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Nortel information source

inside the chinese armed forces assault on Nortel | 922-102 exam questions and exam Questions

It was a excellent clue.

In 2004 Nortel cyber-security marketing consultant Brian Shields investigated a major breach within the telecom gigantic’s network. at the time Nortel’s fibre optics gadget became the realm’s envy, with 70 per cent of all internet traffic working on Canadian technology.

And a person desired Nortel’s secrets.

Shields found that a laptop in Shanghai had hacked into the electronic mail account of an Ottawa-based Nortel government. using passwords stolen from the government the intruder downloaded more than 450 files from “are living link” — a Nortel server used to warehouse sensitive intellectual property.

Shields quickly discovered the hacker controlled the debts of at least seven Nortel executives. This changed into no random cybercriminal. but who turned into it?

Shields examined the numerical information superhighway addresses of computers extracting Nortel data and located that they have been clustered right into a tiny pinprick of cyberspace. He was bowled over since it appeared like a room full of internet servers. Whoever turned into at the back of these hackers, Shields believed, seemed to manage 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 happening by chance.”

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

Shields says the cyber web addresses were all registered to Shanghai Faxian Corp., a company without a connection to Nortel that Shields decided become a entrance without a real enterprise in China.

Shields noticed a different predominant clue in Nortel’s logs of network traffic from Saturday, April 24, 2004. in response to Shields, in precisely seven hours a Shanghai Faxian address downloaded 779 files that day the use of the account of Nortel CEO Frank Dunn. The hack came about four days earlier than Dunn became fired, amid an investigation of accounting irregularities. To Shields, this cautioned the Shanghai hackers knew exactly what Nortel’s board of administrators planned, and the best time to extract a massive cache of data.

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“thus far, they have 1,488 files which were downloaded,” Shields wrote to Nortel’s management in his “data theft” investigation record. “China is the source of all extractions we're privy to.”

For months Shields tracked the hackers. however Nortel’s brass turned into on the whole disinterested within the investigation and did little more than exchange government account passwords, Shields says. He says they have been more concentrated on yr-to-12 months gains and innovation budgets than maintaining Nortel’s precious analysis. Mike Zafirovski, Nortel’s CEO from 2005 to 2009, did not reply to questions for this story sent to his LinkedIn account. Zafirovski observed Shields turned into favourite to “cry wolf” and administration didn’t trust hacking turned into a true challenge, the Wall highway Journal reported in 2012.

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

within the end, Shields decided China’s government won complete manage of Nortel’s interior programs. After ten years of cyberattacks they could see everything Nortel was doing, he says. The infiltration turned into so insidious, Shields says, that technicians in China may send encrypted programs of stolen Nortel information to Shanghai and Beijing, via sending web commands to a “backdoor” buried in a Nortel computing device.

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to imagine that within the true world — it might be similar to a international army developing a hidden tunnel into Canada’s treasury vault, and marching out unimpeded with gold bars.

And it changed into greater than accident, Shields believes, that upstart Huawei suddenly changed Nortel because the world’s dominant internet technology issuer.

“You may have put Steve Jobs in to run Nortel. but if you are up against a nation-state, Nortel would have failed, devoid of Canadian govt intervention,” Shields talked about.

“Canadians simply don’t understand the extent of the chinese government’s involvement in this issue.”

Alliance Canada Hong Kong leader says a Huawei 5G network in Canada would music citizens

Now, greater than two decades after Nortel became first warned of chinese Communist party espionage, Hong Kong Canadians similar to Cherie Wong say that Ottawa’s failure to offer protection to Nortel and to at once bar Huawei from contemporary 5G networks is placing lives in danger.

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Wong, government-director of Alliance Canada Hong Kong, an umbrella neighborhood for democracy advocates, says chinese language dissident companies are already tracked and focused by means of the chinese language Communist birthday party 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.

internal the chinese language military’s attack on Nortel

“It’s a becoming difficulty no matter if or no longer Canada is equipped to combat this level of interference from the chinese Communist birthday celebration,” Wong noted.

“we're being threatened and pressured. So giving Huawei handle of the information superhighway ability every thing they do should be monitored and tracked and given to the chinese language state.”

youngsters, Huawei strongly denies benefiting from the hacking of Nortel, and says it has on no account been accused of wrongdoing in Canada. The enterprise says it complies with Canadian legislation and may no longer undercover agent on Canadians.

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

“Actionable intelligence”

a collection of Canadian armed forces facts sought with the aid of international information that could shed mild on stories of large espionage inside Nortel’s former Ottawa analysis headquarters are currently in a delayed vetting disclosure process, a Canadian armed forces spokesman informed international information. however Brian Shields says he is certain Ottawa has data with a purpose to reveal Canadians “the certainty about what took place to Nortel.”

