James Clapper Was the First US Official to Claim China Was Behind the Cyber-Attack
Senior government officials confirmed on Wednesday that the Chinese hackers who breaches US government security wanted information on gambling habits, alcohol and drug abuse, instances of infidelity, sexual preferences, past partners, and other intimate details of their lives. The Office of Personnel Management believes the files of up to 14 million Americans were breached by the China-based cyber-bandits.
The data breach is thought to have given the Chinese government access to the job applicant security clearance forms of those who applied for government jobs, including millions who currently work for the U.S. federal government. That information is thought to have included their foreign contacts, past love affairs, pattern of drug use, and history of violence.
Blackmail Material
Officials fear that the information could be used for one of two purposes to help China further breach security: blackmail or recruitment. In a blackmail scenario, the Chinese would approach a person about past misconduct and threaten to reveal it–either to the world at larger or to those close to their target (spouses)–in order to get a government employee to reveal sensitive information.
In a recruitment scenario, the personal information could be used to target the weaknesses of a government employee. For instance, a person with a problem gambling habit might be more susceptible to bribes, because of their perennial need for cash to pay gaming debts. People with a possible drug habit or an out-of-control need for human companionship might be recruited in other ways.
The Daily Beast described the cyber-attack as a way to learn the “weaknesses and pressure points” of personnel, in order to turn them into “assets or agents“. An asset is not so much of a traitor, but someone blackmailed to provide specific details. Newspapers say the government is concerned that the information could be used to recruit people with “high levels of clearance“.
Adjucication Information Exposed
According to the ODP, the information was taken from “adjudication information”, which is used to determine whether a person could gain high-level clearance. Donna Seymour, the chief information officer of the OPM, gave testimony on June 16 before a House committee that “clearance adjudication information” had been compromised.
The link to China has not been proven in a public forum, though James Clapper, the Director of National Intelligence, said on Thursday that China was the ‘leading suspect’ behind the attacks on OPM. Clapper’s statement was the first time a US official had officially suggested China might be the culprit. Chinese officials have characterized the suggestion it might have been behind the cyber-attack “irresponsible and unscientific”.
China Denies Any Wrongdoing
China’s Foreign Ministry released a statement denying any such attack. The statement read, “Chinese law prohibits hacking attacks and other such behaviors which damage Internet security. The Chinese government takes resolute strong measures against any kind of hacking attack. We oppose baseless insinuations against China.”
James Clapper all-but-admitted the Chinese were behind the attack, in off-the-cuff remarks at an intelligence conference this week. According to the Wall Street Journal, “You have to kind of salute the Chinese for what they did.”
The American People’s Growing Impatience
Most Americans will not be as sanguine as the Director of National Intelligence. As China’s economy continues to gain ground on the economy of the United States–with the US at $16 trillion compared to $8 trillion for China–Americans begin to reassess the wisdom of its decades-long trade partnership with China. Millions of US residents have lost industrial jobs to China, which can offer lower wages due to a lower standard of living and a manipulated currency.
While some of those Americans have been able to retrain themselves for the information economy, many others have seen a decline in their wagers, as they take jobs with less pay and fewer benefits. As the American middle class has decreased as a percentage of the US population, the Chinese middle class has exploded in size. Many Americans wonder if it was worth the destruction of the American middle class in order to keep the price of Wal-Mart products lower.
Is Trade with China Good?
Meanwhile, US officials in the Democratic and Republican parties continue to insist that US/China trade is good for American, and good for the world. Many politicians advocate for free trade as a solid policy in general, while others hold the belief that liberalization of China’s economy will lead to liberalization of China’s politics.
More and more American politicians are becoming vocally critical of those points of view, pointing out that China manipulates its trade leverage and therefore the US/China relationship is not “free trade”. They also point to a long history showing totalitarian states around the globe are only strengthened by engaging in international trade. Books like Michael Pillsbury’s “The Hundred Year Marathon“, which details a generations-old Chinese policy for superseding the United States, is likely to gain a wider audience.
If so, then the average American’s patience with Chinese double-dealing might be wearing thin, especially if attempts to blackmail officials come to light. Whether the USA changes its relationship with China in the near-future is not likely to happen, if the financial and economic experts are correct. One thing is certain: this case has far-reaching consequences for US government workers. One anonymous official compared the Chinese cyber-attack to the Eric Snowden case, saying this was a far worse breach of security. The official said, “This is worse than Snowden, because at least programs that were running before the leaks could be replaced or rebuilt. But OPM, that’s the gift that keeps on giving. You can’t rebuild people.”
Pentagon Scandal: Official Gambling Habits
For the time being, American officials with gaming problems have one more issue to be concerned about. If another recent scandal, which brought to light the spending habits of federal officials who used Pentagon-issue credit cards, then the number of such officials is substantial. In that case, a Pentagon audit found that officials used government-issued credit cards to pay for gambling trips and prostitutes, presumably to keep their activities secret from their spouses.
