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Nortel information search

interior the chinese language armed forces attack on Nortel | 920-458 Free PDF and Questions and Answers

It changed into a astonishing clue.

In 2004 Nortel cyber-protection marketing consultant Brian Shields investigated a serious breach in the telecom enormous’s network. at the time Nortel’s fibre optics equipment become the world’s envy, with 70 per cent of all web traffic working on Canadian technology.

And a person desired Nortel’s secrets and techniques.

Shields found that a computer in Shanghai had hacked into the e-mail account of an Ottawa-primarily based Nortel executive. using passwords stolen from the government the intruder downloaded more than 450 documents from “reside link” — a Nortel server used to warehouse delicate intellectual property.

Shields quickly found the hacker managed the accounts of as a minimum seven Nortel executives. This become no random cybercriminal. however who turned into it?

Shields examined the numerical web addresses of computer systems extracting Nortel information and found that they had been clustered into a tiny pinprick of cyberspace. He turned into stunned because it gave the impression of a room filled with internet servers. Whoever become in the back of these hackers, Shields believed, looked as if it would handle China’s cyber web.

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

“I knew this couldn’t be going on by accident.”

China ‘completely took us down’: former Nortel cyber-security investigator

Shields says the cyber web addresses had been all registered to Shanghai Faxian Corp., a corporation and not using a connection to Nortel that Shields determined became a entrance and not using a true enterprise in China.

Shields noticed a different predominant clue in Nortel’s logs of community site visitors from Saturday, April 24, 2004. according to Shields, in only seven hours a Shanghai Faxian address downloaded 779 documents that day using the account of Nortel CEO Frank Dunn. The hack came about 4 days before Dunn became fired, amid an investigation of accounting irregularities. To Shields, this cautioned the Shanghai hackers knew precisely what Nortel’s board of administrators deliberate, and the best time to extract a enormous cache of information.

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“to this point, we've 1,488 files which were downloaded,” Shields wrote to Nortel’s administration in his “records theft” investigation record. “China is the source of all extractions we're aware about.”

For months Shields tracked the hackers. but Nortel’s brass changed into by and large disinterested in the investigation and did little more than change executive account passwords, Shields says. He says they have been extra concentrated on yr-to-year profits and innovation budgets than holding Nortel’s precious research. Mike Zafirovski, Nortel’s CEO from 2005 to 2009, did not respond to questions for this story sent to his LinkedIn account. Zafirovski noted Shields was general to “cry wolf” and administration didn’t consider hacking turned into a true difficulty, the Wall road Journal stated in 2012.

So the systematic hacking endured, Shields says. And consequently, Shields says, in 2009 — after getting vastly underbid on a sequence of contracts by way of China’s state-champion company Huawei — Nortel went bankrupt.

in the conclusion, Shields decided China’s executive gained complete manage of Nortel’s inside systems. After ten years of cyberattacks they may see every thing Nortel was doing, he says. The infiltration become so insidious, Shields says, that technicians in China might ship encrypted packages of stolen Nortel records to Shanghai and Beijing, by means of sending internet instructions to a “backdoor” buried in a Nortel computing device.

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to visualize that within the precise world — it could be comparable to a international army constructing a hidden tunnel into Canada’s treasury vault, and marching out unimpeded with gold bars.

And it was more than twist of fate, Shields believes, that upstart Huawei unexpectedly replaced Nortel because the world’s dominant information superhighway technology issuer.

“You could have put Steve Jobs in to run Nortel. but if you are up in opposition t a nation-state, Nortel would have failed, with out Canadian government intervention,” Shields pointed out.

“Canadians simply don’t realize the extent of the chinese executive’s involvement during this thing.”

Alliance Canada Hong Kong chief says a Huawei 5G network in Canada would song citizens

Now, greater than two decades after Nortel turned into first warned of chinese language Communist birthday party espionage, Hong Kong Canadians such as Cherie Wong say that Ottawa’s failure to deliver protection to Nortel and to straight away bar Huawei from contemporary 5G networks is putting lives in danger.

