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Nortel real questions

inside the chinese militia assault on Nortel | 920-110 Latest Questions and Latest Topics

It became a surprising clue.

In 2004 Nortel cyber-safety marketing consultant Brian Shields investigated a serious breach within the telecom significant’s community. on the time Nortel’s fibre optics equipment was the realm’s envy, with 70 per cent of all information superhighway traffic working on Canadian expertise.

And somebody wanted Nortel’s secrets.

Shields found that a computer in Shanghai had hacked into the email account of an Ottawa-based mostly Nortel government. using passwords stolen from the govt the intruder downloaded greater than 450 documents from “live link” — a Nortel server used to warehouse delicate intellectual property.

Shields soon discovered the hacker controlled the money owed of at least seven Nortel executives. This became no random cybercriminal. however who was it?

Shields examined the numerical cyber web addresses of computer systems extracting Nortel data and found that they have been clustered right into a tiny pinprick of their on-line world. He turned into bowled over because it appeared like a room crammed with net servers. Whoever become at the back of these hackers, Shields believed, gave the impression to manage China’s internet.

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“It hit me like a ton of bricks,” Shields noted.

“I knew this couldn’t be happening accidentally.”

China ‘totally took us down’: former Nortel cyber-safety investigator

Shields says the information superhighway addresses have been all registered to Shanghai Faxian Corp., a company with no connection to Nortel that Shields determined become a front with out a precise company in China.

Shields spotted another essential clue in Nortel’s logs of network site visitors from Saturday, April 24, 2004. in keeping with Shields, in just seven hours a Shanghai Faxian tackle downloaded 779 files that day the use of the account of Nortel CEO Frank Dunn. The hack happened four days before Dunn was fired, amid an investigation of accounting irregularities. To Shields, this suggested the Shanghai hackers knew exactly what Nortel’s board of directors deliberate, and the perfect time to extract a massive cache of information.

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“thus far, they now have 1,488 documents that have been downloaded,” Shields wrote to Nortel’s administration in his “information theft” investigation report. “China is the source of all extractions we're aware of.”

For months Shields tracked the hackers. however Nortel’s brass become broadly speaking disinterested in the investigation and did little greater than alternate government account passwords, Shields says. He says they have been greater focused on yr-to-year gains and innovation budgets than retaining Nortel’s precious analysis. Mike Zafirovski, Nortel’s CEO from 2005 to 2009, did not respond to questions for this story sent to his LinkedIn account. Zafirovski observed Shields become time-honored to “cry wolf” and management didn’t believe hacking turned into a real difficulty, the Wall road Journal pronounced in 2012.

So the systematic hacking continued, Shields says. And because of this, Shields says, in 2009 — after getting massively underbid on a series of contracts by using China’s state-champion business Huawei — Nortel went bankrupt.

within the end, Shields decided China’s executive won finished manage of Nortel’s inside programs. After ten years of cyberattacks they could see everything Nortel become doing, he says. The infiltration became so insidious, Shields says, that technicians in China may send encrypted programs of stolen Nortel information to Shanghai and Beijing, through sending internet instructions to a “backdoor” buried in a Nortel computing device.

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to imagine that in the actual world — it could be similar to a foreign military constructing a hidden tunnel into Canada’s treasury vault, and marching out unimpeded with gold bars.

And it turned into more than coincidence, Shields believes, that upstart Huawei all at once changed Nortel because the world’s dominant web technology provider.

“You may have put Steve Jobs in to run Nortel. but if you're up towards a nation-state, Nortel would have failed, devoid of Canadian executive intervention,” Shields said.

“Canadians simply don’t understand the extent of the chinese language executive’s involvement during this aspect.”

Alliance Canada Hong Kong chief says a Huawei 5G community in Canada would music citizens

Now, more than twenty years after Nortel was first warned of chinese language Communist birthday party espionage, Hong Kong Canadians corresponding to Cherie Wong say that Ottawa’s failure to protect Nortel and to rapidly bar Huawei from modern 5G networks is putting lives in danger.

