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BEIJING, Feb 19 (Reuters) – A secretive Chinese military

unit is believed to be behind a prolific series of hacking

attacks, a U.S. computer security company said, contradicting

claims by China’s government that it is not involved in such

operations.

The report by Mandiant identified the People’s Liberation

Army’s Shanghai-based Unit 61398 as the most likely driving

force behind the hacking. Mandiant said it believed the unit had

carried out “sustained” attacks on a wide set of industries.

“The nature of ‘Unit 61398’s’ work is considered by China to

be a state secret; however, we believe it engages in harmful

‘Computer Network Operations’,” Mandiant said in the report

released in the United States on Monday.

“It is time to acknowledge the threat is originating in

China, and we wanted to do our part to arm and prepare security

professionals to combat that threat effectively,” it said.

China’s Defence Ministry did not immediately respond to

faxed questions about the report on Tuesday.

Unit 61398 is located in Shanghai’s Pudong district, China’s

financial and banking hub, and is staffed by perhaps thousands

of people proficient in English as well as computer programming

and network operations, the report said.

The unit has stolen “hundreds of terabytes of data from at

least 141 organisations across a diverse set of industries

beginning as early as 2006″, it said.

Most of the victims were located in the United States, with

smaller numbers in Canada and Britain. The information stolen

ranged from details on mergers and acquisitions to the emails of

senior employees, the report said.

The Chinese government has consistently denied being

involved in such activities. Experts scoff at the denials.

“The PLA plays a key role in China’s multi-faceted security

strategy, so it makes sense that its resources would be used to

facilitate economic cyber espionage that helps the Chinese

economy,” said Dmitri Alperovitch, chief technology officer and

co-founder of CrowdStrike, one of Mandiant’s competitors.

(Reporting by Ben Blanchard; Additional reporting by Jim Finkle

in BOSTON; Editing by Paul Tait)