NIPC Cyber Threat Assessment
Statement for the Record of
Michael A. Vatis
Director, National Infrastructure Protection Center
Federal Bureau of Investigation
Senate Judiciary Committee
Subcommittee on Technology and Terrorism
October 6, 1999
Mr. Chairman, Senator Feinstein, and Members of the Committee: Thank you for inviting me here today to discuss critical infrastructure protection issues. Mr. Chairman, you and this committee have been leaders in recognizing the importance of these issues and the urgency of addressing the new threats to our national security in the Information Age, and I welcome this opportunity to share our perspectives with you today. As you know, the Federal Government is developing its capabilities for dealing with threats to our nation's infrastructures. Presidential Decision Directive-63 set in motion an unprecedented effort to protect our nation's critical infrastructures, which the PDD defined as "those physical and cyber-based systems essential to the minimum operations of the economy and government." Critical infrastructures include telecommunications, energy, banking and finance, transportation, water systems, and emergency services, both public and private. The PDD formally designated the National Infrastructure Protection Center (NIPC) to have a central operational role in the government's effort. The Center works closely with the National Coordinator for Security, Infrastructure Protection, and Counter-terrorism; the Department of Defense (DoD); the U.S. Intelligence Community (USIC); other federal agencies; and the private sector to protect our critical infrastructures. My statement will cover the spectrum of threats we are facing and the status of the NIPC and its activities.
Spectrum of Threats
The news media is filled with examples of intrusions into government and private sector computer networks. Politically motivated hackers have been attacking numerous U.S. Government websites, including the Senate's. Deputy Secretary of Defense John Hamre reported in February that DoD is "detecting 80 to 100 [potential hacking] events daily." We have had several damaging computer viruses this year, including the Melissa Macro Virus, the Explore.Zip Worm, and the CIH (Chernobyl) Virus. Computer Economics, Inc., a California firm, estimates that damage in the first two quarters of 1999 from viruses has topped $7 billion. The FBI's case load for computer hacking and network intrusion cases has doubled each of the last two years. Currently we have over 800 pending investigations. In its 1999 survey, the Computer Security Institute estimated the total financial losses by the 163 businesses it surveyed from computer security breaches at $123.7 million. This includes everything from theft of proprietary data to denial of service on networks. E-commerce has become so important that firms, including Sedgwick Group PLC (in cooperation with IBM), Lloyds of London, and Network Risk Management Services, are now offering "hacker insurance."
In the past few years we have seen a series of intrusions into numerous Department of Defense computer networks as well as networks of other federal agencies, universities, and private sector entities. Intruders have successfully accessed U.S. Government networks and took large amounts of unclassified but sensitive information. In investigating these cases, the NIPC has been coordinating with FBI Field Offices, the Department of Defense, and other government agencies, as circumstances require. But it is important that the Congress and the American public understand the very real threat that we are facing in the cyber realm, not just in the future, but now.
Perhaps the greatest potential threat to our national security is the prospect of "information warfare" by foreign militaries against our critical infrastructures. We know that several foreign nations are already developing information warfare doctrine, programs, and capabilities for use against each other and the United States or other nations. Foreign nations are developing information warfare programs because they see that they cannot defeat the United States in a head-to-head military encounter and they believe that information operations are a way to strike at what they perceive as America's Achilles Heel -- our reliance on information technology to control critical government and private sector systems. For example, two Chinese military officers recently published a book that called for the use of unconventional measures, including the propagation of computer viruses, to counterbalance the military power of the United States. In addition, during the recent conflict in Yugoslavia, hackers sympathetic to Serbia electronically "ping" attacked NATO web servers. And Russian as well as other individuals supporting the Serbs attacked websites in NATO countries, including the United States, using virus-infected e-mail and hacking attempts. Over 100 entities in the United States received these e-mails. Several British organizations lost files and databases. These attacks did not cause any disruption of the military effort, and the attacked entities quickly recovered. But such attacks are portents of much more serious attacks that we can expect foreign adversaries to attempt in future conflicts.
