Cyberattack Risk Highest Ever, MPs Warn

By Alistair Bunkall, Defence Correspondent

The threat to the UK from cyberattacks is now at its highest-ever level and is "disturbing in its scale and complexity", according to MPs.

The assessment was made by the Intelligence and Security Committee (ISC) in its annual report on the UK's three security agencies, MI5, MI6 and GCHQ.

So-called "cyber-mercenaries" are being recruited by some countries to hack into the computer systems of foreign governments and companies, the ISC claimed.

It said it had been told "a number of countries are also using private groups to carry out state-sponsored attacks".

"These state-affiliated groups consist of skilled cyber professionals, undertaking attacks on diverse targets such as financial institutions and energy companies," the report said.

"These groups pose a threat in their own right, but it is the combination of their capability and the objectives of their state backers which makes them of particular concern."

The Chinese and Russian governments have both been accused of state-sponsored hacking but deny the claims.

A large attack on South Korea's banks and broadcasters in March has also been blamed on a group called DarkSeoul, suspected of working on behalf of North Korea.

GCHQ is the centre of the Government's signal intelligence services

MPs predicted the risk to the UK from a cyberattack would keep rising but noted GCHQ do not believe terrorist groups such as al Qaeda yet pose a credible cyber threat.

The ISC report highlighted a problem in the recruitment and retention of specialist staff to tackle the problem because the security services cannot compete with private sector pay.

In particular, the committee is worried that the support provided by the agencies to help military operations in Afghanistan could be "easy prey" for a department looking to make savings once the UK's role in the country comes to an end next year.

Despite the concerns, the committee notes the good work of the agencies in keeping Britain safe from terror attacks but does give a warning.

It said: "The Government must ensure that real progress is made as part of the wider National Cyber Security Strategy: the UK cannot afford not to keep pace with the cyber threat."

Last year's Olympics and Paralympics were the busiest period ever for the security services in peacetime. It was decided not to cut resources or capability during this time.

But all three agencies collectively need to find £220m of savings in the next few years as part of the 2010 Spending Review.

The agencies are confident that can be achieved without damaging operational capabilities but the ISC made clear it "does not share that confidence".

As part of the recent Spending Review, the intelligence agencies will receive a combined 3.4% increase to their budgets from 2015/16.

On other issues the report notes concern over the use of chemical weapons in Syria.

It lists mustard gas, sarin, ricin and the VX nerve agent as weapons reportedly in Syria's stockpile.

It cited evidence from the Foreign Secretary about "catastrophic" consequences if some of this stockpile were to fall into the hands of those with terrorist links in the region.

But the committee noted concerns that the security of Pakistan's nuclear arsenal could be compromised have decreased as the country has become more politically stable.

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