[House Hearing, 107 Congress] [From the U.S. Government Publishing Office] WHAT CAN BE DONE TO REDUCE THE THREATS POSED BY COMPUTER VIRUSES AND WORMS TO THE WORKINGS OF GOVERNMENT? ======================================================================= HEARING before the SUBCOMMITTEE ON GOVERNMENT EFFICIENCY, FINANCIAL MANAGEMENT AND INTERGOVERNMENTAL RELATIONS of the COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTH CONGRESS FIRST SESSION __________ AUGUST 29, 2001 __________ Serial No. 107-77 __________ Printed for the use of the Committee on Government Reform Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform ______ 80-480 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2002 ____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpr.gov Phone: toll free (866) 512-1800; (202) 512�091800 Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001 COMMITTEE ON GOVERNMENT REFORM DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California CONSTANCE A. MORELLA, Maryland TOM LANTOS, California CHRISTOPHER SHAYS, Connecticut MAJOR R. OWENS, New York ILEANA ROS-LEHTINEN, Florida EDOLPHUS TOWNS, New York JOHN M. McHUGH, New York PAUL E. KANJORSKI, Pennsylvania STEPHEN HORN, California PATSY T. MINK, Hawaii JOHN L. MICA, Florida CAROLYN B. MALONEY, New York THOMAS M. DAVIS, Virginia ELEANOR HOLMES NORTON, Washington, MARK E. SOUDER, Indiana DC JOE SCARBOROUGH, Florida ELIJAH E. CUMMINGS, Maryland STEVEN C. LaTOURETTE, Ohio DENNIS J. KUCINICH, Ohio BOB BARR, Georgia ROD R. BLAGOJEVICH, Illinois DAN MILLER, Florida DANNY K. DAVIS, Illinois DOUG OSE, California JOHN F. TIERNEY, Massachusetts RON LEWIS, Kentucky JIM TURNER, Texas JO ANN DAVIS, Virginia THOMAS H. ALLEN, Maine TODD RUSSELL PLATTS, Pennsylvania JANICE D. SCHAKOWSKY, Illinois DAVE WELDON, Florida WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California ADAM H. PUTNAM, Florida ------ ------ C.L. ``BUTCH'' OTTER, Idaho ------ EDWARD L. SCHROCK, Virginia BERNARD SANDERS, Vermont JOHN J. DUNCAN, Jr., Tennessee (Independent) Kevin Binger, Staff Director Daniel R. Moll, Deputy Staff Director James C. Wilson, Chief Counsel Robert A. Briggs, Chief Clerk Phil Schiliro, Minority Staff Director Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations STEPHEN HORN, California, Chairman RON LEWIS, Kentucky JANICE D. SCHAKOWSKY, Illinois DAN MILLER, Florida MAJOR R. OWENS, New York DOUG OSE, California PAUL E. KANJORSKI, Pennsylvania ADAM H. PUTNAM, Florida CAROLYN B. MALONEY, New York Ex Officio DAN BURTON, Indiana HENRY A. WAXMAN, California J. Russell George, Staff Director and Chief Counsel Bonnie Heald, Director of Communications/Professional Staff Member Mark Johnson, Clerk David McMillen, Minority Professional Staff Member C O N T E N T S ---------- Page Hearing held on August 29, 2001.................................. 1 Statement of: Carpenter, Jeffrey J., manager, Cert Coordination Center, Carnegie Mellon University................................. 56 Castro, Lawrence, Chief, Defensive Information Operations Group, Information Assurance Directorate, National Security Agency..................................................... 27 Culp, Scott, manager, Microsoft Security Response Center, Microsoft Corp............................................. 140 Lewis, Alethia, deputy director, Department of Information Technology, State of California............................ 107 Maiffret, Marc, chief hacking officer, eEye Digital Security. 160 Miller, Harris, president, Information Technology Association of America................................................. 119 Neumann, Peter G., principal scientist, Computer Science Laboratory, SRI International, Menlo Park, CA.............. 131 Rhodes, Keith A., Chief Technologist, Center for Technology and Engineering, General Accounting Office................. 5 Trilling, Stephen, senior director of advanced concepts, Symantec Corp.............................................. 150 Wiser, Leslie G., Jr., Section Chief, National Infrastructure Protection Center, Federal Bureau of Investigation......... 37 Letters, statements, etc., submitted for the record by: Carpenter, Jeffrey J., manager, Cert Coordination Center, Carnegie Mellon University, prepared statement of.......... 59 Castro, Lawrence, Chief, Defensive Information Operations Group, Information Assurance Directorate, National Security Agency, prepared statement of.............................. 31 Culp, Scott, manager, Microsoft Security Response Center, Microsoft Corp., prepared statement of..................... 142 Horn, Hon. Stephen, a Representative in Congress from the State of California, prepared statement of................. 3 Lewis, Alethia, deputy director, Department of Information Technology, State of California, prepared statement of..... 110 Maiffret, Marc, chief hacking officer, eEye Digital Security, prepared statement of...................................... 163 Miller, Harris, president, Information Technology Association of America, prepared statement of.......................... 123 Neumann, Peter G., principal scientist, Computer Science Laboratory, SRI International, Menlo Park, CA, prepared statement of............................................... 135 Rhodes, Keith A., Chief Technologist, Center for Technology and Engineering, General Accounting Office, prepared statement of............................................... 9 Trilling, Stephen, senior director of advanced concepts, Symantec Corp., prepared statement of...................... 153 Wiser, Leslie G., Jr., Section Chief, National Infrastructure Protection Center, Federal Bureau of Investigation, prepared statement of...................................... 40 WHAT CAN BE DONE TO REDUCE THE THREATS POSED BY COMPUTER VIRUSES AND WORMS TO THE WORKINGS OF GOVERNMENT? ---------- WEDNESDAY, AUGUST 29, 2001 House of Representatives, Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations, Committee on Government Reform, San Jose, CA. The subcommittee met, pursuant to notice, at 10 a.m., in room 205 of the San Jose Council Chamber at 801 North First Street, San Jose, CA, Hon. Stephen Horn (chairman of the subcommittee) presiding. Present: Representative Horn. Also present: Representative Honda. Staff present: J. Russell George, staff director and chief counsel; Bonnie Heald, director of communications; Elizabeth Johnston, detailee; Scott Fagan, assistant to the subcommittee; Mark Johnson, clerk; and David McMillen, minority professional staff member. Mr. Horn. This hearing of the Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations will come to order. The dramatic increase in computer use and the Internet are changing the way we communicate and conduct business. With 58 percent of Americans now having home Internet access, our Federal, State and local governments increasingly rely on the Internet to conduct business. More than 40 million Americans now perform such routine activities as filing income tax returns, health benefit claims, and renewing driver's licenses electronically. In addition to this wealth of personal information, the government's computer systems hold information that is vital to the security and economic well-being of this Nation. Unfortunately, these systems are increasingly vulnerable to hostile attacks that are capable of extracting unauthorized information and potentially threatening the Nation's infrastructure. Overall, the number and sophistication of these attacks is rising dramatically according to the federally funded CERT Coordination Center. Just to explain CERT, it stands for Computer Emergency Response Team, and it's our friends at Carnegie-Mellon that have been working on this for years. The number of incidents rose from 9,859 in 1999 to 21,765 in the year 2000. So far this year, 15,476 incidents have been recorded. An increasing number of these attacks, often in the form of viruses or worms, specifically target government systems. There are more than 48,000 known worms and viruses which enable hackers to gain access to systems and data stored on the infected computers. Some of the most destructive of these programs can delete system and application software and even destroy the hardware itself. There are nearly 110 million with Internet connections and, as we have seen, these potentially devastating viruses or worms can become an epidemic in microseconds. In 1999, for example, the Melissa virus gained notoriety because of the speed at which it spread. The first confirmed reports of Melissa were received on Friday, March 26, 1999. By Monday, March 29, the virus had affected more than 100,000 computers. Last year the ILOVEYOU virus created worldwide havoc in a matter of days costing an estimated almost $8 billion to fix it up. Last month, worms called Code Red I and II in Roman numerals, burrowed into nearly 1 million computer systems worldwide and affected an estimated 100 million computer users. E-mail systems went down for days. Workers were locked out of crucial computer files and some e-commerce ground to a halt. Government Web sites came under siege with the Pentagon shutting down public access to all of its Web servers. To date, the cost of Code Red worms have risen to more than $2 billion and are mushrooming to about $200 million per day. So far, these viruses and worms have not caused irreparable damage to the Federal Government's information systems. However, as the attacks become more sophisticated, the magnitude of the potential threat is colossal. We must do something more than just react to these attacks. There is no easy fix but governments at every level must be prepared for the next attempted invasion. Computer security must have a priority. Today we will examine the extent of the threat to government computer systems and the need for policy changes to ensure that these systems which are vital to this Nation and its economy and its citizens are protected. We welcome our witnesses today and we look forward to their testimony. [The prepared statement of Hon. Stephen Horn follows:] [GRAPHIC] [TIFF OMITTED] T0480.001 [GRAPHIC] [TIFF OMITTED] T0480.002 Mr. Horn. Panel one will include Keith Rhodes, Chief Technologist, Center for Technology and Engineering, of the U.S. General Accounting Office. That is part of the legislative branch of government headed by the Controller General of the United States. Mr. Castro, Larry Castro, is chief of defensive information operations group of the Information Assurances Directorate. General Hadon is the commanding officer of the National Security Agency, and we welcome Mr. Castro. The Information Assurance Directorate and the National Security Agency is really our No. 1 intelligence group in the United States. Leslie G. Wiser, Jr., Section Chief, National Infrastructure Protective Center, the Federal Bureau of Investigation. They have been particularly active and very cooperative with the Congress just as the National Security Agency has cooperated with the Congress on this very difficult situation. After Mr. Wiser, we will have Jeff Carpenter, manager of the CERT Coordination Center that I mentioned earlier with Carnegie-Mellon University and its Computer Emergency Response Team. The fifth one is Patricia Kuhar, program manager for information technology, California State Department of Information Technology. In addition, one of my colleagues will be here. Mr. Honda, the gentleman from California. Michael Honda is making his way to the hearing from Sacramento. I wish him well. Most of you know this because a lot of you have been before us before. But this is an investigating committee and, as such, we do administer an oath to make sure everything is done under oath. So if you will stand up and put your right hands up. [Witnesses sworn.] Mr. Horn. The clerk will note that all four witnesses present have taken the oath, and we can now start with Mr. Rhodes. STATEMENT OF KEITH A. RHODES, CHIEF TECHNOLOGIST, CENTER FOR TECHNOLOGY AND ENGINEERING, GENERAL ACCOUNTING OFFICE Mr. Rhodes. Thank you, Mr. Chairman. In keeping with the rules of the committee, I'd like to give a brief summary and have my full statement submitted for the record. Mr. Horn. I might add that when I name each individual, that automatically under our rules their statement goes immediately into the hearing record. This is being taken down by very able people, and Mr. Rhodes knows this, and we're delighted to have a member of the U.S. General Accounting Office. Mr. Rhodes. Thank you. Mr. Chairman and members of the subcommittee, thank you for inviting me to participate in today's hearing on the most recent rash of computer attacks. This is the third time I've testified before Congress over the past several years on specific viruses. First, the Melissa virus in April 1999 and second, the ILOVEYOU virus in May 2000. At both hearings I stressed that the next attack would likely propagate faster, do more damage, and be more difficult to detect and counter. Again, we are having to deal with destruction are reportedly costing billions. In the past 2 months, organizations and individuals have had to contend with several particularly vexing attacks. The most notable, of course, is Code Red but potentially more damaging are Code Red II and its variants and SirCam. Together, these attacks have infected millions of computer users, shut down Web sites, slowed Internet service, and disrupted business and government operations. They have already caused billions of dollars of damage, and their full effects have yet to be completely assessed, partly because viruses and worms don't just go away, especially the latest Code Red II variant which seems to have been modified to enable it to reinfect the systems it attacks. Despite some similarities, each of the recent attacks is very different in its makeup, method of attack, and potential damage. Generally, Code Red and Code Red II are both worms which are attacks that propagate themselves to networks without any user intervention of interaction. They both take advantage of a flaw in a component of versions 4.0 and 5.0 of Microsoft's Internet Information Services [IIS] Web server software. The main point I want to make about these two worms as well as the associated virus is that in and of themselves they might not be necessarily all that interesting. The potential of the attacks, however, is what I would like to cover today in my testimony. The worms have taken an additional step compared to what ILOVEYOU or Melissa did. Code Red itself combined a worm with a denial of service attach, and Code Red II has combined a worm with the ability for installing a back door for circumventing security services inside Web service. SirCam, on the other hand, is a virus but it's a virus that doesn't rely on, as with ILOVEYOU, the internal mail server capability of the systems it attacks. Rather, it brings its own e-mail software with it so that it can send itself out. Some of the points that I'd like to make today are that computer security, what we need to understand from these worms and virus attacks is that computer security is indeed a full- time job. New threats and vulnerabilities are constantly being identified, and measures to address those threats and vulnerabilities are being developed and implemented. For example, when the vulnerability exploded when Code Red was announced, a patch was also made available at the same time. This required installations using the affected software to: No. 1 keep up with the vulnerabilities associated with their software; and No. 2, install a patch to address the vulnerability. Until this announcement, most, if not all, of these installations did not know they had a problem. Considering the number of affected servers, a number of sites did not take the quick response necessary to address this new vulnerability. For example, install the available patches. This also underscores a point that we've made to this committee as well as other committees and the Congress regarding general controls of computer security across the government. The government is not in a position to protect itself. It does not have the talent, it does not have the training, it does not have the early warning. We are constantly--in my other capacity I run a computer security test laboratory in the General Accounting Office that has done work for this and other committees, and we are always able to break in and usually we are able to break in undetected and we are not using any sophisticated techniques. So it's not surprising that Code Red, Code Red II, Code Red's latest variant, SirCam, etc., are affected. For example, I don't know if the gentleman from Symantec, Stephen Trilling, is going to actually disassemble the Code Red software for you later, but it's not very smart code. It's not very sophisticated. Yes, it does combine denial of service attack with its ability to be a worm, but it's not very good code at all. When you look at it, it's thrown together and yet it's still extremely effective. No. 2 the attacks are coming faster after the vulnerability is announced. About 1 month after the vulnerability was announced, an effective attack using that vulnerability was launched. Shortly after this attack was launched, another attack with far more serious consequences was launched. That's Code Red II. Code Red came out, then Code Red II came out and, as a matter of fact, we were modifying the testimony in real time over the last week because a new variant had come out. No. 3 installing software is a complex business. In some cases, entities are installing software without actually knowing the services that are being activated. For example, we understand that some entities were installing Windows 2000 without understanding that the ISS services were being activated. Therefore, take for example, your own cell phone. You probably don't know all the services that are associated with your cell phone, and you probably don't use all of them. However, when you buy a software package now, you're getting a complete set of services, some of which you don't know that they may have vulnerability. The initial threat associated with a given attack is difficult to assess. I think one of the reasons, Mr. Chairman, that you and I get to see one another on an annual basis is that $8 billion distributed across the entire world, sort of like the first rules of physics. If I distribute the energy across a wide enough area, nobody feels the impact. $8 billion worldwide. Nobody seems to be willing to cry uncle, either the government or industry or individual users. Substantial financial impact. It's very hard to get anyone to say that $8 billion matters. We are now on our way to, as you pointed out, $200 million a day perhaps in impact and yet no one is willing to scream uncle. Therefore, what is the definition of critical infrastructure? If it's truly critical, someone should be crying uncle by now or somebody is in a position to not be able to cry uncle. Affected servers. One of the additional things about the current set of worms is that the affected servers broadcast the fact that their resources can be compromised. It's not just that Code Red goes in and takes over your environment, but Code Red goes in, takes over your environment and then tells everyone else that your environment has been compromised. The vulnerability exploited by Code Red can be used to take over the server. Nefarious individuals are always looking for servers that can be compromised in this fashion. However, rather than seeking out servers that have this vulnerability, all a person has to do is to look at their own network to see what servers are attempting to spread the Code Red worm to them. Based on this information, the individual knows that the server is vulnerable to this attack. The attacks are indeed getting worse and worse. The attacks are coming faster after vulnerabilities are being identified and have a more devastating impact. For example, the initial version of Code Red appeared about 1 month after the vulnerability was published. Shortly after the initial release, another attack that allowed an unauthorized individual to take over the server was launched. In the midst of all of this gloom and doom that I'm presenting, I would like to point out that there was one good thing that did come out of this legislative Code Red attacks, and that was there was very good coordination between the U.S. Government and private industry. It was, to my mind, the first time the government and industry had effectively worked together. This is the first time, in a coordinated fashion, that government and industry had worked to address a problem such as this. This is a positive step forward. However, I will say that this is the pound of cure rather than the ounce of prevention. One of my last points. Most software is not secure. Instead of relying on the code and fix approach for software development and security, we need to build security in the software during the development process. Although this may sound simple, it often conflicts with a get to market fast development program. Users, individual, corporate and government, are more than willing to state the mantra of it's a trade-off between usability and