Dave McCurdy Executive Director, Internet Security Alliance President, Electronic Industries Alliance

Electronic Industries Alliance

The Whole is Greater Than the Sum of the Individual Parts
Telecommunications Industry Association (TIA) Solid State and Semiconductor Technology (JEDEC) NSTEP National Science & Technology Education Partnership (Foundation) Consumer Electronics Association (CEA) Government Electronics & Information Technology Association (GEIA) Electronic Components, Assemblies & Materials Association (ECA)

Affiliates
Electronic Representative Association (ERA) Internet Security Alliance (ISAlliance)

National Association of Relay Manufactures (NARM)

Electronic Industries Alliance Mission

EIA the Alliance
Promote market development and competitiveness of the hightech industry through domestic and international policy efforts.

EIA the Entity

Serves as a common voice for industry to educate policymakers and public Addresses sustained and critical issues important to the constituent industry Mobilizes the industry on critical issues Coordinates policies and strategies with all allied associations Promotes standards that serve the industry

Electronic Industries Alliance

Brings together top-level government officials and corporate leaders. Each of the past four U.S. presidents and other major policy makers meet with EIA. EIA provides major US tech link to international organizations

The Internet Security Alliance

The Internet Security Alliance is a collaborative effort between Carnegie Mellon Universitys Software Engineering Institute (SEI) and its CERT Coordination Center (CERT/CC) and the Electronic Industries Alliance (EIA), a federation of trade associations with over 2,500 members.

Sponsors

ISAlliance = Power-Synergy
Draws on the political muscle of EIA and its 80 year history in technology policy, market development and standards creation. Draws on the internet security expertise of the CERT at Carnegie Mellon Draws on an international membership to bring cohesion and focus to issues

ISAlliance International--India--Participation
ISAlliance has active members on 4 continents 20% of ISAlliance Board are non-US based companies, Board Chair is from CW of England TCS is the ISAlliance Founding Sponsor from India TCS has offered to become the first ISAlliance Security Anchor

Outline of Todays Presentation

The substance and politics of outsourcing in the United States today The relationship between security issues and outsourcing and its potential effect on public policy and international business cooperation. A proposal for NASSCOM and its member companies to formally join/work together

Economics of Offshore Outsourcing for the US

The U.S. is now facing a third consecutive year of job losses. Last summer the US lost a quarter million jobs, while US firms shipped 30,000 new service jobs to India. Estimates are that during the next 15 years the US will lose 3.3 million jobs to foreign companies along with $136 billion dollars in lost wages.

Positive Aspects of Outsourcing to India

India provides significant assets for high-tech companies: a highly-educated workforce wellversed in math and science and possessing engineering degrees comparable to U.S. colleges and universities. India is becoming an increasingly important member of the international economic community. This strength could also bring better relations between the U.S. and India, and a vested interest in international security.

The US Politics of Outsourcing to India

The U.S. face a job loss economic recovery. Homeland security-including cyber securitycontinues to have strong political appeal. The AFL-CIO (the largest union in the US) has mobilized support around the country for legislation that calls for an outright ban on overseas contracting (Wash Post 1/31/04)

Results of Political Pressure in US

In November the state of Indiana canceled a $15 million contract with an Indian company due to public outcry over outsourcing. Last year 8 states considered legislation to ban contracts using overseas workers----none passed but more pressure is expected On Jan 23 2004 President Bush signed into law a provision prohibiting certain government contracts to companies performing the work overseas.

New US law is tip of the Iceberg

THE LAW IS LIMITED 1. It pertains to only a narrow range of mostly transportation contracts. 2. It is already set to expire in September 3. Very few contracts are likely to be affected THE LAW IS A WARNING 1. State bills defeated last year have a better chance now 2. Congress and the Administration are now on record as willing to take aggressive action

What Drives the Outsourcing Politics ?