Foreign intelligence services
Foreign intelligence services have adapted to using cyber tools as part of their information gathering and espionage tradecraft. In a case dubbed "the Cuckoo's Egg," between 1986 and 1989 a ring of West German hackers penetrated numerous military, scientific, and industry computers in the United States, Western Europe, and Japan, stealing passwords, programs, and other information which they sold to the Soviet KGB. Significantly, this was over a decade ago -- ancient history in Internet years. While I cannot go into specifics about the situation today in an open hearing, it is clear that foreign intelligence services increasingly view computer intrusions as a useful tool for acquiring sensitive U.S. government and private sector information.
Terrorists are known to use information technology and the Internet to formulate plans, raise funds, spread propaganda, and to communicate securely. For example, convicted terrorist Ramzi Yousef, the mastermind of the World Trade Center bombing, stored detailed plans to destroy United States airliners on encrypted files on his laptop computer. Moreover, some groups have already used cyber attacks to inflict damage on their enemies' information systems. For example, a group calling itself the Internet Black Tigers conducted a successful "denial of service" attack on servers of Sri Lankan government embassies. Italian sympathizers of the Mexican Zapatista rebels attacked web pages of Mexican financial institutions. And a Canadian government report indicates that the Irish Republican Army has considered the use of information operations against British interests. We are also concerned that Aum Shinrikyo, which launched the deadly Sarin gas attack in the Tokyo subway system, could use its growing expertise in computer manufacturing and Internet technology to develop "cyber terrorism" weapons for use against Japanese and U.S. interests. Thus while we have yet to see a significant instance of "cyber terrorism" with widespread disruption of critical infrastructures, all of these facts portend the use of cyber attacks by terrorists to cause pain to targeted governments or civilian populations by disrupting critical systems.
We are also beginning to see the increased use of cyber intrusions by criminal groups who attack systems for purposes of monetary gain. For example, in 1994 the U.S. Secret Service uncovered a $50 million phone card scam that abused the accounts of AT&T, MCI, and Sprint customers. In addition, in 1994-95 an organized crime group headquartered in St. Petersburg, Russia, transferred $10.4 million from Citibank into accounts all over the world. After surveillance and investigation by the FBI's New York field office, all but $400,000 of the funds were recovered. In another case, Carlos Felipe Salgado, Jr. gained unauthorized access to several Internet Service Providers in California and stole 100,000 credit card numbers with a combined limit of over $1 billion. The FBI arrested him in the San Francisco International Airport when he tried to sell the credit card numbers to a cooperating witness for $260,000. With the expansion of electronic commerce, we expect to see an increase in hacking by organized crime as the new frontier for large-scale theft.
Just two weeks ago, two members of a group dubbed the "Phonemasters" were sentenced after their conviction for theft and possession of unauthorized access devices (18 USC §1029) and unauthorized access to a federal interest computer (18 USC §1030). The "Phonemasters" are an international group of criminals who penetrated the computer systems of MCI, Sprint, AT&T, Equifax, and even the FBI's National Crime Information Center (NCIC). Under judicially approved electronic surveillance orders, the FBI's Dallas Field Office made use of new data intercept technology to monitor the calling activity and modem pulses of one of the suspects, Calvin Cantrell. Mr. Cantrell downloaded thousands of Sprint calling card numbers, which he sold to a Canadian individual, who passed them on to someone in Ohio. These numbers made their way to an individual in Switzerland and eventually ended up in the hands of organized crime groups in Italy. Mr. Cantrell was sentenced to two years as a result of his guilty plea, while one of his associates, Cory Lindsay, was sentenced to 41 months.
The "Phonemasters" activities should serve as a wake up call for corporate security. Their methods included "dumpster diving" to gather old phone books and technical manuals for systems. They then used this information to trick employees into giving up their logon and password information. The group then used this information to break into victim systems. It is important to remember that often "cyber crimes" are facilitated by old fashioned guile, such as calling employees and tricking them into giving up passwords. Good "cyber security" practices must therefore address personnel security and "social engineering" in addition to instituting electronic security measures.
Virus writers are posing an increasingly serious threat to networks and systems worldwide. As noted above, we have had several damaging computer viruses this year, including the Melissa Macro Virus, the Explore.Zip worm, and the CIH (Chernobyl) Virus. The NIPC frequently sends out warnings regarding particularly dangerous viruses.
