(DCNF)—Microsoft has relied on engineers based in China for years to help maintain some of the U.S. Department of Defense’s (DOD) most sensitive cloud computing systems, potentially leaving them vulnerable to hacking, according to a new investigation from ProPublica released Tuesday.
Because U.S. law prohibits foreign nationals from directly accessing federal systems that handle sensitive data, Microsoft has been funneling work through American “digital escorts” — low-paid workers with security clearances but often possessing limited technical expertise — who input commands from more skilled China-based engineers into federal networks, according to ProPublica. The arrangement, largely unknown even within the federal government, is raising alarms among national security and cybersecurity experts as the engineers could gain access to sensitive government data with little oversight, potentially exposing critical systems to Chinese cyber espionage.
The system has reportedly been in place for over a decade, ProPublica reported. China remains America’s top cyber security adversary, posing both a threat to government and private sector entities, according to a February 2024 report from the Office of the Director of National Intelligence.
This arrangement is used to handle “high impact level” information, which includes “data that involves the protection of life and financial ruin,” where “loss of confidentiality, integrity, or availability could be expected to have a severe or catastrophic adverse effect on organizational operations, organizational assets, or individuals,” according to U.S. government policy reviewed by ProPublica. The escorts effectively act as middlemen, copying and pasting commands from foreign workers into Pentagon-linked systems, in some cases without fully understanding the functions of those commands.
“We’re trusting that what they’re doing isn’t malicious, but we really can’t tell,” one escort, who works for Microsoft contractor Insight Global and spoke on condition of anonymity, told ProPublica. “They’re telling nontechnical people very technical directions,” the current Insight Global escort said, adding that the foreign engineer could install an update allowing an outsider to access the network.
“If I were an operative, I would look at that as an avenue for extremely valuable access. We need to be very concerned about that,” Harry Coker, former senior executive at the CIA and the National Security Agency, told ProPublica.
Over the years, various individuals involved in the work told ProPublica that they had warned the company about the risks. Despite the presence of an escort with a security clearance, ProPublica found that foreign engineers have access to details about the federal clouds that hackers can exploit.
“If someone ran a script called ‘fix_servers.sh’ but it actually did something malicious then [escorts] would have no idea,” a former Microsoft engineer who worked on the escort system, told ProPublica.
Microsoft told the DCNF that its personnel and contractors are audited by the U.S. government, and that the Chinese engineers in question would have “no direct access to customer data or customer systems.”
“As part of our Secure Future Initiative and in accordance with zero trust principles, Microsoft assumes anyone that has access to production systems, regardless of location or role, can pose a risk to the system, whether intentionally or unintentionally, and we establish layers of mitigation at the platform level with security and monitoring controls to detect and prevent threats,” a Microsoft spokesperson said in a statement to the DCNF. “This includes approval workflows for system changes and automated code reviews to quickly detect and prevent the introduction of vulnerabilities.”
Many of the escorts are former military personnel paid as little as $18 an hour and lack the technical training to identify malicious activity, according to ProPublica.
Microsoft employs approximately 50 escorts, each of whom partake in hundreds of interactions with China-based engineers and plug in the engineers’ commands into federal computers, according to ProPublica.
Notably, in 2023, Chinese hackers compromised the emails of the U.S Commerce and State Departments, including those of the U.S. ambassador to China, a breach that was ultimately blamed on vulnerabilities created by Microsoft’s security lapses.
“I probably should have known about this,” John Sherman, former chief information officer for the DOD, told ProPublica.
Moreover, China hawks point out that Chinese law allows the Communist Party to collect data from companies and individuals at will.
“It would be difficult for any Chinese citizen or company to meaningfully resist a direct request from security forces or law enforcement,” Jeremy Daum, a senior research fellow at the Paul Tsai China Center at Yale Law School, told ProPublica.
The Pentagon did not respond to the Daily Caller News Foundation’s request for comment.
Melissa O’Rourke contributed to this report.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.
Microsoft is not the only guilty party. Cisco (makers of enterprise networking equipment) is also guilty. The DOD network is built on Cisco routers and switches. Equipment manufactured in China.