PARIS: Gemalto said on Friday it was investigating a report US and British spies had hacked its systems to steal the privacy-protecting encryption keys in the chips it makes for mobile phones.
Citing documents provided by whistleblower Edward Snowden, the report said the hack allowed the agencies to monitor a large portion of voice and data mobile communications around the world without permission from governments and telecom companies.
Gemalto’s shares sank as much as 10 percent in huge volumes in early trading after the news website Intercept reported the hack by the US National Security Agency (NSA) and Britain’s Government Communications Headquarters (GCHQ).
“We take this publication very seriously and will devote all resources necessary to fully investigate and understand the scope of such sophisticated techniques,” the company said in a statement.
The hack by the National Security Agency (NSA) and UK’s Government Communications Headquarters (GCHQ) allowed the agencies to monitor a large portion of voice and data mobile communications around the world without permission from governments and telecom companies, according to the report.
The breach was detailed in a secret 2010 GCHQ document, Intercept said. (http://bit.ly/19E0KUK)
Franco-Dutch company Gemalto makes smart chips for mobile phones, bank cards and biometric passports and counts Verizon , AT&T Inc. and Vodafone among its 450 wireless network provider customers around the world.
“If these attacks were to be confirmed and did allow access to various communications, it would be very damaging for Gemalto’s reputation,” a Paris-based trader said.
Gemalto officials declined further comment on Friday but in an e-mailed statement earlier a spokeswoman said: “From what we gathered at this moment, the target was not Gemalto, per se — it was an attempt to try and cast the widest net possible to reach as many mobile phones as possible.”
A spokesperson for Britain’s GCHQ said the agency did not comment on intelligence matters. NSA could not be immediately reached for comment.
Published by First Look Media, Intercept was founded by US documentary maker Laura Poitras, investigative reporter Jeremy Scahill and Glenn Greenwald, who made headlines with his reporting on US electronic surveillance programs.
Phone chipmaker Gemalto probes report of hacking by US, UK spies
Phone chipmaker Gemalto probes report of hacking by US, UK spies
Starmer arrives in China to defend ‘pragmatic’ partnership
- British Prime Minister Keir Starmer arrived in Beijing on Wednesday to meet with Chinese leader Xi Jinping, hoping to restore long fraught relations
BEIJING: British Prime Minister Keir Starmer arrived in Beijing on Wednesday to meet with Chinese leader Xi Jinping, hoping to restore long fraught relations.
It is the first visit to China by a UK prime minister since 2018 and follows a string of Western leaders courting Beijing in recent weeks, pivoting from a mercurial United States.
Starmer, who is also expected to visit Shanghai on Friday, will later make a brief stop in Japan to meet with Prime Minister Sanae Takaichi.
For Xi, the trip is an opportunity to show Beijing can be a reliable partner at a time when President Donald Trump’s policies have rattled historic ties between Washington and its Western allies.
Starmer is battling record low popularity polls and hopes the visit can boost Britain’s beleaguered economy.
The trip has been lauded by Downing Street as a chance to boost trade and investment ties while raising thorny issues such as national security and human rights.
Starmer will meet with Xi for lunch on Thursday, followed by a meeting with Premier Li Qiang.
The British leader said on Wednesday this visit to China was “going to be a really important trip for us,” vowing to make “some real progress.”
There are “opportunities” to deepen bilateral relations, Starmer told reporters traveling with him on the plane to China.
“It doesn’t make sense to stick our head in the ground and bury in the sand when it comes to China, it’s in our interests to engage and not compromise on national security,” he added.
China, for its part, “is willing to take this visit as an opportunity to enhance political mutual trust,” foreign ministry spokesman Guo Jiakun reiterated Wednesday during a news briefing.
Starmer is the latest Western leader to be hosted by Beijing in recent months, following visits by Canadian Prime Minister Mark Carney and French President Emmanuel Macron.
Faced with Trump’s threats to impose tariffs on Canada for signing a trade agreement with China, and the US president’s attempts to create a new international institution with his “Board of Peace,” Beijing has been affirming its support for the United Nations to visiting leaders.
Reset ties
UK-China relations plummeted in 2020 after Beijing imposed a sweeping national security law on Hong Kong, which severely curtailed freedoms in the former British colony.
They soured further since with both powers exchanging accusations of spying.
Starmer, however, was quick to deny fresh claims of Chinese spying after the Telegraph newspaper reported Monday that China had hacked the mobile phones of senior officials in Downing Street for several years.
“There’s no evidence of that. We’ve got robust schemes, security measures in place as you’d expect,” he told reporters on Wednesday.
Since taking the helm in 2024, Starmer has been at pains to reset ties with the world’s second-largest economy and Britain’s third-biggest trade partner.
In China, he will be accompanied by around 60 business leaders from the finance, pharmaceutical, automobile and other sectors, and cultural representatives as he tries to balance attracting vital investment and appearing firm on national security concerns.
The Labour leader also spoke to Xi on the sidelines of the G20 summit in Brazil in November 2024.
Jimmy Lai
The prime minister is also expected to raise the case of Hong Kong media mogul and democracy supporter Jimmy Lai, 78, a British national facing years in prison after being found guilty of collusion charges in December.
When asked by reporters about his plans to discuss Lai’s case, Starmer avoided specifics, but said engaging with Beijing was to ensure that “issues where we disagree can be discussed.”
“You know my practice, which is to raise issues that need to be raised,” added Starmer, who has been accused by the Conservative opposition of being too soft in his approach to Beijing.
Reporters Without Borders urged Starmer in a letter to secure Lai’s release during his visit.
The British government has also faced fierce domestic opposition after it approved this month contentious plans for a new Chinese mega-embassy in London, which critics say could be used to spy on and harass dissidents.
At the end of last year, Starmer acknowledged that China posed a “national security threat” to the UK, drawing flak from Chinese officials.
The countries also disagree on key issues including China’s close ties with Russian President Vladimir Putin amid the war in Ukraine, and accusations of human rights abuses in China.