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Wong, executive-director of Alliance Canada Hong Kong, an umbrella group for democracy advocates, says chinese dissident businesses are already tracked and targeted by using the chinese Communist birthday celebration in Canada, through chinese social media apps like WeChat and TikTok. And the risk of Huawei 5G cyber web in Canada is much worse, she says.

inner the chinese defense force’s assault on Nortel

“It’s a transforming into concern even if or not Canada is geared up to fight this stage of interference from the chinese language Communist birthday celebration,” Wong stated.

“we are being threatened and confused. So giving Huawei control of the web skill every little thing they do may be monitored and tracked and given to the chinese language state.”

despite the fact, Huawei strongly denies making the most of the hacking of Nortel, and says it has on no account been accused of wrongdoing in Canada. The enterprise says it complies with Canadian legislations and may no longer undercover agent on Canadians.

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individuals’s Republic of China officers in Canada didn't reply to special questions for this story.

“Actionable intelligence”

a collection of Canadian defense force facts sought with the aid of global information that might shed mild on studies of large espionage internal Nortel’s former Ottawa research headquarters are presently in a delayed vetting disclosure system, a Canadian military spokesman recommended global information. however Brian Shields says he's definite Ottawa has statistics which will show Canadians “the reality about what came about to Nortel.”

One public record that implies Ottawa may additionally well known a connection between China’s attack on Nortel and Huawei’s subsequent upward thrust is a coy remark in the abstract report of an tutorial convention held by way of Canadian protection Intelligence provider.

“Ex-Nortel worker Brian Shields, who had led the forensic investigation of the compromise, got here ahead to divulge his experiences,” the summary report says. “Nortel went bankrupt in 2009. might there be a link between the Nortel breaches and the rising fortunes of Nortel’s leading China-based rivals, Huawei and ZTE?”

The document doesn’t answer that query.

but a Canadian intelligence knowledgeable with potential of investigations at Nortel says Ottawa is aware of exactly what came about within the case.

“The facts that China compromised Nortel is undeniable,” the expert stated. “It changed into being systematically compromised, and every thing was being taken. The simplest query is to what extent that led to Nortel to fall.”

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international information has agreed now not to identify the skilled because of his issues that China’s government is targeting him because of his probes of carrying on with cyberattacks.

The professional noted China’s attack on Nortel had many aspects, from systematic hacking and planting of digital bugs and spies inside Nortel facilities, to utilization of chinese language PhD college students employed with the aid of Nortel to steal analysis, and makes an attempt to compromise Nortel managers by using spies from the chinese language Communist party and people’s Liberation military.

many of these allegations are in step with a February 2020 U.S. department of Justice indictment that alleges Huawei become panic in a many years-lengthy conspiracy to steal know-how from numerous sufferer corporations in efforts to develop its market share, the expert said.

“there were visits with the aid of Nortel executives going to China to be wined and dined,” the expert spoke of. “It was China’s classic United entrance statecraft. and those executives were instructed in no doubtful phrases through their protection, ‘you are being recruited, and they're going to compromise your computers and cellphones.’”

but to Shields and former CSIS agents, it gave the impression Nortel administration noticed the warnings as exaggerated secret agent novel plots.

“There was distinctive actionable intelligence naming americans and techniques and ambitions,” the expert said. “there were people that were caught, and gadgets discovered, and backdoors discovered and traced lower back to the chinese language. And this was escalated as much as Nortel leaders. and they didn’t definitely wish to see it.”

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The knowledgeable spoke of Canadian intelligence ultimately made the stunning discovery that the chinese Communist celebration changed into using chinese language geared up crime gangsters, in assaults on Nortel.

“we've viewed organized crime, industry and govt all spy and bring together on Nortel,” the expert pointed out.

“The premier approach to describe it's between a nation-state, industry and organized crime, there is cooperation to the factor of collaboration and collusion. Spying on Nortel grew to become a requirement that convinced each person in that community.”

In July — in a case that mirrors such allegations — the FBI accused chinese language intelligence functions and organized crime organizations of colluding in cyberattacks focused on COVID-19 vaccine research and highbrow property in lots of international locations, and chinese dissidents in Canada.

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  • Michel Juneau-Katsuya — former CSIS Asia-Pacific desk chief — demonstrated his former CSIS colleague’s observations related to China’s attack on Nortel.

