In a significant cybersecurity breach, Chinese government hackers have infiltrated the U.S. Treasury Department’s Office of Foreign Assets Control and the Office of Financial Research, according to a report by the Washington Post.
The targeted offices play critical roles in administering economic sanctions, a key tool in U.S. foreign policy.
The breach, disclosed by the Treasury earlier this week, revealed that unclassified documents were stolen in what officials described as a “major incident.”
Although the department’s letter to lawmakers did not specify the affected users or departments, sources cited by the Washington Post suggested that the hackers also aimed at the office of Treasury Secretary Janet Yellen.
China, through its embassy in Washington, has dismissed the accusations as baseless. Liu Pengyu, a spokesperson for the embassy, described the allegations as “irrational” and part of “smear attacks” against Beijing.
The Chinese statement reiterated the nation’s stance against cyberattacks but avoided directly addressing the specific claims.
Experts believe the breach might be linked to China’s interest in identifying entities and individuals that the U.S. government is considering for financial sanctions. Such information could offer Beijing strategic advantages in navigating its economic and diplomatic relationships.
China denies U.S. accusations of cyberattacks, calling the claims irrational and unfounded.
The United States frequently uses sanctions against Chinese firms and individuals to influence China’s policies on various issues, including its ties with Russia and its role in global trade.
The attack reportedly exploited vulnerabilities in third-party cybersecurity service provider BeyondTrust, highlighting the risks of relying on external systems for sensitive governmental operations.
While the Treasury Department has yet to comment further, this incident underscores the critical need for enhanced cybersecurity measures to protect sensitive national functions.
The U.S. considers China its most significant foreign policy challenge, a sentiment echoed by Secretary Yellen in recent remarks.
She noted that sanctions on Chinese banks remain an option in the broader context of global efforts to curtail Russia’s war in Ukraine.
This breach has reignited discussions about the ongoing cyber tensions between the two nations, adding urgency to the need for stronger defenses against state-sponsored cyberattacks.
