wiredmikey writes "A new report from the Pentagon marked the most explicit statement yet from the United States that it believes China's cyber espionage is focused on the U.S. government, as well as American corporations. China kept up a steady campaign of hacking in 2012 that included attempts to target U.S. government computer networks, which could provide Beijing a better insight into America's policy deliberations and military capabilities, according to the Pentagon's annual assessment of China's military. 'China is using its computer network exploitation capability to support intelligence collection against the U.S. diplomatic, economic, and defense industrial base sectors that support U.S. national defense programs,' said the report to Congress (PDF). The digital espionage was part of a broader industrial espionage effort that seeks to secure military-related U.S. and Western technology, allowing Beijing to scale back its reliance on foreign arms manufacturers, the report said. One day later, Beijing dismissed the Pentagon's report that accused it of widespread cyberspying on the U.S. government, rejecting it as an 'irresponsible' attempt to drum up fear of China as a military threat."

A reader writes with an excerpt from Ars Technica: "Attacks exploiting a previously unknown and currently unpatched vulnerability in Microsoft's Internet Explorer browser have spread to at least nine other websites, including those run by a big European company operating in the aerospace, defense, and security industries as well as non-profit groups and institutes, security researchers said. The revelation, from a blog post published Sunday by security firm AlienVault, means an attack campaign that surreptitiously installed malware on the computers of federal government workers involved in nuclear weapons research was broader and more ambitious than previously thought. Earlier reports identified only a website belonging to the US Department of Labor as redirecting to servers that exploited the zero-day remote-code vulnerability in IE version 8. ... 'The specific Department of Labor website that was compromised provides information on a compensation program for energy workers who were exposed to uranium,' CrowdStrike said. 'Likely targets of interest for this site include energy-related US government entities, energy companies, and possibly companies in the extractive sector. Based on the other compromised sites other targeted entities are likely to include those interested in labor, international health and political issues, as well as entities in the defense sector.'"

A reader tipped us to news that the infamous copyright trolls Prenda Law are in a bit of trouble with the law. Today, U.S. District Court judge Otis Wright issued sanctions against Prenda. He recommends that the lawyers involved be disbarred and fined, granted court and lawyer fees to the defendants (doubled for punishment), and has referred them for criminal prosecution. Among the findings of fact are that they set up dozens of shell companies to disguise the true owners, actually committed identity theft, dodged taxes on settlement money, lied to the court, and abused the court by setting settlements on flimsy charges just below the cost of a defense.