Nation-State Cyber Actors: Unmasking Espionage and Disruption

On February 7th (2024), The Cybersecurity and Infrastructure Security Agency (CISA), National Security Agency (NSA), and Federal Bureau of Investigation (FBI), along with key U.S. and international government agencies published a Joint Cybersecurity Advisory on malicious activity by a People’s Republic of China (PRC) state-sponsored cyber actor, known as Volt Typhoon, to compromise critical infrastructure and associated actions that should be urgently undertaken by all organizations.

Nation-state cyber actors have emerged as formidable adversaries, wielding advanced tactics and techniques to achieve their objectives. The battleground is no longer confined to physical territories; it now extends into cyberspace, where espionage, intelligence collection, and disruption take center stage.

The Unchanging Aims

The aims of these cyber actors remain consistent: espionage and disruption. Their most reliable tools include credential harvesting, malware deployment, and exploiting vulnerabilities through VPN exploits. But what sets them apart is their adaptability—their ability to evolve while maintaining their core objectives.

This year, a common theme has emerged among nation-state actors originating from China, Russia, North Korea, and Iran. They have increasingly set their sights on IT service providers as a strategic way to exploit downstream customers. By infiltrating these providers, they gain access to a broader ecosystem of organizations—a ripple effect that amplifies their impact.

The Most Heavily Targeted Sectors

Government agencies and non-governmental organizations (NGOs) bear the brunt of these attacks. According to the 2021 MDDR, nearly 80 percent of nation-state attacks were directed at government entities, think tanks, and NGOs. These organizations play pivotal roles in international affairs, making them prime targets for cyber espionage.

Nation-State Notifications (NSNs)

A Lifeline for Defenders** Whenever an organization or individual account holder faces observed nation-state activity, Microsoft delivers a Nation-State Notification (NSN). These notifications provide critical information for investigation. Over the past three years, more than 20,500 NSNs have been dispatched—a testament to the scale of this ongoing battle.

Interestingly, recent attacks have largely focused on operational objectives—espionage and intelligence collection—rather than outright disruption or destruction. This suggests that these actors are more interested in gathering information and maintaining access than causing immediate harm. However, this does not mean that they are harmless; on the contrary, they pose a serious threat to the security and stability of the global cyberspace.

The Need for Collective Defense

To counter these sophisticated adversaries, organizations need to adopt a collective defense approach that leverages the power of collaboration and information sharing. By working together, defenders can gain greater visibility, awareness, and resilience against nation-state cyber activity. CISA offers various resources and services to help organizations build their collective defense capabilities, such as:

• The Cyber Information Sharing and Collaboration Program (CISCP), which enables bi-directional sharing of cyber threat indicators, defensive measures, and best practices among public and private sector partners.
• The Automated Indicator Sharing (AIS) initiative, which allows the exchange of cyber threat indicators in near real-time through a standard format and platform.
• The Cybersecurity and Infrastructure Security Agency Act of 2018, which authorizes CISA to provide technical assistance, risk assessments, and incident response services to federal and non-federal entities upon request.

Conclusion

Nation-state cyber actors are not going away anytime soon. They will continue to pursue their strategic interests through cyberspace, using advanced and evolving techniques to evade detection and achieve their goals. Organizations need to be vigilant and proactive in defending their networks and systems, and leverage the resources and support available from CISA and other partners. Together, we can make cyberspace a safer and more secure domain for everyone.

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