cost and the probability of a compromise remote PC is low. In other words, the users do not want to spend the time and money to secure systems since the ``other stuff'' we do for a living is more important and valuable. The fallacy in this argument is that the users have not done the risk analysis that allows them to make an informed decision about their security posture. The last point I'd like to make, Mr. Chairman, is that in going along with the pound of cure, your committee has talked time and time again that there's a dearth of management inside government and so you and others have brought about the government Information Security Reform Act. But again, that's a cure as opposed to a prevention because that requires organizations like OMB, the Inspectors General, and the General Accounting Office to come in and validate the security posture of the departments and agencies. Again, we're in a situation, as we were in Y2K, where the Congress is stepping in to pass laws to make certain that people do due diligence regarding their own security posture. Thank you very much, Mr. Chairman. That concludes my testimony, and I would entertain any questions from you or committee members. [The prepared statement of Mr. Rhodes follows:] [GRAPHIC] [TIFF OMITTED] T0480.003 [GRAPHIC] [TIFF OMITTED] T0480.004 [GRAPHIC] [TIFF OMITTED] T0480.005 [GRAPHIC] [TIFF OMITTED] T0480.006 [GRAPHIC] [TIFF OMITTED] T0480.007 [GRAPHIC] [TIFF OMITTED] T0480.008 [GRAPHIC] [TIFF OMITTED] T0480.009 [GRAPHIC] [TIFF OMITTED] T0480.010 [GRAPHIC] [TIFF OMITTED] T0480.011 [GRAPHIC] [TIFF OMITTED] T0480.012 [GRAPHIC] [TIFF OMITTED] T0480.013 [GRAPHIC] [TIFF OMITTED] T0480.014 [GRAPHIC] [TIFF OMITTED] T0480.015 [GRAPHIC] [TIFF OMITTED] T0480.016 [GRAPHIC] [TIFF OMITTED] T0480.017 [GRAPHIC] [TIFF OMITTED] T0480.018 [GRAPHIC] [TIFF OMITTED] T0480.019 [GRAPHIC] [TIFF OMITTED] T0480.020 Mr. Horn. Yes. We will have all the presenters and get it all on the table and then we'll go to questions. We now have Larry Castro, Chief Defensive Information Operations Group of the Information Assurance Directorate of what is probably our greatest national intelligence agency, the National Security Agency. Thank you, Mr. Castro, for coming. STATEMENT OF LAWRENCE CASTRO, CHIEF, DEFENSIVE INFORMATION OPERATIONS GROUP, INFORMATION ASSURANCE DIRECTORATE, NATIONAL SECURITY AGENCY Mr. Castro. Thank you, sir. Good morning. Thank you for that kind introduction. On behalf of our Director, Lieutenant General Mike Hadon, I am pleased to respond to the subcommittee's invitation to discuss NSA's view of the threats posed by malicious computer code, particularly viruses and worms. My name is Larry Castro. I lead the Defensive Information Operations Group within NSA's Information Assurance Directorate. I'm accompanied today by Mr. Steve Ryan, a senior technical director in our group. We have submitted to the committee a formal statement for the record, and what I'd like to do is just summarize some of the key points of that as well as refer you to a few graphics that we put together. As the chairman has most kindly pointed out, NSA is probably most well known for its signals intelligence or SIGINT mission which provides critical information about a wide range of foreign intelligence topics. Our Information Assurance mission to protect national security related information is an equally vital part of NSA's 50 year history and it's in this capacity of representing NSA's information assurance capability that I appear before you today. What I'd first like to do in the next chart is to share with you the larger context with which we approach our information assurance mission and that is we seek in our products and the services that we provide to our customers within the national security community to provide products and services that emphasize these five attributes. We are, of course, most well known for historically providing very high- grade encryption products, but as the world of networking has evolved, we have branched out and our products now seek to help ensure the availability of communications, to protect data integrity, and to ensure the ability to authenticate and have non-repudiation among users. Even with these within the even larger framework, we operate our entire information assurance mission, and that is to say again we seek to work across a wide spectrum with regard to computer and cyber incidents ranging from providing the technology to protect to engaging in services in cooperation with the U.S. Space Command and Joint Task Force on Computer Network Operations to detect and report on incidents in cyber space and then finally in support of the Defense Information System Agency to react to those incidents. What the chart seeks to depict is to say that to do all of this you need to have that mix among technology, operations and personnel. The technology needs to be robust and the people, as has been pointed out in Mr. Rhodes' testimony, need to be well- trained to do the job. And then finally, you have to implement a sound information assurance policy. I'd like to share with you all our view of the environment in which we're operating. Here, this is not a piece of modern art. It, in fact, is a result of work done by Doctor Bill Cheswick at Lumina wherein he has developed a capability of scanning the Internet. This is a scan of some 80,000 Internet routers. Each of those dots, should they be capable of being resolved, is one such router and the connections between the routers are color-coded to show the state of conductivity. Within NSA and within our Information Assurance Defensive Operations Group we have a number of customers who correspond to one or more of those dots, and our job is to provide the situation awareness of what's going on among that whole milieu of dots, in particular, looking for the routers associated with bad actors. And I will try to describe some of the techniques that we use to do that. The sort of take way though is that the impression that you're given and the reason I like to use this chart is that this is an exploding environment. It's continuing to grow and branch out and that there are no boundaries in that chart up there. We don't see any State boundaries within the U.S. Department of Defense. We don't see any boundaries between U.S. Space Command, U.S. Central Command. And this is the message that we take, that the vulnerability of one leads to the vulnerability of all. Going now to discuss a little bit about the threat. It's clearly one that has many, many dimensions and, from our perspective at NSA, we see folks in each of those clouds playing in cyber space. They have varying motives. Some are just in it for ego, quite frankly. Others are there for financial gain and occasionally we detect those who are there for serious data mining, possibly even espionage. In the next chart we attempt to define the classes of attacks that we are contemplating. Starting from the left and then working to the right, we would simply alert the committee that there is a credible threat actually even in the distribution of software. The ability to implant this malicious code as the software is put into shrink wrap does exist and, of course, there are many who are concerned about this and are reacting to it. Then with regard to the actual communication structures within the Internet itself, as shown there, there are both passive and active means of monitoring those structures, of inserting one's self in for less than good purposes. Of course, the main thrust of this presentation and this committee's work is the active remote attack that we show there in the bottom and that is surely one for which and through which we see the majority of incidents that we work on today. And then getting actually into the enclave that we seek to defend. There are those who would simply stand off just outside this enclave, perhaps just outside this window, attempting to influence the cyber environment and then, quite frankly, sir, the thing that we're most concerned about within the Department of Defense, and it's been borne out over the last several years, is the insider threat. Again, the insider, either cooperating with outsiders or on its own, can do quite a bit of damage. The other thing that needs to be noted is more and more we see the appearance of bulletin boards, chat rooms and other fora allowing hackers and those who would attempt to do harm in cyber space to exchange information. What this chart attempts to depict is that freeware that allows someone to become a scrip kitty and perhaps even become more extensive is readily available, is increasing in complexity and simply allows more efficient work on behalf of the hacker. Now I'd like to turn to an examination that we completed within the Department of Defense looking at incidents over the last quarter. That would be to say the last 3 months preceding this one. What we did was to look at the apparent origin of the incidents that we are recording in the Department of Defense in the Joint Task Force on Computer Network Operations. Interestingly, as you can see, for that particular quarter and for a number of different reasons having to do with lots of things going on in the world, China was the country of apparent origin for over 20 percent of the incidents recorded within the Department of Defense. The others in the top 10 are shown there. I do have to make one clarification with regard to apparent origin. As many know, the apparent origin is simply the last place that we see an attack coming from. As the chart here shows, the actual perpetrator could be located anywhere behind that apparent origin location. However, I still think it's useful to show which countries are being implicated, either wittingly or unwittingly, in these kind of attacks and intrusion attempts. As has been discussed over the last 3 months, there have been a number of different worms and viruses and attacks that have shown up. One that impressed us most was the one referred to as the W32 Leaves worm or just the Leaves worm. Without going into the details--time doesn't allow--simply to say that this was a very, very complex attack. What impressed us most was the fact that when it was all said and done, the intruder down there in the lower right had the capability, estimates say, to control with one single set of commands about 24,000 zombies that he had established in his network. He did it in a very, very sophisticated way, a way that involved from time to time using encryption of his commands and, as I said before, he was able in the end to setup a command and control mechanism that did not require him to communicate individually with each of the computers under his control, but rather he used an Internet relay chat channel to provide both updates to his zombies and to provide commands. We actually saw no harmful activity that came from this attempt to setup this distributed computing network, but I think it is indicative of the sophistication that we can expect to see in the future. Now with regard to what we would suggest are the ways ahead, and they have already been very well covered by Mr. Rhodes so I will only seek to reiterate one more time. There's clearly a very, very strong component of education and awareness, not only for the practitioners but, we would submit, for the Nation at large. We would commend the committee. We think that having this hearing involving both government entities, academia, and the industry is a very, very important way of getting that message out. We would also like to share with the committee the fact that within NSA, trying to get to the point again raised by Mr. Rhodes with regard to having sufficient folks well-trained, we have established an Academic Centers of Excellence Program that uses community-accepted criteria for validating the curricula of universities who engage in information assurance-related education. Within California, of the 23 universities that have been so designated, U.C. Davis, Stanford University and the Naval Post- Graduate School of Monterey have been designated as Academic Centers of Excellence for information assurance education. The second point is that giving increasing emphasis on anticipatory defensive measures. Specifically by this, we mean the fact that, again, as has already been pointed out, every one of the vulnerabilities that are being exploited by those who would do harm in cyber space are known beforehand and are anticipated by the hacker before the defense community makes the necessary patch. To give you an idea of how we are always behind the power curve, last year within the Department of Defense, there were on the order of 24,000 what we would describe as incidents. Our definition of incidents is different from those used by the Search CC, so the numbers aren't quite the same. But the important take away is that we estimate that at least 80 percent of the those 24,000 incidents could have been prevented had the patch to close the particular vulnerability in question been in place in a proper amount of time. And that's not to say that the department doesn't give high visibility to making these patches, but it is, quite frankly, a resource issue. The same system administrator who's charged with making that patch is also charged with keeping that computer system up and supporting his commander and, of course, that's usually what takes the priority. And then finally, as was mentioned again previously, the kind of interaction between governmental entities and between the government and industry that we saw so well carried out during the Code Red campaign is in fact what we would suggest be the model for the future. If we have that kind of continued cooperation, if we have the mechanisms in place, both mechanical mechanisms and, quite frankly, emotional and thought process mechanisms, we believe we can go a long way in getting ahead of the power curve. That concludes my testimony, sir, and we'd be glad to take questions at the appropriate time. [The prepared statement of Mr. Castro follows:] [GRAPHIC] [TIFF OMITTED] T0480.021 [GRAPHIC] [TIFF OMITTED] T0480.022 [GRAPHIC] [TIFF OMITTED] T0480.023 [GRAPHIC] [TIFF OMITTED] T0480.024 [GRAPHIC] [TIFF OMITTED] T0480.025 [GRAPHIC] [TIFF OMITTED] T0480.026 Mr. Horn. Well, thank you very much. We'll have a number of questions very shortly here. Now we have Leslie Wiser, the Section Chief for the National Infrastructure Protection Center of the Federal Bureau of Investigation. I want to thank you very much for the cooperation you have had with the Congress and this committee and bringing people from all over the world so we could get a good look at them. You've always helped us in this area, and thank you, just as the National Security Agency has helped us. So proceed, Mr. Wiser. STATEMENT OF LESLIE G. WISER, JR., SECTION CHIEF, NATIONAL INFRASTRUCTURE PROTECTION CENTER, FEDERAL BUREAU OF INVESTIGATION Mr. Wiser. Chairman Horn, thank you for those kind comments and thank you for inviting me here today to testify about how the National Infrastructure Protection Center [NIPC], is addressing the threats posed to government systems by computer viruses and worms. I have a formal statement that I will submit for the committee, and I will continue with other remarks. I spoke with NIPC Director Ron Dick yesterday, and he regrets not being able to attend but asked me to forward his gratitude as well to this committee. It's been suggested that www stands not for World Wide Web; rather, in this context, it seems to mean wild, wild west. Cyber crime is a new frontier requiring new thinking and new skills. Dealing with Internet viruses, worms and the vast spectrum of threats to government and private sector information systems requires a dedicated and cooperative effort. It is fitting that we are in the heart of the information technology community. It's that cooperative effort that I will focus on here today. The mission of the NIPC is to detect, deter, warn of, investigate and respond to cyber intrusions that threaten our critical infrastructures. It is the only organization in the United States with this national infrastructure protection mandate. The NIPC gathers together under one roof representatives from, among others, the law enforcement, intelligence, and defense communities which collectively provide a unique analytical perspective to cyber intrusion information obtained from investigation, intelligence collection, foreign liaison and private sector cooperation. This perspective ensures that no single discipline addresses cyber intrusions of critical infrastructures in a vacuum. Rather, a cyber incident is examined as a system security matter as well as for its potential as a counter-intelligence defense and law enforcement matter. While the mission of the NIPC outlined in Presidential Decision Directive 63 is broad, our complement is relatively small with 91 FBI employees and 18 detailees, many of whom field critical leadership roles. I am pleased to serve with a fine staff of dedicated men and women including NIPC's Deputy Director, Rear Admiral James Plehal of the U.S. Naval Reserve, who hail from 12 Federal entities and 3 foreign governments. Please allow me to provide a few examples that demonstrate our approach to protecting U.S. critical infrastructures including our government information systems. In July 2001 the NIPC issued a series of timely predictive warnings regarding the Code Red worm. Before issuing these warnings, the NIPC conducted daily tele-conferences with the National Security Council, the National Security Agency, the Defense Department's Joint Task Force for Computer Network Operations, the Justice Department, the CIA, CERT and others to form a consensus response strategy. As a result of this cooperation, the impact of Code Red was successfully mitigated. The NIPC was quick to fulfill its warning mission while simultaneously coordinating the FBI investigation which is continuing. Similarly, on July 23, 2001 the NIPC, again working with the same partners, issued an advisory regarding the Leave worm which infected over 20,000 machines. The FBI's investigation and analysis determined the infected computers were synchronizing, possibly for an attack. Through the execution of several search warrants and sophisticated analysis by our computer scientists, we followed the trail to the United Kingdom where New Scotland Yard identified a subject and arrested him. In this example, the successful investigation itself ended the threat. In contrast to the success of the Leave worm investigation, we are often frustrated when we are forced to obtain several separate court orders tracing intruders back through several ISP hot points. This is difficult enough when all the activity is within the United States. It often becomes formidable when the trail leads overseas. The trans-national nature of cyber attacks requires solid liaison with foreign partners with whom we can exchange warnings of malicious computer activity. Currently, the NIPC has connectivity with similar centers in the U.K., Canada, Australia, New Zealand and Sweden and in May, I extended an offer to the German Government, which is under consideration. We think there is great benefit in establishing a global network including partners in time zones ahead of us to provide early warning of attacks. Along with foreign collaboration, cooperation with the private sector is absolutely essential to successfully protect U.S. critical infrastructures. As a result, the NIPC established InfraGard where like-minded professionals can share best practices and discuss other issues of importance to them. InfraGard is like a neighborhood watch because members band together to protect each other. They have shared information about attacks with each other on a confidential basis by providing sanitized reports to the NIPC. In May the Safe America Foundation presented its 2001 World Safe Internet Safety Award to the NIPC for the InfraGard partnership. Today InfraGard boasts over 1,800 members including 87 Fortune 500 companies in 65 chapters across the United States and Puerto Rico. In June the NIPC hosted the first annual InfraGard Congress here in California where private sector representatives from around the country gathered and elected an executive committee to help lead this important initiative. In particular, small startup businesses that cannot afford a dedicated security office or fees charged by for profit security enterprises have found a home in InfraGard. InfraGard is a free service and puts a face on law enforcement that enhances accessibility, communication, cooperation and trust. I don't know of another program like it in the world, and foreign officials and companies have expressed an interest in creating InfraGard-like programs in their countries. For example, Mr. Elfen Menses of the Philippine National Bureau of Investigation, who testified before this subcommittee last year, attended the InfraGard Congress as an observer. He left energized and committed to starting an InfraGard-like program in the Philippines, and we embrace efforts to establish foreign public/private partnerships as a step to enhancing global security. Pursuant