Its the FMI’s Turn at Being Hacked

Within weeks of the World Bank’s story breaking about its computer systems being breached by hackers, Fox News has reported here that Cyber-Hackers have broken into the IMF computer system.

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It also offers financial and technical assistance to its members, making it an international lender of last resort. Its headquarters are located in Washington, D.C., USA.

The IMF of course absolutely denies that the event took place. The spyware discoveries came at a particularly sensitive time for the international bailout institution, which along with the World Bank is expected to play a central role in trying to combat global financial turmoil.

This is too much of a coincidence in my opinion. Any information taken by the attackers will likely be used as leverage to blackmail the institutions rather than being made public to embarass them.

In fact, the computer assaults on the World Bank and the IMF are only part of a rash of sensitive cyber-burglaries that even reached into the U.S. presidential campaign. Both London’s Financial Times and Newsweek recently reported that the computer network of the White House, and the Obama and McCain campaigns, were seriously breached.

The Pentagon claims the Chinese army has established units to develop viruses to attack enemy computer systems. Chinese hackers penetrated the Pentagon last year, in an attack that obtained e-mails from the system serving Defense Secretary Robert Gates.

Despite vigorous Chinese denials, “everyone in the intelligence community knows that China is the biggest player in cyber espionage,” says John Tkacik, a former head of China intelligence for the U.S. State Department. Tkacik told FOX News that later this month, President-elect Obama will be presented with a new top-secret National Intelligence Estimate (NIE) report that “will cause the scales to drop from his eyes” regarding Chinese cyber-espionage.

“What the Chinese are particularly interested in at the IMF is what loans the IMF is likely to give to other countries,” says Nick Day, a former British intelligence officer who runs Diligence, a private investigative firm that does extensive work for many international corporations and institutions.

“The geopolitics of this is that essentially you’ve got a few countries in the world that are stacked on huge foreign capital reserves — Russia, China, Japan, the Middle East — and the rest of us are pretty much borrowers to those lenders.