WASHINGTON, June 13 (Reuters) - Microsoft ( MSFT )
President Brad Smith appeared before the House of
Representatives panel on homeland security on Thursday, where he
will field questions about the company's security practices
after Chinese hackers breached its systems past year.
China-linked hackers stole 60,000 U.S. State Department
emails last year by breaking into the tech giant's systems,
while a Russian group separately spied on Microsoft's ( MSFT ) senior
staff emails earlier this year, according to the company's
disclosures.
In a scathing report in April, the Cyber Safety Review Board
- formed by U.S. Secretary of Homeland Security Alejandro
Mayorkas - slammed Microsoft ( MSFT ) for its lack of transparency over
the Chinese hack, which the board said had been preventable.
The world's biggest software-maker, which is also a key
vendor to the U.S. government and national security
establishment, has faced similar criticism from its security
industry peers.
Lawmakers plan to examine Microsoft's ( MSFT ) security lapses,
challenges in ensuring defending against cyberattacks, and plans
to improve its security measures, the House panel for homeland
security said in an earlier statement. They will also discuss
the findings and recommendations of the board report following
the Chinese hack.
"Since this is not the first time Microsoft ( MSFT ) has been the
victim of an avoidable cyberattack, and in light of the CSRB's
report, it is now Congress's responsibility to examine
Microsoft's ( MSFT ) response to this report," Congressman Mark Green
from Mississippi, who chairs the panel on homeland security,
said in his opening statement.
"Mr. Smith, as a long-time, key leader within Microsoft ( MSFT ), I
anticipate that you will help us understand the gaps that
enabled these recent cyber intrusions."
Microsoft's ( MSFT ) presence in China will also be a focus.
"Over the years, Microsoft ( MSFT ) has invested heavily in China
setting up research incentives, including the Microsoft Research
Asia center in Beijing," Green said.
"Microsoft's ( MSFT ) presence in China creates a mix of complex
challenges and risks. We have to talk about that today."
Following the board's criticisms, Microsoft ( MSFT ) had said it was
working on improving its processes and enforce security
benchmarks. In November it launched a new cybersecurity
initiative it said was aimed at preparing against the
"increasing scale and high stakes of cyberattacks."
"We are making security our top priority at Microsoft ( MSFT ), above
all else - over all other features," the company said at the
time.