The US and allied intelligence and cybersecurity agencies on May 24 issued a joint Cybersecurity Advisory, stating that they had recently detected the activities of a Chinese-sponsored hacking group called Volt Typhoon. The UK, Canada, New Zealand and Australia jointly issued the statement. The hacker group has penetrated key US networks and is believed to be capable of similar actions globally, according to AFP.

Microsoft Corporation said in a separate statement that Volt Typhoon has been active since mid-2021 and has attacked many important industries such as communications, manufacturing, electricity, transportation, construction, maritime, administration, information technology, and education.

The group also targeted critical US infrastructure on Guam, a Pacific territory that hosts Washington's strategic military base.

Reuters quoted the director of cybersecurity at the US National Security Agency (NSA) Rob Joyce as saying that the hackers used tools available in the network to avoid defense systems and leave no trace. This technique is difficult to detect because they use pre-built capabilities in critical infrastructure environments.

Microsoft experts said with “moderate confidence” that the group is developing capabilities that could disrupt communications between the US and the Asia region in future crises. “Observed behavior suggests the threat actor intends to conduct reconnaissance and maintain access without detection for as long as possible,” Microsoft warned.

China has increased diplomatic and military pressure on Taiwan in recent times and has not ruled out the possibility of retaking the island by force. Security experts predict that Chinese hackers could attack the US military's network and other critical infrastructure if China goes to war with Taiwan.

The NSA and Western cybersecurity agencies have called on companies operating critical infrastructure systems to identify malicious activities according to recommended technical guidelines.

China did not immediately comment on the allegations.