For China, U.S. government secrecy has been a boon. Cyber-warfare directed against American companies is reducing the gross domestic product by as much as $100 billion per year, according to a recent National Intelligence Estimate. Because companies are generally reluctant to admit they've been breached and because the National Security Agency, which works with these companies to assess Chinese cyber techniques, is surrounded by a cocoon of secrecy, China has been able to operate with impunity.
That soon will change.
In the coming weeks, the NSA, working with a Department of Homeland Security joint task force and the FBI, will release to select American telecommunication companies a wealth of information about China's cyber-espionage program, according to a U.S. intelligence official and two government consultants who work on cyber projects. Included: sophisticated tools that China uses, countermeasures developed by the NSA, and unique signature-detection software that previously had been used only to protect government networks.
Press reports have indicated that the Obama administration plans to give certain companies a list of domain names China is known to use for network exploitation. But the coming effort is of an entirely different scope. These are American state secrets.
Very little that China does escapes the notice of the NSA, and virtually every technique it uses has been tracked and reverse-engineered. For years, and in secret, the NSA has also used the cover of some American companies -- with their permission -- to poke and prod at the hackers, leading them to respond in ways that reveal patterns and allow the United States to figure out, or "attribute," the precise origin of attacks. The NSA has even designed creative ways to allow subsequent attacks but prevent them from doing any damage. Watching these provoked exploits in real time lets the agency learn how China works.
Click headline to read more--