Speaking of the new US federal law in Saturdays Washington Post Stan Soloway (Pres. US Professional Service Council) is quoted as saying: he knows of no such competitions that have resulted in jobs going overseas. (It is) security restrictions that keep government contractors from using foreign workers. (Wash. Post 1/31/04)

A Security Focus may be a good approach for India

India is considered to have a much better cultural and legal climate for IP protection than many other nations offering offshore coding. Poorer nations often don't have laws protecting foreign companies and rarely enforce whatever laws may exist. Indias membership in WTO and adherence to TRIPS will help reduce fear.

US also needs a focus on Internet Security

1. Concerns about offshore-related security is on the rise. 2. Shift to higher-level outsourcing will put security more in spotlight. Database testing offers higher level of risk than application development and maintenance. 3. US industry develop cooperative policies, or high-tech companies will be penalized by those who are not as familiar with the issues or who wish to capitalize on the misfortunes of voters.

Growth in Incidents Reported to the CERT/CC

120000
110,000

100000 80000
55,100

60000 40000

21,756

20000
6 132 252 406 773 1,334 2,340 2,412 2,573 2,134 3,734 9,859

0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

The Dilemma: Growth in Number of Vulnerabilities Reported to CERT/CC

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 171 0
1995

4,129

2,437

1,090 417 345 311 262

2002

The Threats The Risks

Human Agents Hackers Disgruntled employees White collar criminals Organized crime Terrorists Exposures Information theft, loss & corruption Monetary theft & embezzlement Critical infrastructure failure Hacker adventures, e-graffiti/ defacement Business disruption Representative Incidents Code Red, Nimda, Sircam CD Universe extortion, e-Toys Hactivist campaign, Love Bug, Melissa Viruses

Methods of Attack Brute force Denial of Service Viruses & worms Back door taps & misappropriation, Information Warfare (IW) techniques

Attack Sophistication v. Intruder Technical Knowledge

stealth / advanced scanning techniques

Tools

High
Intruder Knowledge

packet spoofing sniffers sweepers

denial of service DDOS attacks www attacks automated probes/scans GUI

back doors disabling audits burglaries

network mgmt. diagnostics

Attack Sophistication

hijacking sessions exploiting known vulnerabilities password cracking self-replicating code

Low
1980

password guessing

Attackers 1995 2000

1985

1990

10

20

30

40

50

60

70

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Est

Discovered Virus Threats Per Day

The Speed of Attacks Accelerates

Slammer (January 2003) Blended threat exploits known vulnerability Global in 3 minutes Enterprises scramble to restore business availability MYDOOM (January 2004) Even Faster

Machines Infected per Hour at Peak

100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Code Red Nimda Goner Slammer

Computer Virus Costs (in billions)

$

150
billion

120 90 60 30 0

Range Dam age

'96 '97 '98 '99 '00 '01 '02 '03

(Through Oct 7)

ISA Security Anchor Proposal

Go beyond isolated conferences to Full service trade association for cyber security providing on-going services in: Information sharing on threats and incidents Best practices/standards/assessment development Locally-based education and training Domestic & international policy development Develop market incentives for cyber security

What Indian Partners Can Do:

Become Security Anchors in India TCS will be a Security Anchor in India other companies or Associations may also apply Join ISAlliance, be a conduit for ISAlliance services Work jointly on projects of mutual benefit Work jointly on increasing confidence in free market policies in the Internet age Work jointly on developing Return on Investment programs in cyber-security

ISAlliance/CERT Knowledgebase Examples

Benefits of Information Sharing Organizations

May lesson the likelihood of attack
Organizations that share information about computer breakins are less attractive targets for malicious attackers. NYT 2003

Participants in information sharing have the ability to better prepare for attacks

Benefits of Information Sharing Organizations

SNMP vulnerability CERT notified Alliance members Oct. 2001 Publicly disclosed Feb. 2002 Slammer worm CERT notified Alliance members May 2002 Worm exploited Jan. 2003