Earlier this year, we reacted quickly to the spread of the Melissa Macro Virus. While there are dozens of viruses released every day, the speedy propagation of Melissa and its effects on networks caused us great concern. Within hours of learning about the virus on Friday, March 26, 1999, we had coordinated with key cyber response components of DoD and the Computer Emergency Response Team (CERT) at Carnegie-Mellon University. Our Watch operation went into 24-hour posture and sent out warning messages to federal agencies, state and local law enforcement, FBI Field Offices, and the private sector. Because the virus affected systems throughout the public, we also took the unusual step of issuing a public warning through the FBI's Public Affairs Office and on our website. These steps helped mitigate the damage by alerting computer users of the virus and of protective steps they could take.
On the investigative side, the NIPC acted as a central point of contact for the Field Offices who worked leads on the case. A tip received by the New Jersey State Police from America Online, and their follow-up investigation with the FBI's Newark Field Office, led to the April 1, 1999 arrest of David L. Smith. Search warrants were executed in New Jersey by the New Jersey State Police and FBI Special Agents from the Newark Field Office.
Just in the last few weeks we have seen reports on the Suppl Word Macro virus, the toadie.exe virus, and the W97M/Thurs.A (or Thursday) virus. This last virus has already infected over 5,000 machines, according to news reports, and deletes files on victim's hard drives. The payload of the virus is triggered on 12-13 and disables the macro virus protection in Word 97. We are also concerned with the propagation of a Trojan Horse called Back Orifice 2000, which allows malicious actors to monitor or tamper with computers undetected by the users.
Virus writers are not often broken out as a threat category, and yet they often do more damage to networks than hackers do. The prevalence of computer viruses reminds us that we all have to be very careful about the attachments we open and we all must be sure to keep our anti-virus software up-to-date.
Recently we have seen a rise in what has been dubbed "hacktivism"-- politically motivated attacks on publicly accessible web pages or e-mail servers. These groups and individuals overload e-mail servers and hack into web sites to send a political message. While these attacks generally have not altered operating systems or networks, they still damage services and deny the public access to websites containing valuable information and infringe on others' right to communicate. One such group is called the "Electronic Disturbance Theater," which promotes civil disobedience on-line in support of its political agenda regarding the Zapatista movement in Mexico and other issues. This past spring they called for worldwide electronic civil disobedience and have taken what they term "protest actions" against White House and Department of Defense servers. Supporters of Kevin Mitnick, recently convicted of numerous computer security offenses, hacked into the Senate webpage and defaced it in May and June of this past year. The Internet has enabled new forms of political gathering and information sharing for those who want to advance social causes; that is good for our democracy. But illegal activities that disrupt e-mail servers, deface web-sites, and prevent the public from accessing information on U.S. government and private sector web sites should be regarded as criminal acts that deny others their First Amendment rights to communicate rather than as an acceptable form of protest.
Virtually every day we see a report about "recreational hackers," or "crackers," who crack into networks for the thrill of the challenge or for bragging rights in the hacker community. While remote cracking once required a fair amount of skill or computer knowledge, the recreational hacker can now download attack scripts and protocols from the World Wide Web and launch them against victim sites. Thus while attack tools have become more sophisticated, they have also become easier to use.
These types of hacks are very numerous and may appear on their face to be benign. But they can have serious consequences. A well-known example of this involved a juvenile who hacked into the NYNEX (now Bell Atlantic) telephone system that serviced the Worcester, Massachusetts area using his personal computer and modem. The hacker shut down telephone service to 600 customers in the local community. The resulting disruption affected all local police and fire 911 services as well as the ability of incoming aircraft to activate the runway lights at the Worcester airport. Telephone service was out at the airport tower for six hours. The U.S. Secret Service investigation of this case also brought to light a vulnerability in 22,000 telephone switches nationwide that could be taken down with four keystrokes. Because he was a juvenile, however, the hacker was sentenced to only two years probation and 250 hours of community service, and was forced to forfeit the computer equipment used to hack into the phone system and reimburse the phone company for $5,000. This case demonstrated that an attack against our critical communications hubs can have cascading effects on several infrastructures. In this case, transportation, emergency services, and telecommunications were disrupted. It also showed that widespread disruption could be caused by a single person from his or her home computer.
The disgruntled insider is a principal source of computer crimes. Insiders do not need a great deal of knowledge about computer intrusions, because their knowledge of victim systems often allows them to gain unrestricted access to cause damage to the system or to steal system data. The 1999 Computer Security Institute/FBI report notes that 55% of respondents reported malicious activity by insiders.
