Skip to main content

White House moves to push foreign hackers out of U.S. cloud

Delivered every Monday by 10 a.m., Weekly Cybersecurity examines the latest news in cybersecurity policy and politics.
Feb 27, 2023 View in browser
 
POLITICO's Weekly Cybersecurity newsletter logo

By John Sakellariadis

Driving the day

The White House has given the Commerce Department the green light to renew a Trump-era executive order meant to raise the costs and diminish the ability of foreign hackers to abuse U.S. cloud services, MC has learned.

HAPPY MONDAY, and welcome to Morning Cybersecurity! We are almost in March, a very special month to me because it includes my lovely mother’s birthday. Love you, Ma!

Yes, I have always been exceptional at sucking up. Why do you ask?

Got tips, feedback or other commentary? Send them my way at jsakellariadis@politico.com. You can also follow @POLITICOPro and @MorningCybersec on Twitter. Full team contact info is below.

 

We’re spilling the tea (and drinking tons of it in our newsroom) in U.K. politics with our latest newsletter, London Playbook PM. Get to know all the movers and shakers in Westminster and never miss a beat of British politics with a free subscription. Don’t miss out, we’ve got some exciting moves coming. Sign up today.

 
 

Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.

Today's Agenda

CISA Director Jen Easterly delivers a speech and participates in a fireside chat on technology product safety at Carnegie Mellon University. 10 a.m.

At the Agencies

COMMERCE GETS ITS HEAD BACK IN THE CLOUD — The Commerce Department is getting back to work on a Trump-era presidential mandate that seeks to limit foreign hackers’ ability to stage their attacks on U.S. cloud infrastructure, a senior administration official confirmed to MC.

Passed in the final days of the Trump administration, Executive Order 13984 would require cloud providers like Google, Amazon and Microsoft to implement stricter measures to verify the identity of their users — what is often referred to as “know your customer” regulations. However, the effort to implement the order stalled amid the presidential turnover and a funding shortfall in the Commerce Department office overseeing the order, a Department spokesman told MC in a statement.

“The KYC executive order hands the U.S. government a powerful tool to raise the barrier to entry for malicious cyber actors,” said John Costello, a former Commerce Department official who worked on implementing the mandate and former chief of staff at the Office of the National Cyber Director.

Solving a problem — Foreign hackers routinely rent U.S. cloud infrastructure because it is easier to blend in with normal-seeming internet traffic from an IP address in the States, the senior administration official told MC. Staging attacks within the U.S. also allows them to exploit a blindspot for U.S. Cyber Command and the NSA, which are prohibited from spying on U.S. networks.

Finally, U.S. cloud companies tend to offer more reliable products than foreign competitors, the official said.

How it would change things — The imposition of new compliance procedures for U.S. cloud providers would limit foreign hackers’ ability to abuse U.S. cloud services in three ways, the official confirmed.

By forcing cloud companies and cloud resellers to verify the identity of their customers and more detailed record-keeping logs, the order would discourage criminal actors from using U.S. services and, in the event that they do, provide an investigative leg-up to law enforcement

The big whammy — Perhaps most importantly, said the official, the order could make it untenable for foreign resellers of U.S. cloud services — often a weak link for law enforcement — to play fast-and-loose on compliance, thus drying up the pool of services available to criminals and driving them to non-U.S. services, where they are easier to spot.

“We have a problem where, in essence, U.S. infrastructure as a service provider could unwittingly become, essentially, a bulletproof hosting provider,” said the official, in reference to deliberately non-compliant service providers that often cater to criminals.

Practice what you preach — Pressing ahead on the EO would serve another important goal, senior administration said: demonstrating the U.S. commitment to a “due-diligence norm” in cybersecurity.

“We should not be a source of malicious cyber activity emanating out of the U.S. and affecting other countries any more than we would want to be the victim of malicious cyber activity emanating from their countries,” the official said.

Software Security

CISA CZAR TO TALK BURDEN-SHARING — CISA Director Jen Easterly will double down on the idea that large technology companies and software providers are dropping the ball on security during a speech today on the “designed-in dangers” of modern tech.

Speaking before students at Carnegie Mellon University, the CISA chief will argue that the status quo in which companies eschew security in order to rush feature-rich, security-poor products to market is “unacceptable,” a CISA spokesperson told MC over email.

Part and parcel — The speech, which will call for security to be “rebalanced” away from tech users and toward the companies that write and ship code, is part of a new push by Easterly to needle large technology providers to take on more responsibility for their products.

Earlier this month, Easterly and Eric Goldstein, CISA’s executive assistant director for cybersecurity, penned a Foreign Affairs article calling on technology providers to “stop passing the [security] buck” to their users.

A crisis moment — In the opinion piece, Easterly likened modern tech security to the pre-seatbelt era of automobile safety and proclaimed that a “safety crisis is already here in the cyber-realm.”

But it made no mention of the word “regulation” and it doesn’t look like the speech will either, raising questions about how far Easterly’s cajoling can move the tech industry.