One public checklist that implies Ottawa can also renowned a connection between China’s assault on Nortel and Huawei’s subsequent upward push is a coy commentary in the summary record of an tutorial conference held through Canadian security Intelligence carrier.

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

The document doesn’t reply that question.

however a Canadian intelligence skilled with talents of investigations at Nortel says Ottawa is aware of precisely what came about in the case.

“The evidence that China compromised Nortel is undeniable,” the skilled stated. “It become being systematically compromised, and everything become being taken. The most effective query is to what extent that led to Nortel to fall.”

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international information has agreed no longer to identify the knowledgeable because of his issues that China’s govt is concentrated on him because of his probes of continuing cyberattacks.

The knowledgeable observed China’s assault on Nortel had many aspects, from systematic hacking and planting of electronic bugs and spies inner Nortel facilities, to usage of chinese language PhD college students hired by using Nortel to steal analysis, and makes an attempt to compromise Nortel managers through the use of spies from the chinese language Communist birthday celebration and americans’s Liberation army.

a lot of these allegations are in line with a February 2020 U.S. branch of Justice indictment that alleges Huawei became concerned in a decades-long conspiracy to steal technology from a lot of victim companies in efforts to grow its market share, the skilled spoke of.

“there have been visits through Nortel executives going to China to be wined and dined,” the skilled observed. “It changed into China’s basic United entrance statecraft. and those executives have been informed in no unclear terms via their safety, ‘you are being recruited, and they're going to compromise your computer systems and cellphones.’”

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

“There was distinctive actionable intelligence naming individuals and strategies and targets,” the skilled stated. “there were people that had been caught, and gadgets found, and backdoors found and traced back to the chinese language. And this was escalated up to Nortel leaders. and they didn’t in fact want to see it.”

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The professional stated Canadian intelligence eventually made the remarkable discovery that the chinese language Communist birthday party became the usage of chinese language geared up crime gangsters, in attacks on Nortel.

“we now have seen geared up crime, industry and executive all spy and compile on Nortel,” the skilled spoke of.

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

In July — in a case that mirrors such allegations — the FBI accused chinese language intelligence features and organized crime groups of colluding in cyberattacks targeting COVID-19 vaccine analysis and highbrow property in lots of international locations, and chinese language dissidents in Canada.

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

Juneau-Katsuya noted he first achieved a chance assessment on Nortel within the 1990s, and decided it was China’s good corporate espionage goal. quickly CSIS diagnosed “rather a captivating traffic between Nortel and China,” Juneau-Katsuya says.

but his signals to Nortel fell on deaf ears, he mentioned.

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“what's lacking in the Nortel story is exploring the relationship that has been flagged about all these [Nortel] leaders going to China for a long time,” Juneau-Katsuya observed. “i am confident that you may see relationships the place the United entrance Work department will seem in the Nortel case.”

Beijing’s United front — in keeping with a 2020 report from Australian analyst Alex Joske — is the chinese Communist birthday party’s large political impact and espionage network, which uses actors from company, politics and arranged crime, to goal Western political and company leaders and obtain intellectual property for China.

Juneau-Katsuya suspects the chinese Communist celebration used the United front to take Nortel down and boosted Huawei into its vicinity by way of featuring the enterprise with subsidies and stolen know-how.

“Nortel is a kind of instances, where Canada had the lead internationally, and they let it go. Why? For one, there have been forces in the Canadian executive. And Huawei got billions from their government. So if I make investments billions into you, i will be able to are expecting to manage that operation. And Huawei’s founder is from the americans’s Liberation military. So he is aware of a way to follow orders. So i will be able to make you very wealthy, and i will offer you intelligence assist, and that i will aid in stealing counsel.”

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“on reflection, it’s obviously written on the wall how this happened. there is sufficient circumstantial proof.”

Juneau-Katsuya’s former CSIS colleague noted in advance of Nortel’s collapse Ottawa lacked the strategic foresight and means to fight China’s infiltration.

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

“It was like a online game of volleyball when all and sundry calls the ball but no one goes for it,” the skilled stated. “The Nortel example changed into like they have a nation-state towards their industrial advanced, and they don’t even have an agency mandated to tackle it.”

Canada should hearken to intelligence neighborhood when determining Huawei

The skilled noted Canada is starting to admire the gravity of state-backed attacks on inner most business however the government nonetheless isn’t prosecuting circumstances.

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in the meantime, in the u.s., the FBI is opening a new case towards chinese espionage every ten hours, according to director Christopher Wray.

