Australia joins US in condemning China for Microsoft Exchange email hack

Tensions with China are expected to get frostier as Australia joins a chorus of nations blaming Beijing for an email hack.

China’s powerful Ministry of State Security has been accused by the Australian government of leading a sophisticated cyber hacking campaign that left thousands of computer networks around the world vulnerable to data theft and extortion.

On Monday night the government joined the United States and a number of other allies in directly fingering China for a massive hack on Microsoft Exchange networks that affected thousands of PCs and networks around the globe earlier this year.

Minister for Home Affairs Karen Andrews has pointed the finger at China for the Microsoft Exchange email hack. Picture: NCA NewsWire/Joel Carrett

Chinese President Xi Jinping. Picture: Lintao Zhang/Getty Images

In a rare direct attribution of blame, a joint statement issued Monday night by Home Affairs Minister Karen Andrews, Foreign Affairs Minister Marise Payne, and Defence Minister Peter Dutton said that Australia, in conjunction with allies, “has determined that China’s Ministry of State Security exploited vulnerabilities in the Microsoft Exchange software to affect thousands of computers and networks worldwide, including in Australia.”

“These actions have undermined international stability and security by opening the door to a range of other actors, including cybercriminals, who continue to exploit this vulnerability for illicit gain,” the statement read.

Australia also joined other nations in accusing China of also engaging government-affiliated hackers to commit a variety of cybercrimes including ransomware attacks and cyber extortion schemes for their own profit, noting reports that “China’s Ministry of State Security is engaging contract hackers who have carried out cyber-enabled intellectual property theft for personal gain and to provide commercial advantage to the Chinese Government,” the statement said, noting the problem.

Australia has blamed China for hacking to email accounts of millions of people.

On Monday, US Justice Department officials also announced charges against four Chinese nationals who they said were working with Beijing’s Ministry of State Security to target private companies, universities, and US government agencies.

Officially sponsored Chinese hacking has long been considered a problem by Western nations, but it is comparatively rare that Beijing is publicly called out for their activities.

However, it is understood that the threat of cyber warfare is an increasing concern of the Australian government, and was a hot topic of discussion among world leaders at June’s G7 summit in Cornwall, England.

Earlier this month, the Parliamentary Joint Committee on Intelligence and Security heard disturbing testimony that foreign actors including China might have already infiltrated critical infrastructure networks in Australia, allowing them to cripple water or electricity networks in anticipation of or during a regional crisis.

“Australia calls on all countries – including China – to act responsibly in cyberspace. China must adhere to the commitments it has made in the G20, and bilaterally, to refrain from cyber-enabled theft of intellectual property, trade secrets and confidential business information with the intent of obtaining competitive advantage,” the government’s statement continued.

“Australia calls out these malicious activities to highlight the significant risk they can pose to Australia’s national security or to international stability, which in turn can undermine business confidence and inclusive economic growth.”

Originally published as Australia joins US in condemning China for Microsoft Exchange email hack