Why ISA Info Sharing Works

Carnegie Mellon/CERT leadership and credibility History and regularity build up trust Enforcing the rules builds trust Cross-sector/international model lessens competitive concerns Success breeds greater success

A Risk Management Approach is Needed

Installing a network security device is not a substitute for a constant focus and keeping our defenses up to date There is no special technology that can make an enterprise completely secure.
National Plan to Secure Cyberspace, 2/14/03

Chief Technology Officers Knowledge of their Cyber Insurance

34% Incorrectly thought they were covered 36% Did not have Insurance 23% Did not know if they had insurance 7% Knew that they were insured by a specific policy

ISAlliance CyberInsurance Program

Coverage for members Free Assessment through AIG Market incentive for increased security practices 10% discount off best prices from AIG Additional 5% discount for implementing ISAlliance Best Practices (July 2002)

Adopt and Implement Best Practices

Cited in US National Draft Strategy to Protect Cyber Space (September 2002) Endorsed by TechNet for CEO Security Initiative (April 2003) Endorsed by US India Business Council (April 2003)

Common Sense Guide Top Ten Practice Topics

Practice #1: Practice #2: Practice #3: Practice #4: Practice #5: Practice #6: Practice #7: Practice #8: Practice #9: Practice #10: General Management Policy Risk Management Security Architecture & Design User Issues System & Network Management Authentication & Authorization Monitor & Audit Physical Security Continuity Planning & Disaster Recovery

Other ISAlliance Best Practice Publications

Common Sense Guide for Home Users and Traveling Executives (February 2003) Common Sense Guide to Cyber Security for Small Businesses (Commissioned by National Cyber Security Summit Meeting 11/03)

Cooperative work on assessment/certification

TechNet CEO SelfAssessment Program Bring cyber security to the C-level based on ISA Best Practices Create a baseline of security even CEOs can understand Global Security Consortium 3-Party Assessment program Risk Preparedness Index for assessment as Qualified Member Develop quantitative independent ROI for cyber security

ISAlliance Qualification Program

No Standardized Certification Program Exists or will exist soon ISAlliance in cooperation with big 4 accounting firms and insurance industry create quantitative measurement for qualification for ISA discounts as proxy for certification ISA works with CMU CyLab on Certification

ISAlliance/CERT Training
Concepts and Trends In Information Security Information Security for Technical Staff OCTAVE Method Training Workshop Overview of Managing Computer Security Incident Response Teams Fundamentals of Incident Handling Advanced Incident Handling for Technical Staff Information Survivability an Executive Perspective

Public Policy
Policy must address Internet as a new technology No one owns the Internet It is constantly evolving International operation makes regulation difficult Mandates will truncate innovation and the economy

Putnam Legislation
Risk assessment Risk mitigation Incident response program Tested continuity plan Updated patch management program Putnam has said industry led Internet Security efforts wont work.

ISAlliance Incentive Model

Model Programs for market Incentives ---AIG ----Nortel ---Visa ----Verizon SemaTech Program Tax Incentives Liability Carrots Procurement Model Research and Development

A Coherent 10 step Program of Cyber Security

1. Members and CERT create best practices 2. Members and CERT share information 3. Cooperate with industry and government to develop new models and products consistent with best practices

A Coherent Program of Cyber Security

4. Provide Education and Training programs based on coherent theory and measured compliance 5. Coordinate across sectors 6. Coordinate across borders

A coherent program
7. Develop the business case (ROI) for improved cyber security 8. Develop market incentives and tools for consistent maintenance of cyber security 9. Integrate sound theory and practice and evaluation into public policy 10. Constantly expand the perimeter of cyber security by adding new members

Benefits
Share critical information across industries and across national borders Provide secure setting to work on common problems Provide economic incentive programs Develop model industry evaluation and training programs

For Additional Information

Dave McCurdy 703-907-7508 [email protected] Larry Clinton 703-907-7028 [email protected]