U.S. Companies Who Fell Victim To Hacking Attacks Get Government Support

In 2013, the U.S. government warned over 3,000 private sector companies that their computer systems had been hacked and some of their data compromised. However at that time, many firms were reluctant to come forward and reveal the breach to the public unless it directly affected customer data as it could have done serious damage to their reputations.

State Sponsored Hackers

Even more concerning was data showing that foreign governments were responsible for a shocking percentage of the attacks, suggesting that state sponsored hackers had been hired to give international companies a leg up in competing with U.S. firms. At the time, the U.S. could do little to help businesses who had been compromised due to a lack of concrete evidence linking the acts to a specific nation.

U.S. Indicts Chinese Hackers

However, this year the U.S. stepped forward with a 56-page indictment charging five members of the Chinese People's Liberation Army with computer fraud, conspiracy to commit computer fraud, damaging a computer, aggravated identity theft and economic espionage. The charges came about after years of piecing together evidence linking security breaches at U.S. firms to specific locations in China.

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Making Chinese Businesses More Competitive

Five U.S. companies and a trade union were affected by the hackers in question including United States Steel Corporation X, Alcoa AA and Westinghouse Electric. The hacking attacks were said to be aimed at gathering sensitive information that helped Chinese firms develop new products faster and undercut U.S. prices.

U.S. Takes A Stand

The indictment marks the beginning of a tougher stance on cybercrime in the U.S. after several high profile attacks drew attention to the matter last year. The U.S. government has been pushing for new information sharing laws that allow the public and private sector to work together in order to prevent further hacking attacks.

China Angered

Chine has not responded favorably to the allegations; Foreign Ministry Spokesman Qin Gang made a statement on Tuesday calling the charges "ungrounded and absurd." He also commented that joint efforts between the U.S. and China to improve cyber security would be suspended.