There are many cases in the public domain involving disgruntled insiders. For example, Shakuntla Devi Singla used her insider knowledge and another employee's password and logon identification to delete data from a U.S. Coast Guard personnel database system. It took 115 agency employees over 1800 hours to recover and reenter the lost data. Ms. Singla was convicted and sentenced to five months in prison, five months home detention, and ordered to pay $35,000 in restitution.
In another case, a former Forbes employee named George Parente hacked got into Forbes systems using another employee's password and login identification and crashed over half of Forbes' computer network servers and erased all of the data on each of the crashed services. The data could not be restored. The losses to Forbes were reportedly over $100,000.
Identifying the Intruder
One major difficulty that distinguishes cyber threats from physical threats is determining who is attacking your system, why, how, and from where. This difficulty stems from the ease with which individuals can hide or disguise their tracks by manipulating logs and directing their attacks through networks in many countries before hitting their ultimate target. The now well know "Solar Sunrise" case illustrates this point. Solar Sunrise was a multi-agency investigation (which occurred while the NIPC was being established) of intrusions into more than 500 military, civilian government, and private sector computer systems in the United States, during February and March 1998. The intrusions occurred during the build-up of United States military personnel in the Persian Gulf in response to tension with Iraq over United Nations weapons inspections. The intruders penetrated at least 200 unclassified U.S. military computer systems, including seven Air Force bases and four Navy installations, Department of Energy National Laboratories, NASA sites, and university sites. Agencies involved in the investigation included the FBI, DoD, NASA, Defense Information Systems Agency, AFOSI, and the Department of Justice.
The timing of the intrusions and links to some Internet Service Providers in the Gulf region caused many to believe that Iraq was behind the intrusions. The investigation, however, revealed that two juveniles in Cloverdale, California and several individuals in Israel were the culprits. Solar Sunrise thus demonstrated to the interagency community how difficult it is to identify an intruder until facts are gathered in an investigation, and why assumptions cannot be made until sufficient facts are available. It also vividly demonstrated the vulnerabilities that exist in our networks; if these individuals were able to assume "root access" to DoD systems, it is not difficult to imagine what hostile adversaries with greater skills and resources would be able to do. Finally, Solar Sunrise demonstrated the need for interagency coordination by the NIPC.
Special Threat: Y2K Malicious Activity
The main concern with the Y2K rollover is, of course, the possibility of widespread service outages caused by the millennium date problem in older computer systems. The President's Y2K Council has done an excellent job in helping the nation prepare for the rollover event. Given our overall mission under PDD 63, the NIPC's role with regard to Y2K will be to maintain real-time awareness of intentional cyber threats or incidents that might take place around the transition to 2000, disseminate warnings to the appropriate government and private sector parties, and coordinate the government's response to such incidents. We are not responsible for dealing with system outages caused by the millennium bug. Because of the possibility that there might be an increase in malicious activity around January 1, 2000, we have formulated contingency plans both for NIPC Headquarters and the FBI Field Offices.
We are presently augmenting our existing relationships and information-sharing mechanisms with relevant entities in the federal government, such as the Information Coordination Center (ICC), state and local governments, private industry, and the CERT/FIRST community. Information will come to us from a variety of places, including FBI field offices and Legal Attaches overseas, as well as the ICC. FBI field offices are also tasked to establish Y2K plans for their regions of responsibility. In essence, all of the activities that we will undertake during the rollover period are ones we perform everyday. The difference is that we will be prepared to conduct them at an increased tempo to deal with any incidents occurring during the Y2K rollover.
There is one potential problem associated with Y2K that causes us special concern -- the possibility that malicious actors, foreign or domestic, could use the Y2K remediation process to install malicious code in the "remediated" software. Thousands of companies across the United States and around the world are busy having their source code reviewed to ensure that they are "Y2K compliant." Those who are doing the Y2K remediation are almost always contractors who are given the status of a trusted insider with broad authority to review and make changes to the source code that runs information systems. These contractors could, undetected, do any of the following to compromise systems:
We have little concrete evidence so far of vendors' planting malicious code during remediation. But the threat is such that companies should take every precaution possible. Of course, checking the remediation work to make sure that no malicious code was implanted in a system is no easy matter. If reviewing the millions of lines of code at issue were simple, there would be little need for Y2K contractors in the first place. Nevertheless, given the vulnerabilities that could be implanted in critical systems, it is imperative that the client companies do as much as possible to check the background of the companies doing their remediation work, oversee the remediation process closely, and review new code as closely as possible and remove any extraneous code. Further, companies should test for trap doors and other known vulnerabilities to cracking. Companies can also use "red teams" to try to crack the software and further determine if trap doors exist.
