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Examining the US Cyber Budget

Jason Healey takes a detailed look at the US federal cybersecurity budget and reaches an important conclusion: the US keeps saying that we need to prioritize defense, but in fact we prioritize attack.

To its credit, this budget does reveal an overall growth in cybersecurity funding of about 5 percent above the fiscal 2019 estimate. However, federal cybersecurity spending on civilian departments like the departments of Homeland Security, State, Treasury and Justice is overshadowed by that going toward the military:

  • The Defense Department’s cyber-related budget is nearly 25 percent higher than the total going to all civilian departments, including the departments of Homeland Security, Treasury and Energy, which not only have to defend their own critical systems but also partner with critical infrastructure to help secure the energy, finance, transportation and health sectors ($9.6 billion compared to $7.8 billion).

  • The funds to support just the headquarters element­ — that is, not even the operational teams in facilities outside of headquarters — ­of U.S. Cyber Command are 33 percent higher than all the cyber-related funding to the State Department ($532 million compared to $400 million).

  • Just the increased funding to Defense was 30 percent higher than the total Homeland Security budget to improve the security of federal networks ($909 million compared to $694.1 million).

  • The Defense Department is budgeted two and a half times as much just for cyber operations as the Cybersecurity and Infrastructure Security Agency (CISA), which is nominally in charge of cybersecurity ($3.7 billion compared to $1.47 billion). In fact, the cyber operations budget is higher than the budgets for the CISA, the FBI and the Department of Justice’s National Security Division combined ($3.7 billion compared to $2.21 billion).

  • The Defense Department’s cyber operations have nearly 10 times the funding as the relevant Homeland Security defensive operational element, the National Cybersecurity and Communications Integration Center (NCCIC) ($3.7 billion compared to $371.4 million).

  • The U.S. government budgeted as much on military construction for cyber units as it did for the entirety of Homeland Security ($1.9 billion for each).

We cannot ignore what the money is telling us. The White House and National Cyber Strategy emphasize the need to protect the American people and our way of life, yet the budget does not reflect those values. Rather, the budget clearly shows that the Defense Department is the government’s main priority. Of course, the exact Defense numbers for how much is spent on offense are classified.

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June 15, 2020 cyberattack, cybersecurity, defense, homelandsecurity, nationalsecuritypolicy, Security technology Read more >

The US National Cyber Strategy

Last month, the White House released the “National Cyber Strategy of the United States of America. I generally don’t have much to say about these sorts of documents. They’re filled with broad generalities. Who can argue with:

Defend the homeland by protecting networks, systems, functions, and data;

Promote American prosperity by nurturing a secure, thriving digital economy and fostering strong domestic innovation;

Preserve peace and security by strengthening the ability of the United States in concert with allies and partners ­ to deter and, if necessary, punish those who use cyber tools for malicious purposes; and

Expand American influence abroad to extend the key tenets of an open, interoperable, reliable, and secure Internet.

The devil is in the details, of course. And the strategy includes no details.

In a New York Times op-ed, Josephine Wolff argues that this new strategy, together with the more-detailed Department of Defense cyber strategy and the classified National Security Presidential Memorandum 13, represent a dangerous shift of US cybersecurity posture from defensive to offensive:

…the National Cyber Strategy represents an abrupt and reckless shift in how the United States government engages with adversaries online. Instead of continuing to focus on strengthening defensive technologies and minimizing the impact of security breaches, the Trump administration plans to ramp up offensive cyberoperations. The new goal: deter adversaries through pre-emptive cyberattacks and make other nations fear our retaliatory powers.

[…]

The Trump administration’s shift to an offensive approach is designed to escalate cyber conflicts, and that escalation could be dangerous. Not only will it detract resources and attention from the more pressing issues of defense and risk management, but it will also encourage the government to act recklessly in directing cyberattacks at targets before they can be certain of who those targets are and what they are doing.

[…]

There is no evidence that pre-emptive cyberattacks will serve as effective deterrents to our adversaries in cyberspace. In fact, every time a country has initiated an unprompted cyberattack, it has invariably led to more conflict and has encouraged retaliatory breaches rather than deterring them. Nearly every major publicly known online intrusion that Russia or North Korea has perpetrated against the United States has had significant and unpleasant consequences.