to PDD63, the NIPC was appointed to be the Federal Government's liaison for Emergency Law Enforcement Services Sector, the ELES Center, one of the critical infrastructures identified in PDD63. The NIPC works cooperatively with the ELES Sector Forum, a group of seasoned State and local law enforcement professionals, to protect State and local law enforcement data and communication systems, including the 911 system. On March 2 the NIPC and members of the forum led by Sheriff Pat Sullivan of Colorado presented the completed sector plan to the White House. The plan and an accompanying guide, a toolbox of best practices, worksheets and checklists, is the Nation's only completed infrastructure protection plan. It is being used as a model for other infrastructures. Yet we will not succeed in stemming the tide of devastating viruses and worms on the Internet without raising public awareness, continued cooperation with the private sector, strong relationships at all levels of government, and a united front with foreign governments. The good news is that through new thinking and new skills, we have made significant progress in all these areas. I remain grateful for the opportunity to discuss this important topic with you. I'm also gratified to see many of our U.S. Government and private sector partners here at the table. We want to work closely with them, this subcommittee, and with other Members of Congress on infrastructure protection issues. Thank you very much, sir. [The prepared statement of Mr. Wiser follows:] [GRAPHIC] [TIFF OMITTED] T0480.027 [GRAPHIC] [TIFF OMITTED] T0480.028 [GRAPHIC] [TIFF OMITTED] T0480.029 [GRAPHIC] [TIFF OMITTED] T0480.030 [GRAPHIC] [TIFF OMITTED] T0480.031 [GRAPHIC] [TIFF OMITTED] T0480.032 [GRAPHIC] [TIFF OMITTED] T0480.033 [GRAPHIC] [TIFF OMITTED] T0480.034 [GRAPHIC] [TIFF OMITTED] T0480.035 [GRAPHIC] [TIFF OMITTED] T0480.036 [GRAPHIC] [TIFF OMITTED] T0480.037 [GRAPHIC] [TIFF OMITTED] T0480.038 [GRAPHIC] [TIFF OMITTED] T0480.039 [GRAPHIC] [TIFF OMITTED] T0480.040 [GRAPHIC] [TIFF OMITTED] T0480.041 [GRAPHIC] [TIFF OMITTED] T0480.042 Mr. Horn. Thank you very much. We appreciate your testimony and all your excellent people over there. We now go to Jeff Carpenter. He is the manager of the CERT Coordination Center of Carnegie-Mellon University and the CERT I think has probably got a patent on it or a copyright, but it stands for Computer Emergency Response Team. We have been looking with great interest over the last few years that in all our feeling, Carnegie-Mellon University is ahead of the pack in terms of the universities of America. So thank you very much for coming. STATEMENT OF JEFFREY J. CARPENTER, MANAGER, CERT COORDINATION CENTER, CARNEGIE MELLON UNIVERSITY Mr. Carpenter. Thank you, Mr. Chairman. Thank you for your remarks. My name is Jeff Carpenter. I manage the CERT Coordination Center which is part of the Software Engineering Institute at Carnegie-Mellon University. Thank you for the opportunity to testify before your subcommittee today. I have a formal statement which I am submitting for the record, and I will just summarize my remarks now. Today I'm going to talk about the Code Red worm attacks and the broader implications of those attacks. In our first full year of operation in 1989, CERT responded to more than 100 computer security incidents. In the year 2000, staff handled more than 21,000 incidents. In total, CERT staff has handled over 63,000 incidents and catalogued more than 3,700 computer vulnerabilities. This testimony is based on that broad experience as well as our specific experience with the Code Red worm. To begin the story of the Code Red worm, we need to look back to June 19. On that day, we published an advisory describing a vulnerability in Microsoft's Internet information server, Web server software. This vulnerability could allow intruders to compromise computers running vulnerable versions of IIS. This means that an intruder could take control of a vulnerable computer, accessing or changing data on that computer, or using that computer to launch attacks against other organizations. A month later the first signs of Code Red worm appeared on July 13. Code Red is called a worm because it's self- propagating. When it compromises a computer, the worm looks for computers to compromise, compromises those computers and then those computers begin compromising other computers without the direct intervention of the intruder that initially launched the worm. Code Red took advantage of the fact that many computers on the Internet that were running IIS still a month later were running vulnerable versions of IIS. On July 19 the more aggressive version of the worm began spreading rapidly. As the day progressed, the rate of computers being scanned and compromised continued to increase exponentially. On July 20 Code Red changed its type of activity. Instead of propagating the worm, it changed into launching a denial of service attack against a high-profile Web site. When this change occurred, the spreading of the attack stopped. By the time that the spreading of the attack stopped, more than 250,000 computers had been compromised and that was unprecedented in a 24-hour time period. CERT, along with a number of other government and industry organizations, worked over the next few weeks to raise awareness of the need to patch systems immediately. There was a sense of urgency connected with this joint warning because we anticipated that the worm would change back to propagation mode on August 1. Even with the publicity that we did over the next week or so, when the worm started spreading again on August 1, about 150,000 computers were compromised by the next day. So even with the publicity, many machines were not patched. The significance of Code Red lies beyond the specific activity we've described. Rather, the worm represents a larger problem with Internet security and forecasts what we can expect in the future. My most important message today is not only is the Internet vulnerable to attack today, but it's going to stay vulnerable to attack for the foreseeable future. Systems are vulnerable to problems that have already been discovered, sometimes years ago, and they remain vulnerable to problems that will be discovered in the future. Multiple factors contribute to this problem. CERT experience shows that intruders will develop exploit scripts for vulnerabilities in products such as IIS. They will then use these scripts to compromise computers and will share these scripts with other intruders so those intruders can attack systems using them. New exploits are causing damage more quickly than those created in the past. One primary reason is that intruders are developing better techniques for identifying vulnerable computers and exploiting them. The ability of intruders to compromise systems quickly limits the time that security experts have to analyze the problem and warn the Internet community. Likewise, system administrators and users have little time to protect their systems from these attacks. This year CERT expects to catalog well over 2,000 vulnerabilities by the end of the year. The rate of reports is doubling each year. There's little evidence of improvement in the security of most products. Developers are not devoting sufficient effort to applying lessons learned about sources of vulnerabilities. While we continue to see exploitation of old vulnerabilities, we're also seeing an increase in new vulnerabilities. Many of them have the same root causes and many of them could have been prevented by good software development practices. System and network administrators are challenged with keeping up with all of the systems they have and all the patches released for those systems. We have found that after a vendor releases a security patch it takes a long time for system administrators to fix all the vulnerable computer systems. It can be months or years before patches are applied to only 90 percent of the vulnerable computers. For example, we still to this day receive reports of outbreaks of the Melissa virus which is over 2 years old. There are a variety of reasons for the delay. The job might be time-consuming, too complex or low-priority for the system administration's staff to handle. But even in an ideal situation, conscientious system administrators cannot adequately protect their computer systems because other system administrators and users including home users do not adequately protect their systems. The security of each system on the Internet affects the security of other systems. Federal, State and local governments should be concerned. Their increased use of the Internet to conduct business and provide information has a corresponding increase in the risk of compromise. Action is needed on many fronts. With the technology product development, vendors need to be proactive in proving their software development practices and shipping products that are configured securely out of the box. Improved practices will reduce vulnerabilities in products on the market and reduce risk of compromise. In our experience, once a vulnerability makes it out into the field installed on systems, it's very difficult to have that vulnerability fixed on all of the systems that it reaches. So we want to try to prevent the vulnerabilities from being in the products that get released to the field to begin with. System administrators also need better tools to manage the updating of software and computers. Home users and business users alike need to be educated on how to operate computers most securely and consumers need to be educated on how to select the products they buy. To the acquisition community, it's important to evaluate suppliers for product security but the current ways of describing security requirements are immature and the problem today is not the lack of features, it's the software is flawed. For long-term improvements to occur, the government should sponsor research and development leading to safer operating systems that are also easier to maintain and manage. There should also be increased research in survival of systems that are better able to resist, recognize and recover from attacks while still providing critical functionality. And finally, the government should provide meaningful infrastructure support for university programs and information security education and research to produce a new generation of experts in this field. Problems such as Code Red will occur again. Solutions are not simple because the underlying causes must be addressed. However, we can make significant progress through changes in software design and development practices and system administration in the knowledge of users and in acquisition practices. Additionally, the government should support research and development and education in computer network security. Thank you, Mr. Chairman. [The prepared statement of Mr. Carpenter follows:] [GRAPHIC] [TIFF OMITTED] T0480.043 [GRAPHIC] [TIFF OMITTED] T0480.044 [GRAPHIC] [TIFF OMITTED] T0480.045 [GRAPHIC] [TIFF OMITTED] T0480.046 [GRAPHIC] [TIFF OMITTED] T0480.047 [GRAPHIC] [TIFF OMITTED] T0480.048 [GRAPHIC] [TIFF OMITTED] T0480.049 [GRAPHIC] [TIFF OMITTED] T0480.050 [GRAPHIC] [TIFF OMITTED] T0480.051 [GRAPHIC] [TIFF OMITTED] T0480.052 [GRAPHIC] [TIFF OMITTED] T0480.053 [GRAPHIC] [TIFF OMITTED] T0480.054 [GRAPHIC] [TIFF OMITTED] T0480.055 [GRAPHIC] [TIFF OMITTED] T0480.056 [GRAPHIC] [TIFF OMITTED] T0480.057 [GRAPHIC] [TIFF OMITTED] T0480.058 [GRAPHIC] [TIFF OMITTED] T0480.059 [GRAPHIC] [TIFF OMITTED] T0480.060 [GRAPHIC] [TIFF OMITTED] T0480.061 [GRAPHIC] [TIFF OMITTED] T0480.062 [GRAPHIC] [TIFF OMITTED] T0480.063 [GRAPHIC] [TIFF OMITTED] T0480.064 [GRAPHIC] [TIFF OMITTED] T0480.065 [GRAPHIC] [TIFF OMITTED] T0480.066 [GRAPHIC] [TIFF OMITTED] T0480.067 [GRAPHIC] [TIFF OMITTED] T0480.068 [GRAPHIC] [TIFF OMITTED] T0480.069 [GRAPHIC] [TIFF OMITTED] T0480.070 [GRAPHIC] [TIFF OMITTED] T0480.071 [GRAPHIC] [TIFF OMITTED] T0480.072 [GRAPHIC] [TIFF OMITTED] T0480.073 [GRAPHIC] [TIFF OMITTED] T0480.074 [GRAPHIC] [TIFF OMITTED] T0480.075 [GRAPHIC] [TIFF OMITTED] T0480.076 [GRAPHIC] [TIFF OMITTED] T0480.077 [GRAPHIC] [TIFF OMITTED] T0480.078 [GRAPHIC] [TIFF OMITTED] T0480.079 [GRAPHIC] [TIFF OMITTED] T0480.080 [GRAPHIC] [TIFF OMITTED] T0480.081 [GRAPHIC] [TIFF OMITTED] T0480.082 [GRAPHIC] [TIFF OMITTED] T0480.083 [GRAPHIC] [TIFF OMITTED] T0480.084 [GRAPHIC] [TIFF OMITTED] T0480.085 [GRAPHIC] [TIFF OMITTED] T0480.086 [GRAPHIC] [TIFF OMITTED] T0480.087 [GRAPHIC] [TIFF OMITTED] T0480.088 [GRAPHIC] [TIFF OMITTED] T0480.089 [GRAPHIC] [TIFF OMITTED] T0480.090 Mr. Horn. Well, we thank you very much and we'll have a lot of questions coming up very shortly. From the State of California we have Alethia Lewis, deputy director of the Department of Information Technology and Patricia Kuhar, the program manager, Information Security for the Department of Information Technology. You weren't here when we noted that we do swear in our various guests and I believe Ms. Kuhar is the official witness, but Ms. Lewis will be doing the testifying. So if you'll raise your right hands. [Witnesses sworn.] Mr. Horn. Clerk will note both witnesses affirmed the oath. So Ms. Lewis, proceed. We've got some of your testimony. It's in the record and if you'd like to submit some more, obviously we'd be delighted to have your thoughts. So go ahead. STATEMENT OF ALETHIA LEWIS, DEPUTY DIRECTOR, DEPARTMENT OF INFORMATION TECHNOLOGY, STATE OF CALIFORNIA Ms. Lewis. Thank you. My name is Alethia Lewis and I'm Deputy Director with the Department of Information Technology responsible for the department's external affairs and liaison to other State agencies in IT matters. As stated, I have with me today Ms. Patty Kuhar, the department's information security program manager and a board certified information systems security professional. We're here representing the State of California on behalf of the Governor's office and the Department of Information Technology. I'd like to thank you for inviting us to participate in this hearing. We did prepare a statement which I'll be presenting a slightly condensed version of that statement here as testimony. California state government has over 100,000 computer work stations and e-mail users and over 1,000 Web servers at hundreds of locations state-wide. With the large number of users, the even larger number of e-mail correspondence and network connections, our systems are often subject to attack and disruption by viruses and worms. The most visible and notorious of these incidents involve mass e-mail viruses and worms. Like many others, the State was hit particularly hard by the Love Bug viruses which interrupted e-mail systems at many departments for periods varying from a few minutes to several days. Melissa, Kournikova and a few others have caused similar but somewhat less wide-spread disruptions. Each time, several hundred hours of work by skilled and scarce technicians was required to get the e-mail systems cleaned-up and back in business. Over the past few years, we've deployed commercial software products to protect most State work stations and many e-mail servers. We know this has resulted in a big reduction in the amount of impact that worms and viruses might have had by comparing the impact of attacks on the best protected sites with those that are less protected. Nevertheless, the defense are far from perfect. It is a time consuming and continued effort to ensure that every device and server has software protection from the latest viruses and inevitably, a few systems get missed and are left vulnerable. Increasingly, the most destructive or at least disruptive malicious software spreads around the world in just a few days or even hours. The fast spreading Melissa was a real wakeup call. We learned that an e-mail virus can span the world in less than 24-hours hitting just about every vulnerable system. We've had to change our approach to system protection from focus on individual desktops out to the perimeters, adding security software to e-mail servers and installing more robust protections at the edges of our networks. In addition to changing our security architecture to allow us to apply fixes more rapidly, we also have taken steps to make our organization more responsive with the establishment of trained incident response teams and practice recovery procedures. In fact though, we are just holding our own. Generally, we're staying just a bit ahead of, perhaps not falling any further behind, the bad guys. But we should expect this to change for several reasons. First, the motives of most malicious software authors have heretofore been mostly anarchic. We in government should view the apparent political intent behind some of the worm events this spring with special alarm as the target is likely to be us. Second, unlike the mass e-mail viruses which usually take advantage of human nature to turn otherwise useful software features against us, the most destructive malicious software exploits unintentional flaws in the commercial software we're using. In the fairly recent past, we and the industry have had several months to find and fix those flaws before the bad guys began to exploit it. Usually, only systems maintained by careless or overworked system administrators were affected. But as we learned with the recent Code Red experience, the attacking community is learning to move faster, too, and a startling number of systems were caught unprepared for this worm which emerged only a few weeks after the vulnerability was discovered. Third, again exemplified by the Code Red, the worm itself can change quickly making it hard for even the most alert security staff to keep up. The original version of Code Red was fairly innocuous, at least to the system directly attacked, and could be cleared by a simple reboot. Later versions were potentially much more dangerous and required much more time consuming recovery measures. Fourth, as for both the Code Red worm and the mass e-mail viruses, protecting your own system is not enough. When the Code Red worm hit, every Internet user faced potential disruption due to the sheer volume of traffic generated by the worm's victims. Information security has become a community responsibility. We must maintain robust security measures, not just to protect our systems, but to avoid becoming a nuisance to our peers. And here we face the most difficult challenge of all, making sure our users understand and perform their role in information security. This is always difficult and is a constantly moving target. Nonetheless, we must move our user communities to a higher-level of sophistication, especially since so many of them now have computers in their homes. These home systems may well be used for after work hours and, while we hate to discourage that, they are new sources of vulnerability. With all this broad band network connectivity, they're a sitting duck for attackers. So we believe that above all we must place our trust in policy more than technology. We need to stay current with the emerging attack methods and improving security measures. We need to be more organizationally and technically nimble in closing holes and responding to incidents, and we need to educate and keep re-educating our users and technical staff. But ultimately we need to recognize that network-attached resources are vulnerable. Systems that depend on the Internet are going to be disrupted. We need to have effective alternatives for accomplishing critical missions. Sensitive information on network-attached systems is going to be improperly accessed. We need to keep the most critical secrets, including those involving private information, out of harm's way, behind firewalls and properly encrypted. At the State, we have set standards for information security throughout government that ensure consistent and reliable level of information security throughout State government. We now require that information security requirements are identified and addressed when new systems are planned. We require that implemented security measures are continually checked by information security officers independent of the technology staff to make sure our protections are not allowed to lapse. We have established a level of security performance by State departments that is attainable and is expected by our leaders and the public we serve. In addition, to make sure everyone in the organization from the chief executive officer to the key data operator is on our security team. We have been sponsoring a continuing series of information security forums and seminars. Presented by independent public and private sector information security experts, these quarterly events are typically attended by over 200 State government decisionmakers, program managers and IT professionals. This concludes my testimony and, again, I'd like to thank you for inviting us to participate in this hearing. [The prepared statement of Ms. Lewis follows:] [GRAPHIC] [TIFF OMITTED] T0480.091 [GRAPHIC] [TIFF OMITTED] T0480.092 [GRAPHIC] [TIFF OMITTED] T0480.093 Mr. Horn. Well, thank you very much, and we will now go to questions. Some of them will be the same that we'll give the