PRC State-Sponsored Cyber Threats: A Wake-Up Call for U.S. Critical Infrastructure

The Cybersecurity and Infrastructure Security Agency (CISA), in collaboration with the National Security Agency (NSA) and the Federal Bureau of Investigation (FBI), released an advisory detailing the persistent threat posed by People’s Republic of China (PRC) state-sponsored cyber actors, specifically the group known as Volt Typhoon. This group has been identified as compromising and maintaining persistent access to U.S. critical infrastructure, potentially positioning themselves for disruptive cyberattacks in the event of a major crisis or conflict.

Understanding the Threat Landscape

Volt Typhoon, also referred to by aliases such as Vanguard Panda, BRONZE SILHOUETTE, and Dev-0391, among others, has been actively targeting critical infrastructure sectors in the United States, including Communications, Energy, Transportation Systems, and Water and Wastewater Systems. This group’s activities are not consistent with traditional cyber espionage. Instead, their modus operandi appears to be the pre-positioning within IT networks to enable lateral movement to Operational Technology (OT) assets, with the ultimate goal of disrupting critical functions.

What makes Volt Typhoon particularly concerning is their use of “living off the land” (LOTL) techniques. By leveraging legitimate tools and valid credentials, they can blend into the regular network traffic, making their presence extremely difficult to detect. Their strong operational security practices, coupled with the use of valid accounts, allow them to maintain long-term, undetected persistence within compromised environments. In fact, some victim organizations have reported Volt Typhoon’s presence for as long as five years, underscoring the group’s commitment to deep infiltration and persistent access.

The Broader Implications

The potential consequences of Volt Typhoon’s activities are far-reaching. While the direct threat to Canada’s critical infrastructure is assessed to be lower than that to U.S. infrastructure, the interconnected nature of North American systems means that any significant disruption in the U.S. could have a cascading effect across borders. Similarly, critical infrastructure in Australia and New Zealand is also at risk, as assessed by the Australian Signals Directorate’s Australian Cyber Security Centre (ACSC) and the New Zealand National Cyber Security Centre (NCSC-NZ).

The threat from Volt Typhoon is not just a cybersecurity issue; it is a matter of national security. The possibility of these actors leveraging their network access to cause disruptive effects in the event of geopolitical tensions or military conflicts highlights the need for a proactive and robust response.

Immediate Actions for Mitigation

Given the severity of the threat, the advisory outlines several critical actions that organizations should take to mitigate the risk posed by Volt Typhoon:

  1. Apply Patches Promptly: Internet-facing systems should be patched within a risk-informed timeframe, prioritizing critical assets and known exploited vulnerabilities. Volt Typhoon is known to exploit vulnerabilities in appliances such as those from Fortinet, Ivanti, NETGEAR, Citrix, and Cisco, making it imperative to stay ahead with updates.
  2. Implement Phishing-Resistant Multi-Factor Authentication (MFA): Strengthening access controls is crucial. MFA, particularly phishing-resistant variants, can significantly reduce the risk of unauthorized access.
  3. Ensure Comprehensive Logging: Application, access, and security logs should be enabled and centrally stored. This not only aids in detecting potential compromises but also in maintaining a historical record that could be vital in incident response.
  4. Plan for Technology End of Life: Organizations must account for the lifecycle of technology, especially beyond the manufacturer’s supported period. This includes maintaining inventories, applying additional scanning and testing, and planning for technology replacement.
  5. Harden the Attack Surface: Reducing the exposure of systems to the internet, particularly those not necessary for operation, is a fundamental step in decreasing the attack surface available to threat actors.

Looking Ahead: The Need for Vigilance

The advisory from CISA, NSA, and FBI serves as a stark reminder of the evolving threat landscape facing critical infrastructure organizations. The persistent and sophisticated nature of state-sponsored cyber actors like Volt Typhoon necessitates a proactive approach to cybersecurity. Organizations must prioritize the implementation of the recommended mitigations, regularly review and update their security postures, and stay informed about emerging threats.

As we move further into an era where cyber and physical domains are increasingly intertwined, the security of our critical infrastructure will continue to be a paramount concern. The lessons from Volt Typhoon’s activities should not only prompt immediate action but also a long-term commitment to cybersecurity resilience. The stakes are high, and the time to act is now.