Is that really a surprise? — CISA is (mostly) not a regulator, and with the Biden administration intent on pushing more cybersecurity regulation, Easterly may be hoping CISA can play good cop to other agencies’ bad cop.

The pitch would be simple enough: Get your act together now, and you may be able to keep the regulators at bay. Or don’t — and good luck to you with that.

Russia

NEW CYBER SANCTIONS — A growing number of Russian technology, foreign influence and cybersecurity companies have two things in common: tight relationships with Kremlin intelligence services — and a plum spot on a U.S. sanctions list.

The Treasury Department’s Office of Foreign Asset Controls added 19 Russian technology executives or cybersecurity companies to its sanctions list on Friday, when it announced a broader sanctions package designed to ratchet up pressure on Moscow at the one-year mark of its invasion of Ukraine.

By the numbers — Of those 19, the Treasury called out six cyber or cyber-adjacent firms it alleges have ties to Russian intelligence. While a handful of those charges are vague, the move offers a small window into the web of private contractors that support Russian cyber spooks.

Getting technical — Take Forward Systems R&DC, for example, a Moscow-based computer programming and information technology company that has “developed specialized software and algorithms” for a partner of Russian military intelligence involved in offensive cyber operations, said OFAC.

There’s also Novilab Mobile, a Moscow-based software developer that Treasury says worked alongside another sanctioned Russian entity for a project on “mobile device monitoring.”

Not just the Internet Research Agency — Treasury also sanctioned several firms who support the Kremlin’s foreign influence campaigns.

Explicitly, it called out two firms that helped Russian military intelligence spin misleading narratives online. But it also sanctioned 0day Technologies — a Kremlin subcontractor that has previously been linked to malign influence — for providing “databases” of Western citizens’ personal data to Russian intelligence.

The International Scene

SIGNAL THREATENS TO WALK ON U.K. — Secure messaging app Signal is warning that it will exit the United Kingdom if it passes a controversial bill requiring communications providers to introduce encryption workarounds to limit the spread of online child sexual abuse material.

The U.K.’s Child Online Safety bill, which was first introduced by Boris Johnson and is still wending its way through Parliament, would fatally undermine end-to-end encryption, Signal CEO Meredith Whittaker told Ars Technica, which first reported the story on Friday.

“We would absolutely exit any country if the choice were between remaining in the country and undermining the strict privacy promises we make to the people who rely on us,” Whittaker said. “The U.K. is no exception.”

Nub of the problem — End-to-end encryption is the calling card that makes Signal tick for its more than 100 million users, but U.K. lawmakers, law enforcement officials and child protection advocates believe that it hinders the fight against online child exploitation, a mushrooming problem.

The law’s advocates argue it is “not a ban” on end-to-end encryption, but Signal and most privacy experts assert that there’s no workable, privacy-preserving alternative.

Industry Intel

PARTNERS FOR THE LONG-TERM — The U.S. government needs to set rules of the road for private sector companies that provide cybersecurity support in war zones, argues a new report out this morning from the Atlantic Council.

“It is difficult to know what forms future conflict and future adversaries will take, or the incentives that may exist for companies in those new contexts,” authors Emma Schroeder and Sean Dack write. “But by better understanding the key role that private information and technology companies already play in this domain, the United States and allies can better prepare for future threats.”

To address those problems, the report argues the government should set ground rules for how private companies can contribute to a war, create a database to monitor the services they provide and introduce funding mechanisms to help underwrite their support.

Tweet of the Weekend

Cryptographer Matthew Green has a thoughtful thread on the U.K.’s Child Safety Bill, and where he thinks the winds are blowing in the long-simmering encryption battle between governments and tech providers:

@MATHEW_D_GREEN

TWITTER

The Long Read

— CyberScoop has a terrific, one-year look back at the cyber implications of the war in Ukraine.

Quick Bytes

— Months after a widespread ransomware attack against Albania drew warnings from the West, Iran continues to target the NATO member with cyber-enabled disinformation campaigns. (The New York Times)

— Australian counter-intelligence has rounded up a highly active “hive” of Russian spies. (Sydney Morning Herald)

— One of the world’s largest commercial DNA diagnostics centers will pay a $400,000 fine for a 2021 data breach. (The Record)

— Ukrainian hacktivists deliver an anniversary gift to the Kremlin: a basket of website defacements. (TechCrunch)

Chat soon. 

