Microsoft: Russian and Chinese State Hackers Pose Growing Threat

• Microsoft reports that Russian cyberattacks have become more aggressive, with hackers continuing their intrusions even after detection.
• Brad Smith, Microsoft’s vice chairman, states that Russian SVR hackers are now engaging in criminal ransomware activities for financial gain.
• Smith warns of potential cooperation between U.S. adversaries like Russia, China, North Korea, and Iran, enhancing their collective cyber capabilities.

U.S. tech giant Microsoft said Russian cyberattacks are becoming even “more aggressive” and warned that Moscow could deepen collaboration with U.S. adversaries in cyberspace, making it much harder to prevent intrusions.

Hackers from Russia’s Foreign Intelligence Agency (SVR) are no longer disengaging from a computer environment once they are discovered but are doubling down, leading to the equivalent of “hand-to-hand combat” in cyberspace, according to Brad Smith, vice chairman and president of Microsoft, who is scheduled to testify on June 13 to the House of Representatives' Committee on Homeland Security.

The committee made a transcript of Smith’s statement to the committee available on June 12.

Smith said in the statement that Microsoft believes the SVR is now allowing its top engineers to use what they learn during the day in criminal ransomware operations they work on during their free time for financial gain as a way to retain them.

“This is creating a vicious cycle reinforcing nation-state and ransomware activity,” Smith wrote in the statement.

Smith will address the committee on Microsoft’s plans to boost security following successful intrusions by Russian and Chinese state actors. He said closer cooperation between Russia, China, North Korea, and Iran on the geopolitical stage could be replicated in cyberspace.

“This is grave at multiple levels. It’s one thing to engage in cyber combat with four separate nation-state adversaries, but quite another scenario if two or all four of these countries work in tandem,” he wrote in his testimony.

He said each of those nations has its own strengths and weaknesses when it comes to cyber capabilities, and through cooperation they could enhance each others' effectiveness.

“Unfortunately, this is where the future is likely going,” he wrote.

Smith painted a grave picture of current cyberspace, saying “lawless and aggressive cyber activity has reached an extraordinary level” and that state actors are more sophisticated and better resourced than ever. He said Microsoft detects almost 4,000 password-based attacks against its customers every second.

He called for tougher responses to such countries, saying they suffer few consequences for their actions.

“Deter nation-state threat actors by imposing appropriate punishment so that the actions of nation-state actors are not without a cost,” he wrote in his testimony.

By RFE/RL

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