Chinese police arrest 21 for data theft at Alibaba’s delivery arm Cainiao Network

Chinese police arrested 21 suspects in connection with the theft of data including customer information from Alibaba’s delivery arm Cainiao Network, according to China’s state media Xinhua and other reports.

More than 10 million pieces of client data, including names of the logistic firms, user names, phone numbers and parcel tracking numbers, were stolen from Cainiao.

In June, police in Hangzhou was told by the logistics company that barcode scanners used in its distribution stations had been infected with malware, which transferred the collected data to remote cloud servers. Local police launched raids in the provinces of Anhui, Jiangsu and Shandong, and arrested the suspects. They also confiscated 10 cloud servers and over 30 phones and computers used in the case.

Xinhua said the loopholes have been fixed already. According to the police, the suspects were service providers to local Cainiao’s distribution stations. They took this advantage to install the malware on the scanners and collected the information for promoting commercial content on their social media accounts.

CNBC’s report said none of the data had been shared with any third parties.

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