Research reveals covert Chinese operation targeting dismissed federal employees

A secretive Chinese tech firm is behind a network of companies trying to recruit recently laid-off US government workers, news agency Reuters reported, citing job ads and a researcher.

Max Lesser, an analyst at the Foundation for Defense of Democracies, said some of these companies are fake consulting and headhunting firms targeting former government employees and AI researchers.

There is little public information about the four consulting and recruitment firms linked to the network. Some shared websites, used the same server, or had other digital connections, according to Reuters and analyst Max Lesser. These companies’ websites were hosted on the same IP address as Smiao Intelligence, an internet services firm.

News agency Reuters could not track down the four companies and Smiao Intelligence, facing dead ends such as disconnected phones, fake addresses, unanswered emails, and deleted LinkedIn job listings. Researcher Max Lesser, who uncovered the network, said it follows familiar tactics used in past Chinese intelligence operations. He warned that the group is targeting former US government workers facing financial struggles after recent layoffs.

Three intelligence analysts told Reuters that the network is a clear example of how foreign-linked groups are trying to gather information from former US government workers laid off by President Trump and Elon Musk’s Department of Government Efficiency.

The analysts said that once hired, these employees could be pressured to share sensitive government information or suggest others who might be targeted.

A spokesperson for China’s embassy in Washington denied any involvement, saying Beijing respects data privacy and security.

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