Cloud Computing: Shaming China to Stop Hacks Doesn’t Work

Grazed from BankInfoSecurity. Author: Eric Chabrow.

Attempts to shame China haven’t been effective in stopping that country from pilfering intellectual property from the computers of American companies, a new report to Congress says. The report from the U.S.-China Economic Review Commission, issued Nov. 20, points out that China hasn’t changed its behavior despite widely covered reports this past year from security firm Mandiant and the Defense Department about the Chinese targeting American companies and military contractors over the Internet to steal intellectual property and trade secrets (see 6 Types of Data Chinese Hackers Pilfer and DoD Outlines China’s Spying on U.S. IT).

"It is clear naming and attempting to shame will not be sufficient to deter entities in China from emerging in cyber-espionage against U.S. companies," the report says. The commission says mitigating the problem will require a multifaceted approach, including linking economic cyber-espionage to trade restrictions, prohibiting Chinese firms using stolen U.S. intellectual property from accessing U.S. banks and banning U.S. travel for Chinese organizations that are involved with cyber-espionage…

"To date," the report says, "Washington has not implemented a comprehensive framework for addressing China ongoing cyber-espionage." Despite the reluctance of the Chinese to stop e-spying on American companies, President Obama’s national security adviser, Susan Rice, encourages China to do just that for their own good…

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