Congressional Republicans Demand Answers from Treasury on Cybersecurity Breach Linked to China

In a significant move highlighting national security concerns, two prominent Republican lawmakers are pressing the US Treasury Department for clarification regarding a recent cybersecurity breach attributed to a state-sponsored Chinese hacker. Senator Tim Scott, a key member of the Senate Banking Committee, and Representative French Hill, vice chair of the House Financial Services Committee, have issued a letter demanding a full congressional briefing by January 10.

The breach, which occurred on December 2, 2024, enabled unauthorized access to several employee workstations within the Treasury, leading to exposure of certain unclassified documents. In their letter to Treasury Secretary Janet Yellen, Scott and Hill expressed their alarm, stating, “This breach of federal government information is extremely concerning.” They emphasized the critical nature of the information housed by the Treasury, which includes tax details, business ownership records, and suspicious activity reports.

Both lawmakers underscored the necessity of stringent cybersecurity measures to protect sensitive federal data, particularly against threats posed by foreign adversaries like the Chinese Communist Party (CCP). “The fact that a CCP-sponsored APT [advanced persistent threat] actor was able to access Treasury’s information systems is unacceptable and raises serious questions about the protocols for safeguarding sensitive federal government information from future cybersecurity incidents,” they stated.

This alarming incident not only raises questions about the effectiveness of current cybersecurity protocols but also about the potential implications for national security. As cybersecurity becomes an increasingly vital concern, the lawmakers’ call for transparency reflects broader apprehensions about how foreign entities might exploit vulnerabilities in US government systems.

In response to the breach, Treasury officials confirmed in a letter on December 30 that they would submit more detailed information within 30 days, in accordance with the Federal Information Security Modernization Act. While the department continues to investigate, the Chinese government has categorically denied involvement, stating that it “firmly opposes the US’s smear attacks against China without any factual basis.”

This incident highlights a growing trend of cybersecurity breaches impacting government entities and raises an urgent question: What steps are being taken to ensure that sensitive information is not compromised in the future? As the urgency of this issue escalates, all eyes will be on the Treasury’s forthcoming report and the implications it may have for US cybersecurity policy moving forward.

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