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Two prominent Republican lawmakers have demanded answers from the U.S. Treasury Department following a cyber breach allegedly carried out by a Chinese state-sponsored hacker. The incident has raised concerns about the security of sensitive federal information and prompted calls for stricter cybersecurity protocols.
In a joint letter dated Dec. 31 to Treasury Secretary Janet Yellen, Senator Tim Scott, a ranking member of the Senate Banking Committee, and Representative French Hill, vice chair of the House Financial Services Committee, urged the department to provide a comprehensive briefing by Jan. 10. Their request focuses on detailing the scope of the breach, how it occurred, and the measures being implemented to prevent future incidents.
“This breach of federal government information is extremely concerning,” Scott and Hill wrote. “Treasury maintains some of the most highly sensitive information on U.S. persons throughout government, including tax information, business beneficial ownership, and suspicious activity reports.”
The US Republican Lawmakers treasury probe emphasizes the critical need to protect such data from foreign adversaries, particularly those seeking to exploit it for malicious purposes.
The cyberattack, which occurred on Dec. 2, targeted employee workstations at the Treasury Department. According to officials, the breach resulted in unauthorized access to certain “unclassified” documents.
In a Dec. 30 letter to lawmakers, Treasury officials attributed the attack to a Chinese state-sponsored advanced persistent threat (APT) actor. While the accessed documents were labeled as unclassified, experts warn that such breaches can still expose critical information that adversaries could leverage.
Under the Federal Information Security Modernization Act, the Treasury has pledged to provide a supplemental report within 30 days, detailing the full extent of the breach and the steps being taken to bolster cybersecurity defenses.
The lawmakers’ letter underscores their dissatisfaction with the Treasury’s current cybersecurity measures. They stated that the breach “raises serious questions about the protocols for safeguarding sensitive federal government information from future cybersecurity incidents.”
They also noted the broader implications of the attack, given the Treasury’s role in managing highly confidential data, including information that could have national security ramifications.
The Chinese government has denied any involvement in the attack, dismissing the allegations as baseless. “China firmly opposes the U.S.’s smear attacks against China without any factual basis,” a Chinese official told Reuters.
However, cybersecurity experts have frequently pointed to Chinese APT groups as being among the most sophisticated and persistent in the world. John Hultquist, chief analyst at Mandiant, noted, “State-sponsored cyberattacks are not uncommon, but when they target institutions like the U.S. Treasury, it becomes a significant national security concern.”
This incident comes at a time of heightened tensions between the U.S. and China over issues ranging from trade to technology. The breach adds another layer of complexity, potentially fueling calls for stricter cybersecurity measures and enhanced scrutiny of foreign actors.
James Lewis, a senior fellow at the Center for Strategic and International Studies, said the breach highlights a systemic issue. “Federal agencies are prime targets for state-sponsored cyberattacks. The U.S. needs to prioritize investing in robust cybersecurity infrastructure to deter and defend against these threats,” he stated.
In its initial communication to lawmakers, the Treasury Department acknowledged the breach and outlined preliminary steps being taken to address the vulnerabilities. However, critics argue that more transparency and urgency are needed.
“The Treasury must act swiftly to restore public confidence,” Hill said in a statement. “This is not just about one breach; it’s about ensuring that our most sensitive information is protected against future attacks.”
As the investigation unfolds, lawmakers are expected to push for stronger legislative measures to enhance federal cybersecurity. This could include increased funding for cybersecurity initiatives, stricter protocols for accessing sensitive data, and more robust coordination between federal agencies.
The US Republican Lawmakers Probe Treasury case serves as a stark reminder of the evolving cyber threats facing the U.S. government. With the Jan. 10 deadline for the briefing fast approaching, all eyes will be on the Treasury’s response and the actions it takes to prevent similar incidents in the future.
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