Stay in touch with the whole team: Maggie Miller (mmiller@politico.com); John Sakellariadis (jsakellariadis@politico.com); and Heidi Vogt (hvogt@politico.com).

~~~~~

 

JOIN POLITICO ON 3/1 TO DISCUSS AMERICAN PRIVACY LAWS: Americans have fewer privacy rights than Europeans, and companies continue to face a minefield of competing state and foreign legislation. There is strong bipartisan support for a federal privacy bill, but it has yet to materialize. Join POLITICO on 3/1 to discuss what it will take to get a federal privacy law on the books, potential designs for how this type of legislation could protect consumers and innovators, and more. REGISTER HERE.

 
 
 

Follow us on Twitter

Heidi Vogt @HeidiVogt

Maggie Miller @magmill95

John Sakellariadis @johnnysaks130

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.

Comments

Popular Posts

The costs of Healey's budget cuts

Lisa Kashinsky and Kelly Garrity's must-read rundown of what's up on Beacon Hill and beyond. Jan 09, 2024 View in browser   By Kelly Garrity and Lisa Kashinsky MAKING ENDS MEET — Gov. Maura Healey’s plan to slash $375 million from the state budget to help plug a $1 billion revenue hole came as something of a surprise after she initially said she had no plans to scale back spending. But some budget watchers say the move to control costs was inevitable — and that the governor...

📷 Zaib Khan added a new photo

  See the photo that he shared.           Facebook                 📷 Zaib Khan added a new photo. 16 October at 20:23   View Photo       Abdul Karim Jam likes this.             This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

U.S. Cyber Command and NSA partner to shield midterms from hackers / Global ransomware damages set to exceed $30B / India's newest airline could have leaked customer data

Plus: Microsoft Azure Virtual Machines have suffered an outage Inside.com Part of   Network August 30, 2022 Presented by The U.S. Cyber Command has partnered with the NSA to shield midterm elections from hackers. The two federal agencies made the announcement in a joint statement. More: The two agencies have  created a joint task force named the Election Security Group. Officials from the NSA and U.S. Cyber Command have stated that the group comprises the best team members that the two agencies have. ESG will receive and share information with other domestic and international authorities to ensure it achieves its goal of protecting the midterm elections from foreign threat actors. The task force will also help U.S. allies to protect their electoral campaigns from actors that want to undermine them. Zoom Out: CISA has collaborated ...

Q&A: Bergman on pushing the FDA on psychedelics

The ideas and innovators shaping health care Aug 08, 2024 View in browser   By Ruth Reader , Erin Schumaker , Daniel Payne , Toni Odejimi and Carmen Paun WASHINGTON WATCH Bergman | Francis Chung/POLITICO ...

8 Best Diabetes-Friendly Meal Delivery Services in 2024

Plus: Identifying and Treating Diabetes Joint Pain ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌   ...

📷 MD Monir Ambulance added a new photo

        📷 MD Monir Ambulance added a new photo. 12 April at 17:59   View Photo               Facebook                 📷 MD Monir Ambulance added a new photo. 12 April at 17:59   View Photo               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

Sabir Khan wants to be friends on Facebook

  1 mutual friend - Works at Facebook - Islamia University - Bahawalpur - 2,123 friends - 5 photos - 7 groups           Facebook             Sabir Khan wants to be friends with you on Facebook.   Sabir Khan Works at Facebook · Islamia University · Bahawalpur 1 mutual friend · 2,123 friends · 5 photos · 7 groups               Confirm request     See all requests             This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

Spectrum Equity closes $2B fund

Plus, Audacity launches $60M fund Inside.com Part of   Network July 28, 2022 Presented by Spectrum Equity, an investment company based in Boston, has closed its new fund valued at $2B . The fund will be officially named Spectrum Equity X, L.P. More: The firm received funds from previous investors as well as first-time outside investors. Spectrum focuses on backing internet-based companies that aim to disrupt a number of different verticals such as education, financial services, healthcare, and logistics.  Founded in 1993, the company manages $8B in assets, while its average equity investment is $25M-$150M. Audacity has launched a new $60M fund. The India-based VC firm will focus on media tech companies that are raising their Series A round. More: Besides media tech, the firm will also focus on SaaS, g...

A 2022 recap of platform updates and new tools

Startups that raised funding in 2022 Inside.com Part of   Network December 28, 2022 Presented by Android and Apple updates announced in 2022:  Google introduced a pilot program with Spotify to explore user choice billing.  Google released Android 13 (Go edition) with improvements to user experience and technical functionalities.  Android 13 for TV was made available to developers on ADT-3 and the Android TV emulator.  Google announced memory safety vulnerabilities in Android dropped after announcing support for Rust last year.  Google shared its plans to launch the beta version of Privacy Sandbox for Android early next year.  Apple announced changes to its pricing structure, offering developers 700 additional price points and pricing tools.  Apple allowed reader apps to provide in-app links to alternative payment methods. In Apr...

Changes to Google’s end user-facing Terms of Service

Changes to our end user-facing Terms of Service effective March 31, 2020. Hello Administrator, We're writing to let you know about changes in our end user-facing Terms of Service (Terms) that may affect users in your domain. These changes do not impact the terms that govern the agreement between Google and your organization. If you have disabled Google Additional Services for users in your domain, these changes will not impact them. What's Changing? We're improving our Terms and making them easier to understand. The changes will take effect on March 31, 2020, and they won't impact the way your end users use Google services. As the United Kingdom (UK) is leaving the European Union (EU), Google LLC will be the service provider for end users in your domain that are based in the UK. Google LLC will be responsible for all user information and data in Additional Services, and for complying with applicable privacy laws. For more detail...