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Wong, govt-director of Alliance Canada Hong Kong, an umbrella community for democracy advocates, says chinese language dissident corporations are already tracked and focused by using the chinese language Communist birthday party in Canada, via chinese social media apps like WeChat and TikTok. And the hazard of Huawei 5G internet in Canada is a lot worse, she says.

interior the chinese language military’s attack on Nortel

“It’s a growing challenge whether or no longer Canada is geared up to fight this level of interference from the chinese language Communist celebration,” Wong stated.

“we're being threatened and confused. So giving Huawei handle of the cyber web capability everything they do should be monitored and tracked and given to the chinese language state.”

however, 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 company says it complies with Canadian law and should now not secret agent on Canadians.

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individuals’s Republic of China officials in Canada did not reply to special questions for this story.

“Actionable intelligence”

a group of Canadian armed forces data sought by international information that might shed easy on experiences of big espionage inner Nortel’s former Ottawa analysis headquarters are at present in a delayed vetting disclosure manner, a Canadian military spokesman suggested international information. but Brian Shields says he is certain Ottawa has records so that you can display Canadians “the reality about what happened to Nortel.”

One public checklist that implies Ottawa may acknowledge a connection between China’s assault on Nortel and Huawei’s subsequent upward push is a coy commentary within the abstract report of an academic conference held by Canadian safety Intelligence service.

“Ex-Nortel employee Brian Shields, who had led the forensic investigation of the compromise, got here ahead to reveal his experiences,” the summary record says. “Nortel went bankrupt in 2009. could there be a hyperlink 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 skilled with potential of investigations at Nortel says Ottawa is aware of precisely what happened in the case.

“The proof that China compromised Nortel is indisputable,” the expert observed. “It turned into being systematically compromised, and every little thing become being taken. The simplest question is to what extent that brought about Nortel to fall.”

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world news has agreed not to identify the expert because of his considerations that China’s government is targeting him due to his probes of continuing cyberattacks.

The expert mentioned 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 students hired with the aid of Nortel to steal analysis, and makes an attempt to compromise Nortel managers through the use of spies from the chinese language Communist birthday party and individuals’s Liberation army.

lots of these allegations are according to a February 2020 U.S. branch of Justice indictment that alleges Huawei turned into thinking in a many years-long conspiracy to steal know-how from numerous victim companies in efforts to grow its market share, the expert mentioned.

“there have been visits by means of Nortel executives going to China to be wined and dined,” the professional noted. “It turned into China’s traditional United entrance statecraft. and people executives were advised in no unclear terms with the aid of their security, ‘you're being recruited, and they're going to compromise your computer systems and cellphones.’”

but to Shields and former CSIS agents, it seemed Nortel management saw the warnings as exaggerated spy novel plots.

“There changed into detailed actionable intelligence naming individuals and strategies and targets,” the knowledgeable said. “there have been individuals that were caught, and devices discovered, and backdoors discovered and traced back to the chinese language. And this become escalated up to Nortel leaders. and that they didn’t truly want to see it.”

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The professional referred to Canadian intelligence at last made the wonderful discovery that the chinese Communist celebration changed into the use of chinese language organized crime gangsters, in attacks on Nortel.

“we have viewed geared up crime, trade and executive all secret agent and collect on Nortel,” the expert stated.

“The most excellent approach to explain it's between a nation-state, industry and organized crime, there is cooperation to the factor of collaboration and collusion. Spying on Nortel became a requirement that satisfied all and sundry in that group.”

In July — in a case that mirrors such allegations — the FBI accused chinese language intelligence functions and arranged crime groups of colluding in cyberattacks concentrated on COVID-19 vaccine analysis and intellectual property in many countries, and chinese language dissidents in Canada.

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  • Michel Juneau-Katsuya — former CSIS Asia-Pacific desk chief — confirmed his former CSIS colleague’s observations involving China’s assault on Nortel.

