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'Economic espionage': Chinese hackers crack into ANU in national security breach

China-based hackers have utterly compromised the computer network of the university that is home to Australia’s National Security College and the School of Strategic and Defence Studies.
The Australian National University was contacted by an intelligence agency months ago, demanding that it deal with a pervasive and persistent intrusion into its entire computer network.
Multiple sources have told 9News that the Australian Cyber Security Centre followed the hackers’ trail to China and that agency described their domination of the ANU’s network as covering the domain controller, giving the adversaries the power of system administrators.
In the words of one intelligence official: "China probably knows more about the ANU's computer system than it does.”
In a statement issued to 9NEWS this afternoon, ANU confirmed that it was working to contain "a threat" but the university did not believe that any staff, student or research information had been obtained by the hackers.
Cyber security experts are concerned that the hackers will have access to the School of Strategic and Defence Studies data, which works closely with Australia's defence and intelligence establishment. Picture: 9NEWS
Cyber security experts are concerned that the hackers will have access to the School of Strategic and Defence Studies data, which works closely with Australia's defence and intelligence establishment. Picture: 9NEWS (9NEWS)
The intelligence community’s concerns are that China has access to the university’s intellectual property – which includes cutting-edge research with defence applications – and that it compromises the close links the Canberra-based institution has with Australia’s defence and intelligence establishment.
The ANU would also have profiles of emerging defence leaders, as it hosts the Masters of Military and Defence Studies in conjunction with the Australian Command and Staff College.
Another source said the attack “qualifies as foreign interference and economic espionage.”
The head of the Australian Cyber Security Centre, Alastair MacGibbon, said he would not comment on any specific investigations.
“But we know there are nation states that actively try to steal IP from tertiary institutions and research centres,” Mr MacGibbon said.
An ANU spokesperson said that the university was "working to contain a threat" to its IT systems. Picture: 9NEWS
An ANU spokesperson said that the university was "working to contain a threat" to its IT systems. Picture: 9NEWS (9NEWS)
“We work closely with any affected party to reduce the likelihood of the success of those ventures.”
The executive director of the Australian Strategic Policy Institute Peter Jennings said Australian universities’ China problem went well beyond lax cyber security.
“Our universities have been too greedy chasing the Chinese student dollar,” Mr Jennings said.
“And I think they have allowed themselves to become compromised in many ways from their scientific research to the fact they simply can’t talk honestly about the problems that China presents in the world today.”
“Our universities really need to rethink their business plan and realise that China is increasingly a problem, not just a source of endless money.”
9News sent a list of questions to the ANU this morning.
Here are the questions:
1. Has the vice chancellor, or any senior university administrator, received any advice – written or oral – from any official in the Australian intelligence community raising concerns about the ANU’s computer network?
2. Was that advice alerting the administration to the fact that the university’s computer system had been completely compromised by hackers?
3. Did the advice warn that a foreign nation was behind the penetration of the university’s computer system?
4. Did the advice say that the adversary was based in China?
5. Is the university aware that its computer system has been hacked, that the threat is persistent and that it extends to dominating the domain controller?
6. Has the university undertaken any of its own inquiries into the penetration of its computer network?
7. Has the university responded to the concerns raised by the intelligence agency or agencies?
A university spokesperson responded by saying that it was “working to contain a threat” to its IT systems within the university.
“The university has been working in partnership with Australian Government agencies for several months to minimise the impact of this threat, and we continue to seek and take advice from Australian government agencies,” the spokesperson said.
“Current assessments indicate no staff, student or research information has been taken and counter-measures are being undertaken.”
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