The question arises how was all this possible & what methods/technology were used?
From the nature of the attack (as described on NEWS channels) & according to my understanding, the chinese used advanced BOT-NET technology to gain backdoor access & steal sensitive information.
For those who may not know about BOT-NETS, here's a brief description:- hackers infect computers with advanced spywares called BOTS(in this case through email).These bots install themselves silently into the Master Partition of your harddrive & load into your system's main memory even before the OS is loaded, during the boot sequence. These BOTS open backdoor PORTS of your computer & are also intelligently programmed to send sensitive data such account ID's, passwords by recording your keystrokes, to their authors,who are also termed as BOT-MASTERS.
Not only this, the BOT-MASTERs also controls the functioning of such infected Computers over the internet through the BOTS, for such reasons in Hackerz term, the infected PC is also called as ZOMBIE-PC (ZOMBIE, coz the system is controlled remotely).
Now hackers use thousands of such ZOMBIE-PCs as a network (also called as ZOMBIE Network) to direct attack on organizations, corporations or even countries.
One famous example was TORPIG BOT-NET which consist of on an average 100,000 infected PC's & was used for stealing credit card records & banking details of infected users & transfered almost 70GB of data evry day from infected Systems to the BOT-MASTER.Using such large quantity of infected system, gives the hackers computing power nearly equal to a mainframe or maybe a supercomputer & thus is possible to hack into protected military or corporate networks
you can read more about the torpig botnet by clicking here
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