Intelligence Chief Warns Banks of Chinese Espionage threat

UK intelligence network MI5 has contacted 300 chief executives and security experts at leading British financial institutions, warning them that Chinese state organizations may be spying on them.The unprecedented letter from MI5 director-general Jonathan Evans warns companies they could be the target of Web-based attempts to gain technical and commercially sensitive information, according to the BBC.

The news organization said Zhao Shangse, an official from the Chinese embassy in London, denied the allegations.

A recent RSA report on phishing revealed that 22% of all worldwide attacks originate in China. [However, the report found that most attacks -- 47% -- originate in the U.S.]

While the number of cyber attacks against financial firms worldwide continues to rise, police in New Zealand are currently questioning a teenager accused of being the ringleader of a crime network comprised of people from the U.S. and other countries, which stole over $20 million from bank accounts.

The crime newtork, which the criminals named "the A-Team", is believed to have used botnets to infiltrate and control around 1.3 million computers.

The hackers are believed to have reaped millions of dollars after stealing credit card information and manipulating stock trades.

In a statement, the New Zealand police said the 18-year-old ringleader, who could not be named for legal reasons, is alleged to have designed a virus that used encryption and was undetectable by anti-virus software.UK intelligence network MI5 has contacted 300 chief executives and security experts at leading British financial institutions, warning them that Chinese state organizations may be spying on them... Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio