Five Eyes intel chiefs warn China's IP theft program now at 'unprecedented' 
levels

Spies come in from the cold for their first public chinwag

“Tuesday's Summit also included discussions between the Five Eyes intelligence 
leaders and business execs about expanding private-public partnerships to 
better protect innovation and national security.”

By Jessica Lyons Hardcastle  Wed 18 Oct 2023 
https://www.theregister.com/2023/10/18/five_eyes_china_espionage/


Intelligence chiefs of the Five Eyes alliance today warned that Chinese 
government spies stealing IP and other sensitive data from private companies 
pose an "unprecedented" threat to national security.

The five from the US, UK, Canada, Australia, and New Zealand all appeared 
together on stage for the first time ever at a summit hosted by Stanford 
University's Hoover Institution, a public policy think tank.

The discussion, hosted by former US Secretary of State Condoleezza Rice, 
centered on emerging technology and securing innovation.


This threat goes well beyond the traditional nation-state spies stealing 
government secrets from other counties, added Australian Security Intelligence 
Organisation Director-General Mike Burgess.

"The threat is that we have the Chinese government engaged in the most 
sustained, scaled, and sophisticated theft of intellectual property and 
acquisition of expertise that is unprecedented in human history," Burgess said.

This is challenging in its "scale and breadth," said Wray, citing the PRC's 
hacking program, which he has repeatedly said is bigger than that of every 
other nation's combined.

"Combine that with human intelligence operations," Wray said, noting that this 
includes not just "traditional spies" stealing trade secrets from 
private-sector businesses and research institutions.

Chinese President Xi Jinping's cyber squads also recruit non-traditional spies 
such as business insiders and use "seemingly innocuous joint ventures 
investments," Wray added. "So part of what makes it challenging is all of those 
tools deployed in tandem at a scale that the likes of which the world has never 
seen."

Zeroing in on emerging tech

Increasingly, Chinese government IP thieves are focusing on emerging 
technologies – AI, quantum computing, biotechnology, robotics, and automation. 
The especially worrisome part of those efforts, according to the Five Eyes, is 
that China and other adversarial nations like Russia and Iran don't consult 
laws or safeguards when deploying such technologies.

Using AI as an example, Wray said: "Right now, where it's most dangerous is 
essentially taking junior varsity bad actors and bringing them to the varsity 
level. But in fairly short order, we're going to be seeing AI taking the 
varsity level athletes to a whole other level of dangerousness."

AI can be used to scan for vulnerabilities to exploit, and to write code to 
exploit those vulnerabilities, according to Wray.

The Register observes that AI's ability to write malware is disputed by private 
security researchers. The consensus seems to be that AI can help experienced 
coders save time and has the potential to write exploit code by itself. But at 
this point, AI still requires human intelligence to create malware.

Wray said that miscreants are also using AI to pull off more sophisticated 
spear-phishing attacks. AI is also good at producing content for disinformation 
campaigns, including deepfake audio and images, and China is already taking 
full advantage of this capability, he added.

"AI [can] enhance things like virtual kidnappings, where parents get a call and 
they think their child's been kidnapped," Wray said. "But now AI can mimic your 
child's voice, so it sounds even more credible."

AI's nastier applications means that government spies, and not just those from 
China, are interested in stealing data from and recruiting insiders at 
startups, universities, and other organizations developing these emerging 
technologies.

"If you are working at the cutting edge of technology today, you might not be 
interested in geopolitics, but geopolitics is certainly interested in you," 
said MI5 Director General Ken McCallum.

"Lots of people who, perfectly understandably, may not previously have thought 
that national security had anything to do with them do need to think about this 
in a new way."

To this end, Tuesday's summit also included discussions between the Five Eyes 
intelligence leaders and business execs about expanding private-public 
partnerships to better protect innovation and national security.

These "Five Principles," as the intel chiefs called them, will "better inform 
innovators around the types of threats we face and what they can do about it," 
said Andrew Hampton, Director-General of the New Zealand Security Intelligence 
Service. ®

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