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Inside China's Seedy Hacking Industry Revealed By Leaked Documents

The interior of the I-Soon office, also known as Anxun in Mandarin, is seen after office hours in Chengdu in southwestern China's Sichuan Province on Feb. 20, 2024. (AP Photo/Dake Kang, File)

Recently leaked internal documents from a private hacking contractor linked to China's government and police have shed light on the shady practices within the country's hacking industry. These revelations provide a rare glimpse into an industry characterized by cut corners, murky rules, and poor security protocols.

Private hacking contractors in China are known for stealing data from other countries to sell to Chinese authorities. The leaked documents expose a world where profit is the driving force, and connections play a crucial role in securing lucrative projects.

The leaked records from the firm, I-Soon, show executives engaging in lavish dinners and late-night binge drinking to woo officials. They collude with competitors to manipulate government contract bids and pay substantial 'introduction fees' to contacts who bring them profitable projects.

China's hacking industry traces its roots back to the 1990s when citizens began going online. I-Soon's founder, a former member of China's first hacktivist group, aimed to bolster the country's hacking capabilities to match global rivals.

Despite a temporary lull in hacking activities following complaints from world leaders, private hacking outfits like I-Soon have become more active than ever. These contractors provide cover and deniability for Chinese state security forces, forming part of an ecosystem with deep ties to the Chinese government.

The leaked documents also reveal a seedy side to the industry, with I-Soon executives engaging in questionable practices such as buying gifts for officials and poaching staff from competitors. The company's operations were fueled by connections and late-night socializing, highlighting a culture where business is conducted in informal settings.

Furthermore, the documents shed light on the lax security measures and poor pay within the hacking industry. I-Soon faced financial challenges, leading to low salaries for staff and struggles with cash flow. The economic downturn in China exacerbated these issues, causing an exodus of talent from the industry.

Overall, the leaked documents provide a rare glimpse into the inner workings of China's hacking industry, revealing a world driven by profit, connections, and questionable practices.

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