Category: Citizen Lab

A new data leak that appears to have come from one of China’s top private cybersecurity firms provides a rare glimpse into the commercial side of China’s many state-sponsored hacking groups. Experts say the leak illustrates how Chinese government agencies increasingly are contracting out foreign espionage campaigns to the nation’s burgeoning and highly competitive cybersecurity industry.

A marketing slide deck promoting i-SOON’s Advanced Persistent Threat (APT) capabilities.

A large cache of more than 500 documents published to GitHub last week indicate the records come from i-SOON, a technology company headquartered in Shanghai that is perhaps best known for providing cybersecurity training courses throughout China. But the leaked documents, which include candid employee chat conversations and images, show a less public side of i-SOON, one that frequently initiates and sustains cyberespionage campaigns commissioned by various Chinese government agencies.

The leaked documents suggest i-SOON employees were responsible for a raft of cyber intrusions over many years, infiltrating government systems in the United Kingdom and countries throughout Asia. Although the cache does not include raw data stolen from cyber espionage targets, it features numerous documents listing the level of access gained and the types of data exposed in each intrusion.

Security experts who reviewed the leaked data say they believe the information is legitimate, and that i-SOON works closely with China’s Ministry of State Security and the military. In 2021, the Sichuan provincial government named i-SOON as one of “the top 30 information security companies.”

“The leak provides some of the most concrete details seen publicly to date, revealing the maturing nature of China’s cyber espionage ecosystem,” said Dakota Cary, a China-focused consultant at the security firm SentinelOne. “It shows explicitly how government targeting requirements drive a competitive marketplace of independent contractor hackers-for-hire.”

Mei Danowski is a former intelligence analyst and China expert who now writes about her research in a Substack publication called Natto Thoughts. Danowski said i-SOON has achieved the highest secrecy classification that a non-state-owned company can receive, which qualifies the company to conduct classified research and development related to state security.

i-SOON’s “business services” webpage states that the company’s offerings include public security, anti-fraud, blockchain forensics, enterprise security solutions, and training. Danowski said that in 2013, i-SOON established a department for research on developing new APT network penetration methods.

APT stands for Advanced Persistent Threat, a term that generally refers to state-sponsored hacking groups. Indeed, among the documents apparently leaked from i-SOON is a sales pitch slide boldly highlighting the hacking prowess of the company’s “APT research team” (see screenshot above).

i-SOON CEO Wu Haibo, in 2011. Image: nattothoughts.substack.com.

The leaked documents included a lengthy chat conversation between the company’s founders, who repeatedly discuss flagging sales and the need to secure more employees and government contracts. Danowski said the CEO of i-SOON, Wu Haibo (“Shutdown” in the leaked chats) is a well-known first-generation red hacker or “Honker,” and an early member of Green Army — the very first Chinese hacktivist group founded in 1997. Mr. Haibo has not yet responded to a request for comment.

In October 2023, Danowski detailed how i-SOON became embroiled in a software development contract dispute when it was sued by a competing Chinese cybersecurity company called Chengdu 404. In September 2021, the U.S. Department of Justice unsealed indictments against multiple Chengdu 404 employees, charging that the company was a facade that hid more than a decade’s worth of cyber intrusions attributed to a threat actor group known as “APT 41.”

Danowski said the existence of this legal dispute suggests that Chengdu 404 and i-SOON have or at one time had a business relationship, and that one company likely served as a subcontractor to the other on specific cyber espionage campaigns.

“From what they chat about we can see this is a very competitive industry, where companies in this space are constantly poaching each others’ employees and tools,” Danowski said. “The infosec industry is always trying to distinguish [the work] of one APT group from another. But that’s getting harder to do.”

It remains unclear if i-SOON’s work has earned it a unique APT designation. But Will Thomas, a cyber threat intelligence researcher at Equinix, found an Internet address in the leaked data that corresponds to a domain flagged in a 2019 Citizen Lab report about one-click mobile phone exploits that were being used to target groups in Tibet. The 2019 report referred to the threat actor behind those attacks as an APT group called Poison Carp.

Several images and chat records in the data leak suggest i-SOON’s clients periodically gave the company a list of targets they wanted to infiltrate, but sometimes employees confused the instructions. One screenshot shows a conversation in which an employee tells his boss they’ve just hacked one of the universities on their latest list, only to be told that the victim in question was not actually listed as a desired target.

The leaked chats show i-SOON continuously tried to recruit new talent by hosting a series of hacking competitions across China. It also performed charity work, and sought to engage employees and sustain morale with various team-building events.

However, the chats include multiple conversations between employees commiserating over long hours and low pay. The overall tone of the discussions indicates employee morale was quite low and that the workplace environment was fairly toxic. In several of the conversations, i-SOON employees openly discuss with their bosses how much money they just lost gambling online with their mobile phones while at work.

Danowski believes the i-SOON data was probably leaked by one of those disgruntled employees.

“This was released the first working day after the Chinese New Year,” Danowski said. “Definitely whoever did this planned it, because you can’t get all this information all at once.”

SentinelOne’s Cary said he came to the same conclusion, noting that the Protonmail account tied to the GitHub profile that published the records was registered a month before the leak, on January 15, 2024.

China’s much vaunted Great Firewall not only lets the government control and limit what citizens can access online, but this distributed spying apparatus allows authorities to block data on Chinese citizens and companies from ever leaving the country.