Status of the NIPC
The NIPC is an interagency Center located at the FBI. Created in 1998, the NIPC serves as the focal point for the government's efforts to warn of and respond to cyber intrusions. In PDD-63, the President directed that the NIPC "serve as a national critical infrastructure threat assessment, warning, vulnerability, and law enforcement investigation and response entity." The PDD further states that the mission of the NIPC "will include providing timely warnings of intentional threats, comprehensive analyses and law enforcement investigation and response."
Thus, the PDD places the NIPC at the core of the government's warning, investigation, and response system for threats to, or attacks on, the nation's critical infrastructures. The NIPC is the focal point for gathering information on threats to the infrastructures as well as "facilitating and coordinating the Federal Government's response to an incident." The PDD further specifies that the NIPC should include "elements responsible for warning, analysis, computer investigation, coordinating emergency response, training, outreach, and development and application of technical tools."
The NIPC has a vital role in collecting and disseminating information from all relevant sources. The PDD directs the NIPC to "sanitize law enforcement and intelligence information for inclusion into analyses and reports that it will provide, in appropriate form, to relevant federal, state, and local agencies; the relevant owners and operators of critical infrastructures; and to any private sector information sharing and analysis entity." The NIPC is also charged with issuing "attack warnings or alerts to increases in threat condition to any private sector information sharing and analysis entity and to the owners and operators."
In order to perform its role, the NIPC is continuing to establish a network of relationships with a wide range of entities in both the government and the private sector. The PDD provides for this in several ways. First, it states that the Center will "include representatives from the FBI, U.S. Secret Service, and other investigators experienced in computer crimes and infrastructure protection, as well as representatives detailed from the Department of Defense, Intelligence Community and Lead Agencies.1 Second, pursuant to the PDD, the NIPC has electronic links to the rest of the government in order to facilitate the sharing of information and the timely issuance of warnings. Third, the PDD directs all executive departments and agencies to "share with the NIPC information about threats and warning of attacks and actual attacks on critical government and private sector infrastructures, to the extent permitted by law." By bringing other agencies directly into the Center and building direct communication linkages, the Center provides a means of coordinating the government's cyber expertise and ensuring full sharing of information, consistent with applicable laws and regulations.
To accomplish its goals under the PDD, the NIPC is organized into three sections:
1) The Computer Investigations and Operations Section (CIOS) is the operational and response arm of the Center. It program manages computer intrusion investigations conducted by FBI Field Offices throughout the country; provides subject matter experts, equipment, and technical support to cyber investigators in federal, state, and local government agencies involved in critical infrastructure protection; and provides a cyber emergency response capability to help resolve a cyber incident.
2) The Analysis and Warning Section (AWS) serves as the "indications and warning" arm of the NIPC. The AWS reviews numerous government and private sector databases, media, and other sources daily to disseminate information that is relevant to any aspect of NIPC's mission, including the gathering of indications of a possible attack. It provides analytical support during computer intrusion investigations, performs analyses of infrastructure risks and threat trends, and produces current analytic products for the national security and law enforcement communities, the owners-operators of the critical infrastructures, and the computer network managers who protect their systems. It also distributes tactical warnings, alerts, and advisories to all the relevant partners, informing them of exploited vulnerabilities and threats.
3) The Training, Outreach and Strategy Section (TOSS) coordinates the training and continuing education of cyber investigators within the FBI Field Offices and other federal, state and local law enforcement agencies. It also coordinates our liaison with private sector companies, state and local governments, other government agencies, and the FBI's Field Offices. In addition, this section manages our collection and cataloguing of information concerning "key assets" -- i.e., critical individual components within each infrastructure sector, such as specific power grids, telecommunications switch nodes, or financial systems -- across the country.
