Defense Minister Grant Shapps addressed the UK Parliament on Tuesday regarding a significant breach of data within the Ministry of Defence (MoD). The breach targeted the payroll system of the armed forces, compromising sensitive information such as the names and bank details of Royal Navy, Army, and Royal Air Force personnel.

Although suspicions have been raised regarding China’s involvement, China has vehemently denied these allegations, labeling them as “fabricated and malicious slander.” Labour’s shadow defense secretary, John Healey, has pointed fingers at Shared Services Connected Ltd (SSCL), an external contractor, for the compromised system.

Prime Minister Rishi Sunak acknowledged the breach caused by a “malign actor” without directly attributing responsibility to any specific country. Shapps criticized the contractor-operated system for its deficiencies and offered apologies to the affected servicemen and women. He outlined an eight-point plan, which includes establishing a dedicated support helpline, to mitigate the repercussions of the breach.

Due to national security concerns, the government has refrained from divulging further details about the suspected cyber activity. While there is currently no evidence of data removal by hackers, investigations are ongoing. However, government policy prohibits the official naming of China at this stage.

Affected personnel will receive assurances from the government regarding the minimal impact on their May salaries. Conservative MPs have expressed concerns about the threat posed by China, with some advocating for acknowledging China’s hostile actions. Labour’s Healey has called for accountability from Shapps, condemning any hostile activities.

In response, the Chinese embassy has denied the allegations and urged the UK to refrain from spreading false narratives. This incident adds to previous accusations against China for cyberattacks, underscoring the escalating proliferation of cyber threats globally.

Currently, the Metropolitan Police is not involved in the investigation.

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