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Unit 61398 - the featureless 12-storey building which houses one of the world's 
most dangerous and secretive cyber-hacking operations
  Date 
  February 20, 2013 - 12:06PM 
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Tom Phillips in Shanghai
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Apple hacked, China link unclear
Apple discloses it has been hit by the same hackers that attacked Facebook, 
adding a new level of urgency to growing reports of security breaches.

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It looks like any other Shanghai office block but a nondescript tower has been 
identified as the nerve centre of one of the world's most dangerous military 
cyber-hacking operations.

American computer analysts have traced more than 100 attacks on government 
departments, companies and journalists to the site of the 12-storey building 
about 40 minutes outside Shanghai's city centre.

  'Hundreds, and perhaps thousands of people' were working inside to breach the 
security of global corporations, as well as foreign power grids, gas lines and 
waterworks 

A 60-page report by Mandiant, a computer security company, said the 
headquarters of People's Liberation Army Unit 61398 was located in the compound.

 
People walk past Unit 61398 ... it is in a bustling residential neighbourhood. 
Photo: Reuters

London's The Daily Telegraph confirmed that a woman who questioned a reporter's 
purpose in visiting the area was a member of Unit 61398. While she admitted her 
affiliation, she refused to produce any identification.

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The Mandiant report said a hacking network named the Comment Crew or the 
'Shanghai Group' operated from the compound. It said "hundreds, and perhaps 
thousands of people" were working inside to breach the security of global 
corporations, as well as foreign power grids, gas lines and waterworks.

While the Shanghai PLA base is off-limits to outsiders, the existence of the 
military compound is no secret in what is a bustling residential neighbourhood.

 
Hacking network ... a group named the Comment Crew allegedly operate from the 
compound. Photo: Reuters

There is no sign identifying the base by name but clear orders have been placed 
outside in Chinese and English: "Restricted military area. No photographing or 
filming". Men in PLA uniform guard the entrance. Large propaganda posters are 
pinned to walls around the base. Next door, a residential compound for military 
families greets visitors with a plaque reading: "Be faithful and loyal to the 
Party. Love the people. Dedicate yourself to the cause."

While Mandiant could not trace the hacking attacks to inside the building, its 
chief executive, Kevin Mandia, told the New York Times: "Either they are coming 
from inside Unit 61398 or the people who run the most controlled, most 
monitored internet networks in the world are clueless about thousands of people 
generating attacks from this one neighbourhood."

A succession of media groups, including the New York Times, the Washington Post 
and the Wall Street Journal have reported in recent months that hackers, with 
alleged ties to the PLA, had invaded or attempted to compromise their systems.

 
Unit 61398 ... home to a secretive Chinese military unit. Photo: Reuters

The Mandiant report claimed that hackers who appeared to be working out of the 
Shanghai PLA unit had launched more than 140 attacks since 2006, stealing 
"hundreds of terabytes of data".

Most of the targets were in the United States although some were in Britain.

The report is the most concrete confirmation yet that the wave of cyber attacks 
emanating from China is sponsored, at least in part, by the Chinese government. 
However, a spokesman for the Chinese foreign ministry dismissed the allegations 
as "groundless".

In the past, the People's Daily, the mouthpiece of the Communist Party, has 
accused the US of sensationalising China's cyber threat as an excuse to expand 
its own "internet army".

In his recent State of the Union address, US President Barack Obama warned: 
"Our enemies are also seeking the ability to sabotage our power grid, our 
financial institutions, our air-traffic control systems. We cannot look back 
years from now and wonder why we did nothing."

The Telegraph, London

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