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US to allow private firms to conduct offensive cyberattacks

Created at 13 Aug · 2:32 PM1 source↑ Market-relevant
IN SHORT

The U.S. government will permit vetted private companies to launch offensive cyber operations against international criminal groups and hackers for the first time, according to a White House memorandum. The policy aims to leverage private sector capabilities to combat cybercrime, including ransomware and scams.

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Key Numbers

$1 millionescrow deposit for participating companies

Who's Involved

Trump administration
published presidential memorandum allowing private cyberattacks
Justice Department
must approve offensive cyber operations
Homeland Security
must approve offensive cyber operations
Jake Williams
cybersecurity veteran calling policy 'half-baked'
US to allow private firms to conduct offensive cyberattacks

↳ Why This Matters

This policy represents a significant shift in U.S. cybersecurity strategy, potentially enhancing the nation's ability to combat cybercrime by utilizing private sector expertise, but also raising concerns about legal challenges, international ramifications, and the safety of cybersecurity professionals.

Key facts

  • The U.S. government will allow vetted private companies to conduct offensive cyber operations against international criminal gangs and hackers.
  • The policy change allows for surveillance and disruptive attacks aimed at destroying criminals' data or systems.
  • Participating companies must deposit $1 million in escrow, which is forfeitable if rules are not followed.
  • Operations require sign-offs from the Justice Department and Homeland Security.
  • Companies must notify the government of imminent cyberattacks against critical U.S. infrastructure.
  • The U.S. government will, for the first time, permit vetted private companies to conduct offensive cyber operations against international criminal organizations and hackers, the White House announced Wednesday. This significant policy shift, detailed in a new presidential memorandum, aims to leverage the private sector's "innovative capabilities" to combat cybercrime, including ransomware attacks, financial scams, and sextortion targeting Americans.

    The memorandum allows participating companies to engage in surveillance, such as using spyware for intelligence gathering, and to execute disruptive attacks designed to destroy criminals' data or systems. This move represents a departure from long-standing U.S. federal computer hacking laws, which generally prohibit private entities from launching cyberattacks without court authorization. Previously, the government's stance was that the private sector could defend against cyber threats but not initiate offensive operations.

    While the policy is in its early stages, the government plans to issue detailed guidance within two months outlining requirements for participating companies of all sizes. To join the program, companies must deposit $1 million in escrow, which will be forfeited for non-compliance. The memorandum mandates procedures to prevent operations from targeting Americans or U.S. systems, and all operations will require approval from representatives of the Justice Department and Homeland Security, operating under federal government supervision.

    Participating companies will also be required to notify the government of any imminent cyberattacks against critical U.S. infrastructure. Critics, however, have raised concerns that the policy could lead to diplomatic issues and put American cybersecurity professionals at risk of foreign government detention, with one veteran calling the policy "half-baked" and potentially open to abuse.

    The administration cited a "growing threat" from cybercrime and international hackers as the impetus for the policy change, noting widespread cuts to federal cybersecurity staff. The announcement comes amid ongoing cyberattacks targeting U.S. states' water infrastructure, which intelligence officials have reportedly attributed to Iranian-backed hackers, and as governments worldwide grapple with AI-driven cyber threats.

    Frequently asked questions

    The U.S. government will now allow vetted private companies to conduct offensive cyber operations against international criminal gangs and hackers, a departure from previous prohibitions.

    Companies can conduct surveillance, such as using spyware for intelligence gathering, and disruptive attacks aimed at destroying criminals' data or systems.

    Companies must deposit $1 million in escrow, have operations approved by the Justice Department and Homeland Security, and notify the government of imminent attacks on critical U.S. infrastructure.

    Critics argue the policy is 'half-baked,' could lead to diplomatic issues, and may put American cybersecurity professionals at risk of being targeted by foreign governments.

    What Happens Next

    01Government to issue guidance on program requirements in the next two months.
    02Potential legal challenges and opposition from critics are expected.

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    Cadence

    How It Developed

    The U.S. government announced it will allow vetted private companies to conduct offensive cyber operations.
    A presidential memorandum was published detailing the new policy.
    The policy permits private firms to conduct surveillance and disruptive attacks against criminals.
    This marks a shift from previous U.S. federal computer hacking laws.
    Participating companies must deposit $1 million in escrow and operations require Justice Department and Homeland Security approval.
    Companies must notify the government of imminent attacks on critical U.S. infrastructure.
    Critics argue the policy is 'half-baked' and could put American cybersecurity professionals at risk.
    The administration cited a growing threat from cybercrime and international hackers as justification for the policy change.

    Sources

    T1
    In a first, US will allow some private firms to carry out cyberattacksTechCrunch

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