From Wired via Ars Technica, August 9:
Operation Skeleton Key has stolen source code, SDKs, chip designs, and more.
Taiwan has faced existential conflict with China for its entire existence and has been targeted by China's state-sponsored hackers for years. But an investigation by one Taiwanese security firm has revealed just how deeply a single group of Chinese hackers was able to penetrate an industry at the core of the Taiwanese economy, pillaging practically its entire semiconductor industry.
At the Black Hat security conference today, researchers from the Taiwanese cybersecurity firm CyCraft plan to present new details of a hacking campaign that compromised at least seven Taiwanese chip firms over the past two years. The series of deep intrusions—called Operation Skeleton Key due to the attackers' use of a "skeleton key injector" technique—appeared aimed at stealing as much intellectual property as possible, including source code, software development kits, and chip designs. And while CyCraft has previously given this group of hackers the name Chimera, the company's new findings include evidence that ties them to mainland China and loosely links them to the notorious Chinese state-sponsored hacker group Winnti, also sometimes known as Barium, or Axiom....MUCH MORE
"This is very much a state-based attack trying to manipulate Taiwan's standing and power," says Chad Duffy, one of the CyCraft researchers who worked on the company's long-running investigation. The sort of wholesale theft of intellectual property CyCraft observed "fundamentally damages a corporation's entire ability to do business," adds Chung-Kuan Chen, another CyCraft researcher who will present the company's research at Black Hat today. "It's a strategic attack on the entire industry."
Skeleton key
The CyCraft researchers declined to tell WIRED the names of any victim companies. Some of the victims were CyCraft customers, while the firm analyzed other intrusions in cooperation with an investigative group known as the Forum of Incident Response and Security Teams. Several of the semiconductor company victims were headquartered at the Hsinchu Industrial Park, a technology hub in the Northwest Taiwanese city of Hsinchu.
The researchers found that, in at least some cases, the hackers appeared to gain initial access to victim networks by compromising virtual private networks, though it wasn't clear if they obtained credentials for that VPN access or if they directly exploited vulnerabilities in the VPN servers. The hackers then typically used a customized version of the penetration testing tool Cobalt Strike, disguising the malware they planted by giving it the same name as a Google Chrome update file. They also used a command-and-control server hosted on Google's or Microsoft's cloud services, making its communications harder to detect as anomalous....
