Salt Typhoon Attack Highlights Need for Cybersecurity Reforms
Jared Kushner, Eric Trump, Senator Chuck Schumer (an more than 1 million other Americans) we hacked. Will we finally get serious about cybersecurity?
News of Chinese hacks is so familiar it is tempting to turn them out, but by any measure, the recent Salt Typhoon attacks deserve the nation’s full attention. Let’s take the top-line facts as we know them:
More than 1 million Americans had their communications breached.
At least eight major telecom companies, including industry giants Verizon and AT&T, were targeted.
High-ranking officials, including Senate Majority Leader Chuck Schumer, and members of Trump’s inner circle, such as Eric Trump and Jared Kushner, were among the victims.
The very infrastructure the FBI uses to tap criminals’ phones under CALEA appears to be one of the vectors used to compromise American communications.
As Senator Ben Ray Lujan, a Democrat who chairs a telecom subcommittee, said, “This attack likely represents the largest telecommunications hack in our nation’s history.”
The Salt Typhoon attack was both massive in scale and highly targeted. Beyond exposing sensitive data, the breach raises serious questions about the nation’s ability to protect its infrastructure. Its scale and technical complexity demand a reexamination of national security strategies.
The Salt Typhoon operation illustrates this strategy, blending espionage with cybercrime tactics to achieve technical precision and global reach. And this is not a new phenomenon.
Just Look at the Last 10 years.
Anthem Health Insurance Breach (2015): Chinese hackers targeted Anthem Inc., a primary health insurance provider, stealing the personal information of nearly 80 million Americans. This attack exposed sensitive medical records, creating risks for identity theft and further data exploitation.
OPM Data Breach (2015): One of the most damaging cyberattacks attributed to Chinese state-sponsored actors targeted the U.S. Office of Personnel Management (OPM). The breach exposed the sensitive personal information of over 21.5 million individuals, including federal employees’ and contractors’ fingerprints, background checks, and social security numbers. This treasure trove of data posed a long-term national security threat by potentially enabling espionage and blackmail.
Equifax Breach (2017): In another high-profile incident, Chinese hackers were implicated in the breach of Equifax, one of the largest credit reporting agencies in the U.S. The attackers stole the personal data of approximately 145 million Americans, including names, birth dates, and credit card numbers. U.S. prosecutors later charged four members of China’s military for their involvement in this cyberattack.
Marriott Data Breach (2018): The cyberattack on Marriott International, which affected its Starwood hotel guest reservation database, exposed the data of approximately 500 million customers. The stolen data included passport numbers, travel details, and personal information. Investigations linked the breach to Chinese intelligence agencies, suggesting a motive tied to gathering information for espionage.
Targeting U.S. Covid-19 Research (2020): Amid the global pandemic, Chinese hackers attempted to breach American organizations involved in coronavirus vaccine research. The attacks targeted institutions such as biotech firms and research labs, aiming to steal intellectual property related to vaccine development. This highlighted the growing role of cyber espionage in geopolitical competition during a global crisis.
America’s Struggles with Reactive Measures
In response to the breach, Senator Ron Wyden (D-Ore.) has introduced legislation mandating the Federal Communications Commission (FCC) to establish cybersecurity regulations for telecom companies under the Communications Assistance for Law Enforcement Act (CALEA). This move would compel telecom carriers to enhance their cybersecurity measures, protecting communications and call-identifying information from unauthorized access. The legislation also requires annual independent audits to assess compliance and identify vulnerabilities. This is a good start, but the U.S. needs to be more proactive.
One of China’s advantages is the seamless connection between its government and its technology companies. The U.S. needs to leverage the innovation the free markets bring us but couple it with the strategic, financial, and regulatory benefits of government partnership. For example, the Cybersecurity and Infrastructure Security Agency (CISA) works with private companies to strengthen defenses through initiatives like the Joint Cyber Defense Collaborative.
We also need to bulk up our cyber army. The U.S. has a shortage of skilled cybersecurity professionals. The global active cyber workforce has been holding steady at 5.5 million people, leaving a gap in the current needed workforce of 4.8 million people, according to an annual ISC2 study. Federal programs like the National Initiative for Cybersecurity Education (NICE) aim to address this shortfall by funding training and certification programs.
By comparison, China’s National Cybersecurity Talent and Innovation Base can certify 70,000 cybersecurity experts annually.
Not coincidentally, the House is about to vote on a defense bill that includes $3.1 billion for U.S. telecom companies to “rip and replace” equipment made by Chinese telecoms firms Huawei and ZTE. The initiative was designed to help smaller and rural telcos make the switch. This might be a good time to mandate some other security upgrades.
The attack comes as Donald Trump is preparing to enter the White House. Although he has been highly vocal about China, his focus has been chiefly on imposing Tariffs and reigniting a trade war. The U.S./China economic rivalry is undeniable. Still, this attack shows other battles to be fought, and they require tactics that are more nuanced than imposing a 10% tax on everything made in China.
WATCH: AI in the Trenches: Autonomous Systems and Cyber Defense Strategies from Techonomy 24
The Roll
1. Project Astra and Project Mariner: Google's DeepMind unveiled Project Astra, an AI assistant capable of understanding various data forms, and Project Mariner, a Chrome extension that autonomously navigates the web to complete tasks. These initiatives signify Google's commitment to developing AI agents to anticipate user needs and act independently. The Verge
2. OpenAI's Sora Video Generator
OpenAI released Sora, an AI-powered video generation tool for premium ChatGPT users. To mitigate risks such as deepfakes, the depiction of real people is restricted to a select group of testers. This tool aims to streamline video production in sectors like entertainment and marketing. Associated Press
3. Apple's Integration of AI Features
Apple expanded its generative AI offerings by integrating ChatGPT with Writing Tools and Siri, and introducing "Genmoji" creation on c” on compatible devices. This phased rollout reflects Apple's strategy to enhance user experience through AI, with a positive reception from investors. Barron's
DeepMind, Google's AI division, developed GenCast, a weather forecasting system capable of predicting conditions up to 15 days in advance with over 97% accuracy. Utilizing AI diffusion models and trained on four decades of data, GenCast offers efficient and precise forecasts, outperforming traditional models. New York Post
5. Russia's AI Alliance Initiative
Russia announced the formation of the "AI Alliance Network" in collaboration with BRICS countries and others like Serbia and Indonesia. Led by S’s initiative aims to develop indigenous AI technologies, seeking to position Russia competitively in the global AI landscape despite existing sanctions. HuffPost
6. TSMC's Revenue Growth Amid AI Demand
Taiwan Semiconductor Manufacturing Co. reported a 34% increase in November sales compared to the previous year, attributed to the growing demand for advanced microchips driven by AI technologies. This underscores the semiconductor industry's critical role in supporting AI advancements. MarketWatch
7. Japan's AI Efforts Against Manga Piracy
The Japanese government initiated a ¥300 million pilot program to develop AI capable of detecting and reporting pirated manga and anime content online. This effort aims to protect Japan's creative industries from significant financial losses due to piracy. The Times