    Juneau-Katsuya mentioned he first completed a threat evaluation on Nortel in the 1990s, and determined it was China’s excellent company espionage goal. quickly CSIS diagnosed “fairly a captivating site visitors between Nortel and China,” Juneau-Katsuya says.

    however his alerts to Nortel fell on deaf ears, he referred to.

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    “what's missing within the Nortel story is exploring the connection that has been flagged about all these [Nortel] leaders going to China for a long time,” Juneau-Katsuya talked about. “i'm confident you can see relationships where the United entrance Work branch will seem in the Nortel case.”

    Beijing’s United entrance — in keeping with a 2020 report from Australian analyst Alex Joske — is the chinese Communist celebration’s immense political impact and espionage network, which uses actors from company, politics and arranged crime, to target Western political and business leaders and procure intellectual property for China.

    Juneau-Katsuya suspects the chinese Communist birthday party used the United front to take Nortel down and boosted Huawei into its location by using offering the business with subsidies and stolen know-how.

    “Nortel is one of those situations, where Canada had the lead internationally, and they let it go. Why? For one, there were forces inside the Canadian government. And Huawei acquired billions from their govt. So if I make investments billions into you, i will be able to are expecting to handle that operation. And Huawei’s founder is from the people’s Liberation army. So he knows how to comply with orders. So i will be able to make you very rich, and that i will provide you with intelligence help, and that i will help in stealing tips.”

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    “on reflection, it’s evidently written on the wall how this took place. there is enough circumstantial proof.”

    Juneau-Katsuya’s former CSIS colleague observed earlier than Nortel’s crumple Ottawa lacked the strategic foresight and potential to battle China’s infiltration.

    The RCMP has jurisdictional and technical challenges investigating state-backed cybercrime, the skilled said, while CSIS and the CSE, Canada’s cyberintelligence agency, are reluctant to involve themselves in threats against trade.

    “It was like a game of volleyball when every person calls the ball but nobody goes for it,” the expert noted. “The Nortel instance become like they now have a nation-state towards their industrial complicated, and they don’t even have an company mandated to address it.”

    Canada may still hearken to intelligence neighborhood when choosing Huawei

    The knowledgeable stated Canada is beginning to admire the gravity of state-sponsored assaults on private industry however the govt nevertheless isn’t prosecuting situations.

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    meanwhile, in the united states, the FBI is opening a new case in opposition t chinese language espionage every ten hours, in line with director Christopher Wray.

    It isn’t handiest China involved in company espionage. Western excessive-tech organizations have additionally faced accusations of IP theft, most often in civil court docket battles. but in accordance with the FBI the vast majority of IP theft instances involve various actors backed by means of the chinese Communist party.

    “It’s the people of the us who're the victims of what quantities to chinese language theft on a scale so massive that it represents some of the biggest transfers of wealth in human history,” Wray pointed out in July.

    It remains to be seen what particulars the FBI will allege in its IP theft indictment against Huawei. And Huawei rejects allegations that it stole expertise from groups in the u.s. with a purpose to develop its market share.

    but some former Nortel employees recognize the sorts of allegations made thus far.

    Shields and former Nortel corporate safety worker Mike Kennedy told international information a few case that befell within the united states from about 2000 to 2003, the equal time that Huawei allegedly reverse-engineered Cisco cyber web routers according to the FBI indictment.

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    Some Nortel investigators alleged an organization linked to Huawei had back costly networking gadget to a Nortel workplace and requested for a refund. Investigators judged the machine had been fully disassembled and copied for IP theft. Kennedy and Shields talked about a 3rd-birthday party company changed into involved during this alleged reverse-engineering case, which resembles the FBI’s allegations against Huawei in the Cisco case.

    but Huawei says it has in no way stolen IP from Nortel.

    Wrestling with Unit 61398

    For Brian Shields, when the U.S. cybersecurity company Mandiant pointed to Unit 61398, it made ideal experience.

    Unit 61398 is an elite individuals’s Liberation military cyberwar unit that operates from a Shanghai compound, where it’s estimated a whole bunch of PLA hackers work day and night, sucking facts from Western excessive-tech industries and political goals. in keeping with Mandiant, the unit is tasked with the aid of the chinese language Communist party’s most elite leaders to steal know-how for industries chosen for growth within the birthday celebration’s periodic five-year plans.

    according to Mandiant, 61398 seeks broad swathes of intellectual property, company plans, pricing documents, and emails from centered organizations’ management.