second panel. The first one that comes to mind is do you feel we have appropriate laws to deal with this problem and what would you suggest? I'll ask Mr. Rhodes. We'll just go right down the line. Mr. Rhodes. I do believe the laws are appropriate. There's enough laws on the books for anybody to exercise prosecution. The struggle that I see in working with law enforcement is not that the law is inadequate. It's trying to present highly technical evidence in a court room. Having been an expert witness in legal cases, I can tell you that there's nothing more confusing than an engineer standing up in front of jury trying to explain a denial of service attack and then, just as our associate here, Mr. Castro, pointed out, if I show you this cloud and at one point the actual attacker is here but it looks like the apparent attacker is here and the victim is here, how do we convey that in a way of making ceratin that the laws are enforced? It's not really a question of law. It's a question of forensic analysis and being able to present cogent argument in a courtroom. Mr. Rhodes. Mr. Castro. Mr. Castro. From the NSA perspective, we wouldn't offer anything ourselves but I do believe there's an issue that Mr. Wiser will address that he mentioned in his testimony with regard to having to seek warrant authority from different jurisdictions. Clearly, the key to getting to some sense of attribution is to be able to move very, very quickly once an attack begins, and it would be in that area that I suspect Les will talk about the need for being able to move faster in that regard. Mr. Horn. Thank you, Larry. Mr. Wiser representing the Federal Bureau of Investigation. They're the ones that are going to be following this up. Mr. Wiser. Sir, time is of the essence in conducting computer intrusion investigations, and we find that logs are perishable and we depend upon those logs to trace back through Internet service providers the trail that an intruder uses. What we're required to do because the Federal rules of criminal procedure mandate this is that we obtain court orders in the judicial district in which the place to be searched exists. When an intruder uses several different hot points, those different ISPs, we have to obtain in serial fashion a number of separate orders and, of course, this is a timely process that could threaten an investigation and one in which a life may depend upon it in a manner that is different from a simple intrusion investigation. So that is one of our primary concerns that we're interested in. I echo what Assistant Attorney General Cherkoff mentioned in earlier testimony before another committee about penalties where, despite the large dollar amount of damage that can be done, there seems to be disproportionately low maximum penalties for computer intrusions and viruses. The last point that I would mention would be that in my discussions with members of the private sector, one of the reasons--and I expect that there are many reasons--but one of the reasons that they are sometimes reluctant to come forward with information to us is that they fear that the Freedom of Information Act does not provide adequate protection for proprietary information that they provide to us and so they've asked for a clarification of the law enforcement exception or another exception to be created in FOIA. This is something which there's a continuing dialog about when we've discussed this with the Judiciary Committees as well. Those are the three things that I would point to and, of course, there are others that I'd be happy to speak with you at another time about. Mr. Horn. Mr. Carpenter, manager of the CERT Coordination Center, Carnegie Mellon. Mr. Carpenter. I would just echo Mr. Wiser's comment on FOIA. From our perspective and our discussions with industry as well as government, that has been probably one of the largest issues that has been raised to us is issues regarding what sensitive information regarding incidents be exposed to FOIA requests. So that would be the only comment we would have on that. Mr. Horn. Ms. Lewis, what does the State of California have with regard to laws that can relate to this damaging of the computer infrastructure? Ms. Lewis. Actually, at the State we work on policy that relates directly to the IT computers and stuff that we actually use. I really don't have any comments with respect to that particular issue. Mr. Horn. I'm delighted to have one of my colleagues. He's fought the traffic between Sacramento and San Jose. Michael Honda is the representative right in the middle of Silicon Valley, and we thank you for coming. He'll have to go to another appointment shortly, but I'd like him to pose a few questions if he wishes to. Mr. Honda. Thank you, Mr. Chairman, and thank you for having this hearing. I know that from my visits with Symantec and other organizations and companies in this area that security is a critical area, not only in government, but also for personal uses and for commercial uses. I don't have any questions since I did not hear most of the testimony. I've been briefly going through the written testimony. So I wouldn't be able to ask any intelligent questions, but I do understand that the issues around security, from my visit with Symantec, is that we have a variety of issues and circumstances that we have to be particularly cognizant of. It's not only related to hardwire security and accessing our security information that we have, but also the wireless issue is a very important area that we're not keenly aware of and I think that the commercial uses that I've been exposed to and schooled in poses even greater concern on my part as far as government uses of similar kinds of techniques that we have in place. So I'll be listening and I'll be reading the materials, but I'll be back following-up with Mr. Horn on issues of security. But I think that the issue of wireless and things that we don't see and don't realize and are not cognizant of is one top priority for me. And then also for public policy folks for the schools and educated in the basic things that you all understand so that as policymakers we'll be able to understand how to work with you in developing policies on secure systems. I know that Dr. Neumann is here and he's testified quite a few times, and so I think the other concern I have that I'm sure is shared by Mr. Horn and that is how quickly do we move and with whom do we move and how will we be able to put the system together. So I appreciate all of you being here and sharing your information and your thoughts. Thank you, Mr. Chairman. Mr. Horn. Thank you. Let me ask Mr. Castro. I'm quoting from your written testimony. ``In taking out a computer network, the single hacker has the cyber destructive power normally associated with a nation state.'' If that's the case, what can be done technologically to address this problem? Mr. Castro. Well, there are a wealth of things and I suspect in the industry panel you'll hear from some of the industry folks. But within the National Security Agency in cooperation with the National Institute of Standards and Technology, we jointly administer a program called the National Information Assurance Partnership. It's through this partnership that there have been a number of independent laboratories established. Think of them if you will as the underwriter laboratory's equivalent for cyber products. What we have now set up is a process whereby industry can bring security and security-related products to these laboratories and, at their expense, at the industry's expense, can have these products evaluated against what is now being called the international common criteria. This is a criteria for specifying the five characteristics I showed you there earlier in my testimony specifying how those characteristics can be achieved and graded for achievement. It's referred to as the international common criteria because all the English speaking partners have signed up to this criteria and it's now being moved out even for further international acceptance. So the goal would be to have a set of standards by which security and security-related products can be certified as doing what it is that they are advertised to do. These could range from firewalls in one case to public key infrastructure arrangements in other cases. So I think the short answer, sir, is that there are a variety of defensive measures. We refer to them within the Department of Defense as defense in depth. They certainly in every case include well-trained people at the very, very frontend of that defensive posture but then backed-up by the appropriate software and hardware configurations. The other thing I'd like to add is I really appreciate Congressman Honda's concern about wireless security. That is an area that at NSA we're working very, very closely with industry, some in this area, to produce secure versions of cellular telephones and other wireless devices. This is, quite frankly, the threat of the future as more and more of our Nation will be moving to this wireless technology. So your point is well taken, sir, and we're right on it. Mr. Horn. We do need to look at this from a broader perspective that you've laid out there and I would suggest we're talking about a computer NATO. I wonder to what degree is the National Security Agency and the FBI--I know you've worked with foreign people here. Are they listening to us and are they hoping that you're helpful to them? Mr. Castro. Maybe we can take it in two parts and I'll defer to Mr. Wiser on the cooperation on what we call attack sensing and warning. But certainly in the area of cooperating to produce secure products and to ensure that that security is inter-operable within both the NATO and other coalition environments, I think the answer to your question, sir, is that the allies are very, very well engaged. Again, we have a number of both bilateral and multilateral arrangements that will attempt to introduce the secure operability within our defensive posture. And then I would ask if Mr. Wiser could answer the question on cooperation with regard to sensing and warning of attacks. Mr. Wiser. Sir Congressman, Mr. Chairman, the NIPC is unique because inside it we have the three disciplines represented. That would be law enforcement, intelligence and defense. In fact, NSA is represented at the NIPC and so we have a tremendous coordination and cooperation on a number of levels within the defense community and the NIPC and, therefore, the FBI. But also in the center we have representatives from foreign governments. We have presently the U.K., Canada and Australia represented. And we find that this is very important in our links with those important allies. But in addition to that, we have connectivity with similar centers around the world, and I mentioned earlier the U.K., Canada and Australia as well as New Zealand and Sweden, and we're working now with Germany to establish that kind of a relationship as well. So with those relationships and with the relationships that our legal attaches stationed in 44 countries around the world are engaged in, we are working toward that global security, and we find that our allies and those countries with whom we work are extremely interested in pursuing this objective. Mr. Horn. Mr. Neumann's testimony is coming up on panel two, but I want to get your ideas on it. He raises the point that despite U.S. laws to prevent or punish hackers, given the international aspect of this problem, little can be done. Do you agree with that and how do we deal with it? Mr. Wiser. We've been, just as I mentioned in the testimony, very successful with the Leave worm case. It's just the latest example. That threat is now over. A number of people I don't think realized the danger that the Leave worm represented, but those of us that were working on this problem--I know that Mr. Castro, as he mentioned, is very familiar with this--know that it presented a great potential for danger. But the investigation itself solved this problem, and we've been successful on a number of different investigations. For example, the Love Bug virus was solved quickly. I mean we had an FBI agent within 24-hours standing outside the door of the person responsible, along with the Philippine officials, Mr. Menses's group. So we are establishing these relationships with countries and as long as we can trace the trail back, many of the countries have been cooperative. Another example would be the Bloumberg case in Kazekstan where we have a league in Amate who worked with Kazekstani authorities to bring people that threatened the Bloumberg financial network to London where we did a sting operation there and individuals have been extradited to the United States to stand trial in that case. So we have examples of success. I would say that there's a way to go, but we're optimistic that other countries will become more sophisticated with their statutes, with skilled investigators, and we take part in the training of those investigators and I think their growing awareness will create the will to cooperate with us. Mr. Horn. In looking at the originator of the Codes Red, do you think that man or whoever will be apprehended? Mr. Wiser. Yes, sir. I do. I'm confident about those kinds of things. I'm an optimist and I believe that we'll be able to eventually find the person responsible. Mr. Horn. Is there anything we should be promoting with the people in Silicon Valley, either in software, hardware where some of this can be headed off? Mr. Castro. If I could comment on that, sir, and I'm sure others will, too. Anything that can be done to really demonstrate the commitment of the U.S. Government to ensuring the security of our ability to work on the Net and then to translate that into meaningful action would be helpful. As I said, from the Department of Defense's point of view, we are not a dominant, although a very large customer for information technology. In today's market place, we are not a dominant customer. So if someone is going to make the argument only on the economics of what DOD can provide, it's not going to make it. The case is going to have to be made on a very much larger scale that it is critical to our Nation's total infrastructure that vendors start thinking security in their products from the very, very point of inception. The lesson that we have learned over NSA's 50 year history is that if you try to go in after the fact and improve a product, it sometimes doesn't work and, if it does work, it can be a very costly venture. So again, fora like this where for industry we demonstrate the government's desire to really keep security in the forefront and the Congress's intent to back that desire are things that are needed. Mr. Horn. Can you tell us how many government servers were compromised by Code Red and Code Red II? How much damage was made at this point? Mr. Castro. I can speak for the Department of Defense. Others will have to speak for the rest of the government. Within the Department, General Brian, the commander of the Joint Task Force on Computer Network Operations, made the decision on the evening that it was clear that bad things were going to happen that the Department would go to what we call Info Con Alpha. Info Con Alpha is the first step where we normally are in, which is normal Info Con. This Info Con gradation is meant to match in some way DefCon and ThreatCon status that are already well-established within the Department. In doing that, then we raise the awareness of system administrators throughout the Department. He also directed the blocking of all port 80. Again, without getting into a lot of that, and it was already mentioned in previous testimony, what we basically did is to disable anybody's ability to come in and exploit the one particular port on which the vulnerability was being exploited. I believe that what we're saying now, with the Department still at Info Con Alpha and we are gradually getting ourselves back to a normal state. You may be aware that there are some finite number of places where the Department's portion of the Internet, which we refer to as the NipperNet, connects to the Internet. There are 13 such gateways currently in existence and we've opened up now 9 of those 13. I can't give you the specifics on what we have taken down, but I believe it's safe to say the Department is slowly recovering and we will probably lift the conditions on Info Con Alpha within the next 2 weeks. Mr. Horn. I believe Mr. Rhodes, you and your team in the General Accounting Office, have gone through security, various designs, at various of the domestic parts of the government. Have you ever had fun with the Defense Department and CIA and knock them a little and gone through their systems? Mr. Rhodes. No. Well, yes, we've done it with the Department of Defense. I guess one point that I would make is the latest estimate that we have on total number of servers that have been taken down is 975,000. Those aren't government servers though. That was the total estimated number. I guess one point I would make is that you asked about what could be done for Silicon Valley. What can be done to make the developers change their mind? I have to echo what Mr. Castro said. The U.S. Government has to take the point that you've made continually during your membership in the House and say they have to be able to manage. Silicon Valley is not going to make a decision that's not based on economics. They're in business, and we can't expect them to do it any other way. If we as the U.S. Government do not manage from a security standpoint, why in the world should they? If we can't make it economically feasible for them, either by building systems specifically for us or putting the security in, we're going to continue to be in the same position we are now which are down stream testers of released software that hasn't been fully tested because they're trying to get their product to market and they're testing it well enough to get to market, not well enough to withstand a Code Red virus or something like that. Mr. Horn. We will have the majority and minority staff give you a few questions that we simply can't get to because I want to get to the second panel. If some of you can stay, we'd certainly appreciate it to go into questioning on panel two. So let's move now to panel two. I think most of you saw the routine. We thank you very much for coming and we do swear in all witnesses and those that support the witnesses. Get them all to stand up and we don't have to keep making changes. [Witnesses sworn.] Mr. Horn. Let the record note that five members took the oath, and we will proceed. We now start with an old friend of this committee and a very knowledgeable person, not only in the United States but throughout the world on behalf of his colleagues in the Information Technology Association of America. So Harris Miller, president of that fine group, let's start with you. STATEMENT OF HARRIS MILLER, PRESIDENT, INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA Mr. Miller. Thank you, Mr. Chairman. Thank you for inviting me to the heart of Silicon Valley to testify about what practices, policies and tools are being deployed to reduce the impact of computer security threats to government at all levels. I commend you for your continued leadership on information technology issue. IPA is proud to be the leading association on cyber security issues representing over 500 corporate members. These are companies that have a vested economic interest in assuring that the public feels safe in cyber space to conduct electronic commerce and, in a developing era of e-government, that their information will be secure and transactions reliable. Though the official title of today's hearing focuses on government information security, I submit to you that security challenge is ultimately a government and business challenge that must be addressed at the highest levels of all organizations, whether public or private. We must do more than just recognizing the challenge, however, though that is an important first step. We must work together to find ways to enable solutions, solutions to threats that will likely become more significant as the Internet becomes more pervasive. As a witness during the Code Red situation, if cyber security receives the kind of prioritization needed at senior levels, government and industry can mobilize quickly and effectively to combat common and significant threats to the Internet. Those efforts during the Code Red situation helped to reach users of vulnerable systems on a massive, unprecedented scale that prevented the further spread of the worm. Over a million copies of the patch were downloaded and, since that patch can be downloaded and installed to any number of machines, the number of systems that are actually patched is no doubt higher. Few of the major Web sites were affected by the Code Red worm because many took action after the industry/government announcement on July 30. The public awareness of information security issues increased significantly during the Code Red situation. This cooperative, proactive response by industry and government that Mr. Rhodes addressed in his comments