Wolff is right; this is reckless. In Click Here to Kill Everybody, I argue for a “defense dominant” strategy: that while offense is essential for defense, when the two are in conflict, it should take a back seat to defense. It’s more complicated than that, of course, and I devote a whole chapter to its implications. But as computers and the Internet become more critical to our lives and society, keeping them secure becomes more important than using them to attack others.

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October 9, 2018 cybersecurity, defense, nationalsecuritypolicy, Security technology, securitypolicies Read more >

Attack vs. Defense in Nation-State Cyber Operations

I regularly say that, on the Internet, attack is easier than defense. There are a bunch of reasons for this, but primarily it’s 1) the complexity of modern networked computer systems and 2) the attacker’s ability to choose the time and method of the attack versus the defender’s necessity to secure against every type of attack. This is true, but how this translates to military cyber-operations is less straightforward. Contrary to popular belief, government cyberattacks are not bolts out of the blue, and the attack/defense balance is more…well…balanced.

Rebecca Slayton has a good article in International Security that tries to make sense of this: “What is the Cyber Offense-Defense Balance? Conceptions, Causes, and Assessment.” In it, she points out that launching a cyberattack is more than finding and exploiting a vulnerability, and it is those other things that help balance the offensive advantage.

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April 13, 2017 academicpapers, cyberattack, cyberwar, defense, nationalsecuritypolicy, Security technology, vulnerabilities Read more >

Botnets

Botnets have existed for at least a decade. As early as 2000, hackers were breaking into computers over the Internet and controlling them en masse from centralized systems. Among other things, the hackers used the combined computing power of these botnets to launch distributed denial-of-service attacks, which flood websites with traffic to take them down.

But now the problem is getting worse, thanks to a flood of cheap webcams, digital video recorders, and other gadgets in the “Internet of things.” Because these devices typically have little or no security, hackers can take them over with little effort. And that makes it easier than ever to build huge botnets that take down much more than one site at a time.

In October, a botnet made up of 100,000 compromised gadgets knocked an Internet infrastructure provider partially offline. Taking down that provider, Dyn, resulted in a cascade of effects that ultimately caused a long list of high-profile websites, including Twitter and Netflix, to temporarily disappear from the Internet. More attacks are sure to follow: the botnet that attacked Dyn was created with publicly available malware called Mirai that largely automates the process of co-opting computers.

The best defense would be for everything online to run only secure software, so botnets couldn’t be created in the first place. This isn’t going to happen anytime soon. Internet of things devices are not designed with security in mind and often have no way of being patched. The things that have become part of Mirai botnets, for example, will be vulnerable until their owners throw them away. Botnets will get larger and more powerful simply because the number of vulnerable devices will go up by orders of magnitude over the next few years.

What do hackers do with them? Many things.

Botnets are used to commit click fraud. Click fraud is a scheme to fool advertisers into thinking that people are clicking on, or viewing, their ads. There are lots of ways to commit click fraud, but the easiest is probably for the attacker to embed a Google ad in a Web page he owns. Google ads pay a site owner according to the number of people who click on them. The attacker instructs all the computers on his botnet to repeatedly visit the Web page and click on the ad. Dot, dot, dot, PROFIT! If the botnet makers figure out more effective ways to siphon revenue from big companies online, we could see the whole advertising model of the Internet crumble.

Similarly, botnets can be used to evade spam filters, which work partly by knowing which computers are sending millions of e-mails. They can speed up password guessing to break into online accounts, mine bitcoins, and do anything else that requires a large network of computers. This is why botnets are big businesses. Criminal organizations rent time on them.

But the botnet activities that most often make headlines are denial-of-service attacks. Dyn seems to have been the victim of some angry hackers, but more financially motivated groups use these attacks as a form of extortion. Political groups use them to silence websites they don’t like. Such attacks will certainly be a tactic in any future cyberwar.

Once you know a botnet exists, you can attack its command-and-control system. When botnets were rare, this tactic was effective. As they get more common, this piecemeal defense will become less so. You can also secure yourself against the effects of botnets. For example, several companies sell defenses against denial-of-service attacks. Their effectiveness varies, depending on the severity of the attack and the type of service.

But overall, the trends favor the attacker. Expect more attacks like the one against Dyn in the coming year.

This essay previously appeared in the MIT Technology Review.

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March 1, 2017 botnets, defense, denialofservice, hacking, internetofthings, Security technology Read more >