    Juneau-Katsuya noted he first accomplished a probability assessment on Nortel within the Nineties, and decided it become China’s proper corporate espionage target. quickly CSIS recognized “reasonably an enchanting traffic between Nortel and China,” Juneau-Katsuya says.

    but his indicators to Nortel fell on deaf ears, he spoke of.

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    “what's missing within the Nortel story is exploring the relationship that has been flagged about all those [Nortel] leaders going to China for decades,” Juneau-Katsuya referred to. “i am confident that you would be able to see relationships the place the United entrance Work department will seem in the Nortel case.”

    Beijing’s United entrance — in accordance with a 2020 document from Australian analyst Alex Joske — is the chinese Communist party’s great political have an impact on and espionage network, which uses actors from company, politics and organized crime, to goal Western political and company leaders and procure highbrow property for China.

    Juneau-Katsuya suspects the chinese Communist celebration used the United entrance to take Nortel down and boosted Huawei into its place via providing the enterprise with subsidies and stolen technology.

    “Nortel is a type of situations, the place Canada had the lead internationally, and they let it go. Why? For one, there were forces in the Canadian government. And Huawei received billions from their government. So if I make investments billions into you, i will are expecting to handle that operation. And Huawei’s founder is from the individuals’s Liberation military. So he is aware of the way to follow orders. So i will make you very wealthy, and i will deliver you intelligence assist, and that i will aid in stealing information.”

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    “on reflection, it’s clearly written on the wall how this came about. there is enough circumstantial facts.”

    Juneau-Katsuya’s former CSIS colleague noted previous to Nortel’s crumple Ottawa lacked the strategic foresight and means to fight China’s infiltration.

    The RCMP has jurisdictional and technical challenges investigating state-backed cybercrime, the expert noted, whereas CSIS and the CSE, Canada’s cyberintelligence agency, are reluctant to contain themselves in threats against industry.

    “It turned into like a game of volleyball when all and sundry calls the ball but nobody goes for it,” the skilled stated. “The Nortel instance was like they now have a nation-state towards their industrial advanced, and they don’t even have an company mandated to handle it.”

    Canada may still hearken to intelligence community when picking Huawei

    The expert pointed out Canada is starting to recognize the gravity of state-subsidized assaults on private industry however the government nonetheless isn’t prosecuting cases.

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    meanwhile, in the u.s., the FBI is opening a new case in opposition t chinese espionage each ten hours, in keeping with director Christopher Wray.

    It isn’t only China concerned in corporate espionage. Western excessive-tech companies have additionally faced accusations of IP theft, most commonly in civil court docket battles. however in line with the FBI the vast majority of IP theft cases involve quite a number actors backed by way of the chinese language Communist birthday celebration.

    “It’s the individuals of the us who're the victims of what amounts to chinese 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 considered what details the FBI will allege in its IP theft indictment in opposition t Huawei. And Huawei rejects allegations that it stole know-how from companies in the u.s. with a view to develop its market share.

    but some former Nortel employees admire the styles of allegations made to date.

    Shields and former Nortel corporate security worker Mike Kennedy instructed global information a couple of case that occurred within the u.s. from about 2000 to 2003, the identical time that Huawei allegedly reverse-engineered Cisco internet routers in keeping with the FBI indictment.

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    Some Nortel investigators alleged a company linked to Huawei had lower back high priced networking device to a Nortel workplace and requested for money back. Investigators judged the equipment had been fully disassembled and copied for IP theft. Kennedy and Shields mentioned a third-party enterprise changed into involved in this alleged reverse-engineering case, which resembles the FBI’s allegations towards Huawei within the Cisco case.

    however Huawei says it has under no circumstances stolen IP from Nortel.

    Wrestling with Unit 61398

    For Brian Shields, when the U.S. cybersecurity enterprise Mandiant pointed to Unit 61398, it made ultimate feel.

    Unit 61398 is an elite individuals’s Liberation military cyberwar unit that operates from a Shanghai compound, the place it’s estimated a whole lot of PLA hackers work day and evening, sucking facts from Western excessive-tech industries and political objectives. in keeping with Mandiant, the unit is tasked through the chinese language Communist birthday party’s most elite leaders to steal technology for industries chosen for increase in the birthday party’s periodic five-12 months plans.

    in accordance with Mandiant, 61398 seeks extensive swathes of highbrow property, enterprise plans, pricing files, and emails from centered organizations’ leadership.

