Chairman Tauzin

Prepared Witness Testimony

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

Link to Committee Tip Line:  Fight Waste, Fraud and Abuse
   

 

 

Cyber Security: Private-Sector Efforts Addressing Cyber Threats.

Subcommittee on Commerce, Trade, and Consumer Protection
November 15, 2001
1:00 PM
2322 Rayburn House Office Building
Cyber Security Panel
Cyber Security Panel
 

 

 
 

Mr. Christopher Klaus
Chief Technology Officer and Founder
Internet Security Systems
6303 Barfield Rd.
Atlanta, GA, 30328

My name is Chris Klaus and I am the Founder of Internet Security Systems, known as ISS.  ISS is the pioneer and leading provider of information protection solutions.  We are headquartered in Atlanta with additional offices throughout the U.S. and international operations in Sweden, Italy, Belgium, England, France, Germany, Japan and Latin America.  ISS is a trusted advisor to most large U.S. commercial banks and several [ej1] government entities.  Founded in 1994, ISS has experienced phenomenal growth as we have addressed the critical need for companies and governments to protect their information systems. 

Every day, Internet Security Systems stops criminal hackers and cyber-thieves by researching computer vulnerabilities and threats and offering a unique, proactive line of defense for an ever-changing spectrum of threats.  More and more individuals are using the Internet for business-to-business warfare and corporate espionage, international cyber-terrorism, or to generally cause havoc and mayhem in our technology infrastructure.  ISS dynamically protects online assets through development of the most current protection products available and cost-efficient Managed Security Services.  We also monitor networks and systems around the clock (24 x 7 x 365) from the US, Japan, South America, and Europe in our six Security Operations Centers and our Global Threat Operations Center in Atlanta.  We search for attacks and misuse, identify and prioritize security risks, and generate reports and analysis explaining the security risks and what can be done to fix them.  At the heart of our solution is our team of world-class security experts focused on uncovering and protecting against the latest threats.  This team of global specialists, dubbed the X-Force, understands exactly how to transform the complex technical challenges into an effective, practical, and affordable strategy.  Because of all of these capabilities, companies and governments turn to us as their trusted computer security advisor.

 

The tragic events of September 11 have heightened awareness of the need for cyber security.  Protection is no longer a backroom discussion, and security is no longer something businesses are willing to consider after the fact.

 

The threat of terrorist attacks against U.S. citizens and U.S. interests around the world has become the nation’s most pressing national security issue.  Even more likely are cyber attacks aimed at further disrupting U.S. interests and business, or sympathizers with general anti-U.S. and anti-allied sentiments.  During the past five years, the world has witnessed a clear escalation in the number of politically motivated cyber attacks often resulting in embroiling hackers from around the world in regional disputes, this to the detriment of the corporations and government networks, specifically targeted or innocently attacked.

Over the course of the last three months, hackers have launched sophisticated attacks, including Code Red II, Code Blue, and Nimda and the Nimda.E attacks.  A 2001 industry survey conducted by “Information Security,” released on October 16, indicated that out of 2,100 respondents, an overwhelming 89% experienced virus, worms, or trojan breeches in the last three months.  This is up from 80% a year ago, even though 87% of respondents had deployed anti-virus software.  This indicates the importance of constantly managing the growing and changing threats on the Internet and the growing complexity of corporate and government networks.  Moreover, the percentage of those reporting Web server attacks increased over the past year from 24% to 28%.  These attacks cost the industry billions in lost productivity and system downtime.

The writing is not only on the wall, it is on the front page of every newspaper in the democratic world, as well as on the minds of corporate officers and directors around the world.  The network is the gateway to our assets, and it is the lifeblood of corporations and governments.  Quite simply, it must be protected.

The tragic events of September 11 have highlighted the need for increased cyber security.  More attention is being paid to detection needed to ward off cyber terrorism.  We are seeing this at a policy level here in Washington and in other governments that we serve around the world.  The same trend is occurring in state and local governments.  We are also seeing it on a demand level in terms of the number of inquiries that are coming into our business.  As a result, we are engaging in much broader and more strategic risk management discussions, which include the network and the overall protection strategy for the network.

Information is currency in today’s global economy. Any organization with critical information assets stored on a network is at risk.  The lone hacker may grab headlines, but industrial espionage, employee sabotage and simple disabling attacks actually constitute the vast majority of attacks against information resources.

These incidents rarely make the evening news, but they add up to additional [ALS2] billions in business losses each year. We pay for these incidents through higher prices for goods and services, lower stock price valuations, increased insurance premiums for online business operations and consumer reluctance to adopt efficient, innovative online business opportunities.

