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China Blamed For Cyberattack In The Gigantic Marriott-Starwood Hotels Data Breach

Marriott International logo An update on the gigantic Marriott-Starwood data breach where details about 500 million guests were stolen. The New York Times reported that the cyberattack:

"... was part of a Chinese intelligence-gathering effort that also hacked health insurers and the security clearance files of millions more Americans, according to two people briefed on the investigation. The hackers, they said, are suspected of working on behalf of the Ministry of State Security, the country’s Communist-controlled civilian spy agency... While American intelligence agencies have not reached a final assessment of who performed the hacking, a range of firms brought in to assess the damage quickly saw computer code and patterns familiar to operations by Chinese actors... China has reverted over the past 18 months to the kind of intrusions into American companies and government agencies that President Barack Obama thought he had ended in 2015 in an agreement with Mr. Xi. Geng Shuang, a spokesman for China’s Ministry of Foreign Affairs, denied any knowledge of the Marriott hacking..."

Why any country's intelligence agency would want to hack a hotel chain's database:

"The Marriott database contains not only credit card information but passport data. Lisa Monaco, a former homeland security adviser under Mr. Obama, noted last week at a conference that passport information would be particularly valuable in tracking who is crossing borders and what they look like, among other key data."

Also, context matters. First, this corporate acquisition was (thankfully) blocked:

"The effort to amass Americans’ personal information so alarmed government officials that in 2016, the Obama administration threatened to block a $14 billion bid by China’s Anbang Insurance Group Co. to acquire Starwood Hotel & Resorts Worldwide, according to one former official familiar with the work of the Committee on Foreign Investments in the United States, a secretive government body that reviews foreign acquisitions..."

Later that year, Marriott Hotels acquired Starwood for $13.6 billion. Second, remember the massive government data breach in 2014 at the Office of Personnel Management (OPM). The New York Times added that the Marriott breach:

"... was only part of an aggressive operation whose centerpiece was the 2014 hacking into the Office of Personnel Management. At the time, the government bureau loosely guarded the detailed forms that Americans fill out to get security clearances — forms that contain financial data; information about spouses, children and past romantic relationships; and any meetings with foreigners. Such information is exactly what the Chinese use to root out spies, recruit intelligence agents and build a rich repository of Americans’ personal data for future targeting..."

MSS Inside Not good. And, this is not the first time concerns about China have been raised. Reports surfaced in 2016 about malware installed in the firmware of smartphones running the Android operating system (OS) software. In 2015, China enacted a new "secure and controllable" security law which many security experts viewed then as a method to ensure that back doors were built into computing products and devices during into the manufacturing and assembly process.

And, even if China's MSS didn't do this massive cyberattack, it could have been another country's intelligence agency. Not good either.

Regardless who the attackers were, this incident is a huge reminder to executives in government and in the private sector to secure their computer systems. Hopefully, executives at major hotel chains -- especially those frequented by government officials and military members -- now realize that their systems are high-value targets.

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