could be used as one model for more meaningful and effective cooperation on cyber security issues in the future. If industry and government do not collaborate, then the impact of such threats on the Internet users will be much greater in the future. Chairman Horn, I know from working together with you closely on Y2K and cyber security issues that you are fond of report cards and grading which you issued in your previous life as a leading academic political scientist. Today I would like to offer my own report card in six separate categories and an overall grade on industry and government handling of computer security threats. This is my own grading system, I tell you, and I look forward to suggestions from you and others about ways to improve it. The first area is the government organization. In addressing the challenges and developing structures that can adequately address cyber security challenges, the Federal Government has moved from what had to be a failing grade just a few years ago to a passing grade or C today. I base my C grade on four factors: the priority for this issue for the Federal Government, internal cooperation within the government, mechanisms for liaising with stakeholders, particularly in the private sector, and response time. The national plan for cyber security and Presidential Decision Directive 63 help provide a framework for government organization. However, the alphabet soup of government agencies charged with some aspect of cyber crime prevention makes it easy to see why progress has been slow in the government. We credit the National Infrastructure Protection Center under the leadership of Ron Dick to forge ahead with programs such as InfoGard which was described in Mr. Wiser's testimony. Because of his efforts and joint efforts between ITAA and the Department of Justice, we've increased the cooperation between law enforcement and the industry. According to numerous press reports, President Bush will sign soon after Labor Day an Executive order that will establish the critical infrastructure and protection and continuity board. As that draft Executive order has been explained to us, it should be a major step forward creating substantially more coordination within government and less duplication among the plethora of government departments and agencies involved in InfoSec. Should this new board result in a centralized, coordinated cyber security effort based in the White House, I think the government grade could be moved from a C to a B. Let me talk about a second area related to government. Government funding for information security. Here the story is not so positive, Mr. Chairman. The grade for government funding at best has moved from a D- to a D. Mr. Chairman, while you and some of your colleagues such as Representative Greenwood have done a valuable service in scrutinizing computer security policies and practices in U.S. Government agencies and departments, that is not enough. As that well-known philosopher Yogi Berra would say, this is deja vu all over again. During Y2K you pointed out in a series of hearings that government agencies had neither the plans nor the funds for Y2K remediation. Under your prodding, they came up with a plan but they still didn't have the funds. We seem to be seeing the same thing today InfoSec. Agencies seem to be knowing much more about what they need to do, but the funding is not there. A GAO office report issued earlier this month strongly criticized the Department of Commerce for InfoSec failures internally, and that carried the clear implications report that additional financial resources are needed. Every Federal CIO with whom I speak privately tells me they are in desperate need of additional funding for their InfoSec activities. There is a long way to go before the government is going to get a passing grade here. For example, President Bush requested an e-government fund of $20 million this year but, as you know, the House Appropriations Committee and the Senate Appropriations Committee only provided $5 million for even that. So we're going to have to work together, Mr. Chairman, under your leadership to convince your colleagues in Congress that government agencies they need to really address the InfoSec challenges. Area No. 3. How about industry? Where is their focus in information security? I think one of the good news stories from Y2K is that issue elevated the whole issue of information technology from a back room to a front office issue. The CEOs, the members of the board began to understand how important information technology was to their businesses. Similarly, they've come to understand how important information security is to their businesses if they're going to get continuity. Yet, at best, I only give corporate America a B- because we have a lot of variations. Some industries such as financial services, telecommunications, are doing very well but others are frankly far behind and particularly small businesses and mid-size businesses as under Y2K are far behind. I commend the FBI for its InfoCar program because that reaches small businesses. But we have a long way to go. Organizations must be willing to invest in development of comprehensive security procedures and to educate all employees continuously. We have to practice sensible cyber hygiene and Internet users have to be vigilant about it. The next area I wish to give a grade is industry/government cooperation. The Ad Hoc Coalition on Industry and Government that was formed to provide a public service message to counter the Code Red worm is a major operational success, as Mr. Rhodes remarked. It illustrates just how far players have come. A few years ago, industry cooperation would have received an F or maybe a D. However, through hard work on both sides, progress has been made. The efforts to stand up the Information Sharing and Analysis Centers, ISACs, by the telecommunications industry, financial services industry, electric industry, transportation and now the IT industry have helped to bring us up to a C grade and, in fact, Code Red may get us up to a B-. But in order to get to an A, the remaining industry sectors will need to stand up and operationalize the ISACs and the ISACs will need to share confidential information. Equally important, if maybe not more important, is sharing information between industry and government on sensitive information in both directions. We strongly support the bill that was referred to by the previous panel introduced by Congressmen Tom Davis and Jim Moran and soon to be introduced by Senator Bennett and Senator Kyl in the Senate to remove legal obstacles related to the Freedom of Information Act and Senator Feinstein from the State of California is in a position as chairwoman of the Senate Judiciary Committee Subcommittee on Technology, Terrorism and Government Information to move that bill through the Senate under her leadership. The next area is industry to industry cooperation. Let me emphasize that while government has a critical role to play, not just in the United States but internationally, vertical industries also have an obligation to communicate on cyber security issues, again, similar to the obligation they had under Y2K. Progress has been made. We've moved from maybe a D- a few short years ago to a C+/B- today. How so? Critical to this has been the Partnership for Critical Infrastructure Security which was begun in December 1999. This created a cross-sectoral dialog with collaboration from government, particularly the Critical Infrastructure Assurance Office, to address risks to the Nation's critical infrastructures and assure delivery of essential services over the Nation's critical infrastructures in the face of cyber threats. The Partnership is run by companies and private sector associations and is effectively meeting the industry dialog challenge. But much more needs to be done globally. I have advocated creation of an international InfoSec cooperation center, analogous to the highly successful International Y2K Cooperation Center that you supported very strongly, Mr. Chairman, during that challenge to our global economy. Let me next address international cooperation. Again, I think the best I can do here is a C-. Some areas are working well, others not so well. Let me tell you briefly about an area well-intended that seems to have gone a little bit awry, and that's the work of the Council of Europe to establish a cyber crime convention. The principle here is great. We need to have laws in every country around the world, not just in the United States, to fight cyber crime. As we saw in the example of the Philippines at the time that incident occurred that was referred to in the previous panel, they didn't have laws at that time to prosecute the people even though they identified them. Fortunately, the Philippines has since updated their laws. The Cyber Crime Convention, if we could get it adopted around the world, in theory is a good idea. Unfortunately, the Cyber Crime Treaty has some flaws in it because it was developed by law enforcement officials without adequate input from industry and economic ministries. So we think with some changes in it, that might be a model law that could be adopted in many countries around the world. To sum up, there is much work to do. In addition to improving our letter grades in information security, both industry and government need to strive to have the teacher commend us for playing well with others. Cooperation, communication and sharing sensitive information are the keys to moving from today's overall grade, which is a C-, to an A+. Summer vacation is ending, Mr. Chairman, and we are about to begin a new school year. By working together to build meaningful and effective relationships that recognize the bottom line impact of InfoSec on our businesses and government operations, both domestically and globally, we can all move to the head of the class on cyber security issues. Thank you very much. [The prepared statement of Mr. Miller follows:] [GRAPHIC] [TIFF OMITTED] T0480.094 [GRAPHIC] [TIFF OMITTED] T0480.095 [GRAPHIC] [TIFF OMITTED] T0480.096 [GRAPHIC] [TIFF OMITTED] T0480.097 [GRAPHIC] [TIFF OMITTED] T0480.098 [GRAPHIC] [TIFF OMITTED] T0480.099 [GRAPHIC] [TIFF OMITTED] T0480.100 [GRAPHIC] [TIFF OMITTED] T0480.101 Mr. Horn. Thank you very much. We now have a rather well known person in the whole computer evolution and that's Peter Neumann, the principal scientist, Computer Science Laboratory, SRI International which used to stand for Stanford Research Institute, but you don't say that any more, I gather. Delighted to have you here. STATEMENT OF PETER G. NEUMANN, PRINCIPAL SCIENTIST, COMPUTER SCIENCE LABORATORY, SRI INTERNATIONAL, MENLO PARK, CA Mr. Neumann. Thank you. Thank you for your very kind introduction. SRI, I should point out, is a not-for-profit research institute. I would like to believe that what I have to say is motivated, not by any corporate need or any allegiance to any particular ideas. I think the message that I want to give you is pretty well taken care of in my written testimony. I'm going to summarize it very briefly. The bottom line here, I think, goes back to September 19, 1988 when Robert Morris, who was at the time chief scientist of the Computer Security Center at NSA, said, ``To a first approximation, every computer in the world is connected to every other computer in the world.'' That was 13 years ago. The situation is much worse now. The number of computers that are connected to the Internet is enormous. A month and a half later, it was his son who, in a research experiment that went awry, created the Internet worm which, in some sense, was the beginning of all of this nonsense that we have going on relating to worms, viruses, trojan horses, and so on. Letter bombs coming through e-mail. I would like to take a broader view of the problem and make the very bold statement that what we're really talking about is not viruses, worms and related subjects but the fact that the computer security and information security infrastructure, including all the networking, is riddled with so many security flaws that it is virtually impossible to expect that we can have any meaningful sense of security, given the infrastructure that we have today, and I want to elaborate on that to some extent. Larry Castro mentioned the classical DOD mantra which is defense in depth. What we have is weakness in depth. There are vulnerabilities essentially everywhere, in the mass market desktop systems, in the server systems, in the networking, in the embedding of even some of the cryptography in the world into platforms that are again riddled with security vulnerabilities. So let me very briefly go through what I've called a set of seemingly dirty truths that remain largely unspoken and under-appreciated in my written testimony. The first is that what we have today is a far cry from what is straightforwardly possible. Back in 1965 I was part of an ARPA, Advanced Research Project Agency, project in MIT in Bell Labs which developed a commercial operating system that had enormous research advances in it. If we look at what's happened in the last 36 years, many of those research advances and other similar advances have not found their way into the mainstream. What this leaves us with, especially me as a researcher, is the very gnawing feeling, annoying and gnawing, that the good stuff that should be coming out of research is not finding its way into the market place. One of the great adages of our society is that the market place is supposed to drive everything. Unfortunately, the market place seems to be much more interested in whiz bang features and rush to market place than it is in having systems that are truly reliable, secure, and available in high degrees and survivable in the face of all sorts of problems. The problems that we're addressing today in terms of worms, viruses and so on are really the tip of the iceberg. If in fact it is possible to penetrate systems from anywhere in the world, irrespective of what the laws are in this country, we have a fundamental problem. Whereas the laws are important and the laws are in fact useful in many respects, the comment that you quoted earlier was based on the fact that if you cannot trace back to find out where the problem is coming from because of network weaving and the lack of accountability and the lack of identity and authorization and authentication, then the laws may be absolutely worthless except as a possible deterrent for the people who believe that those laws are applicable to them. So we have a situation in which the Internet provides the opportunity for attacks from essentially anywhere in the world, and many of those attacks can be created by individuals for which it is almost impossible to trace them back. I appreciate the optimism stated in the previous panel, but I believe that one of the most important things here is finding ways of incentivizing the improvement in the systems that we're dealing with. The previous panel dealt primarily with the methodology of patching. Patching is extremely limited. If you start with something that is fundamentally insecure, you add patches, you may or not remove a vulnerability and, in fact, you may introduce new vulnerabilities. But because there were so many vulnerabilities in the original products, you merely transfer the attacks to new vulnerabilities. If you look back at the Internet worm of 1988, essentially all of the vulnerabilities that existed at that time--and there were four of them--are still present today in one form or another. They may not be the specific flaws in the specific code that was used at that time, but the characteristics of those four flaws are all present in systems today. This suggests that we are not progressing as we should be progressing. So let me very briefly go through some of my seemingly dirty truths. I don't really need to go into detail to you on the President's Commission on Critical Infrastructure which found a great many vulnerabilities. The Internet, being enormous and relatively uncontrollable, and being international is not really the culprit itself. It's all of the systems that are attached to it. The presence of these almost trivial to perpetrate Internet mail bombs, for example, are the result of the fact that there is very little inherent security in the systems that we're dealing with. I mentioned the education problem indirectly, but I think I should mention it very specifically. The difficulties in developing very secure systems are enormous. They require a great deal of education. They require good software engineering practice, which is not very widely found in this country or in other countries, as well. To develop systems that are very secure, life critical, ultra- reliable takes an enormous amount of effort and, although there has been enormous research in those areas in the past 40 years or so that I've been involved in this area, the research is not finding its way into the market place. Another dirty truth is this outsourcing thing, and you may remember from the Y2K business the fact that the air traffic control remediation was done by foreign nationals, essentially unbeknownst to the technical people at the FAA. That was rather startling when it was uncovered. The notion that DOD would like to outsource all of its critical functionality--for example, system administrators, is startling. If you can't have a trustworthy system, then you outsource the management of it to somebody who might be even less trustworthy than the system itself. This does not sound like a good way to run a ship. In general, simple systems and simple solutions are not very effective. This gets us into the laws, to some extent. One of the simple solutions that Congress has come up with is the Digital Millennium Copyright Act which has a chilling effect on the research community and which, in fact, is seriously hindering, in my opinion, the development of systems that are more secure because somebody who points out that a particular system is not secure is immediately threatened as in the case that occurred last week of somebody who pointed out that his local newspaper had its Web site totally available to anybody in the world and anybody could do anything to it with essentially no authorization. He was threatened with 5 year felony charge for having pointed out that this problem existed. We're shooting the messenger in many cases in the enforcement of the Digital Millennium Copyright Act. The Uniform Computer Transactions Act, the UCITA legislation which is working its way through many States, has a chilling effect as well. It allows the vendor or the developer to declare absolutely no liability for anything that goes wrong. This is a very strange business. I remember in the Y2K era there was legislation that said the remediators for Y2K should be absolved of their liability and should be able to have a certain freedom in that respect. I believe that when we get to the issue of what the laws can do, the area of liability is going to be a very important one. There has been legislation in the past and directives from the government that have dumped down security. Examples of that include the use of good crypto. There's one example that is extremely important to me. I was at a workshop yesterday and the day before on electronic voting systems. Here's an example where there's a mad rush to replace the punch card ballots after Florida with all electronic voting systems. This is an example where the simple solution of rushing into an electronic voting system does not solve the problem at all because every existing system today has essentially no assurance that the vote as cast is actually the vote as counted. The vendors say trust us. We have proprietary software. We can't show anybody the software because it would diminish the security of the system which is actually nonsense in many cases and that we just have to trust them that they're going to do everything right because they know what they're doing. This is an example of an apparently simple solution that in fact has very serious implications. Another example is the use of legislation to insist on filters to solve the spam problem. This doesn't work, and we've had cases where the Bible and the encyclopedias and all sorts of things are banned or where people's Web sites are banned because their name happens to include the string S-E-X like Essex and Sussex. Now, my conclusions are very simple. We need to address technological problems with technological solutions. We need to address legal problems with legal solutions. We need to address all of the problems of computer security, computer reliability, with a combination of these approaches. Laws by themselves do not solve the problem. Technology by itself does not solve the problem. We need a combination of socio-economic and political, technological and other approaches. So at the very minimum, we need what I think would be radically improved security reliability and availability in the systems that we are using, not only in our critical infrastructures, but in our Internet conduct of normal business. As I said several times, it