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The Financial Crimes Enforcement Network (FinCEN) provides the following FAQs to supplement its advisory on cyber-events and cyber-enabled crime and assist financial institutions in reporting cyber-events and cyber-enabled crime through SARs. The following FAQs supersede those published in 2001 regarding computer intrusion. These new FAQs provide information and details not contained in the 2001 FAQs.
Through their involvement with the APT10 Group, from at least in or about 2006 up to and including in or about 2018, Zhu and Zhang conducted global campaigns of computer intrusions targeting, among other data, intellectual property and confidential business and technological information at managed service providers (MSPs), which are companies that remotely manage the information technology infrastructure of businesses and governments around the world, more than 45 technology companies in at least a dozen U.S. states, and U.S. government agencies. The APT10 Group targeted a diverse array of commercial activity, industries and technologies, including aviation, satellite and maritime technology, industrial factory automation, automotive supplies, laboratory instruments, banking and finance, telecommunications and consumer electronics, computer processor technology, information technology services, packaging, consulting, medical equipment, healthcare, biotechnology, pharmaceutical manufacturing, mining, and oil and gas exploration and production. Among other things, Zhu and Zhang registered IT infrastructure that the APT10 Group used for its intrusions and engaged in illegal hacking operations.
Earlier, beginning in or about 2006, members of the APT10 Group, including Zhu and Zhang, engaged in an intrusion campaign to obtain unauthorized access to the computers and computer networks of more than 45 technology companies and U.S. government agencies, in order to steal information and data concerning a number of technologies (the Technology Theft Campaign). Through the Technology Theft Campaign, the APT10 Group stole hundreds of gigabytes of sensitive data and targeted the computers of victim companies involved in aviation, space and satellite technology, manufacturing technology, pharmaceutical technology, oil and gas exploration and production technology, communications technology, computer processor technology, and maritime technology.
Over the course of the MSP Theft Campaign, Zhu, Zhang, and their co-conspirators in the APT10 Group successfully obtained unauthorized access to computers providing services to or belonging to victim companies located in at least 12 countries, including Brazil, Canada, Finland, France, Germany, India, Japan, Sweden, Switzerland, the United Arab Emirates, the United Kingdom, and the United States. The victim companies included at least the following: a global financial institution, three telecommunications and/or consumer electronics companies; three companies involved in commercial or industrial manufacturing; two consulting companies; a healthcare company; a biotechnology company; a mining company; an automotive supplier company; and a drilling company.
Zhu and Zhang are each charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
As markets grow more global and complex, so too are the threats through cyber intrusion, denial of service attacks, manipulation, misuse by insiders and other cyber misconduct. In the United States, aspects of cybersecurity are the responsibilities of multiple government agencies, including the SEC. Cybersecurity is also a responsibility of every market participant. The SEC is committed to working with federal and local partners, market participants and others to monitor developments and effectively respond to cyber threats.
Regardless of size, CISA recommends all organizations adopt a heightened posture when it comes to cybersecurity and protecting their most critical assets. Recommended actions include: (1) reduce the likelihood of a damaging cyber intrusion, (2) take steps to quickly detect a potential intrusion, (3) ensure that the organization is prepared to respond if an intrusion occurs, and (4) maximize the organization's resilience to a destructive cyber incident.
As outlined in a joint statement issued Dec. 16, 2020 by the Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and Office of the Director of National Intelligence (ODNI), the U.S. government has become aware of a significant and ongoing cybersecurity campaign. Pursuant to Presidential Policy Directive (PPD) 41, the FBI, CISA, and ODNI have formed a Cyber Unified Coordination Group (UCG) to coordinate a whole-of-government response to this significant cyber incident. The UCG is intended to unify the individual efforts of these agencies as they focus on their separate responsibilities. This is a developing situation, and we continue to work to understand the full extent of this campaign. Please follow the links below to find helpful information published and updated by CISA:
The 2011 PlayStation Network outage (sometimes referred to as the PSN Hack) was the result of an "external intrusion" on Sony's PlayStation Network and Qriocity services, in which personal details from approximately 77 million accounts were compromised and prevented users of PlayStation 3 and PlayStation Portable consoles from accessing the service. The attack occurred between April 17 and April 19, 2011, forcing Sony to turn off the PlayStation Network on April 20. On May 4, Sony confirmed that personally identifiable information from each of the 77 million accounts had been exposed. The outage lasted 23 days.
On April 20, 2011, Sony acknowledged on the official PlayStation Blog that it was "aware certain functions of the PlayStation Network" were down. Upon attempting to sign in via the PlayStation 3, users received a message indicating that the network was "undergoing maintenance". The following day, Sony asked its customers for patience while the cause of outage was investigated and stated that it may take "a full day or two" to get the service fully functional again.
The company later announced an "external intrusion" had affected the PlayStation Network and Qriocity services. This intrusion occurred between April 17 and April 19. On April 20, Sony suspended all PlayStation Network and Qriocity services worldwide. Sony expressed their regrets for the downtime and called the task of repairing the system "time-consuming" but would lead to a stronger network infrastructure and additional security. On April 25, Sony spokesman Patrick Seybold reiterated on the PlayStation Blog that fixing and enhancing the network was a "time intensive" process with no estimated time of completion. However, the next day Sony stated that there was a "clear path to have PlayStation Network and Qriocity systems back online", with some services expected to be restored within a week. Furthermore, Sony acknowledged the "compromise of personal information as a result of an illegal intrusion on our systems."
On May 3 Sony Computer Entertainment CEO Kazuo Hirai reiterated this and said the "external intrusion" which had caused them to shut down the PlayStation Network constituted a "criminal cyber attack". Hirai expanded further, claiming that Sony systems had been under attack prior to the outage "for the past month and half", suggesting a concerted attempt to target Sony.
Yes, we believe so. Sony Network Entertainment America is continuing its investigation into this criminal intrusion, and more detailed information could be discovered during this process. We are reluctant to make full details publicly available because the information is the subject of an on-going criminal investigation and also the information could be used to exploit vulnerabilities in systems other than Sony's that have similar architecture to the PlayStation Network.
As of today, the major credit card companies have not reported that they have seen any increase in the number of fraudulent credit card transactions as a result of the attack, and they have not reported to us any fraudulent transactions that they believe are a direct result of the intrusions described above.
If the Class Action Waiver clause is found to be illegal or unenforceable, this entire Section 15 will be unenforceable, and the dispute will be decided by a court and you and the Sony Entity you have a dispute with each agree to waive in that instance, to the fullest extent allowed by law, any trial by jury.
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