CHINA:Primary targets include infrastructure network systems. Electricity, air traffic control, financial markets and government computer networks are also in the line of fire and breaches of these systems could have devastating implications, according to the annual Virtual Criminology Report by US software company McAfee, which examines emerging global security trends, with input from agencies such as Nato and the FBI.
Jeff Green, senior vice-president of McAfee Avert Labs, said: "Cybercrime is now a global issue. It has evolved significantly and is no longer just a threat to industry and individuals, but increasingly to national security. We're seeing emerging threats from increasingly sophisticated groups attacking organisations around the world." .
In a sign of growing awareness of the threat posed by cyberwarfare, the Pentagon said this year that China's army had established units to develop viruses to attack enemy computer systems, although China argues it is as much a victim as a perpetrator in this conflict and is being scapegoated for a much wider problem.
Estonia was the target of an orchestrated "denial-of-service" attack this year that shut down many government networks for weeks.
The US air force has set up a new military command, staffed by 40,000 people, to prepare for cyberwarfare and Washington is expected to spend up to €30 million over the next five years to guard against cyberspace attacks.
Among the key findings in the report was that 120 governments and allied groups are using the internet for web espionage operations, and many of these cyberattacks originate from China.
Assaults on computer networks have become more sophisticated, designed to specifically slip under the radar of government defences. Nato insiders believe many governments are still unaware of the threats facing them from cyberespionage and some are leaving themselves open to attack.
Among the most potent dangers are genetically modified "super" threats, complex forms of "malware" which are modified over and over again like DNA.
The report warns that cybercriminals will look for ways to exploit popular applications on social networking sites such as MySpace and Facebook, and can now buy bespoke software to hack into bank accounts and other classified sites.
Earlier this week, a top US military adviser said Washington was working to prevent cyberwarfare, but any aggressive response raised legal, civil rights and policy questions which must be addressed.
Andrew Palowitch, a senior security adviser to the Pentagon, said it could be argued that the US was already in a cyberwar.