    And in 2013, Mandiant suggested Nortel became one among 141 North American entities 61398 attacked. For Shields, 61398’s reported tactics healthy every thing that he observed concerning the cluster of web addresses in Shanghai.

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    one other indisputable fact that appears greater than coincidental, Shields says, is that Huawei was headquartered in 1987 by way of former PLA engineer Ren Zhengfei. And the chinese Communist celebration’s 5-year plan for 1986 to 1990 changed into to “velocity up the building of the power, communications, telecommunications and uncooked substances industries.”

    Equally damning, Shields says, is the intellectual property stolen from Nortel in 2004. The list of facts, reviewed with the aid of world information, comprises approach files titled “street-map values and challenges to Nortel,” and “value Chain Dynamics & industry structure.”

    And stolen R&D covered files with titles comparable to “Photonic Crystals and massive Scale Integration” and “Switching and Tuning particularly integrated Optical Circuits” and “speed data Over standard cellular Telecommunications carrier.”

    These Nortel files relate to its world-main fibre optics device in 2004, and future innovations in 3G, 4G and 5G expertise that allow tremendously special media to be despatched international by the use of the web.

    “These were the crown jewels of Nortel R&D,” Shields said. “It changed into the long run. And the only entity that could improvement from those types of documents being stolen, is a competitor.”

    That’s why Shields says he can not be aware why Ottawa would even accept as true with Huawei as a 5G network contender.

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    “I certainly not noted Huawei stole their expertise, I stated the chinese language govt stole Nortel’s expertise,” he noted.

    “i do know what I found, and i know the discussions I had with certain people. Don’t Canadians should know, too?”

    however Huawei has repeatedly denied any wrongdoing within the Nortel case. Responding to questions from world information, a spokesman pointed to a 2014 university of Ottawa look at, which discovered that poor administration choices led to Nortel’s downfall, not hacking.

    “There were assistance within the media that chinese language or different foreign espionage agents penetrated internal Nortel networks and computer systems to be able to acquire technology and strategic tips and that such motion contributed to the downfall of the enterprise,” the college of Ottawa look at says. “We found no proof of this and trust it not likely.”

    In an interview, Peter MacKinnon, some of the look at authors, referred to any hacking of Nortel become inconsequential in evaluation to Nortel administration errors.

    “There is no manner the company might blame its failure on hacking by using any party,” MacKinnon spoke of. “It’s a timing element, with the aid of saying Huawei has risen whereas Nortel went down. but that isn't an instantaneous relationship. There is not any causation there.”

    For his part, Ren Zhengfei — who did not reply to an interview request for this story — says Huawei didn't steal Nortel’s IP, and it changed into the 2000 market crash that ultimately did in Nortel.

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    “unfortunately, Nortel collapsed because the IT bubble burst,” a transcript of Ren’s 2019 interview with the Globe and Mail posted on Huawei’s website says.

    And there's considerable facts of dangerous administration at Nortel and lingering wounds from the 2000 crash, most above all in the accounting scandals that subsequently ended in RCMP costs in opposition t Frank Dunn and two different Nortel managers. Dunn and the different two have been eventually acquitted. Dunn could not be reached for comment on this story.

    Astronomically low bids

    Commodore Patrick Tyrrell, a retired armed forces intelligence officer and the U.okay.’s first cyberwarfare chief, says the chinese language Communist birthday party has mastered the paintings of waging warfare in their on-line world. Cyberwar strategy, Tyrrell says, matches the strategies taught through historic chinese language armed forces accepted sun Tzu, who observed that territory will also be seized without bloodshed, if the attacker patiently exploits an opponent’s vulnerabilities.

    Huawei’s mind-blowing boom in two decades below the chinese Communist celebration and guided by way of PLA engineer Ren Zhengfei has the seem of a solar Tzu approach, Tyrrell mentioned.

    “the first aspect is, nobody does anything in China with out the approval of the chinese language Communist celebration. And in case you look at Ren Zhengfei and the building of Huawei, it is somewhat clear here's a person with a defense force vision,” Tyrrell mentioned. “if in case you have first rate intelligence, any armed forces man will are looking to be aware of the vulnerabilities in a specific enterprise.”

