China-Backed Hackers Hijack 9,200 Canadian Devices to Operate Illegal Hacking Network: FBI and CSIS

Introduction: China-Backed Hackers Hijack Canadian Devices in Global Cyber Campaign

A massive cyberespionage operation orchestrated by China-backed hackers has been uncovered, revealing that Canadian devices were hijacked to fuel a global botnet. Over 9,200 systems in Canada were secretly compromised—part of a broader international campaign that affected more than 260,000 devices across 20 countries.

According to both the FBI and CSIS, this cyber network—led by a group known as Flax Typhoon—posed a critical national security threat. By targeting infrastructure, universities, and government networks, the attackers used hijacked devices to exfiltrate data, breach secure systems, and potentially sabotage critical infrastructure.

Flax Typhoon: Anatomy of a China-Backed Cyber Botnet

Flax Typhoon, a state-sponsored Chinese hacking group, has been operational since 2021. Its cyber strategy relies on hijacking IoT (Internet of Things) devices—ranging from security cameras to office routers—to construct a global botnet. These compromised devices are weaponized to:

• Evade detection

• Launch persistent attacks disguised as normal web traffic

• Exfiltrate sensitive data without alerting users

By exploiting vulnerabilities in common devices found in homes and offices, the hackers turned thousands of Canadian systems into silent nodes in their espionage network.

📎 Source: Justice Department

Global Impact: Over 260,000 Devices Compromised

The scale of this operation is staggering. Devices across North America, Europe, and Asia were infected. These include:

• SOHO routers

• IP cameras

• NAS (network-attached storage) systems

While the epicenter of the breach was in Canada and the U.S., the malware infrastructure extended to dozens of nations. The Chinese hackers managed to disguise their traffic as routine data—slipping past most cybersecurity systems undetected.

📎 Source: Information Age

Operation Takedown: International Law Enforcement Strikes Back

On September 18, 2024, the FBI, in conjunction with international cybercrime units, launched a court-authorized operation to dismantle the Flax Typhoon botnet. They:

• Gained control over malicious command-and-control servers

• Disabled malware on infected devices

• Resisted a DDoS counterattack launched by the hackers

Despite attempts by the attackers to retaliate, authorities were able to completely dismantle the network.

This was the second major takedown of a China-sponsored botnet in 2024, following an earlier operation targeting Volt Typhoon.

Canada’s Cybersecurity Under Siege

The compromise of over 9,200 Canadian devices sheds light on systemic weaknesses in the country’s cyber defense. Targets included:

• Government departments

• Educational institutions

• Private sector IoT networks

Canada’s digital ecosystem is increasingly vulnerable to state-sponsored attacks, especially from China, Russia, and North Korea. These latest breaches were deliberate and strategic, aimed at compromising institutions critical to Canadian sovereignty.

What Makes State-Sponsored Attacks So Dangerous

State-sponsored cyberattacks like those led by Flax Typhoon differ from regular hacking in key ways:

• They use Advanced Persistent Threats (APTs) to stay hidden for months or years

• They often involve multi-phase infiltration, including phishing, backdoors, and insider access

• Their goals include intellectual property theft, geopolitical espionage, and sabotage of infrastructure

Despite China’s public denials, multiple intelligence agencies worldwide have consistently traced major cyberattacks back to Chinese state-aligned actors.

Tactics of Flax Typhoon: Phishing, IoT Exploits, and “Living Off the Land”

Flax Typhoon’s arsenal included:

• Phishing emails to deliver malware payloads

• Exploitation of IoT device vulnerabilities

• “Living off the land” techniques—using existing system tools to blend in with legitimate processes

This stealthy approach made it nearly impossible for conventional antivirus solutions to detect intrusions. Once inside, they could map entire networks, extract data, or prepare for later sabotage.

Why the Botnet Takedown Matters

Disrupting the Flax Typhoon botnet was a landmark cybersecurity victory, but it’s unlikely to halt future attacks. As FBI Director Christopher Wray warned, China-backed hackers will continue to target digital infrastructure in North America and beyond.

The long-term risk lies not just in device hijackings, but in the economic and strategic losses stemming from stolen data—especially in advanced research and defense industries.

Hardening Defenses: What Governments and Users Must Do

To mitigate future attacks, coordinated action is essential. Recommendations include:

• Patch devices immediately upon updates

• Use strong, unique passwords

• Enable two-factor authentication (2FA)

• Segment networks to isolate vulnerable devices

• Disable unnecessary IoT features and remote access

Governments must also strengthen international alliances and invest in cyber intelligence sharing to stay ahead of hostile state actors.

🛡️ Conclusion: Canada and the World Must Stay Vigilant Against State-Sponsored Cyber Threats

The Flax Typhoon operation serves as more than just a cybersecurity incident—it is a wake-up call for Canada and the international community. It highlights the evolving capabilities of China-backed hackers and reveals the disturbing extent to which hostile foreign actors are prepared to exploit everyday devices for espionage and disruption.

While the takedown of this botnet by the FBI and global partners represents a major law enforcement victory, it does not signify the end of the threat. On the contrary, the dismantled network is a single node in a much larger web of state-sponsored digital aggression. These attackers are highly resourced, patient, and capable of operating in stealth mode for long durations, often going undetected while gathering intelligence or preparing for future sabotage.

For Canada, the implications are deeply troubling. The fact that over 9,200 Canadian devices—ranging from home routers to critical infrastructure nodes—were silently hijacked means that the country’s digital perimeter has already been breached. This is no longer a theoretical risk or the domain of abstract cybersecurity debates. It is a clear and present danger to national security, economic resilience, and public trust in digital systems.

To respond effectively, Canadian institutions must reframe cybersecurity as a strategic priority—on par with defense, foreign affairs, and public safety. This shift requires more than patching software or setting firewalls. It demands:

• National-level threat modeling against state-sponsored attacks

• Mandatory security standards for IoT and consumer-grade tech

• Robust cyber threat intelligence sharing between allies

• Investment in cyber workforce development and advanced detection capabilities

Internationally, coordination between democratic nations will be vital. Just as NATO was formed in response to conventional military threats, we may now be entering an era that requires a digital alliance of mutual cyber defense. Countries like the U.S., Canada, Australia, and key European allies must work in tandem to trace, expose, and disrupt hostile cyber operations, particularly those originating from authoritarian states.

Finally, individuals and businesses also play a role. The average home router, IP camera, or cloud-based device can either be a gateway for attackers—or part of the defense. Public awareness, strong authentication, timely software updates, and basic network hygiene must become non-negotiable practices.

The Flax Typhoon takedown is a step forward—but it’s only a step. The next phase of this battle will test not only our technology but our preparedness, unity, and resolve. If we fail to act with urgency and clarity, we risk ceding the digital domain to those who would weaponize it for domination.

Cybersecurity is not optional. It is the new frontline.

📚 Sources

• U.S. Department of Justice

• Information Age

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