRC has been publicly linked to cyber espionage operations against the Uyghur minority group, including members living in Canada, using spear phishing emails and spyware.”

Other Countries Named

Other state-backed threat actors highlighted in the cyber centre report include Russia, Iran, and India.

Russia’s cyber operations are characterized as “a multi-layered strategy” that combines conventional cyber espionage and computer network attacks with disinformation. Its primary goal is to enhance Russia’s global status while undermining democratic institutions in Canada and among its allies.

A specific case cited in the report involves a breach detected by Microsoft in January, where a Russian state-sponsored cyber threat actor known as Midnight Blizzard accessed the company’s cloud-based enterprise email service.

The group infiltrated correspondence between Microsoft and government officials in Canada, the United States, and the United Kingdom. Initially, the actors sought information about Russia itself, but later used personal data and credentials from the emails to gain access to Microsoft customer systems.

Meanwhile, the report said Iran has been expanding its cyberattacks to western countries amid its ongoing military conflict with Israel.

“Iran has taken advantage of its back-and-forth cyber confrontation with Israel to improve its cyber espionage and offensive cyber capabilities and hone its information campaigns, which it is now almost certainly deploying against targets in the West,” the report said.

During the press conference, Xavier also identified India as an “emerging threat” to Canada.

“India very likely uses its cyber program to advance its national security imperatives, including espionage, counterterrorism, and the country’s efforts to promote its global status and counter narratives against India and the Indian government,” the report said.

Citing her recent testimony before the foreign interference inquiry, Xavier noted India could potentially “flex those cyber threat actions against Canadians” amid ongoing diplomatic tensions.

Earlier this month, Canada expelled six Indian diplomats, prompting a reciprocal move by India, which also expelled six Canadian diplomats. This dispute arose after the RCMP announced its investigation into criminal activities allegedly involving “agents of the Government of India.” 

‘Ever-Present’ Threat

The Centre for Cyber Security says Canada has entered a new era in which cyber threats are “ever present.”

“Canadians will increasingly feel the impact of cyber incidents that have cascading and disruptive effects on their daily lives,” the report said.

The centre says the threat has expanded as Canadians increasingly rely on online platforms and digital technologies to go about their lives.

“These systems record and process vast amounts of data about us, often over poorly secured or untrustworthy digital networks,” it said.

Aside from the threats from hostile state actors, the centre notes that the cybercrime business model is “underpinned by flourishing online marketplaces” where leaked data is sold along with cyber tools for criminals.

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Originally Posted at; https://www.zerohedge.com//


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German Government Collapses As Mass Strikes Grind Economy To A Halt

German Government Collapses As Mass Strikes Grind Economy To A Halt

It’s not a good day for the establishment. Just hours after Kamala Harris – and the Democrats – staggering loss which ushered in Trump as president for the third time and gave Republicans a sweep of Congress, Germany’s three-party ruling coalition which had been on the verge of collapse for months, imploded on Wednesday evening after Chancellor Olaf Scholz announced he will fire Finance Minister Christian Lindner over persistent rifts on spending and economic reforms, a move that paves the way for a snap election at the end of March.

The firing ejects Lindner’s fiscally conservative Free Democratic Party  (FDP) from the troubled coalition, forcing Scholz to call for a confidence vote that he said would take place on January 15. If Scholz loses that vote, which is virtually certain, a snap election is set to take place by March.

The collapse of Germany’s government came just hours after Donald Trump’s clear win in the U.S. election, a result that stunned German political leaders, who depend on American military might for their country’s defense and fear Trump’s tariff policies will hobble German industry.

“Dear fellow citizens, I would have liked to have spared you this difficult decision, especially in times like these, when uncertainty is growing,” said Scholz – viewed as the weakest German chancellor in decades – in a statement at the chancellery.

But the rifts inside the coalition proved too great to overcome. Caught in the middle of an impossible battle, Lindner and his conservative FDP insisted that the German government stick to strict spending rules and cut taxes, even as his left-wing coalition partners wanted to maintain social spending and boost German industry through economic stimulus.