    And in 2013, Mandiant said Nortel became one in all 141 North American entities 61398 attacked. For Shields, 61398’s mentioned tactics fit everything that he followed about the cluster of information superhighway addresses in Shanghai.

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    yet another proven fact that seems more than coincidental, Shields says, is that Huawei turned into centered in 1987 via former PLA engineer Ren Zhengfei. And the chinese Communist birthday celebration’s 5-12 months plan for 1986 to 1990 was to “velocity up the development of the energy, communications, telecommunications and uncooked materials industries.”

    Equally damning, Shields says, is the intellectual property stolen from Nortel in 2004. The list of records, reviewed by way of world information, includes strategy documents titled “highway-map values and challenges to Nortel,” and “price Chain Dynamics & industry constitution.”

    And stolen R&D included documents with titles such as “Photonic Crystals and big Scale Integration” and “Switching and Tuning totally built-in Optical Circuits” and “velocity statistics Over established cellular Telecommunications provider.”

    These Nortel documents relate to its world-main fibre optics machine in 2004, and future improvements in 3G, 4G and 5G technology that permit enormously distinctive media to be sent worldwide by way of the cyber web.

    “These had been the crown jewels of Nortel R&D,” Shields observed. “It became the long run. And the best entity that might improvement from those forms of files being stolen, is a competitor.”

    That’s why Shields says he can not have in mind why Ottawa would even accept as true with Huawei as a 5G community contender.

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    “I on no account referred to Huawei stole their expertise, I spoke of the chinese language executive stole Nortel’s technology,” he said.

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

    however Huawei has time and again denied any wrongdoing in the Nortel case. Responding to questions from world news, a spokesman pointed to a 2014 college of Ottawa analyze, which discovered that negative management selections resulted in Nortel’s downfall, no longer hacking.

    “There were information in the media that chinese or other international espionage brokers penetrated inner Nortel networks and computers as a way to purchase technology and strategic advice and that such motion contributed to the downfall of the enterprise,” the tuition of Ottawa look at says. “We found no proof of this and believe it not going.”

    In an interview, Peter MacKinnon, one of the examine authors, mentioned any hacking of Nortel was inconsequential in evaluation to Nortel management blunders.

    “There is no method the business might blame its failure on hacking through any party,” MacKinnon mentioned. “It’s a timing component, by means of asserting Huawei has risen while Nortel went down. however that isn't an immediate relationship. There isn't any causation there.”

    For his half, Ren Zhengfei — who did not reply to an interview request for this story — says Huawei did not steal Nortel’s IP, and it was the 2000 market crash that eventually did in Nortel.

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    “unluckily, 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 is abundant facts of unhealthy management at Nortel and lingering wounds from the 2000 crash, most exceptionally within the accounting scandals that ultimately ended in RCMP prices against Frank Dunn and two different Nortel managers. Dunn and the other two have been ultimately acquitted. Dunn couldn't be reached for touch upon this story.

    Astronomically low bids

    Commodore Patrick Tyrrell, a retired militia intelligence officer and the U.ok.’s first cyberwarfare chief, says the chinese Communist birthday celebration has mastered the paintings of waging struggle in cyberspace. Cyberwar strategy, Tyrrell says, fits the strategies taught by way of ancient chinese language military everyday solar Tzu, who referred to that territory will also be seized with out bloodshed, if the attacker patiently exploits an opponent’s vulnerabilities.

    Huawei’s unbelievable increase in two decades below the chinese language Communist birthday celebration and guided by using PLA engineer Ren Zhengfei has the seem of a sun Tzu method, Tyrrell spoke of.

    “the first component is, nobody does anything in China with out the approval of the chinese language Communist birthday celebration. And in case you examine Ren Zhengfei and the construction of Huawei, it is fairly clear this is someone with a militia vision,” Tyrrell said. “if in case you have first rate intelligence, any military man will wish to know the vulnerabilities in a specific business.”

