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CHINA HACKED MINISTRY OF DEFENCE, SKY NEWS LEARNS

MPs will be told of a massive data breach involving the Ministry of Defence
later today, targeting service personnel.

Sam Coates

Deputy political editor @SamCoatesSky

Tuesday 7 May 2024 09:33, UK

Image: A soldier stands guard outside the MoD. Pic: Reuters
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Why you can trust Sky News

The Chinese state has hacked the Ministry of Defence, Sky News understands.

MPs will be told today of a massive data breach involving the MoD, targeting
service personnel.

The government will not name the country involved, but Sky News understands this
to be China.

The Chinese state is to be accused of two or three attempts at hacking MoD
employees - including personnel.

The cyberattack was on a payroll system with current service personnel and some
veterans. It is largely names and bank details that have been exposed.

All salaries will be paid this month.

China's foreign ministry said it "firmly opposes and fights all forms of cyber
attacks" and "rejects the use of this issue politically to smear other
countries".

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China: Hacking allegations 'absurd'
Chinese Foreign Ministry's spokesperson Lin Jian said Beijing 'opposes all forms
of cyberattacks'.
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China: Hacking allegations 'absurd'

Tobias Ellwood, a Conservative MP and former soldier, told Sky News that China
"was probably looking at the financially vulnerable with a view that they may be
coerced in exchange for cash".

Defence Secretary Grant Shapps will make a statement to the Commons today, with
the BBC reporting he will set out a "multi-point plan" which will include action
to protect affected service men and women.

The MoD hopes serving personnel will not be concerned about their safety. They
will be provided with advice and support.

The contractor system is not connected to the main MoD computer systems and has
been taken down with a review launched.

Read more:
Beijing poses 'constant' threat to western cybersecurity
China 'trying to undermine our democracy'

Image: Defence Secretary Grant Shapps is expected to make a statement tomorrow.
Pic: House of Commons

The MoD has been working at speed over the last 72 hours to understand the scale
of the hack after it was discovered in recent days.

It is understood investigations have not so far shown any data has been taken.

This could raise questions about whether other countries with challenging
relationships with China will want to share sensitive intelligence with the UK.

This comes fewer than two months after China's "state-affiliated actors" have
been blamed by the government for two "malicious" cyberattack campaigns in the
UK.

Government minister Mel Stride told Sky News on Tuesday morning China is "an
epoch-defining challenge" and "our eyes are wide open" - quoting the Integrated
Review of the UK's national security and international policy completed in 2021.

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MoD 'acted swiftly' over data breach
The Chinese state has hacked the Ministry of Defence, Sky News understands.
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MoD 'acted swiftly' over data breach

He would not confirm if China is the country that hacked the MoD but said the UK
needs to "get the balance right" when it comes to Beijing.

Mr Stride added: "By balance, I mean protecting our security. At the same time,
I recognise and, of course, China is a very important economic player globally
and, of course, big global challenges like climate change need to have China at
the table, if we are to resolve those as well."

Making a speech in the Commons in March, Deputy Prime Minister Oliver Dowden
revealed the two previous incidents involved an attack on the Electoral
Commission - responsible for overseeing elections and political finance - in
2021, and targeted attacks against China-sceptic MPs.

Labour's shadow defence secretary John Healey said there are "so many serious
questions for the defence secretary on this, especially from Forces personnel
whose details were targeted".

He added: "Any such hostile action is utterly unacceptable.

"Parliament will expect a full Commons statement tomorrow."

Sir Iain Duncan Smith, a Conservative MP and former soldier who has been
sanctioned by China, told Sky News: "This is yet another example of why the UK
government must admit that China poses a systemic threat to the UK and change
the integrated review to reflect that.

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China 'certainly' behind MoD cyberattack
Iain Duncan Smith, the former Tory leader, has praised Sky News for reporting
that China is understood to be behind a Ministry of Defence data leak.
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China 'certainly' behind MoD cyberattack

"No more pretence, it is a malign actor, supporting Russia with money and
military equipment, working with Iran and North Korea in a new axis of
totalitarian states."

Mr Ellwood said: "We are learning the hard way how art warfare is rapidly
changing as technology advances.

"Defending the digital terrain is now just as important as the physical - this
is another reminder why we need to invest more in defence and security.

"Targeting the MoD's payroll and bank details was probably looking at the
financially vulnerable with a view that they may be coerced in exchange for
cash.

"And if this type of cyberattack is taking place here in the UK we can assume
other nato countries will be targeted too."

Image: China's president Xi Jinping is currently on a tour of Europe. Pic:
Reuters
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Xi Jinping, China's president, is currently on a tour of Europe - although he is
not set to visit the UK.

He spent Monday in Paris and will travel with French President Emmanuel Macron
to the Pyrenees on Tuesday.

After that, he will visit Serbia on Wednesday and Hungary on Thursday - both
countries which are on friendly terms with Beijing.

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