To facilitate our ability to investigate and respond to attacks, the FBI has created the National Infrastructure Protection and Computer Intrusion (NIPCI) Program in the 56 FBI Field Offices across the country. Under this program, managed by the NIPC at FBIHQ, "NIPCI" squads consisting of at least seven agents have been created in 10 Field Offices: Washington D.C., New York, San Francisco, Chicago, Dallas, Los Angeles, Atlanta, Charlotte, Boston, and Seattle. For FY 2000, we intend to reallocate our existing field agent compliment to create six additional squads in Baltimore, Houston, Miami, Newark, New Orleans, and San Diego. Because of resource constraints, the other field offices have only 1 - 5 agents dedicated to working NIPCIP matters.
The NIPC's mission clearly requires the involvement and expertise of many agencies other than the FBI. This is why the NIPC, though housed at the FBI, is an interagency center that brings together personnel from all the relevant agencies. In addition to our 79 FBI employees, the NIPC currently has 28 representatives from: DoD (including the military services and component agencies), the CIA, DOE, NASA, the State Department as well as federal law enforcement, including the U.S. Secret Service, the U.S. Postal Service and, until recently, the Oregon State Police. The NIPC is in the process of seeking additional representatives from State and local law enforcement.
But clearly we cannot rely on government personnel alone. Much of the technical expertise needed for our mission resides in the private sector. Accordingly, we rely on contractors to provide technical and other assistance. We are also in the process of arranging for private sector representatives to serve in the Center full time. In particular, the Attorney General and the Information Technology Association of America (ITAA) announced in April that the ITAA would detail personnel to the NIPC as part of a "Cybercitizens Partnership" between the government and the information technology (IT) industry. Information technology industry representatives serving in the NIPC would enhance our technical expertise and our understanding of the information and communications infrastructure.
The NIPC's operations can be divided into three categories: protection, detection, and response.
Our role in protecting infrastructures against cyber intrusions is not to advise the private sector on what hardware or software to use or to act as their systems administrator. Rather, our role is to provide information about threats, ongoing incidents, and exploited vulnerabilities so that government and private sector system administrators can take the appropriate protective measures. The NIPC is developing a variety of products to inform the private sector and other government agencies of threats, including: warnings, alerts, and advisories; the Infrastructure Protection Digest; Critical Infrastructure Developments; CyberNotes; and topical electronic reports. These products are designed for tiered distribution to both government and private sector entities consistent with applicable law and the need to protect intelligence sources and methods, and law enforcement investigations. For example, the Infrastructure Protection Digest is a quarterly publication providing analyses and information on critical infrastructure issues. The Digest provides analytical insights into major trends and events affecting the nation's critical infrastructures. It is usually published in both classified and unclassified formats and reaches national security and civilian government agency officials as well as infrastructure owners. Critical Infrastructure Developments is distributed bi-weekly to private sector entities. It contains analyses of recent trends, incidents, or events concerning critical infrastructure protection. CyberNotes is another NIPC publication designed to provide security and information system professionals with timely information on cyber vulnerabilities, hacker exploit scripts, hacker trends, virus information, and critical infrastructure-related best practices. It is published twice a month on our website and disseminated in hard copy to government and private sector audiences.
The NIPC, in conjunction with the private sector, has also developed an initiative called "InfraGard" to expand direct contacts with the private sector infrastructure owners and operators and to share information about cyber intrusions and exploited vulnerabilities, with the goal of increasing protection of critical infrastructures. The initiative encourages the exchange of information by government and private sector members through the formation of local InfraGard chapters within the jurisdiction of each of the 56 FBI Field Offices. The initiative includes an intrusion alert network using encrypted e-mail, a secure website and local chapter activities. A critical component of InfraGard is the ability of industry to provide information on intrusions to the NIPC and the local FBI Field Office using secure communications in both a detailed and a "sanitized" format. The local FBI Field Offices can, if appropriate, use the detailed version to initiate an investigation, while the NIPC can analyze that information in conjunction with law enforcement, intelligence, open source, or other industry information to determine if the intrusion is part of a broader attack on numerous sites. The NIPC can simultaneously use the sanitized version to inform other members of the intrusion without compromising the confidentiality of the reporting company. InfraGard also provides us with a regular, secure method of providing additional security related to information to the private sector based on information we obtained from law enforcement investigations and other sources. InfraGard has recently been expanded to a total of 21 FBI Field Offices. The program will be expanded to the rest of the country later this year.