As a result, China enjoys a remarkable information asymmetry vis-a-vis virtually all other industrialized nations. Which is why this apparent data leak from i-SOON is such a rare find for Western security researchers.

“I was so excited to see this,” Cary said. “Every day I hope for data leaks coming out of China.”

That information asymmetry is at the heart of the Chinese government’s cyberwarfare goals, according to a 2023 analysis by Margin Research performed on behalf of the Defense Advanced Research Projects Agency (DARPA).

“In the area of cyberwarfare, the western governments see cyberspace as a ‘fifth domain’ of warfare,” the Margin study observed. “The Chinese, however, look at cyberspace in the broader context of information space. The ultimate objective is, not ‘control’ of cyberspace, but control of information, a vision that dominates China’s cyber operations.”

The National Cybersecurity Strategy issued by the White House last year singles out China as the biggest cyber threat to U.S. interests. While the United States government does contract certain aspects of its cyber operations to companies in the private sector, it does not follow China’s example in promoting the wholesale theft of state and corporate secrets for the commercial benefit of its own private industries.

Dave Aitel, a co-author of the Margin Research report and former computer scientist at the U.S. National Security Agency, said it’s nice to see that Chinese cybersecurity firms have to deal with all of the same contracting headaches facing U.S. companies seeking work with the federal government.

“This leak just shows there’s layers of contractors all the way down,” Aitel said. “It’s pretty fun to see the Chinese version of it.”

Back in 2018, we learned that covert system of websites that the CIA used for communications was compromised by—at least—China and Iran, and that the blunder caused a bunch of arrests, imprisonments, and executions. We’re now learning that the CIA is still “using an irresponsibly secured system for asset communication.”

Citizen Lab did the research:

Using only a single website, as well as publicly available material such as historical internet scanning results and the Internet Archive’s Wayback Machine, we identified a network of 885 websites and have high confidence that the United States (US) Central Intelligence Agency (CIA) used these sites for covert communication.

The websites included similar Java, JavaScript, Adobe Flash, and CGI artifacts that implemented or apparently loaded covert communications apps. In addition, blocks of sequential IP addresses registered to apparently fictitious US companies were used to host some of the websites. All of these flaws would have facilitated discovery by hostile parties.

[…]

The bulk of the websites that we discovered were active at various periods between 2004 and 2013. We do not believe that the CIA has recently used this communications infrastructure. Nevertheless, a subset of the websites are linked to individuals who may be former and possibly still active intelligence community employees or assets:

  • Several are currently abroad
  • Another left mainland China in the timeframe of the Chinese crackdown
  • Another was subsequently employed by the US State Department
  • Another now works at a foreign intelligence contractor

Citizen Lab is not publishing details, of course.

When I was a kid, I thought a lot about being a spy. And this, right here, was the one thing I worried about. It didn’t matter how clever and resourceful I was. If my handlers were incompetent, I was dead.

Another news article.

EDITED TO ADD (10/2): Slashdot thread.

Yet another basic human rights violation, courtesy of NSO Group: Citizen Lab has the details:

Key Findings

  • We discovered an extensive espionage campaign targeting Thai pro-democracy protesters, and activists calling for reforms to the monarchy.
  • We forensically confirmed that at least 30 individuals were infected with NSO Group’s Pegasus spyware.
  • The observed infections took place between October 2020 and November 2021.
  • The ongoing investigation was triggered by notifications sent by Apple to Thai civil society members in November 2021. Following the notification, multiple recipients made contact with civil society groups, including the Citizen Lab.
  • The report describes the results of an ensuing collaborative investigation by the Citizen Lab, and Thai NGOs iLaw, and DigitalReach.
  • A sample of the victims was independently analyzed by Amnesty International’s Security Lab which confirms the methodology used to determine Pegasus infections.

[…]

NSO Group has denied any wrongdoing and maintains that its products are to be used “in a legal manner and according to court orders and the local law of each country.” This justification is problematic, given the presence of local laws that infringe on international human rights standards and the lack of judicial oversight, transparency, and accountability in governmental surveillance, which could result in abuses of power. In Thailand, for example, Section 112 of the Criminal Code (also known as the lèse-majesté law), which criminalizes defamation, insults, and threats to the Thai royal family, has been criticized for being “fundamentally incompatible with the right to freedom of expression,” while the amended Computer Crime Act opens the door to potential rights violations, as it “gives overly broad powers to the government to restrict free speech [and] enforce surveillance and censorship.” Both laws have been used in concert to prosecute lawyers and activists, some of whom were targeted with Pegasus.

More details. News articles.

A few months ago, Ronan Farrow wrote a really good article on NSO Group and its problems. The company was itself hacked in 2021.

L3Harris Corporation was looking to buy NSO Group, but dropped its bid after the Biden administration expressed concerns. The US government blacklisted NSO Group last year, and the company is even more toxic than it was as a result—and a mess internally.

In another story, the nephew of jailed Hotel Rwanda dissident was also hacked by Pegasus.

EDITED TO ADD (7/28): The House Intelligence Committee held hearings on what to do about this rogue industry. It’s important to remember that while NSO Group gets all the heat, there are many other companies that do the same thing.

John-Scott Railton at the hearing:

If NSO Group goes bankrupt tomorrow, there are other companies, perhaps seeded with U.S. venture capital, that will attempt to step in to fill the gap. As long as U.S. investors see the mercenary spyware industry as a growth market, the U.S. financial sector is poised to turbocharge the problem and set fire to our collective cybersecurity and privacy.