Financial Crime World

China’s Cyber Threat Landscape: Rising Cybercrime and Online Surveillance

Travelers planning business trips to China need to be aware of the heightened cyber risks and online surveillance in the country. According to a recent report by AIG Travel’s security team, China is now classified as a high-risk location due to the widespread cybercrime and pervasive government monitoring in the cyber domain.

Widespread Cybercrime and Online Surveillance

Travelers and businesses are at a significant risk due to the frequent occurrence of cybercrime and pervasive online surveillance in China. Here are some of the reasons why:

  • Online Censorship: China has strict internet censorship laws, with the government continuously filtering online activities in real-time.
  • Confiscation of Electronic Devices: Government security forces have the authority to confiscate electronic devices, including those of high-profile travelers, at both rural and urban airports for investigation without prior notice.

Surge in Cybercrime Activities

China has seen a surge in cybercrime activities in recent years. Here are some of the consequences:

  • Identity Theft: Hacker groups and information thieves have targeted individuals.
  • Financial Crimes: Cybercriminals have stolen financial information from corporations.
  • Hacking of Financial Institutions: Financial institutions have been hacked, leading to significant financial losses.
  • Theft of Corporate Information: Corporations have been victims of data breaches, with sensitive information stolen.
  • Online Drug Trafficking: Cybercrime syndicates have set up online drug trafficking networks.

Government Monitoring and Censorship

China’s government extensively monitors the internet to track online activities and filter out content deemed harmful for the Communist Party of China’s rule. Internet users have been arrested or detained for posting content considered ‘hostile’ by the government.

Ban on Non-State Sanctioned VPNs

China enacted a ban on non-state sanctioned Virtual Private Networks (VPNs) on March 31, 2018. While the ban’s enforcement has been opaque, there have been reported instances of Chinese nationals being imprisoned for using unapproved VPNs.

Precautions for Travelers

Despite the heightened risks, AIG Travel assists businesses and leisure travelers in managing their travel risks. Here’s what travelers can do to minimize their exposure to cyber risks:

  • Avoid storing proprietary personal, business, or financial information: Avoid accessing or storing proprietary information on devices in China due to the risk of confiscation or monitoring by government authorities.
  • Use Wi-Fi networks with caution: Exercise extreme caution when using Wi-Fi networks, as all data accessed via Wi-Fi is subject to surveillance.
  • Use mobile phones and tablets with local SIM cards: Using mobile phones and tablets with a local SIM card for telephone and internet usage is generally safe.

Conclusion

Travelers planning business trips to China should be aware of the heightened cyber risks and online surveillance in the country. By following proper security measures and minimizing their exposure to sensitive information, they can significantly reduce their risk of becoming targets of cybercrime or government surveillance.

For more information, please visit AIG’s websites at www.aig.com/travel and www.travelguard.com.