Chinese State-Backed Hackers Allegedly Exploit Software Vulnerability to Target Internet Companies, Cybersecurity Firm Reveals

In a concerning revelation for internet companies worldwide, a cybersecurity firm has reported that a Chinese state-sponsored hacking group has exploited a critical software vulnerability to infiltrate several internet companies, including those based in the United States. The vulnerability was identified in Versa Director, a software platform developed by Santa Clara-based Versa Networks, which is used to manage services for various clients.

Lumen Technologies, the cybersecurity firm responsible for this discovery, detailed the incident in a recent blog post. The firm has identified four U.S. companies and one international company that were compromised by the cyberattack. According to Lumen’s assessment, the hacking group, dubbed "Volt Typhoon," is believed to be supported by the Chinese government.

Versa Networks confirmed the vulnerability in a security bulletin, acknowledging that the flaw in Versa Director had been exploited by hackers in at least one confirmed instance. The vulnerability allowed unauthorized users with certain administrative privileges to upload potentially harmful files, posing a significant threat to the affected companies.

Lumen Technologies expressed moderate confidence in linking the attack to Volt Ty — a known entity in cybersecurity circles for its advanced capabilities and alleged ties to the Chinese government.

In response to the incident, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) has added Versa Director’s vulnerability to its list of "known exploited vulnerabilities," signaling the severity of the threat. Despite these developments, both the Chinese Embassy in Washington and U.S. officials have declined to provide specific details regarding the breach.

This incident underscores the growing concerns over cyber espionage linked to Chinese state actors, as the U.S. continues to scrutinize companies with potential ties to Beijing. With the rise of digital threats, it remains imperative for organizations to strengthen their cybersecurity defenses to protect against such sophisticated attacks.