Obama Invokes Cold-War Law To Unmask Chinese Telecom Spyware

The U.S. is invoking Cold War-era national-security powers to force telecommunication companies including AT&T Inc. and Verizon Communications Inc. to divulge confidential information about their networks in a hunt for Chinese cyber-spying.

In a survey distributed in April, the U.S. Commerce Department asked for a detailed accounting of foreign-made hardware and software on the companies’ networks. It also asked about security-related incidents such as the discovery of “unauthorized electronic hardware” or suspicious equipment that can duplicate or redirect data, according to a copy of the survey reviewed by Bloomberg News.

The survey represents “very high-level” concern that China and other countries may be using their growing export sectors to develop built-in spying capabilities in U.S. networks, said a senior U.S. intelligence official who asked not to be named because he wasn’t authorized to speak on the matter.

“This is beyond vague suspicions,” said Richard Falkenrath, a senior fellow in the Council on Foreign Relations Cyberconflict and Cybersecurity Initiative. “Congress is now looking at this as well, and they’re doing so based on very specific material provided them in a classified setting” by the National Security Agency, he said.

Dozens of Companies

More