According to U.S. authorities, over 9,000 consumer devices in Canada have fallen victim to a Beijing-backed hacker group. This group, known as “Flax Typhoon,” has infiltrated hundreds of thousands of home and office internet-connected devices globally, creating a botnet that has been active since mid-2021. The FBI, along with other U.S. national security agencies and partner agencies in Canada, Australia, New Zealand, and the UK, issued a joint advisory on Sept. 18 detailing the situation.
The compromised devices include routers, digital video recorders, internet protocol cameras, and network-attached storage devices. These devices are infected with malware that allows hackers to gain unauthorized remote access and engage in cyber crimes. By using the botnet as a proxy, the hackers can conceal their identities during malicious activities.
As of June 2024, the botnet comprised over 260,000 devices located across various regions. In Canada, approximately 9,200 devices have been affected, representing 3.5% of the total. The United States has been hit the hardest, with 126,000 compromised devices, followed by Vietnam with 21,100 affected devices.
Flax Typhoon hackers, backed by the People’s Republic of China (PRC), are affiliated with a Beijing-based publicly traded company called Integrity Technology Group. This company has developed an online application that allows customers to control infected victim devices.
In a court document unsealed in the Western District of Pennsylvania, it was revealed that the U.S. Justice Department conducted a law enforcement operation to disrupt the botnet. Despite attempts by the hackers to interfere with the operation through a denial-of-service attack, the FBI successfully disrupted the botnet.
U.S. Attorney General Merrick B. Garland emphasized the government’s commitment to countering state-sponsored hacking threats posed by China. In a press release, he reaffirmed the Justice Department’s efforts to dismantle botnets used by PRC-backed hackers.
Earlier in January, U.S. authorities had announced a similar operation targeting a Chinese state-backed botnet run by a group known as “Volt Typhoon.” FBI Director Christopher Wray condemned China for targeting American critical infrastructure and pre-positioning for potential harm.
Ongoing investigations in Canada are focusing on Chinese cyberattacks, including incidents involving hacker groups like APT31. These investigations are examining foreign interference in international legislative coalitions, such as the targeting of Canadian parliamentarians by APT31.
The committee is investigating the possibility that APT31 hackers accessed the IPAC email distribution list through volunteer Andy Li, who played a role in supporting the 2019 pro-democracy movement in Hong Kong. Li’s arrest and alleged torture in China have raised concerns about foreign interference and cybersecurity threats.
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