It isn’t only China involved in company espionage. Western high-tech companies have also confronted accusations of IP theft, most regularly in civil court docket battles. however according to the FBI the majority of IP theft circumstances contain a number of actors backed by the chinese Communist party.

“It’s the americans of the USA who're the victims of what amounts to chinese language theft on a scale so large that it represents some of the greatest transfers of wealth in human heritage,” Wray spoke of in July.

It continues to be to be viewed what details the FBI will allege in its IP theft indictment against Huawei. And Huawei rejects allegations that it stole expertise from companies in the u.s. with the intention to grow its market share.

but some former Nortel personnel recognize the styles of allegations made to this point.

Shields and former Nortel corporate security worker Mike Kennedy informed world news about a case that took place in the united states from about 2000 to 2003, the same time that Huawei allegedly reverse-engineered Cisco cyber web routers in line with the FBI indictment.

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Some Nortel investigators alleged a corporation linked to Huawei had again high priced networking equipment to a Nortel office and asked for a refund. Investigators judged the machine had been fully disassembled and copied for IP theft. Kennedy and Shields spoke of a 3rd-party business become involved during this alleged reverse-engineering case, which resembles the FBI’s allegations towards Huawei within the Cisco case.

however Huawei says it has on no account stolen IP from Nortel.

Wrestling with Unit 61398

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

Unit 61398 is an elite americans’s Liberation military cyberwar unit that operates from a Shanghai compound, the place it’s estimated tons of of PLA hackers work day and nighttime, sucking information from Western high-tech industries and political ambitions. according to Mandiant, the unit is tasked via the chinese Communist birthday celebration’s most elite leaders to steal technology for industries chosen for increase within the birthday celebration’s periodic 5-12 months plans.

in response to Mandiant, 61398 seeks huge swathes of highbrow property, company plans, pricing files, and emails from focused agencies’ leadership.

And in 2013, Mandiant said Nortel turned into considered one of 141 North American entities 61398 attacked. For Shields, 61398’s said tactics healthy everything that he accompanied concerning the cluster of cyber web addresses in Shanghai.

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an extra undeniable fact that looks greater than coincidental, Shields says, is that Huawei became established in 1987 by former PLA engineer Ren Zhengfei. And the chinese Communist birthday party’s five-yr plan for 1986 to 1990 was to “velocity up the development of the power, communications, telecommunications and uncooked substances industries.”

Equally damning, Shields says, is the highbrow property stolen from Nortel in 2004. The listing of facts, reviewed by using global information, includes method files titled “highway-map values and challenges to Nortel,” and “price Chain Dynamics & trade structure.”

And stolen R&D blanketed files with titles similar to “Photonic Crystals and big Scale Integration” and “Switching and Tuning extremely built-in Optical Circuits” and “pace information Over regular cellular Telecommunications carrier.”

These Nortel files relate to its world-leading fibre optics equipment in 2004, and future improvements in 3G, 4G and 5G know-how that allow totally distinct media to be despatched international by way of the cyber web.

“These were the crown jewels of Nortel R&D,” Shields pointed out. “It became the long run. And the most effective entity that could improvement from those types of documents being stolen, is a competitor.”

That’s why Shields says he can't consider why Ottawa would even believe Huawei as a 5G community contender.

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“I certainly not spoke of Huawei stole their expertise, I mentioned the chinese govt stole Nortel’s expertise,” he spoke of.

“i do know what I discovered, and i be aware of the discussions I had with certain individuals. Don’t Canadians need to be aware of, too?”

but Huawei has time and again denied any wrongdoing within the Nortel case. Responding to questions from global news, a spokesman pointed to a 2014 school of Ottawa analyze, which discovered that negative management decisions led to Nortel’s downfall, now not hacking.

“There were suggestions within the media that chinese language or other foreign espionage agents penetrated inner Nortel networks and computer systems to be able to purchase technology and strategic guidance and that such action contributed to the downfall of the business,” the college of Ottawa look at says. “We discovered no facts of this and agree with it unlikely.”

In an interview, Peter MacKinnon, one of the crucial look at authors, mentioned any hacking of Nortel turned into inconsequential in comparison to Nortel management mistakes.

“There is no way the enterprise may blame its failure on hacking by way of any birthday celebration,” MacKinnon said. “It’s a timing thing, via saying Huawei has risen while Nortel went down. however that isn't a right away relationship. There is not any causation there.”

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

And there is plentiful proof of bad administration at Nortel and lingering wounds from the 2000 crash, most notably within the accounting scandals that ultimately ended in RCMP fees towards Frank Dunn and two different Nortel managers. Dunn and the other two had been at last acquitted. Dunn couldn't be reached for comment on this story.