These attacks against information resources are a significant threat to our economic base and our national security. The unfortunate truth is that relatively few organizations are prepared to understand, let alone confront, the threats to information critical for normal business operations. Security specialists are in short supply, and command premium salaries. The cost of this expertise is out of the reach of many organizations. Meanwhile, the dollar losses continue to mount.

It’s no mystery how this situation has come to pass. The Internet is designed for rapid, simple communications. That’s what allowed it to grow from an academic research network into the World Wide Web, and allowed everyone from individual users to multinational corporations to invent new ways to reach out to each other.

Since security is not part of the Internet’s fundamental design, it must be added after an application is written, a system is deployed and/or staff has been trained. In spite of increasing legal, financial and regulatory incentives to invest in security solutions, very few businesses focus on security as part of their core competence. Security measures, therefore, do not receive the attention that other, more profitable business operations demand. Tight budgets and overworked IT staff create an almost irresistible temptation to skimp on security until a crisis occurs.

No one builds a house, then fits the doors for locks after a family moves in. No one adds tail lights and a horn to a car two weeks after it leaves the dealer’s lot. And yet, that is exactly how we graft security onto our computer code. We need a more cost-effective means to protect the availability, integrity and confidentiality of electronic information. We need to make security part of the basic design of our information technology infrastructures.

 

In responding to our customers to priority of protecting their information infrastructure, ISS has developed a common system to manage threats and vulnerabilities across the entire threat spectrum.

 

A resounding request from our customers is to deliver systems that incorporate the ability to monitor and protect a broad spectrum of threats across their desktops, networks, and servers.  This simplification in the market is being driven by the customers needs to protect the environment with an effective system while understanding that the total cost of ownership is critical to enterprise deployment.

Security is quickly evolving and consolidating into two key foundational elements:  inclusion and exclusion.  Inclusion represents the security products which allow users to access the resources of a network or a system.  These products include authentication authorization and the associated technologies which enable these functions, such as directory management systems, PKI, Smart Cards, tokens, authentication interfaces like biometrics and other forms of authentication. 

The second element of security is exclusion, defined as how do I keep unwanted elements off of my system?  ISS defines this as protection, and we are leading the way to incorporate a number of innovative technologies into a single common agent to protect the system from the vast array of threats, including threats from content, trojans, worms, denial of service exploits and ultimately misuse by trusted or unauthorized users.

What is needed is better protection, less complexity, lower cost of ownership and 7 x 24 services to augment and assure the integrity of the network and the support of the internal security operations.  The ideal solution is a single agent to protect a system from threats, as opposed to several different products from several different vendors, which are not integrated. 

To protect themselves from all threats and minimize their vulnerabilities, companies need systems that will prevent and detect security risks at every potential point of compromise on desktops, servers, networks, and gateways.  Earlier this year, ISS unveiled the industry’s first pervasive protection platform strategy.  Our unique product, Real-SecureTM, converges intrusion detection, security assessment, active blocking, and malicious content and code protection capabilities to protect against the converging and broader threat spectrum.  Last month, we announced the next major component  of our protection platform known as Site- ProtectorTM.  As a result of this unified product, customers will be able to control, monitor, and analyze their security protection systems from one central site enabling them to dramatically simplify their security management, reduce their total cost of ownership, and increase the scale of management across broader segment of the network. 

 

America has received a wake up call that cyber security is important and can no longer be ignored.

 

ISS’ vast experience with security breaches has caused us to realize how crucial  a secure infrastructure is to the safety and security of our society.  Computer security products empower organizations to proactively monitor, detect and respond to increasing network vulnerabilities and threats to enterprise information.  These products provide the tools vital for protection in today’s world of global connectivity.  The public needs to be aware of the breadth of possible security breaches.  Government can help realize this goal by focusing more attention and funds on computer security.  This includes educating and training the human resources necessary to implement the necessary security measures.   Our extensive experience has shown that computer crimes are increasing and will continue to do so.  Web sites are an important tool in helping government be more responsive and effective, but they are often a target for computer crime.  Web sites should be set up in a secure manner and protected once they are set up.  Everyone must learn that protection of our National Infrastructure requires everyone to properly update and protect their system, much like using a seat belt before you leave the parking spot.  Government must be seen as a leader in protecting its systems and in assisting corporate and private Americans to do the same.  Unless the U.S. invests the necessary resources in this area, America’s critical infrastructure will be at risk.


 [ej1]Is this number accurate?

 [ALS2]I have the CSI/FBI number to add here.

 
 

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