In December 2024, Chinese state-sponsored hackers successfully breached the U.S. Treasury Department’s computer systems, gaining access to the personal workstation of Secretary Janet Yellen. The breach, which was categorized as a “major incident” by the Treasury Department, involved exploiting vulnerabilities in third-party software provided by BeyondTrust, a cybersecurity firm specializing in remote access management. Attackers gained unauthorized access to several Treasury workstations, including those of senior officials such as Deputy Secretary Wally Adeyemo and Acting Under Secretary Brad Smith. Although sensitive areas like sanctions enforcement and intelligence operations were targeted, the hackers were unable to penetrate classified systems, limiting the potential impact.
The breach was made possible by exploiting stolen API keys
The breach was made possible by exploiting stolen API keys and two zero-day vulnerabilities in BeyondTrust’s Remote Support software platform. These vulnerabilities allowed the attackers to bypass security protocols and gain privileged access to Treasury Department systems. Upon detecting suspicious activity in early December, BeyondTrust confirmed the breach by December 5 and promptly notified the Treasury Department. The attackers worked outside regular business hours, which helped them avoid detection and allowed them to focus on data collection without causing widespread disruption.
Following the breach, the Treasury Department collaborated with the FBI, the Cybersecurity and Infrastructure Security Agency (CISA), and forensic experts to assess the damage. Investigations revealed that over 3,000 unclassified files across 419 Treasury workstations were compromised, with fewer than 50 files accessed on Yellen’s computer. Fortunately, classified systems and email servers were not affected. In light of this event, the Treasury Department vowed to reassess its reliance on third-party vendors like BeyondTrust and take steps to bolster its cybersecurity measures to prevent future breaches.
Despite the Chinese government’s denial of any involvement in the attack, the breach underscores the increasing threat posed by advanced persistent threat (APT) actors, especially those backed by nation-states. This incident also highlights vulnerabilities in third-party software used by government agencies and the importance of strengthening supply chain security. As investigations continue, policymakers are expected to scrutinize both the Treasury Department’s cybersecurity protocols and BeyondTrust’s role in the breach, leading to potential changes in how government agencies manage third-party software and services.
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