US probes malware e-mail targeting trade talks with China, WSJ reports

WASHINGTON - The US authorities are investigating a bogus e-mail from a Republican lawmaker that contained malware apparently aimed at giving China insights into the Trump administration’s trade talks with Beijing, the Wall Street Journal reported on Sept 7.

The malware in the e-mail purportedly sent by Representative John Moolenaar in July to US trade groups, law firms and government agencies was traced by cyber analysts to a hacker group – APT41 – believed to be working for Chinese intelligence, the newspaper said.

Mr Moolenaar, a harsh critic of Beijing, is the chairman of a congressional committee focused on strategic competition between China and the US, including threats to US national security.

The e-mail was the latest alleged Beijing-linked hacking operation aimed at giving China insight into recommendations to the White House for contentious trade talks with China, said the Journal, quoting people familiar with the matter.

The Chinese embassy in Washington said it was not familiar with the details of the reported attack and that all countries face cyberattacks that are difficult to trace.

“China firmly opposes and combats all forms of cyber attacks and cyber crime,” it said in an emailed statement. “We also firmly oppose smearing others without solid evidence.” 

The first e-mail, the Journal said, was sent just before US-China trade talks in Sweden that led to an extension of a truce on tariffs until early November, when US President Donald Trump and Chinese leader Xi Jinping could meet at an Asian economic summit.

“Your insights are essential,” said the e-mail that asked recipients to review proposed legislation attached to it.

Opening the draft legislation would have allowed the malware to give the hackers extensive access to the targeted groups, the newspaper said, adding that it could not be determined if the attacks had succeeded.

The newspaper said that the Federal Bureau of Investigation (FBI) and the US Capitol Police were investigating the e-mail.

It quoted an FBI spokeswoman as saying that the bureau was aware of the e-mail and was “working with our partners to identify and pursue those responsible”. The Capitol Police declined to comment, it said.

In a statement to the Journal, Mr Moolenaar called the attack another example of Chinese cyber operations aimed at stealing US strategy. “We will not be intimidated,” he said.

The fake e-mail came to light when staff of Mr Moolenaar’s committee started receiving puzzling inquiries about it, said the Journal, quoting people familiar with the matter. REUTERS