Federal | Agencies | Legislative
Today, the Council of Economic Advisers (CEA) released a report detailing the economic costs of malicious cyber activity on the U.S. economy. Please see below for the executive summary and read the full report here.
This report examines the substantial economic costs that malicious cyber activity imposes on the U.S. economy. Cyber threats are ever-evolving and may come from sophisticated adversaries. Due to common vulnerabilities, instances of security breaches occur across firms and in patterns that are difficult to anticipate. Importantly, cyberattacks and cyber theft impose externalities that may lead to rational underinvestment in cybersecurity by the private sector. Firms in critical infrastructure sectors may generate especially large negative spillover effects into the wider economy. Successful protection against cyber threats requires accurate data and cooperation across firms and between private and public sectors.
- • We estimate that malicious cyber activity cost the U.S. economy between $57 billion and $109 billion in 2016.
- • Malicious cyber activity directed at private and public entities manifests as denial of service attacks, data and property destruction, business disruption (sometimes for the purpose of collecting ransoms) and theft of proprietary data, intellectual property, and sensitive financial and strategic information.
- • Damages from cyberattacks and cyber theft may spill over from the initial target to economically linked firms, thereby magnifying the damage to the economy.
- • Firms share common cyber vulnerabilities, causing cyber threats to be correlated across firms. The limited understanding of these common vulnerabilities impedes the development of the cyber insurance market.
- • Scarce data and insufficient information sharing impede cybersecurity efforts and slow down the development of the cyber insurance market.
- • Cybersecurity is a common good; lax cybersecurity imposes negative externalities on other economic entities and on private citizens. Failure to account for these negative externalities results in underinvestment in cybersecurity by the private sector relative to the socially optimal level of investment.
- • Cyberattacks against critical infrastructure sectors could be highly damaging to the U.S. economy.
PlanetRisk Awarded $79 Million Contract to Provide Program Management Support to the DHS Office of Cybersecurity and Communications Within the Network Security Deployment Division
Department of Homeland Security Selects Booz Allen as Prime Contractor on $621M Task Order to Enhance Cybersecurity Across Federal Government
Cyber-attacks against government networks are growing more sophisticated, frequent and dynamic. To tackle the constantly evolving challenge of protecting the United States from these attacks, DHS established the CDM Program in 2012, which envisioned a flexible approach to strengthen the cybersecurity of every computer network and system in the Government. In 2015, Booz Allen (NYSE: BAH) was among the first awarded multiple contracts to partner with DHS and to implement the ambitious CDM Program. Within this first Phase, Booz Allen integrated foundational cybersecurity solutions that spanned 80 percent of the .gov enterprise and gave the 13 participating departments and agencies unprecedented visibility into their networks.
DHS has now selected Booz Allen as the first prime contractor under the next chapter of the CDM Program to continue driving its implementation with a $621 million single-award, six-year task order.
“We’re thrilled to grow our partnership with Department of Homeland Security in their critical mission to protect the United States and its citizens from cybersecurity threats,” said Marcie Nagel, a Booz Allen principal and leader of the firm’s CDM work. “Our work will expand into new areas of cybersecurity, like incident response and automation. This work aims to help these federal departments and agencies leverage new capabilities that will ultimately empower our clients to defend their networks faster with more flexibility and greater visibility into the network itself.”
The new contract will extend across the three current and possible future CDM Phases and is part of the larger DEFEND Program, which has a total value of up to $3.4 billion. The CDM DEFEND program will focus on reducing the Federal Government’s threat surface by delivering innovative solutions that adapt to dynamic Agency environments and combat the latest cyber adversaries. This critical mission to develop and deploy next-generation cyber capabilities will be led by a strong partnership between DHS, the Federal Systems Integration and Management Center (FEDSIM) within the Government Services Administration and the task order’s seven participating Agencies.