“All too often, Minister Lindner has blocked laws in an inappropriate manner,” said Scholz in a statement. “Too often he has engaged in petty party-political tactics. Too often he has broken my trust.”

Scholz said he had offered Lindner a deal to create an emergency fund to aid Ukraine that would exist outside Germany’s regular budget, but Lindner refused to participate in such fiscal gimmicks that saw the UK recently redefine the nature of “debt.”

“Olaf Scholz has long failed to recognize the need for a new economic awakening in our country,” said Lindner. “He has long played down the economic concerns of our citizens.”

As Politico reports, the FDP is the smallest party in the coalition and is now polling at only four percent — below the threshold needed to make it into the German parliament — meaning its leaders have been mulling a coalition break in order to save their political futures.

Crisis talks in the coalition of Scholz’s Social Democratic Party, the Greens and Lindner’s Free Democratic Party had come to a head after the FDP issued a paper with demands for liberal economic reforms that were difficult for the other two parties to accept.

Lindner’s recent policy paper, leaked to the media last week, called for tax cuts and a scaling back of climate policies in order to stimulate economic growth — both positions that put the party at odds with his coalition partners.

Central to the coalition disagreements was the adoption of the 2025 budget by parliament in which a gap of at least €2.4 billion, and potentially far more, needs to be filled, as well as an agreement on measures to revamp the country’s ailing economy.

The government crisis comes at the worst possible time: Trump’s victory, which anticipates imposing significant tariffs on German exports, is expected to put heavy pressure on Europe’s largest economy. An analysis from the German Economic Institute (IW) estimates that a new trade war could cost Germany €180 billion over Trump’s four years in office.

Many in Germany had hoped that the victory of Donald Trump in the U.S. election earlier in the day would force the coalition to hold together over fears that the incoming president would give Europe’s biggest economy a hard ride, targeting its all-important car industry in a trade war.

Ultimately, however, not even the looming threat of Trump proved enough for the fractious parties to put aside their differences.

Sensing that the economy is about to go from bad to much worse, last Tuesday – amid mounting concern about the imminent collapse of the EU’s largest manufacturing economy – Germany’s giant trade union IG Metall launched strikes in the nation’s metal and electrical industries in an attempt to win higher wages. According to the tabloid Bild, employees began walking off the job during the night shift, including at Volkswagen’s plant in the city of Osnabruck, where workers worry the plant may be closed.

Elsewhere, around 200 employees of the battery manufacturer Clarios went on strike in Hanover, Lower Saxony, carrying torches and union flags, the outlet wrote.

Meanwhile, in Hildesheim, Lower Saxony, around 400 employees, including those at Jensen GmbH, KSM Castings Group, Robert Bosch, Waggonbau Graaff and ZF CV Systems Hannover, have reportedly halted operations.

Protests are also expected at BMW and Audi plants in Bavaria. Work is to be stopped nationwide during the course of the day, the tabloid wrote.

”The fact that production lines are now at a standstill and offices are empty is the responsibility of the employers,” IG Metall’s negotiator and district manager Thorsten Groger stated, as quoted by Deutsche Welle.

IG Metall is demanding a 7% pay raise compared to the 3.6% raise over a period of 27 months offered by employers’ associations, due to soaring inflation. The companies call such demands unrealistic.

The mass strikes come as Volkswagen announced on Monday it would close “at least” three of its ten plants in Germany, lay off tens of thousands of staff and downsize remaining plants in the country. The measures are part of a cost-cutting drive, the conglomerate said earlier. Oliver Blume, chief executive of the VW Group, has cited a “difficult economic environment” and “failing competitiveness of the German economy” as factors behind the decision.

The German Association of the Automotive Industry warned last year that the country was “dramatically losing its international competitiveness” due to soaring energy costs.

A recent survey by the VDA auto industry association suggested that the reshuffling of the German car industry could lead to 186,000 job losses by 2035, roughly a quarter of which have already occurred.

Tyler Durden
Wed, 11/06/2024 – 23:25

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