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    “And over the years Huawei became surely successful in being capable of take over Nortel.”

    In Nortel’s case, Tyrrell says Huawei realized the Canadian massive’s Achilles Heel become its massive and dear inventory of technology belongings. frequently, chinese language state-champions can reside afloat provided that Beijing decides to fund them. that will manage to pay for to burn cash and undercut rivals in strategic areas, Tyrrell says. however Western groups die when expenses rise above income. by way of 2008 Nortel was in concern and it desperately obligatory to land the 3G widespread mobile Telecommunications wireless contract offered in Canada by means of Telus Corp. and BCE Inc.

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

    ​but Huawei received the deal by using underbidding Nortel an estimated forty per cent. Telus and BCE did not reply to questions from world news for this story.

    “You go in and ensure Nortel can’t get the cash to keep this behemoth afloat,” Tyrrell referred to. “all of sudden it collapses, and low and behold which you could go pick the bits you need.”

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    an identical case came about in 2005, Tyrrell says, when Huawei beat out Nortel and U.okay. telecom Marconi to assemble a part of a $17-billion fibre optic community for British Telecom (BT).

    Huawei underbid the subsequent lowest bidder Marconi by $US 1 billion — about a 40 per cent bargain — Tyrrell spoke of. And 12 months later, Marconi collapsed.

    “unexpectedly this company is available in with this astronomically low bid. and they would even have time-honored if a corporation should get this bid to actually live to tell the tale,” Tyrrell referred to. “that is a magnificent piece of counsel.”

    BT didn't reply to questions for this story. but its network take care of Huawei became criticized in a 2013 U.ok. parliament intelligence and security committee report.

    The document summarized allegations made broadly towards Huawei with the aid of companies reminiscent of Cisco and Motorola.

    “it's alleged that Huawei become capable of win many contracts with the aid of stealing know-how from its competitors after which undercutting them on cost,” the record says. “however Huawei strenuously denies that it has direct links with the chinese language govt or armed forces, claiming that it receives no fiscal assist from the chinese language government.”

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    in keeping with questions on Huawei’s funding, a spokesman sent world information a YouTube video produced via Huawei which says the business receives a minimal amount of R&D funding from the chinese government.

    “Huawei is again and again accused of being owned or funded with the aid of the chinese language govt,” the linked video claims. “actuality is, Huawei is a non-public enterprise and is 100 per cent employee-owned.”

    On the BT deal, via 2006, safety considerations were found on device installed with the aid of Huawei, the report says. And in 2008 British intelligence warned “theoretically, the chinese State may well be in a position to take advantage of any vulnerabilities in Huawei’s equipment with a view to profit some access to the BT network.”

    finally, in 2011, the U.okay. government briefed Huawei in China “on considerations found with its equipment” the report says, and Huawei promised to address gadget complications.

    Huawei did not reply to a question from world information, regarding the alleged machine issues.

    Brian Shields and Patrick Tyrrell believe these forms of network vulnerabilities cannot be mitigated because the chinese language Communist party finally controls chinese language tech companies.

    And Tyrrell says nothing under Canada’s sovereignty is riding on Ottawa’s pending 5G decision.

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    “anything occurs in your advice grid is wide-spread in Beijing before it's primary in Ottawa in a Huawei 5G community,” Tyrrell noted.

    “What that capability is the Canadian govt doesn’t have manage of its fate.”

    The U.S. govt has come to an identical conclusion.

    This 12 months former U.S. national protection adviser H.R. McMaster asserted that in 2019, “a sequence of investigations revealed incontrovertible facts of the grave national-protection danger associated with a big selection of Huawei’s telecommunications device.”

    “Many Huawei employees are simultaneously employed through China’s Ministry of State protection and the intelligence arm of the americans’s Liberation army,” McMaster wrote in the Atlantic. “Huawei technicians have used intercepted phone facts to assist autocratic leaders in Africa secret agent on, locate, and silence political opponents.”

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