Intel Reports Servers Hacked, Admits Regular Attacks Intel has reported its servers were hacked about the time Google reported a sophisticated security breach. Intel also told the Securities and Exchange Commission that hackers regularly attempt break-ins. At the time of Intel's security breach, it was preparing to announce progress in its 64-gigabit flash-memory chip developed with Micron.

First Google, and now Intel. The chipmaker has revealed that its servers were hacked in January, around the same time search giant Google and 24 other companies reported a highly sophisticated security breach. And Intel says such attempts happen regularly.

News of the Intel breach was contained in the company's most recent financial filing, for the 2009 fiscal year, with the Securities and Exchange Commission and gave few details. Listed under the heading "risk factors," the disclosure was an unusual way of announcing a potential setback, a move that seems intended to protect the company from legal liability to investors in light of new disclosure regulations.

Industrial Spies?

"We may be subject to intellectual-property theft or misuse, which could result in third-party claims and harm our business and results of operations," Intel said in its disclosure to the SEC. "We regularly face attempts by others to gain unauthorized access through the Internet to our information -technology systems by, for example, masquerading as authorized users or surreptitious introduction of software."

The company described these attacks as possible attempts at industrial espionage or the work of malicious hackers.

"One recent and sophisticated incident occurred in January 2010 around the same time as the recently publicized security incident reported by Google," the company said. "We seek to detect and investigate these security incidents and to prevent their recurrence, but in some cases we might be unaware of an incident or its magnitude and effects."

Such attacks could "adversely affect our competitive position and reduce marketplace acceptance of our products," Intel warned, as well as cause product recalls, reputation harm and lawsuits.

Alan Paller, director of research at the Sans Institute, a security training school in Bethesda, Md., said large U.S. corporations are increasingly under attack from Chinese competitors or their operatives.

"Intel is one of about 1,000 U.S. organizations that do business in China or are in direct competition with Chinese companies, and so is among the highest priority targets," he said. "The data taken puts U.S. companies at a significant disadvantage when negotiating, because the other side's negotiators have the American company's playbook; or when competing, because the other company has access to the U.S. company's technological plans and blueprints."

Was Flash Data Targeted?

In January, Intel was about to announce the latest stage in its pioneering flash-memory density project -- a 64-gigabit chip developed in a joint venture with Micron that contains 32 billion microscopic memory cells. The NAND chip was unveiled Feb. 1.

Intel didn't immediately respond to our e-mail inquiry about whether the company believes data from its flash-memory project was the target of the hackers.

"Intel has not released any details as to what specifically happened in their environment, other than they say the details are different to what Google reported earlier in January," said Chester Wisniewski, a senior analyst at Sophos, the U.K.-based data-security firm. "These types of attacks have been happening for quite some time, [but] what is new is large organizations coming forward acknowledging that they have either been breached, or that they are under attack."

Wisniewski said Intel's announcement not only protected the company's back but may have been a public service.

"The publicity is good to raise awareness to other businesses that these type of attacks are occurring everywhere, to everyone, and they must remain vigilant," he said.

Intel is the world's largest semiconductor chipmaker, with net income in 2009 reported at more than $4.3 billion.

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