The Challenge of Spying on China

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The WSJ article on Wednesday (Challenge of Spying on China) is a sad reminder of the United States Intelligence Community’s apparent failure to accomplish any broad covert or clandestine penetration of the People’s Republic of China (PRC) in recent history. The lack of HUMINT human intelligence sources (HUMINT) with meaningful access and placement deprives us of insight into Chinese decision making, immediate strategic threat intelligence and perhaps more importantly, gravely impairs U.S. offensive counterintelligence operations.

Moving beyond the obvious difficulties with HUMINT operations within the PRC, reminiscent of the Cold War hostile operational environments, the Intelligence Community is overdue for a paradigm shift in human asset recruitment methodology. For the better part of the last century, the United States Intelligence Community relied on a steady flow of “walk-ins”, volunteers from opposing foreign intelligence services or governments that offered their countries’ secrets. Intelligence officers enjoyed a large degree of success based on a fairly global perception that Americans were the “good guys”, representatives of the land of fairness, equality and justice, qualities that stood in stark contrast to the ruthless and despotic republics from whence they came. Unfortunately, the mystique has faded leaving outsiders to wonder if the values that we promote to the world are nothing more than a hypocritical farce. Mass diffusion of the “Big Lie” throwing fair elections into question, an attempted coup d’etat by an outgoing president, and military involvement under highly questionable intelligence assessments erode the view once held that the United States is the “shining beacon to the oppressed”.

Chinese citizens enjoy a better standard of living than at any time in China’s history. China can rightfully boast that it is a world power and its population can justifiably be proud of its progress. Personal financial success and pride in country promote loyalty. That there is no broad internal rejection of onerous mass surveillance, social credit controls and ethnic cleansing as is the case with the Uyghurs, is a testament to the PRC’s ability to deny facts, deceive its population and prevent the import of non-PRC approved “truths” about freedom and justice within China. The Chinese cultural tendency to identify with the collective rather than the individual is likewise amplified by the PRC’s massive social control machine, with opposing or antagonistic perspectives effectively blocked by the Great Firewall or simply drowned out of public discourse by the volumes of Party-approved propaganda. The PRC’s strategy has created an environment that is more resistant to traditional intelligence recruitment techniques such as economic coercion, ideology exploitation and ego-stroking. Chinese intelligence service recruiters lean on the cultural affinity of ethnically Chinese living in the United States to turn them into spies, coerce them by alluding to what might become of their families living in China or deploy the time-tested technique of guanxi to achieve intelligence asset recruitments. United States intelligence officers do not enjoy a parallel or equivalent.

FBI Director Wray stated, “We’ve now reached the point where the FBI is opening a new China-related counterintelligence case about every 10 hours.” The threat is grave and our twentieth-century countermeasures, techniques and tradecraft are not appropriate for what many in the Intelligence Community deem the greatest threat to United States national security. Retooling, reimagining the intelligence recruitment cycle and modernizing the way that we approach the recruitment of sources is imperative.

Iran Cyber Operations Target Utility Infrastructure

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Per the U.S. Cybersecurity and Infrastructure Security Agency (CISA), “Since at least November 22, 2023, these IRGC-affiliated cyber actors have continued to compromise default credentials in Unitronics devices. The IRGC-affiliated cyber actors left a defacement image stating, “You have been hacked, down with Israel. Every piece of equipment ‘made in Israel’ is CyberAv3ngers legal target.” The victims span multiple U.S. states. The authoring agencies urge all organizations, especially critical infrastructure organizations, to apply the recommendations listed in the Mitigations section of this advisory to mitigate the risk of compromise from these IRGC-affiliated cyber actors.” (CISA, 12/01/2023)

The penetrations were aimed at critical utilities, in the extant case of U.S. water and water waste treatment infrastructure. Per CISA, “Beginning on November 22, 2023, IRGC cyber actors accessed multiple U.S.-based WWS facilities that operate Unitronics Vision Series PLCs with an HMI likely by compromising internet-accessible devices with default passwords. The targeted PLCs displayed the defacement message, “You have been hacked, down with Israel. Every equipment ‘made in Israel’ is Cyberav3ngers legal target.” The Water and Wastewater Systems Sector (Water Sector) underpins the health, safety, economy, and security of the nation. It is vulnerable to both cyber and physical threats.” The warning is instructive. The fallout from a successful compromise of public water systems can be severe. Andrew Farr warns, “The imagination can run wild with worst-case scenarios about what a threat actor could do to a water system, but Arceneaux explains that sophisticated actors could hack a system and manipulate pumps or chemical feeds without the utility even knowing they were in the system. They could also create a water hammer that could lead to cracked pipes or release untreated wastewater back into a source water body. What if that happens [to a water system] in a medium or a big city? Maybe it’s only for a few hours, but it could go on for a few days or weeks, depending on how extensive the damage is.” (Farr, WF&M, 04/11/2022) Darktrace reports the very real consequence of a successful water system compromise. “Earlier this month, cyber-criminals broke into the systems of a water treatment facility in Florida and altered the chemical levels of the water supply.” (Matthew Wainwright, Darktrace) If potable water delivered to consumers contains dangerous contaminants or improper balances of the “good” chemicals blended to the product (fluoride, chlorine, chloramine, etc.), it can cause negative health effects. Gastrointestinal illness, nervous system damage, reproductive system damage, and chronic diseases such as cancer are very real risks associated with the same.

CISA cyber defense model of the “brute force” methodology deployed by IRGC operatives may be viewed at MITRE.