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    “And through the years Huawei was surely successful in being in a position to take over Nortel.”

    In Nortel’s case, Tyrrell says Huawei realized the Canadian enormous’s Achilles Heel was its big and dear stock of technology assets. frequently, chinese state-champions can reside afloat so long as Beijing decides to fund them. on the way to find the money for to burn money and undercut competitors in strategic areas, Tyrrell says. but Western corporations die when costs upward thrust above revenue. by 2008 Nortel became in hindrance and it desperately mandatory to land the 3G standard cell Telecommunications wireless contract offered in Canada through Telus Corp. and BCE Inc.

    uk’s first cyberwarfare chief says Canadian sovereignty driving on Huawei 5G choice

    ​however Huawei won the deal by underbidding Nortel an estimated 40 per cent. Telus and BCE didn't respond to questions from international news for this story.

    “You go in and ensure Nortel can’t get the funds to retain this behemoth afloat,” Tyrrell talked about. “abruptly it collapses, and low and behold that you would be able to go pick the bits you need.”

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    an identical case took place in 2005, Tyrrell says, when Huawei beat out Nortel and U.k. telecom Marconi to construct part of a $17-billion fibre optic network for British Telecom (BT).

    Huawei underbid the next lowest bidder Marconi through $US 1 billion — about a 40 per cent cut price — Tyrrell said. And twelve months later, Marconi collapsed.

    “all at once this enterprise comes in with this astronomically low bid. and they might even have primary if an organization should get this bid to literally live on,” Tyrrell observed. “it truly is a magnificent piece of suggestions.”

    BT didn't reply to questions for this story. however its community cope with Huawei changed into criticized in a 2013 U.okay. parliament intelligence and security committee file.

    The document summarized allegations made extensively against Huawei via agencies equivalent to Cisco and Motorola.

    “it's alleged that Huawei turned into in a position to win many contracts by means of stealing expertise from its opponents after which undercutting them on cost,” the document says. “however Huawei strenuously denies that it has direct hyperlinks with the chinese language govt or militia, claiming that it receives no economic support from the chinese language executive.”

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    in accordance with questions on Huawei’s funding, a spokesman sent international information a YouTube video produced with the aid of Huawei which says the business receives a minimal quantity of R&D funding from the chinese government.

    “Huawei is many times accused of being owned or funded through the chinese language government,” the linked video claims. “fact is, Huawei is a non-public enterprise and is one hundred per cent worker-owned.”

    On the BT deal, through 2006, security considerations were found out on equipment put in via Huawei, the record says. And in 2008 British intelligence warned “theoretically, the chinese State can be capable of make the most any vulnerabilities in Huawei’s device as a way to profit some access to the BT network.”

    eventually, in 2011, the U.okay. government briefed Huawei in China “on considerations discovered with its gadget” the report says, and Huawei promised to tackle gadget complications.

    Huawei didn't reply to a query from world news, related to the alleged equipment issues.

    Brian Shields and Patrick Tyrrell agree with these kinds of network vulnerabilities cannot be mitigated because the chinese language Communist birthday party subsequently controls chinese tech groups.

    And Tyrrell says nothing less than Canada’s sovereignty is driving on Ottawa’s pending 5G choice.

    Story continues beneath advertisement

    “whatever thing happens on your counsel grid is conventional in Beijing earlier than it is primary in Ottawa in a Huawei 5G community,” Tyrrell talked about.

    “What that ability is the Canadian government doesn’t have manage of its destiny.”

    The U.S. executive has come to the same conclusion.

    This year former U.S. country wide safety adviser H.R. McMaster asserted that in 2019, “a sequence of investigations revealed incontrovertible evidence of the grave national-protection danger linked to a wide selection of Huawei’s telecommunications gadget.”

    “Many Huawei people are simultaneously employed by means of China’s Ministry of State protection and the intelligence arm of the individuals’s Liberation army,” McMaster wrote within the Atlantic. “Huawei technicians have used intercepted cellphone information to aid autocratic leaders in Africa undercover agent on, find, and silence political opponents.”

    © 2020 international information, a division of Corus amusement Inc.


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