is really unfortunate that many of the important research advances of the last 45 years or so have not found their way into the market place. I don't know how you can incentivize that more effectively, but I think you've got to find ways to do it. There are roles that NIST can play. In the former session, the common criteria was mentioned. NIST has been involved for many years in the elaboration of the common criteria. If those were systematically used in an effective way, it would be tremendously valuable. One of the examples. One of my doctoral students has just written a thesis on applying the common criteria to the electronic voting problem and demonstrates that even if all of those criteria that she's constructed were satisfied, it's still not enough, but it's a major, major step forward. So I recommend strong endorsement of that approach. I'm very concerned about liability issues. I believe that liability legislation could go a very long way. The idea that a vendor can disclaim all of its liability is a joke, although it's good marketing. I believe that Federal legislation that imposes strict liabilities on end consequential damages for gross negligence in not only system development but corporate misbehavior would be very valuable. There's a proposal today that I saw about making Web site and system purveyors liable for not using best practices when it comes to security, for not installing the patches that have been given to them and, in some cases, they've been told that they were critical. In some cases, they weren't told at all. So in my final comment, there is some wonderful research and development out there and it really needs to be worked into the development of systems that are substantially more secure, more reliable. Along with that goes the education and the training and everything else that's needed to make it work. But if I look around the country, I do not see the adequate attention to software engineering, to security, to reliability in even graduate programs and certainly not in undergraduate programs. Thank you very much. [The prepared statement of Mr. Neumann follows:] [GRAPHIC] [TIFF OMITTED] T0480.102 [GRAPHIC] [TIFF OMITTED] T0480.103 [GRAPHIC] [TIFF OMITTED] T0480.104 [GRAPHIC] [TIFF OMITTED] T0480.105 [GRAPHIC] [TIFF OMITTED] T0480.106 Mr. Horn. Thank you. We appreciate those comments. They're stimulating, to say the least. Scott Culp is the lead security program manager for the Microsoft Corp. We're glad to have you with us. STATEMENT OF SCOTT CULP, MANAGER, MICROSOFT SECURITY RESPONSE CENTER, MICROSOFT CORP. Mr. Culp. It's a pleasure to be here. Thank you for the opportunity to appear today at this hearing. My name is Scott Culp. I'm the manager of the Microsoft Security Response Center. I'd like to commend the chairman and the committee for leadership on government computer security. It's a matter that we take with great seriousness, not only because the U.S. Government is one of our largest customers but also as an issue of civic duty. Mobile hostile code such as viruses and worms pose an ongoing threat to the security of our network systems. Every vendor's platforms can be affected and countering worms and viruses is a challenge that the entire IT industry must address. As an industry leader though, Microsoft has a number of ambitious programs designed to combat hostile code and to safeguard our networks. The good news is that the basic design and architecture of the systems that we all use is sound. Viruses and worms only succeed when they can bypass the security these systems provide. Some say to do this is for the virus or worm to exploit a security vulnerability, a hole in the system's armor. To reduce the occurrence of security vulnerabilities and out products, Microsoft has had an ambitious program under way for over 18 months called the Secure Windows Initiative which has as its goal nothing less than a generational improvement in the development practices that we use. We're providing advanced security training to our developers, we're building leading edge tools that dramatically improve how we test our software and we're using innovative techniques like penetration test teams in which we intentionally try to break into our own products. At the same time, we're increasing our use of independent third party experts, both inside and outside the government, to validate our work. But software is and always will be a human activity subject to human frailties. No piece of bug-free software has ever been developed and none ever will be. To root out any security vulnerabilities that may have slipped through our development and testing processes, Microsoft has assembled a Security Response Center which even our critics acknowledge to be the best in the industry. We investigate every claim of a security vulnerability affecting one of our products. When one is found, we quickly develop updated software and we deliver it through a well-publicized Web site, a free mailing list with over 200,000 subscribers and automated sites like our Windows Update Web site. Last year alone, we received over 10,000 reports. We investigated every single one of them. Of these, a grand total of 100 security vulnerabilities in all Microsoft products was found. The other way that viruses and worms typically succeed is through social engineering, tricking the user into undermining his or her own security. To combat viruses and worms that use these techniques, Microsoft announced in April of this year a war on hostile code. One outcome of this campaign is something called the Outlook E-mail Security Update which blocks e-mail viruses. To the best of our knowledge, the number of customers who, after applying this update, have subsequently been affected by an e-mail virus is zero worldwide. Another element of the war on hostile code is a new feature in Windows XP called Software Restriction Policies which stop viruses and worms from executing on the machine even if the user downloads them and tries to run them. In addition to improving our products, we work collaboratively with our colleagues throughout the security community. Microsoft senior executives are also fully engaged in the U.S. government's security policy initiatives. For example, Bill Gates, Microsoft's chairman and chief software architect, received a Presidential appointment to a National Infrastructure Assurance Council and Craig Monday, Microsoft's senior vice president and chief technical officer for strategy and policy, received a Presidential appointment to the National Security Telecommunications Advisory Council. But technology is not a panacea. Breaking into computers and writing viruses and worms to damage them is a crime and it's important that we not lose sight of that fact. Just as we can never realistically expect the threat of burglary or bank robbery to end, we should realize that cyber crime will always be a fact of life and, accordingly, Microsoft strongly supports enforcing our society's cyber crime laws and we work closely with domestic and international authorities and we strongly support increased funding for computer crime enforcement. In sum, Microsoft takes its responsibilities as an industry leader very seriously and we believe that the efforts of Microsoft and its colleagues in the industry will improve the security of the U.S. government's networks, the Nation's, and the world's. Thank you, Mr. Chairman. [The prepared statement of Mr. Culp follows:] [GRAPHIC] [TIFF OMITTED] T0480.107 [GRAPHIC] [TIFF OMITTED] T0480.108 [GRAPHIC] [TIFF OMITTED] T0480.109 [GRAPHIC] [TIFF OMITTED] T0480.110 [GRAPHIC] [TIFF OMITTED] T0480.111 [GRAPHIC] [TIFF OMITTED] T0480.112 [GRAPHIC] [TIFF OMITTED] T0480.113 [GRAPHIC] [TIFF OMITTED] T0480.114 Mr. Horn. Thank you very much. Our second to last witness is Stephen Trilling, senior director of advanced concepts from the Symantec Corp. STATEMENT OF STEPHEN TRILLING, SENIOR DIRECTOR OF ADVANCED CONCEPTS, SYMANTEC CORP Mr. Trilling. Thank you, Chairman Horn and members of the subcommittee for giving me the chance to testify today about the growing threat of computer worms to our national and economic security. Mr. Chairman, I'd also like to commend you and your subcommittee for your leadership in examining cyber security issues and for releasing the report card on computer security in the Federal Government. My name is Stephen Trilling. I'm here representing Symantec Corp. We're a world leader in Internet security technology, providing solutions to government, individuals, enterprises, and Internet service providers. At Symantec I oversee our Advanced Concepts Team, a group dedicated to studying new security threats and creating new technologies to better protect our electronic frontiers. Prior to this role, I directed our Anti-Virus Research Group, a worldwide team responsible for analyzing and creating fixes for computer viruses and other malicious threats. I'd like to first discuss the difference between computer viruses and worms such as Code Red. Traditional viruses, while potentially very damaging to individual computers, spread only very slowly to other computers. Users can inadvertently spread traditional viruses when they share infected files with one another. For example, through user-initiated e-mail. Again, since viruses rely on humans to spread, they spread only very slowly between different computers. I'd like to direct your attention to the screen to show a short simulation of how traditional viruses spread. In the simulation, each large circle represents an individual organization and each of the small dots inside the large circle represents a computer. What we're going to do is hypothetically plant the virus in the left hand organization shown as a single red dot--although I know from trying this out earlier the dots look black on that screen--and watch how it spreads over time. You can go ahead and start. So what we're looking at is at the concept virus. It's a simple virus that spreads when people exchange infected documents with each other and, as you can see, viruses spread over days or even weeks at about the rate that people exchange information. This picture is how the world looked to us up until the Melissa threat was released just over 2 years ago. In contrast to traditional viruses, computer worms--as has already been mentioned today--are designed specifically to spread over networks to as many computers as possible. Most worms, such as Melissa and LoveLetter, hijack e-mail systems to spread themselves automatically and, because worms spread largely or completely without human interaction, they can infect new users at an exponential rate without regard to borders or boundaries. So I'd like to go back to the simulation and watch how a single worm infection can ravage an organization. You can go ahead and start that. As you can see, computer worms have completely changed the rules of our game. Looking ahead, there are three factors that increase the potential for future damage from worms. No. 1, our global economy is clearly becoming more dependent on the Internet. Computers connected to the Internet now control e-commerce sites, power generation, electronic business supply chains, government transactions, and numerous other operations. A properly targeted computer worm could hobble any of these systems, threatening our national security. No. 2, as more home users move to high-speed broad-band Internet connections through cable modems or DSL, the potential for a devastating attack grows further. A Code Red type worm could spread to tens of millions or more home computers within hours. A denial of service attack then launched from tens of millions of infected machines could decimate the on-line business to business transactions of all Fortune 500 companies as well as all business to business and government to government electronic transactions. A large part of our economy would simply grind to a halt. Finally, No. 3, the demographics of on-line attackers are changing. Until now, most computer worms appear to have been created by amateurs with no specific targets. However, with more business and government functions occurring on-line, we expect to see an increase in professional attacks from organized crime, corporate spies, terrorist groups, and other organizations targeting specific systems on the Internet. Today industry research shows that the public and private sector have been reasonably successful in taking the first step in cyber defense through deployment of anti-virus software and firewalls. The same research has shown that government entitles rank among the earliest adopters of anti-virus technology and are also among the most effective at fighting computer viruses in a timely fashion. Moving forward, it will be increasingly important for both the government and private sector to share as much information on cyber attacks as possible. Harris Miller on this panel has already spoken to you about the formulation of the ISACs, a good step in encouraging such cooperation. Symantec is a founding board member of the IT-ISAC and I would like to commend Harris Miller for his efforts in helping to create this important organization. Now I'd like to move to some recommendations. A good lesson learned from the private sector is the need to appropriately prioritize potential security solutions according to their cost/reward tradeoff. Deploying effective security is not an all or nothing procedure. Rather, it is an evolutionary process where each successive step further reduces risk. We sometimes refer to an 80/20 rule for security. By applying the most important 20 percent of potential security solutions, one can likely prevent 80 percent of possible attacks. Based on our experiences, there are three top recommendations to protect against 80 percent of likely attacks. No. 1, organizations should deploy properly configured and updated anti-virus software and firewalls. No. 2, organizations need to install appropriate updates for any announced security holes on all systems as soon as these are available. As we've seen, such actions would have disabled the Code Red worm. And finally, No. 3, organizations should have a specific policy to ensure that computer users' passwords cannot be easily compromised. Beyond these 80/20 rules are there further general recommendations. No. 1, organizations should consider deploying other types of security software such as vulnerability assessment or intrusion detection software at all appropriate layers of their network. No. 2, organizations should consider instituting a policy to block all executable programs from flowing into their networks through e-mail attachments. Many corporations have successfully blocked numerous worms through just such procedures. And finally, No. 3, industries and government agencies deemed essential to our national security, as described in PDD63, should consider using private networks for all critical communications to isolate themselves from worm-based attacks. In conclusion, Mr. Chairman, over the coming decade, a computer worm could easily devastate our national economy. The time to invest in this problem is now. Both the government and corporations are building their next generation of on-line systems today and all of these systems will be targets tomorrow. Thank you very much. [The prepared statement of Mr. Trilling follows:] [GRAPHIC] [TIFF OMITTED] T0480.115 [GRAPHIC] [TIFF OMITTED] T0480.116 [GRAPHIC] [TIFF OMITTED] T0480.117 [GRAPHIC] [TIFF OMITTED] T0480.118 [GRAPHIC] [TIFF OMITTED] T0480.119 [GRAPHIC] [TIFF OMITTED] T0480.120 [GRAPHIC] [TIFF OMITTED] T0480.121 Mr. Horn. Thank you, and we will back to you on a number of questions. Our last presenter is Marc Maiffret, the chief hacking officer of eEye Digital Security. Welcome. We're delighted to have you here. STATEMENT OF MARC MAIFFRET, CHIEF HACKING OFFICER, eEYE DIGITAL SECURITY Mr. Maiffret. Thank you. I'd like to thank you for providing me the opportunity to be here today. I hope to bring a real world perspective to some of the issues that are currently affecting the security of our computer networks. My name is Marc Maiffret and I'm the co-founder and chief hacking officer of the eEye Digital Security. I've been in the computer security field for about 6 years now. The first 3 years of my experience was mainly as a hacker and the last 3 years has been as the chief hacking officer of the eEye Digital Security. The eEye Digital Security was started with the goal of creating software products that would help protect companies against the growing threat of cyber attack. Besides just creating software products, eEye also focuses on vulnerability research as a way to stay on top of the latest security threats. Vulnerability research is the process of analyzing software products to find ways in which an attacker can manipulate software in a malicious way. I've personally found vulnerabilities within 30 or so different software products and eEye itself has also been responsible for the discovery and disclosure of a few of the largest software vulnerabilities ever. It is a real world experience I have in hacking, vulnerability research and worms which I hope provides you all with an insight into the problems we are currently facing in the world of computer security. Computer systems and networks are vulnerable to many different types of attacks. The computer worm is one of the most dangerous types of attacks that threaten the Internet today, potentially more damaging than any virus. A virus can only infect systems if the computer user performs a certain action--for example, executing an e-mail attachment--whereas a worm, once planted on the Internet, is completely self- propagating. This functionality allows a worm program to infect a very large number of systems in a very short period of time. Once the worm spreading has begun, the author of the worm could have control over thousands, if not millions, of systems which can then be used to perform attacks against the Internet or specific parts of the Internet. Code Red represents one of the best modern examples of a worm and the impact they can have on the Internet. Code Red was discovered around July 13 of this year. The first detailed technical analysis of Code Red was actually published July 17. That first detailed analysis of Code Red was done by myself and Ryan Permeh of the eEye Digital Security. Funny enough, we actually named the worm after the type of soft drink we had been drinking while performing our analysis. For a worm to propagate, it requires a method of entry. In the case of Code Red, it was via vulnerability within Microsoft Internet Information Services Web server or IIS. The vulnerability that the worm used to compromise Microsoft IIS Web servers is a vulnerability called the dot IDA buffer overflow. The dot IDA buffer overflow was actually a vulnerability found by eEye Digital Security. Microsoft and eEye Digital Security released the security advisory a month before Code Red was found in the wild. The advisory gave administrators instructions on how to protect themselves from the dot IDA vulnerability. Therefore, if administrators had installed the Microsoft security patch, then Code Red would not have had the ability to infect any systems and spread itself across the Internet. Code Red was designed with two goals in mind. The first goal was to infect as many IIS Web servers as possible and the second goal is to attack the White House Web server between the 20th and the 27th of every month. Code Red seems to have been very successful at its first goal while failing at its second goal. The reason it was successful for its first goal is due to the fact that many Web servers were left unpatched against the IDA vulnerability. Code Red failed at its second goal because eEye Digital Security's early analysis of Code Red provided enough information in advance to protect the White House Web server. The aftermath of Code Red has shown us the devastating effect that worms can have on the Internet. Although the worm only reached one of its two goals, the effects of the first goal had numerous implications. The rapid spreading of Code Red created abnormally high amounts of network traffic causing some networks to go off-line. Certain routers and other network devices experienced crashes unforeseen before Code Red. Five hundred thousand systems were comprised at the highest level of access and they were broadcasting that fact to the Internet at large. Although preventative measures stopped the second goal of the worm from being achieved, had it occurred, it would have been the largest distributed denial of service attack the Internet has seen today. Code Red has served as a warning shot to grab the attention of the Internet community. The biggest problem facing security today is that there are too many people talking about what we could do or what the threat is and not enough people doing real work that will result in a mitigating or abolishment of those threats. The Code Red worm was in some ways one of the best things to happen to computer security in a long time. It was a much needed wakeup call for software vendors and network administrators alike. Code