Astronomically low bids

Commodore Patrick Tyrrell, a retired armed forces intelligence officer and the U.ok.’s first cyberwarfare chief, says the chinese language Communist party has mastered the art of waging struggle in cyberspace. Cyberwar approach, Tyrrell says, suits the methods taught with the aid of ancient chinese language military regularly occurring sun Tzu, who noted that territory may also be seized devoid of bloodshed, if the attacker patiently exploits an opponent’s vulnerabilities.

Huawei’s superb increase in twenty years below the chinese language Communist celebration and guided through PLA engineer Ren Zhengfei has the appear of a solar Tzu strategy, Tyrrell pointed out.

“the first factor is, no one does anything else in China without the approval of the chinese language Communist party. And in case you examine Ren Zhengfei and the construction of Huawei, it is rather clear this is a person with a military vision,” Tyrrell talked about. “when you've got respectable intelligence, any armed forces man will want to be aware of the vulnerabilities in a selected company.”

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“And through the years Huawei was surely a success in being capable of take over Nortel.”

In Nortel’s case, Tyrrell says Huawei realized the Canadian tremendous’s Achilles Heel became its big and dear stock of know-how assets. often, chinese language state-champions can dwell afloat as long as Beijing decides to fund them. with the intention to afford to burn money and undercut opponents in strategic areas, Tyrrell says. however Western businesses die when costs upward thrust above earnings. by 2008 Nortel turned into in crisis and it desperately crucial to land the 3G widely wide-spread cellular Telecommunications instant contract offered in Canada by using Telus Corp. and BCE Inc.

united kingdom’s first cyberwarfare chief says Canadian sovereignty riding on Huawei 5G determination

however Huawei won the deal with the aid of underbidding Nortel an estimated forty per cent. Telus and BCE didn't respond to questions from world news for this story.

“You go in and make sure Nortel can’t get the cash to maintain this behemoth afloat,” Tyrrell spoke of. “abruptly it collapses, and low and behold that you would be able to go decide upon the bits you want.”

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

Huawei underbid the next lowest bidder Marconi by $US 1 billion — a few forty per cent bargain — Tyrrell spoke of. And one year later, Marconi collapsed.

“unexpectedly this enterprise comes in with this astronomically low bid. and they would also have everyday if a corporation needs to get this bid to literally continue to exist,” Tyrrell spoke of. “that's an impressive piece of guidance.”

BT did not respond to questions for this story. but its network cope with Huawei turned into criticized in a 2013 U.okay. parliament intelligence and safety committee report.

The document summarized allegations made commonly in opposition t Huawei by agencies similar to Cisco and Motorola.

“it's alleged that Huawei turned into capable of win many contracts through stealing know-how from its competitors and then undercutting them on expense,” the report says. “but Huawei strenuously denies that it has direct links with the chinese executive or militia, claiming that it receives no financial help from the chinese government.”

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in accordance with questions about Huawei’s funding, a spokesman sent global news a YouTube video produced by way of Huawei which says the enterprise receives a minimal volume of R&D funding from the chinese language executive.

“Huawei is time and again accused of being owned or funded by way of the chinese language executive,” the linked video claims. “reality is, Huawei is a non-public business and is a hundred per cent employee-owned.”

On the BT deal, via 2006, protection issues had been discovered on equipment installed via Huawei, the report says. And in 2008 British intelligence warned “theoretically, the chinese State may well be able to take advantage of any vulnerabilities in Huawei’s device with the intention to benefit some access to the BT community.”

ultimately, in 2011, the U.k. government briefed Huawei in China “on concerns found with its equipment” the report says, and Huawei promised to tackle device problems.

Huawei didn't reply to a question from international news, regarding the alleged gadget complications.

Brian Shields and Patrick Tyrrell believe these kinds of community vulnerabilities cannot be mitigated because the chinese Communist celebration finally controls chinese tech agencies.

And Tyrrell says nothing lower than Canada’s sovereignty is riding on Ottawa’s pending 5G resolution.

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“some thing occurs for your suggestions grid is time-honored in Beijing earlier than it is time-honored in Ottawa in a Huawei 5G community,” Tyrrell stated.

“What that capability is the Canadian executive doesn’t have control of its destiny.”

The U.S. govt has come to a similar conclusion.

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

“Many Huawei workers are concurrently employed by using China’s Ministry of State security and the intelligence arm of the americans’s Liberation army,” McMaster wrote within the Atlantic. “Huawei technicians have used intercepted cell statistics to support autocratic leaders in Africa undercover agent on, locate, and silence political opponents.”

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