Under PDD-63, the NIPC also serves as the U.S. government's "Lead Agency" for the Emergency Law Enforcement Services Sector. As Sector Liaison for law enforcement, the NIPC and a "Sector Coordinator" committee representing state and local law enforcement are formulating a plan to reduce the vulnerabilities of state and local law enforcement to cyber attack and are developing methods and procedures to share information within the sector. The NIPC and the FBI Field Offices are also working with the State and local law enforcement agencies to raise awareness with regard to vulnerabilities in this sector.
Given the ubiquitous vulnerabilities in existing Commercial Off-the-Shelf (COTS) software, intrusions into critical systems are inevitable for the foreseeable future. Thus, detection of these intrusions is critical if the U.S. Government and critical infrastructure owners and operators are going to be able to respond. To improve our detection capabilities, we first need to ensure that we are fully collecting, sharing, and analyzing all extant information from all relevant sources. It is often the case that intrusions can be discerned simply by collecting bits of information from various sources; conversely, if we don't collate these pieces of information for analysis, we might not detect the intrusions at all. Thus the NIPC's role in collecting information from all sources and performing analysis in itself aids the role of detection.
The NIPC is currently concentrating on developing and implementing reliable mechanisms for receiving, processing, analyzing and storing information provided by government and private sector entities. This information is being used by NIPC analysts to develop tactical and strategic warning indicators of cyber threats and attacks. The NIPC and North American Energy Reliability Council (NERC) have established an industry-based Electric Power Working Group to develop tactical warning indicators and information sharing procedures for the electric power sector. The NIPC also has developed mechanisms to share cyber incident information with both government agencies and private companies in the telecommunications sector. In the long-term, our indications and warning efforts will require participation by the Intelligence Community, DoD, the sector lead agencies, other government agencies, federal, State and local law enforcement, and the private sector owners and operators of the infrastructures.
Another initiative that will aid in the detection of network intrusions is the "Federal Intrusion Detection Network" ("FIDNet"), a National Security Council initiative that would be managed by the General Services Administration. Many agencies already have their own intrusion detection systems. FIDNet will enhance agencies' cyber security by linking their intrusion detection systems together so that suspicious patterns of activity can be detected and alerts issued across agencies. The goal of FIDNet is to detect intrusions in the federal civilian agencies' critical computer systems. (Contrary to recent press reports, FIDNet will not extend to private sector systems.) To do this, critical network event data will be captured and analyzed so that patterns can be established and, in the event of an attack, warnings issued. FIDNet will be the civilian agency counterpart for the automated detection system currently deployed across Department of Defense systems. FIDNet, under current plans, will consist of the following: sensors at key network nodes; a centrally managed GSA facility, the Federal Intrusion Detection Analysis Center (FIDAC), to analyze the technical data from the nodes; and secure storage and dissemination of collected information. The NIPC will receive reports from the FIDAC when there is evidence of a possible federal crime (such as a violation of 18 U.S.C §1030). Using all-source information, the Center would then analyze intrusions and other significant incidents to implement response efforts and support and inform national security decision-makers. FIDNet-derived information would also be combined with all-source reporting available to the NIPC to produce analysis and warning products which will be distributed to government, private sector companies, and the public, as appropriate.
The NIPC's and the FBI's role in response principally consists of investigating intrusions to identify the responsible party and issuing warnings to affected entities so that they can take appropriate protective steps. As discussed earlier, in the cyber world, determining what is happening during a suspected intrusion is difficult, particularly in the early stages. An incident could be a system probe to find vulnerabilities or entry points, an intrusion to steal or alter data or plant sniffers or malicious code, or an attack to disrupt or deny service. The cyber crime scene is totally different from a crime scene in the physical world in that it is dynamic -- it grows, contracts, and can change shape. Determining whether an intrusion is even occurring can often be difficult in the cyber world, and usually a determination cannot be made until after an investigation is initiated. In the physical world, by contrast, one can see instantly if a building has been bombed or an airliner brought down.
