Security expert: China top threat to U.S. security

China represents the most comprehensive threat to U.S. national security, said Texas Department of Banking Director of Cybersecurity and Technology Strategy Phillip Hinkle. .Hinkle presented an overview of the risks he sees from China on April 25 during the Iowa Division of Banking Day with the Superintendent in Des Moines. He sees the country as surpassing Russia, North Korea and Iran as the top threat actor. “China is way, way above everyone else, not just in hacking,” he added. Hinkle was especially critical of the underlying philosophy of the Chinese government, arguing that its National Intelligence Law of 2018 created backdoors and other security vulnerabilities to more easily access data. China is already operating as if it is already at war with the United States, and, if it invades Taiwan, is preparing to cripple the U.S., Hinkle said. He described China President Xi Jinping’s instruction to his Army to be ready to invade Taiwan by 2027. Hinkle said China wants to control the South China Sea to control global shipping lines. He said the Chinese government’s use of technology to survey its population and other countries is part of its philosophy that world control can be more effectively achieved through long-term subtle transgressions than by a relatively short-term, traditional war. Emphasizing the threat he sees China as posing to the U.S. mainland, Hinkle cited Chinese company WH Group’s 2013 acquisition of the world’s largest pork producer, Smithfield Farms. Chinese companies have also acquired land near critical Air Force bases. He sees another example being TikTok, which is owned by Chinese media company ByteDance. TikTok has raised security concerns and a potential ban in the United States over its perceived potential to share user information with the Chinese government. Hinkle described Volt Typhoon as a Chinese hacking group targeting the finance sector, electric grids and telecommunications firms. He said the group wants to discourage the United States from responding when an attack is launched in Taiwan. Hinkle called on national security agencies to make it more challenging for China to compromise U.S. networks. Hinkle sees ransomware as the most significant cyber threat. Many ransomware organizations are well-organized and set up to help others engage in illicit activity, he added. Ten ransomware groups represent 65 percent of ransomware activity, Hinkle said. Financial losses from ransomware have risen over the past five years to $12 billion from $4 billion. Banks must have cyber insurance to effectively respond, Hinkle said. A recent four-year study reviewing 55 financial institutions victimized by ransomware revealed that each had implemented multi-factor authentication. Hinkle said banks should comprehensively complete a ransomware self-assessment tool.