Red could have caused much more damage than it did and, if the authors of Code Red had really wanted to attempt to take down the Internet, they could most likely have easily done so. What made all of this possible and what steps can we take to help prevent things like this in the future? These are the most important questions and, luckily, there is much we can learn from Code Red to improve our current security standing. One of the first areas that needs improvement is the way that software vendors test their code for stability and security. I'm a software engineer so I know that mistakes do happen and programmers will now and then accidentally write vulnerable code. Software vendors, however, are usually not very motivated to take security seriously. Software vendors are not the only ones at fault here though. Network administrators and managers at various corporations are also to blame for faulty security. Going back to Code Red as our example, we can see that really the largest reason for Code Red's spreading as it did was because a lot of network administrators did not install the Microsoft security patch. It should also be noted that many companies have a very small budget for an IT staff or do not even have an IT staff. This leads to a lot of problems for administrators when it comes to securing a company's network. To help get security messages out to the public, there needs to be a centralized organization for vulnerability alerting. There are a few cyber watch organizations, NIPC, SANS, CERT, that currently watch for large scale attacks, i.e., worms, larger vulnerabilities and viruses. However, I feel these organizations would be able to accomplish a lot more if they sent alerts about all vulnerabilities instead of only vulnerabilities deemed serious enough to cover. There should be a Web site or e-mail alert system that administrators could join that would allow them to find out about all vulnerabilities and patches. Something that was said earlier I thought was pretty interesting from the gentleman from SRI. The reality of the situation right now is that there's a few aspects to security. One of the main things is, of course, vulnerabilities. Really, the type of vulnerabilities that are out there, there's I'd say five to six different classes of vulnerabilities out there. Things like buffer overflows, etc. These classes of vulnerabilities have actually been around, some of them, for 20 years, 15 years. For example, the class of vulnerability that Code Red was exploiting was a buffer overflow vulnerability. The Robert Morris worm itself was exploiting that type of vulnerability. So I think one thing is that the research has been done about buffer overflows and all these things and a lot of people have given the same speeches about doing more and all this sort of stuff but really, to me, when I got into the security field, I was kind of amazed that still, 15 years later after things like buffer overflows have been covered, that something like that is still actually a problem today. Really, it comes down to software vendors and also IT administrators, etc., but stopping worms, stopping viruses, stopping a lot of the vulnerabilities out there, it is not as hard of a thing to do as some people might say it is. These are vulnerabilities that have been around for a long-time and there's tons of information on them and there definitely is a lot that we could be doing to make sure that software products do not have these types of vulnerabilities. That's all. [The prepared statement of Mr. Maiffret follows:] [GRAPHIC] [TIFF OMITTED] T0480.122 [GRAPHIC] [TIFF OMITTED] T0480.123 [GRAPHIC] [TIFF OMITTED] T0480.124 [GRAPHIC] [TIFF OMITTED] T0480.125 [GRAPHIC] [TIFF OMITTED] T0480.126 [GRAPHIC] [TIFF OMITTED] T0480.127 [GRAPHIC] [TIFF OMITTED] T0480.128 [GRAPHIC] [TIFF OMITTED] T0480.129 [GRAPHIC] [TIFF OMITTED] T0480.130 [GRAPHIC] [TIFF OMITTED] T0480.131 Mr. Horn. Thank you very much. Let me ask you a question and we'll start going this way. You heard the testimony of Mr. Castro of the National Security Agency and the ease with which hackers can learn their trade. Do you agree? Mr. Maiffret. Yes. Definitely. To write something like Code Red would take probably an hour or two. It's a very trivial thing to do. To launch something like Code Red to the Internet in a way where you're not going to be tracked, you're not going to be detected, is very simple to do. Even sometimes finding the vulnerabilities of these worms exploiting stuff is also actually rather trivial. Some of the most talented people out there happen to be on the side of the hackers and what not. Really, the thing is it's like that sort of knowledge, as the gentleman from SRI was saying, has not really been transferred into a lot of the corporate companies that are actually developing these products and what not. A lot of them have started to do some very good things recently. Microsoft would be a perfect example that's made a lot of improvements lately. However, the majority of software vendors out there still, it's a race for do I have the same features as this other software company. Really, one of the things, security is not going to necessarily change until enough administrators are actually demanding for better security and that's what the market is actually asking for rather than new features being released. Mr. Horn. What are the disincentives that you can think of that governments might have to stem the hacker behavior, or do you think it's a problem? Mr. Maiffret. There's a lot of talk about having laws that are a little bit more scary or whatnot but coming from the hacker past and stuff, really when you're in that like mindset and when you are that teenager breaking into systems and whatnot, even though you read something in the newspapers about Kevin McNeff being in jail for 5 years and this sort of thing-- which is definitely serious--you usually think you're above that and you're not going to get caught, etc. So laws, I don't really think, are necessarily going to scare people into not doing it and whatnot. I mean it really comes down to stopping the vulnerability in the first place. And actually, it's not an easy task to get vendors and whatnot to actually start looking at security first and then designing the product around security. It's usually design the product and then design the security around it, which is not necessarily the best thing to do. Mr. Horn. Let me try an analogy out on you and see if it makes any sense in the electronics of software, hardware, so forth. A lot of people look for marks on pistols and the bullet goes out and you've got usually, as the FBI knows, you can find and relate what happened on that barrel as the projectile went. The other one is the use of gun powder in terms of shot guns and people are talking about well, gee, why can't we have in that one on the shot gun in particular, you can put in types of things that have a pattern that no other shot gun shell does that. So is there any way that something like that can be in the electronics and all of the ones that are into software and maybe even hardware? Mr. Maiffret. I guess the question is basically kind of like the attackers and the hackers, whatever you want to label them, performing the attacks if there's something that can be kind of resident or left to be able to help track them. Would that be correct? Mr. Horn. Could be. Mr. Maiffret. Basically, dealing with software and whatnot, it's not really an easy thing to put anything in there like that. I mean people have tried to put in kind of bug type devices or things. Different software products have like unique identifiers for each computer which has actually led to the capture of a couple of different e-mail virus authors. However, all of those things, if you're smart enough, it really just is software and it's bytes of information and that is all easily manipulable. So it's not necessarily where you're going to track a hacker that way. There are a lot of things that could be done as far as on the network layer with things like intrusion detection systems and actually being able to detect an attack coming over the network and you'll at least have some sort of starting point of where they came from. Even intrusion detection systems, which is one of the more popular ways of creating logs to track attackers, even IDS systems themselves are vulnerable to attacks. Either yesterday or sometime today eEye Digital Security is releasing another security advisory on which we basically illustrate a technical way where you could bypass any commercial intrusion detection system to be able to attack IS Web servers. What that means is that if somebody would have had that knowledge--in fact, somebody did have that knowledge at the time of Code Red--they could have used that knowledge to basically change around the Code Red attack in a way where intrusion detection systems would not have actually detected it, which is what led to the early analyses and the information getting out. So it could have potentially given Code Red and things of that nature another week head start on attacking the systems and what not. One of the things I was covering in my written testimony is I think that there's a lot that could be done as far as trying to detect some of these worms earlier in the process, to be able to get the word out and having a sort of system. They call it a honey pot in the security field. But you basically have a set of dummy servers that look vulnerable and whatnot and they're really watching. Typically they're used to monitor attackers and how they work. However, you could adapt something like that for worms and, if you did own a large enough block of IP addresses or computer network addresses, you could actually detect a worm and be able to get the analysis out much earlier than we have been right now. Mr. Horn. Mr. Trilling, you want to comment on that dialog? Mr. Trilling. Yes, with regard to tracing back? Mr. Horn. Right. Mr. Trilling. Certainly a lot of these threats, e-mail threats and so on and Code Red, as they move through the Internet, they do leave traces, whether it's in logs or whether it's in the actual e-mail. Sometimes they use the analogy as a letter goes from one city to the next, each post office will put a local stamp on that envelope and eventually, if you want to trace back through all the stamps, you can find the origin. But the extent to which you're likely to be successful at that is very much related to how much effort you want to take and, as has been mentioned earlier, there are over 50,000 known computer viruses and worms right now. It's not likely to be practical for law enforcement officials to be able to trace back to the origin of all of them. So certainly, as we've seen with Melissa, as we saw with LoveLetter, it is possible and certainly when effort is placed, when there's a high-profile attack that does a lot of damage, it's absolutely possible to trace back to the origin, but it's time consuming, it requires money and resources and proper prioritization. Mr. Horn. Mr. Culp, how about it? What's your feeling for Microsoft? Mr. Culp. Well, trying to make changes in the software that's going to run on a hacker's machine to identify the hacker is ultimately going to be futile. The hacker owns that machine and, as Mr. Maiffret put it, it's just software. If a vendor installs tracking software into the operating system, a person who installs it on their machine and has administrative control can simply take it off. They can patch it with something that nulls out the functionality. Just the same, what Mr. Trilling was saying about improved forensics as the information transits the network is a much more interesting idea. The flip side though is that there could potentially be privacy concerns. But the real issue here is not so much the technology as much as human behavior. I want to sketch a scenario for your consideration. Suppose we lived in a world where I could come home today and find out that on my way out to work this morning I accidentally left my back door unlocked and when I came into the house, I found all my furniture gone with a sign that said, ``I've taken all your furniture in order to teach you about the importance of locking your doors.'' Now, suppose that I knew who did it and the general opinion of society was, well, he's done you a favor. He's shown you how insecure your home was. Does anybody believe that our homes would be secure? The reason that we don't tolerate this kind of behavior in our physical lives is because we know what it would lead to. Cyber crime is crime. There's nothing new about it. It's the same old type of crime we've had for generations. It's breaking and entering. It's robbery. It's burglary. It's destruction of property. We focus on the cyber part of cyber crime and we lose track of the fact that this is just crime. What keeps us safe in our insecure physical world is the deterrent value of law enforcement. To a certain extent, that's missing in cyberspace and that's one reason why we have the problems that we do. Adding tracking information is fine, but it presupposes that there's going to be effective law enforcement. Mr. Horn. Mr. Neumann. Mr. Neumann. Thank you. There's a huge confusion between leaving your front door open and leaving your computer system accessible from anywhere in the world. Recently, Abby Rueben, who works at AT&T Labs, one of the old Bell Lab spin-offs, was sitting in the Morristown Memorial Hospital and all of a sudden the green light on his laptop goes off and he discovers that he's instantaneously connected to the wireless network of the hospital with no security, no authentication, no protection whatsoever. As I mentioned earlier, we had this case in Oklahoma where a guy let his newspaper know that their Web site was open and he's now up for 5 year felony charge. Abby did not do anything within the Morristown Memorial Hospital, but he noted this and I published it in my risk forum and I fear that all of a sudden people are going to be going after him because he has exceeded authority. In the Robert Morris case, Morris was accused by the Federal prosecutor of exceeding authority. In the four mechanisms that he used in the Internet world, not a single one of them required any authority. There was no authentication required, there was no access control required. The startling thing about this is the law that we're dealing with says you must exceed authority. If there's no authority required, then somebody who happens to access your system from afar is obviously intending to break into your system. But the law as it is written does not say that he's doing anything wrong if he's being accused of exceeding authority and there's no authority required. One of the most fundamental problems we have is that fixed passwords are being used. Fixed passwords are flying around the Internet unencrypted. They're trivial to sniff. There's lots of software you can get that will enable you to pick off essentially any Internet traffic. The fact that somebody breaks into your system should be a violation of the law and yet, as the law says, if he's exceeding authority, there's something fishy here. So I think we have to be a little bit careful if the laws are not saying what they're supposed to be saying. If there is no authentication and there exists zombie machines all over the place that people can jump into and use as springboards for attacks with no trace back possible because they've broken in masquerading as someone else and you have no idea who they are or where they're coming from because of the way they come in, there's something fundamentally wrong here. I mentioned the idea of malicious code. You have to realize that the malicious code, once it's in your system, is executing as if it were you. So the challenge is to keep it from getting in there in the first place. The laws do not help in that respect. So yes, we need better laws, I think, but we also need better systems. I will just mention the Advanced Research Project Agency of the DOD which has at the moment a set of 10 contracts--I happen to be lucky enough to have one of them--on what's called composable high assurance trustworthy system. This is an effort to radically improve the security/availability/ reliability of the computer operating systems that we deal with, and I'm hoping that research will inspire some of our computer vendors and developers to use some of the better techniques to come out of that research program. But again, I say I don't have much hope because I've seen the research that we did back in 1965 which is widely ignored. Thank you. Mr. Horn. Harris Miller, president, Information Technology Association of America. How do you look on this? Mr. Miller. I think the idea of the unique identifier, I would agree with what Mr. Culp said. The problem with the technology is that technology can be over-ridden, No. 1. No. 2, the privacy advocates would go absolutely ballistic. They've gone crazy when they've accused companies like Intel and others of trying to plant identifiers in their computers, even though Intel is doing it purely to protect the consumer. The consumer privacy advocates say that this is an attempt to install big brother. So I think the negative reaction sociologically, in addition to the technological obstacle that Mr. Culp outlined, really don't make that a very good alternative solution. I would like to comment on two other things that you addressed earlier though, Mr. Chairman. One is about the behavior of cyber citizens. We're not foolish enough to believe that simply saying be good will solve all of our cyber problems. However, we're sort of at the other extreme right now where we don't teach young people at all about good cyber ethics. In fact, there is still a tendency to revere hackers as if somehow this is a positive element of our society. It's good to be able to say I brought down the Defense Department Web site or, even worse, Johnny and Susie's parents say, isn't Johnny or Susie clever? They brought down the Defense Department Web site as if it's a mark of admiration. They wouldn't be proud if Johnny or Susie burned down the Pentagon or burned down an office building, but somehow they're proud if they can figure out a way to show that they're technologically more sophisticated than the people who developed the software. That's why ITAA has worked with the Department of Justice and now Department of Defense on our cyber citizen program. We think that there needs to be education built into the classrooms all the way K-12 and higher education and even beyond to teach people good cyber ethics. Again, it's not going to solve all the problems but the previous panel mentioned that 24,000 attacks occurred on DOD last year. DOD will tell you that a huge percentage of those, 80, 90, 95 percent, is what they call script kitties. People just fooling around because they think it's cute or clever. Doesn't mean most of those attacks succeed but it does mean that it's harder for DOD as the object of attack to identify the serious problem because there's so much chaff coming at them in the form of people playing games. So I think that we do need to focus more on cyber education. The last point I'd like to make is I enjoy Doctor Neumann. He's obviously a lot smarter than all of us, but he does somehow take statements and run a little bit to the extreme. For example, he says that the Y2K legislation totally protected software vendors. As you know as one of the authors of the legislation, that was not the objective. The objective was to try to make the point that if a remediation could be found, that should be the first choice before you run off to the courts. That was a system that worked reasonably well. I would just disagree candidly with Doctor Neumann's assessment that the market place does not provide incentives for cyber security. I think the market place provides tremendous incentive to cyber security but, just as with automobiles, people want it both ways. They want to be able to do speedy business, but they want to be able to do secure business. So the challenge for industry is to balance those two interests off. We could all drive HumVees and armored personnel carriers down the road and probably wouldn't have 42,000 Americans die on American highways. But we'd go a lot slower, they'd be a lot more expensive to run, they'd ruin the highways. We'd have to replace them a lot more often. So we try to come up with a balance: cars that are safe but also are fairly inexpensive and can move quickly. That's the challenge for the IT world. Companies, customers, individual consumers, both domestically and globally, want new products. They want products that work quickly. They want to be able to get their e-mail instantly if not faster. They want to have wireless access but at the same time they want security. So the challenge for all of us, both as producers of these products and as consumers, is to reach that balance. I think that clearly the good news is there's a lot more focus on cyber security. Mr. Maiffret said quite correctly the Code Red virus was a wakeup call. An even bigger wakeup call was