China has compromised government networks, stealing valuable info: Canadian cyber spies

Threat agents sponsored by China have “compromised” government networks over the past five years, collecting valuable information, according to a new report from Canada’s cyber spy agency.

The Communications Security Establishment, responsible for foreign signals intelligence, cyber operations and cyber security, released its updated national cyber threat assessment on Wednesday, which flags what the agency sees as the most pressing cyber threats facing individuals and organizations in Canada.

Their latest report, which casts ahead to the 2025-2026 fiscal year, names the People’s Republic of China (PRC) as “the most comprehensive cyber security threat facing Canada today” and its scale, tradecraft and ambitions in cyberspace as “second to none.”

And with troubling success. 

According to the Canadian intelligence agency’s report, state-sponsored actors persistently conduct cyber espionage campaigns against federal, provincial, territorial, municipal and Indigenous government networks in Canada.

“PRC cyber threat actors have compromised and maintained access to multiple government networks over the past five years, collecting communications and other valuable information,” said CSE.

At least 20 networks associated with government  of Canada agencies and departments have been compromised by  PRC cyber-threat actors, said the agency. 

“While all known federal government compromises have been resolved, it is very likely that the actors responsible for these intrusions dedicated significant time and resources to learn about the target networks,” reads the report.

China targets government networks and public officials to try and give it an advantage in China-Canada bilateral relations and commercial matters, said CSE.

Russia, Iran and India also named

“For example, provincial and territorial governments are likely a valuable target given that they have decision-making power over regional trade and commerce, including resource extraction (e.g., energy and critical minerals),” reads the report. 

“The information collected is also likely used to support the PRC’s malign influence and interference activities against Canada’s democratic processes and institutions.”

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CSIS director David Vigneault says using TikTok is risky and the potential for the government of China to access personal data from the social media platform poses a ‘threat to the way we live.’

China’s cyber prowess also extends to supporting Beijing’s goal of silencing activists, journalists and diaspora communities.

“The PRC government very likely leverages Chinese-owned technology platforms, some of which likely co-operate with the PRC’s intelligence and security services, to facilitate transnational repression,” said the report. 

Wednesday’s report does not name platforms. 

Previously, the Canadian Security Intelligence Service has warned against using the wildly popular video app TikTok. 

Former director David Vigneault told CBC in an interview it’s “very clear” from the app’s design that data gleaned from its users “is available to the government of China.”

CSE’s report also names Russia, Iran, North Korea and India as cyber adversaries.

Russian cyber threat actors, it says.”are very likely targeting the Canadian government, military, private sector, and critical infrastructure networks.”

It also notes that as Canada and India’s relationship continues to deteriorate, India will likely direct its burgeoning cyber program against Ottawa’s networks to spy. 

The already tense relationship has nosedived in the past two weeks after Canada accused India of orchestrating a campaign of violence on Canadian soil, including murders and extortion. 

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