The US Treasury Department has confirmed that state-sponsored Chinese hackers orchestrated a significant cybersecurity breach, according to findings from a recent investigation.
In a letter addressed to the Senate Banking Committee, Aditi Hardikar, Assistant Secretary for Management, detailed the incident. The breach, first flagged on December 8th by third-party software provider BeyondTrust, enabled hackers to gain unauthorized access to Treasury Department systems.
Hardikar disclosed that the attackers, allegedly backed by the Chinese government, exploited a key used by BeyondTrust to deliver remote technical support for Treasury employees. This stolen key allowed the hackers to infiltrate workstations and access unclassified documents stored by affected employees.
In response, the Treasury Department promptly enlisted the support of the Cybersecurity and Infrastructure Security Agency (CISA), the Federal Bureau of Investigation (FBI), intelligence agencies, and external cybersecurity experts to investigate the breach and assess its impact.
“Indicators point to the involvement of a Chinese state-sponsored Advanced Persistent Threat (APT) actor,” Hardikar wrote. “Under Treasury policy, any intrusion linked to an APT is classified as a major cybersecurity incident.”
APT attacks, typically carried out by state-sponsored entities, aim to steal sensitive data, engage in cyber espionage, or disrupt critical infrastructure. In this case, the targeted BeyondTrust service has since been decommissioned. Hardikar assured that there is no evidence suggesting the attackers maintain access to Treasury records.
The Chinese government, however, has categorically denied any involvement. Speaking to CNN, Mao Ning, spokesperson for the Chinese Ministry of Foreign Affairs, stated, “We have consistently opposed all forms of cyberattacks. Groundless accusations without evidence only serve political agendas, which we strongly condemn.”
The Treasury Department plans to provide a classified briefing on the breach to staff members of the House Financial Services Committee in the coming days.
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