Further, the tools used to perpetrate a cyber terrorist attack can be the same ones used for other cyber intrusions (simple hacking, foreign intelligence gathering, organized crime activity to steal data, etc.), making identification and attribution more difficult. The perpetrators could be teenagers, criminal hackers, electronic protestors, terrorists, foreign intelligence services, or foreign military. In order to attribute an attack, FBI Field Offices can gather information from within the United Sates using either criminal investigative or foreign counter-intelligence authorities, depending on the circumstances. This information is necessary not only to identify the perpetrator but also to determine the size and nature of the intrusion: how many systems are affected, what techniques are being used, and what the purpose of the intrusions is--disruption, espionage, theft of money, etc.
Relevant information also could come from the U.S. Intelligence Community (if the attack is from a foreign source), other U.S. government agency information, state and local law enforcement, private sector contacts, the media, other open sources, or foreign law enforcement contacts. The NIPC's role is to coordinate and collect this information.
On the warning side, if we determine an intrusion is imminent or underway, the Watch and Warning Unit is responsible for formulating warnings, alerts, or advisories and quickly disseminating them to all appropriate parties. If we determine an attack is underway, we can issue warnings using an array of mechanisms, and send out sanitized and unsanitized warnings to the appropriate parties in the government and the private sector so they can take immediate protective steps. The Center has issued 22 warnings, alerts, or advisories between January 4 and September 22, 1999.
Two other NIPC initiatives are directed to improving our response capabilities. First, to respond appropriately, our field investigators need the proper training. Training FBI and other agencies' investigators is critical if we hope to keep pace with the rapidly changing technology and be able to respond quickly and effectively to computer intrusions. The NIPC has been very active in training. These training efforts will help keep us at the cutting edge of law enforcement and national security in the 21st Century. The Center provided training to 314 attendees in FY 1998. In FY 99, over 383 FBI Agents, state and local law enforcement representatives, and representatives from other government agencies have taken FBI-sponsored courses on computer intrusions and network analysis, the workings of the energy and telecommunications key assets, and other relevant topics.
Second, our Key Asset Initiative (KAI) facilitates response to threats and intrusion incidents by building liaison and communication links with the owners and operators of individual companies in the critical infrastructure sectors and enabling contingency planning. The KAI began in the 1980s and focused on physical vulnerabilities to terrorism. Under the NIPC, the KAI has been reinvigorated and expanded to focus on cyber vulnerabilities as well. The KAI initially will involve determining which assets are key within the jurisdiction of each FBI Field Office and obtaining 24-hour points of contact at each asset in cases of emergency. Eventually, if future resources permit, the initiative will include the development of contingency plans to respond to attacks on each asset, exercises to test response plans, and modeling to determine the effects of an attack on particular assets. FBI Field Offices will be responsible for developing a list of the assets within their respective jurisdictions, while the NIPC will maintain the national database. The KAI is being developed in coordination with DOD and other agencies.
While the NIPC has accomplished much over the last year in building the first national-level operational capability to respond to cyber intrusions, much work remains. We have learned from cases that successful network investigation is highly dependent on expert investigators and analysts, with state of the art equipment and training. We have begun to build that capability both in the FBI Field Offices and at NIPC Headquarters, but we have much work ahead if we are to build our resources and capability to keep pace with the changing technology and growing threat environment and be capable of responding to several major incidents at once.
We have also demonstrated how much can be accomplished when agencies work together, share information, and coordinate their activities as much as legally permissible. But on this score, too, more can be done to achieve the interagency and public-private partnerships called for by PDD- 63. We need to ensure that all relevant agencies are sharing information about threats and incidents with the NIPC and devoting personnel and other resources to the Center so that we can continue to build a truly interagency, "national" center. Finally, we must work with Congress to make sure that policy makers understand the threats we face in the Information Age and what measures are necessary to secure our Nation against them. I look forward to working with the Members and Staff of this Committee to address these vitally important issues.
1 The Lead Agencies are: Commerce for information and communications; Treasury for banking and finance; EPA for water supply; Transportation for aviation, highways, mass transit, pipelines, rail, and waterborne commerce; Justice/FBI for emergency law enforcement services; Federal Emergency Management Agency for emergency fire service and continuity of government; Health and Human Services for public health services. The Lead Agencies for special functions are: State for foreign affairs, CIA for intelligence, Defense for national defense, and Justice/FBI for law enforcement and internal security. The NIPC is performing the lead agency and special functions roles specified for "Justice/FBI" in the PDD.