
By CNNMoney's Charles Riley
The Pentagon has accused China of trying to extract sensitive information from U.S. government computers, the latest in a series of rhetorical skirmishes between the two countries on the issue of cyberattacks.
The frank assessment, made in an annual report to U.S. lawmakers on Chinese military capabilities, is the harshest and most detailed set of accusations made thus far by the Obama administration.
"In 2012, numerous computer systems around the world, including those owned by the U.S. government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military," the report said.
The Pentagon said China is carrying out the attacks in an effort to extract information from "diplomatic, economic and defense industrial base sectors that support U.S. national defense programs." The intellectual property and data is likely being used to bolster China's own defense and high tech industries, the report said
FULL STORYBy Pam Benson
The House Intelligence Committee has overwhelmingly passed a new cybersecurity bill that would enhance data sharing between the government and private industry to protect computer networks and intellectual property from cyber attacks.
By a vote of 18-2, the panel on Wednesday approved the Cyber Intelligence Sharing and Protection Act (CISPA).
The measure sets up a voluntary system for companies to share threat information on their networks with the government in exchange for some liability protections.
The bill also allows the government to share intelligence and other cyber threat information with industry.
A similar bill died in the Senate last year after a number of Republicans argued that proposed cybersecurity standards allowed for too much government regulation.
The White House had threatened to veto that bill over privacy concerns.
FULL POST
By CNN's Chris Lawrence
The website for U.S. Forces Korea is down and has been off-line all day.
A U.S. Defense Department official tells CNN, “This was a hardware crash. It could be awhile before they get back online, because they have to rebuild the system. Right now there’s no signs this had anything to do with a cyber attack or outside intrusion. These are initial indications, but right now it doesn’t appear to be caused by outside influence.”
But the official says they haven't completely ruled out an outside attack.
If you go to the site, you will see a message reading, "Network Error… The gateway may be temporarily unavailable, or there could be a network problem.”
By Ashley Killough
The highest-ranking officials on the House intelligence committee continued to warn Sunday of the increasing cybersecurity threat to the U.S. economy and national security.
Republican Rep. Mike Rogers, the committee's chairman, spelled out the different levels of cyberattacks during an appearance on CNN's "State of the Union" and cautioned that the worst of those – a debilitating hit by a terrorist group - could become reality.
"We know that terrorists, non-nation states, are seeking the capability to do a cyberattack. They're probably not there yet," he said, sitting next to the ranking member on the committee, Democratic Rep. Dutch Ruppersberger.
Read more on CNN's Political Ticker.
By Alex Mooney
President Obama has invited a handful of CEOs to the White House Situation Room on Wednesday to discuss the growing threats posed by cyberattacks.
Administration officials are so far staying tight-lipped about who is attending the closed-door meeting, but one White House official tried to downplay the choice of convening it in the Situation Room, which is ordinarily reserved for high-ranking members of the president's national security team.
Instead, the White House official said, the Situation Room is the only conference room available Wednesday to accommodate the meeting.
The president is expected to discuss his administration's latest steps to beef up cybersecurity, including a recently signed executive order designed to improve intelligence sharing between the government and the private sector over potential cyber vulnerabilities, particularly those posed by Chinese hackers.
Among the CEOs invited are the leaders of AT&T, Honeywell and Northrop Grumman, the White House said Wednesday. FULL POST
By Mariano Castillo and Chelsea Carter
Cyberattacks pose more of an eminent threat to the United States than a land-based attack by a terrorist group, while North Korea's development of a nuclear weapons program poses a "serious threat," the director of national intelligence told Congress on Tuesday.
The warning by Director of National Intelligence James Clapper came in his annual report to Congress of the threats facing the United States. It was one of the rare times since the September 11, 2001, attacks that terrorism was not the leading threat facing the nation.
"Attacks, which might involve cyber and financial weapons, can be deniable and unattributable," Clapper said prepared remarks before the Senate Select Committee on Intelligence. "Destruction can be invisible, latent and progressive."
The Internet is increasingly being used as a tool both by nations and terror groups to achieve their objectives, according to Clapper's report.
By Alex Mooney
The U.S. is seeking a more muscular response to the growing threat from foreign hackers interested in obtaining U.S. businesses’ trade secrets.
The response, in the guise of a 150-page report unveiled by Attorney Gen. Eric Holder and other leading government officials on Wednesday, includes new pledges by the Justice Department and FBI to crack down on hacking, a guide for corporations vulnerable to attacks on how to beef up their own security, and a proposal to better coordinate efforts with U.S. allies to prosecute foreign hackers.
“In this time of economic recovery, this work is more important than it has ever been before,” Holder said Wednesday at a White House event that outlined the new response. “I am pleased to report we are fighting back more aggressively and collaboratively than ever before.”
The announcement comes a day after the Virginia-based Mandiant published a 60-page report that alleges the Chinese government is sponsoring cyber-espionage to attack top U.S. companies.
FULL POST
By CNN Money's Charles Riley
An American cybersecurity firm has linked one of the world's most prolific groups of computer hackers to the Chinese government, saying in a new report that an extensive cyber-espionage campaign is being waged from a location near Shanghai.
The security firm, Mandiant, detailed the allegations in a 60-page report published Tuesday that describes the group's tactics and history over a six-year period.
The Virginia-based Mandiant, which helps companies detect and respond to cyber threats, said it has observed the group of hackers - called the "comment crew" - systematically steal hundreds of terabytes of data from at least 141 organizations across 20 industries worldwide since 2006.
Mandiant claims the activity can be traced to four networks near Shanghai - with some operations taking place in a location that is also the headquarters of Unit 61398, a secret division of China's military.
Editors Note: Jane Harman is director, president and chief executive officer of the Woodrow Wilson International Center for Scholars. She was a nine-term congresswoman from California, the ranking Democrat on the House Intelligence Committee from 2002 to 2006, and a principal coauthor of the Intelligence Reform Law of 2004 and the FISA Amendments of 2008.
By Jane Harman, Special to CNN
In the debate on drone policy that is raging in Washington, a simple solution is available. Why not use the framework established in the 35-year-old Foreign Intelligence Surveillance Act, or FISA, to cover drone strikes and offensive cyberoperations?
FISA was enacted in response to the abuses of the Nixon years and established a special court and congressional oversight procedures to review intelligence collection activities against Americans and foreigners. For 23 years, that framework worked well in a very different threat environment. The FISA court was able to manage a reasonable caseload, and the Senate and House intelligence committees – created to do oversight over the program – carefully reviewed all activities.
September 11, 2001, was a game changer, forcing the United States to rethink the existing security paradigms. In response to the graveness of the terrorist threat, the Bush administration decided that the existing FISA framework was antiquated and inadequate, and began warrantless foreign intelligence surveillance outside the FISA structure. The president claimed this extra-legal action was justified under his "commander in chief" powers in Article II of the Constitution.
By David Goldman
Having run out of patience for Congress to act on a cybersecurity bill, President Obama has decided to take matters into his own hands.
Obama signed an executive order on Tuesday addressing the country's most basic cybersecurity needs and highlighted the effort in his State of the Union address.
"We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy," Obama said.
The order will make it easier for private companies in control of the nation's critical infrastructure to share information about cyberattacks with the government. In return, the Department of Homeland Security will share "sanitized" classified information with companies about attacks believed to be occurring or that are about to take place.
The order also directs the government to work with the private sector on standards that will help protect companies from cybercrime, though there is nothing in the order about how this will be enforced.