the February 2000 distributed denial of service attacks which led to the creation of the IT-ISAC. So these incidents are good in a way. Fortunately, there's never been what Dick Clark and others have referred to as an electronic Pearl Harbor where it really has destroyed the Internet it's been so bad. But I think there have been enough serious incidents that people are paying more attention. I think we are making progress. Mr. Horn. When a symptom of being a virus or a worm or whatever you want to call it, is there a way to sort of think about that software side? Can you get all this bombardment away into another part within a computer and that would then divert the group that's making the attack? Mr. Miller. I'll defer more to the experts. Again, I don't think it's possible to say that somehow you know intrinsically that these are good guys and bad guys. What technology has tried to do is separate that as much as possible. Mr. Maiffret mentioned the idea of this honey pot concept where you create a lot of IP addresses that are basically out there just to lure bad guys hoping that because security experts or government officials are watching those IP addresses, they would catch earlier warnings of these problems before they become widely diffused through the real government and the real private sector. But I don't know that there's any way of saying at the end of the day we're going to know every bad guy that walks into the bank any more than we're going to know every bad piece of code that comes in. I don't think there's any way of saying that in advance. Clearly, the tradeoff--and I think I discussed this before another hearing you had, one of your colleagues said, well, can I get to a situation where I never get an e-mail virus on my computer? I said to the Member of Congress, you could. You'd have someone else get all your e-mail and let him or her be the guinea pig, in a sense, and he or she would screen it. But, of course, you're giving up your privacy because that means someone else gets all your e-mail. You're giving up the time sensitivity because someone else would have to filter it and make sure it was all done. So that's a trade-off. You could say, OK, I as an individual don't want to get any viruses but what kind of tradeoffs am I going to make then? Mr. Horn. Let me just ask a few closing questions here. Mr. Maiffret, you've been criticized for giving a blueprint of the exploit to malicious programmers. Could you tell us how you believe this is an important way to provide details of threats to the on-line community? Mr. Maiffret. Yes. The first thing would be the wording on that would be it's not necessarily a blueprint. The main criticism came with Code Red and people said that we gave out enough details where somebody took our details and then actually wrote Code Red from those details. In the case of Code Red, the actual techniques that they used were far superior to anything that we talked about. In every advisory on software that we do, we always give out enough details where a vulnerability scanning type tool or an intrusion detection system or administrators themselves will have enough technical information where they can either test the vulnerability to make sure that the patch is working themselves or that they can actually update their intrusion detection systems to be able to monitor for potential people trying to exploit the vulnerability. It is a double-edged sword because yes, there is the information that's there and somebody could take that and try to write an exploit program with it, as they call it. However, the thing people need to understand is that even without any information at all, it's actually rather trivial to actually figure out where the vulnerability lies and exploit it. This has happened in the past before. One example of that would be Code Red itself was actually based off of another worm that was released back in April of this year and the vulnerability that worm exploited, there was actually no technical details ever released on it. So what happened from that was that some hackers did figure out the technical details, did write an exploit for it, did write a worm for it. However, since there was no public technical details released about it, no security software tools or anything out there were actually updated to be able to look for that specific signature. So back in April when Code Red was actually first attempting to go around the Internet, since there was no details, nobody was actually able to detect that it was going on. There just happened to be a couple of administrators at Sandia Labs that were lucky enough to see it. Mr. Horn. Recently the editorial editor of the Washington Post, Meg Greenfield, had her computer and people wondered what her password was and so when they found out, she simply said password, and I began to think that's so obvious, maybe people would leave her alone. No one would obviously think password for the password. Mr. Maiffret. One of the most common. Mr. Horn. That's right. Well, since some of you have teaching backgrounds, I guess I'd be interested in the fact that even Microsoft who warned the users of the newly discovered vulnerability and issued the patch to protect against the exploit did not protect all of its own systems, illustrative of the day-to-day challenge that system administrators face in maintaining the security of their systems. Any thinking on that? Mr. Maiffret. Sure. Let's walk back through. As you noted, when the initial patch was released, we did extensive publicity. Let me run through a couple of things that we did. As always, we released a security bulletin on our Web site. It's one of those heavily traveled Web sites on the Internet. We mailed it to over 200,000 subscribers to our mailing list. We also took the unusual step, because of the severity of the vulnerability, of engaging our worldwide support organization, particularly several thousand employees known as technical account managers who have direct relationships with customers and we asked them, call your customer and tell them you need to put this patch on now, read the bulletin later. We also proactively contacted the media and asked for help in getting information out. This was without a doubt the most widely publicized security bulletin in history. It's in keeping with how we have traditionally handled security vulnerabilities. Our goal at the end of the day is to get as many patches on machines that need them and, if the way to do that is to air the fact that we've made a mistake worldwide, we're going to do that. But as you mentioned, we neglected to fully protect our own networks. We did have a few machines, scattered machines here and there, that didn't get patched and this is illustrative of a problem that's inherent in a patch-based protection scheme. Applying patches is a management burden. Takes time. Certainly takes less time to apply a patch than it does to rebuild a machine after the machine has been compromised, but just the same, there's a management burden associated with this. We've invested quite a bit of time and effort, even starting before the worm, into trying to make our patches as simple as possible to get onto the machines that need them. Let me give you a couple of examples. Starting in May, we inaugurated a practice in which every IIS patch, patches not only whatever the vulnerability is we're discussing here now, but includes every previous patch for IIS. So if you just apply the most recent patch, you're protected against everything. No other vendor in the industry does that. We've also taken some steps to do some technology development to make it easier to get the patches onto the machines. Specifically, not requiring the machines to reboot. It turned out when we talked with our customers we found that was a significant impediment to a lot of them. So we did some technology development. We rolled out no reboot patches. And just recently we've rolled out some tools that have been in the works that have been under development since earlier this year that we believe will help ensure that customers have fully patched machines. The first one is something called the Microsoft Personal Security Advisor. It's a Web site. You navigate to the Web site and it downloads some software to your machine that allows it to scan itself with reference to a data base that we keep up to the minute on our site to find out whether your machine is configured securely and to determine whether or not you're missing any patches. We released a companion tool that server farm administrators can use so that if you're, for instance, an administrator with 100 machines, from a single console you can tell which patches each one of those machines is lacking and keep them up to date. But just the same, the fact that we didn't have perfect compliance ourselves illustrates that there's more work to be done and we're certainly committed to making improvements as we go forward. We have some new features in our upcoming products that we believe will make it even easier to stay up to date on patches, including some technologies that will allow you to stay up to date automatically. Mr. Horn. That's very interesting and Mr. Trilling, I was intrigued by your testimony. Applying a few simple rules. One can prevent the majority of attacks on your systems. More specifically, you detailed three top security recommendations that would likely protect against 80 percent of the attacks. In your opinion, should these rules be made mandatory for government agencies? That's a good probability. Mr. Trilling. Right. It's an interesting question. I think a little outside my area of expertise. I certainly feel like security rules and security policies really ought to be decided on by security companies rather than necessarily by the government. The other thing to point out is that security really is different for everybody. One of the things we often say is that it's important to secure your systems in such a way that the cost of breaking into that system is greater than the value of information you could get out of that system. So the effort to protect information for the Department of Defense is going to be very different than for a home user's individual Web site. I think each of those decisions needs to be made individually by individual organizations in consultation in many cases with security experts. I'd have to sort of understand a little bit the framework of what you're talking about but I think in general it would be difficult to sort of mandate across all agencies that these certain laws ought to be applied because the needs of security for different agencies and different organizations are really different depending on the value of what they're trying to protect. Mr. Miller. Mr. Chairman, the Federal CIO Council is trying to deal with this kind of a challenge and IT has been somewhat involved. It's basically led by the Federal CIO Council, particularly Mr. John Gilligan who's now the Deputy CIO at the Department of the Air Force and previously was CIO at the Department of Energy. What they're trying to do is establish best practices across agencies and it is complicated for the reasons Mr. Trilling suggested because there's no one size fits all. But by sharing information within the Federal CIO Council and then between industry and government, that's the role ITA has played by bringing to the government CIOs some of the best practices applied in commercial settings. We think there has been some progress there. Your staff might want to get a debriefing from the Federal CIO Council about how their best practices are coming along. They're trying to achieve in practice what Mr. Trilling has outlined in theory would be a good idea. Mr. Trilling. If I could just make one quick point just to take an example. If you were to mandate inside an organization every user inside the organization needed to change their password every 5 minutes, clearly that would reduce productivity enormously to the extent that most companies would never make that tradeoff. But there may well be some organization, some government organization where security is so critical that you're willing to make that tradeoff, and you see this over and over again, the tradeoff between convenience and security. More convenience often means less security and people need to, again, appropriately protect themselves depending on the value of their information stored on their computer networks. Mr. Horn. Mr. Neumann. Mr. Neumann. A couple of comments. One is that this 80/20 business is a moving target. I go back to my tip of the iceberg analogy. You chop off the top very small percentage of the iceberg and there's still exactly the same size of the iceberg there. You may get rid of the 80 percent but there's an escalation effect here in that the attackers are advancing faster than the developers which means that no matter how much there is visible of the iceberg, you still have a very serious problem. You mentioned education. Let me just speak to that. I've taught in a bunch of different universities. Most recently I taught a course based on work that I've done for the Army Research Lab on how to build reliable, secure, highly survivable systems. All of the notes for that course are on my Web site and I think when you talk about how do you set principles and try to get people to enforce them, a good place to start is to read a document like that and discover what the principles are and see which ones of them are applicable. The most important thing is the architecture, as I've mentioned. I don't have a virus problem. I can read e-mail with all kinds of attachments but it never bothers me. I'm not running a Microsoft operating system. I'm running a Lennox system. Lennox has its own security violations and vulnerabilities. But the point is that if you focus on an architecture in which your system protects itself against itself--and again I go back to the research that we did in 1965 which pretty much solved that problem--then a lot of the problems that you see in malicious code don't happen because the malicious code is executing with all of your privileges and you're giving it freedom to do whatever it wants. So all of the stuff about Trojan horses is ignoring one fundamental thing. That once somebody has broken into your system with a virus or a worm or whatever it is, you don't know that there's a residual Trojan horse there. There might be something nasty just sitting waiting for something else to happen. The Trojan horses are really the ultimate problem here. We're talking a lot about viruses and worms, but the real problem is the fact that systems are not designed with adequate architectures to protect themselves against themselves and to protect themselves against outsiders as well as, of course, insiders. Mr. Trilling. May I make a very quick comment to respond to Mr. Neumann. I think you're quite correct in saying that it is a moving target and that more of the iceberg is always showing when you cutoff the top. But again, it's about reducing risk. As we pointed out here, most of these crimes, most of these worms that we talked about today, were not targeted attacks. They were crimes of opportunity. Code Red simply went from machine to machine checking somebody's door knob. It would be like somebody walking through a neighborhood seeing if each door was open. If the door was open, they'd walk in and attack. If not, they'd keep moving. You could break into that home but you might as well keep walking down the block because you'll find another home that's open down the road. Most of these attacks such as Code Red are crimes of opportunity. They're going from machine to machine seeing if they can break in and so, again, it's all about reducing risk. By taking a small number of steps, we believe you can reduce your risk a lot. Certainly, to reduce your risk further to get that next part of the iceberg is going to be a big step for some organizations is more cost effective and more needed than others. But you want to make sure that the person just trying to walk into your door or come in through your basement, which is how most attacks are occurring today, you want to make sure you're stopping that. That's for government machines as well as home machines. Mr. Horn. Mr. Maiffret, any thoughts on this? Mr. Maiffret. I guess beyond just like it's really something where I think they're kind of talking like if you like patch the current top 10 vulnerabilities, you're making the best effort. But I think what Mr. Neumann was saying is when you patch the ranked top 10 right now, then hackers move on to the next top 10 and the next top 10. It's really something where the biggest vulnerabilities, they're just that and if you fix them, then the things that were not necessarily the biggest vulnerabilities the week before, now they are. It's really something where you do have to try to eliminate all of them. It's not something about doing the top 10 checklist or something of that nature. Mr. Trilling. I think that's also a really good point which is that you never get to the point where you are now secure. Security is a moving target. The value of the information on your network could suddenly change tomorrow as your business changes, as you acquire a new organization. So companies, organizations, government entities should never be stopping and saying, well, because we've gone through these top 10 lists, we're now done. Security is an evolving thing in much the same way that physical security is also. Mr. Horn. One of my colleagues who sat near me in our investigation of the White House e-mails which went on for dozens of hours and he said to me, he said, I'm just going to get rid of e-mail. The heck with it. They had the most stupid conversation. It was not great political theory or great policy and all this. They were darned stupid crazy things. Everything from every joke on Arkansas and everything else. He said, enough is enough. If they want to see me, they can walk through the door. Panel one has been very gracious listening to this dialog and if you have any thoughts that we haven't explored, feel free to get to the microphone or we can just send it back, I think, and put it in the front row there whereas they're in the orchestra pit. I've got a number of questions here and if you're on the way home or something or dictating into whatever your little thing is, we would welcome. Both the Democratic staff and the Republican majority staff have a number of questions. So we appreciate any helpfulness you could give in answer. We will keep the hearing over and out and open for probably 2 weeks and then any thoughts you have going back. I want to thank all of you. You're very able in your whole firm of computers and enhancing computer security in the public and private sectors is a priority of this subcommittee and must become a priority, we think, for governments at all the levels because as we get from enhancing computer security, we're also talking about helping to have privacy for the citizen. Their records should not be used without their access or whatever the law reads on that. We'll issue a second report card on computer security within the Federal Government shortly. Attention to and action on this important issue must occur at the highest levels. It took them 2 years in the previous administration to wake up to Y2K and we're hoping that the current administration will take this very seriously, and I think they will. Today's hearing is a part of that process and we thank you very much for coming here, some of you for 3,000 miles. The staff I'd like to thank for this hearing is to my left, J. Russell George, the staff director/chief counsel of the subcommittee. Bonnie Heald is here out in the audience. She's working with the press, professional staff member, director of communications. And then Elizabeth Johnston, as a lot of you know, is a detailee with us and very knowledgeable on all sorts of issues. Scott Fagan is assistant to the subcommittee. Scott, this is his last hearing because he's going into the American Foreign Service. So you might see him in embassies throughout the world and maybe one of these days he'll be an ambassador and will be nice to us in congressional delegations. Hopefully you've been around us enough to know that Congress is trying to help you. We're not from the government alone. David McMillen, professional staff for the Democrat group and the San Jose Council Chamber's contacts that really helped us here tremendously. Judy Lacy, Ross Braver and the court reporters and Mark Johnson is the clerk for the majority. Mark, you're still around. You're not going to go in the foreign service or anything, are you? Mr. Johnson. I'm here as long as you want me. Mr. Horn. And the court reporter is George Palmer. It's tough when you go as long as we have, and we thank you, Mr. Palmer, for doing a good job on this, and that it'll be a good transcript. So now this hearing will be in other parts of the United States on a number of questions. So we thank you all. Adjourned. [Whereupon, at 12:58 p.m., the subcommittee was adjourned, to reconvene at the call of the Chair.]