“The cybersecurity threats facing government agencies today are growing increasingly dynamic and sophisticated, making them more challenging to defend against,” said Brad Medairy, a Booz Allen senior vice president and leader of the firm’s Civil cyber business. “We are well positioned to help in this fight, applying experiences that our analysts, threat hunters and engineers gain by working on the cutting edge of cybersecurity. We are embedded in the nation’s most important missions and will continue to help drive toward innovative solutions like CDM to make the world a safer place in the face of ever-evolving cyber threats.”
Booz Allen will apply deep cyber expertise, with strong systems engineering and technical management processes, combined with leading-edge commercial tools to help protect our nation against cyber-attacks. To learn more about Booz Allen’s cyber capabilities, visit www.BoozAllen.com/Cyber. To learn more about DHS’ CMD program, visit www.DHS.gov/CDM.
About Booz Allen Hamilton
Booz Allen Hamilton (NYSE: BAH) has been at the forefront of strategy and technology for more than one hundred years. Today, the firm provides management and technology consulting and engineering services to leading Fortune 500 corporations, governments, and not-for-profits across the globe. Booz Allen partners with public and private sector clients to solve their most difficult challenges through a combination of consulting, analytics, mission operations, technology, systems delivery, cybersecurity, engineering, and innovation expertise.
With international headquarters in McLean, Virginia, the firm employs approximately 24,225 people globally, and had revenue of $5.80 billion for the 12 months ended March 31, 2017. To learn more, visit www.boozallen.com.
Preston Abbey PA-CFT eliminates the need for government personnel to manually feed secure fax machines and is compatible with Secure Communications Interoperability Protocol
RESTON, VA, 06 FEBRUARY 2018 – Preston Abbey, a developer of solutions for the secure transmission of confidential and sensitive documents, today introduced the PA-CFT (Classified File Transfer), enabling government and defense agencies to transfer any classified files, including documents, photos, videos and maps, with the security of Secure Telephone Equipment (STE). When using Preston Abbey PA-CFT, transmitted files never leave a secure environment, thus providing a paperless solution that allows sensitive files to be sent electronically, dramatically reducing the risk of classified documents being compromised during the manual fax process.
“There is a pressing need for this type of solution due to the increasing number of attacks on Internet-based systems, such as email and databases, which represents a major threat to those in government who need to protect and secure classified information,” said David Shaw, President and co-founder of Preston Abbey.
Preston Abbey solutions accomplish the secure transmission of classified documents without the use of email, the Internet or any mechanism susceptible to eavesdropping or other interference by unauthorized parties, including foreign governments, terrorist groups, hackers and anyone who would leak sensitive material on public web sites.
Preston Abbey offers an effective migration path from obsolete or outdated secure fax equipment to a completely paperless operation, with little or no impact on the day-to-day operations of a government agency or its communications network. Preston Abbey solutions support the reliable connection of modern printer/scanner devices to replace legacy equipment and secure mission critical document exchange over existing communications channels, retaining the full advantages of STEs for confidentiality.
The full Preston Abbey product range meets the needs of civilian government and military agencies that rely on STEs and Secure Communications Interoperability Protocol (SCIP) to send and receive classified files and includes:
- PA-CFT (Classified File Transfer)
- The paperless solution
- PA-LFR (Legacy Fax Replacement)
- A cost-effective alternative to aging and often failing fax machines
- PA-SAA (Stand Alone Application)
- A software solution allowing connection of a STE to Windows or Mac
The Preston Abbey solutions allow the standard RS232 interface for STEs to seamlessly access the full features of the advanced software.
“It is abundantly clear that the emerging requirement for sensitive file transmission is to retain the faxing mechanism’s extraordinary security of a point-to-point, direct communication path, while avoiding the tedious need to handle physical documents,” said James Abbey, CEO and co-founder of Preston Abbey. “With PA-CFT, government users will become more efficient by being able to transfer documents to or from their computer directly without having to go through the time and trouble of manually operating a fax machine.”
The Preston Abbey PA-CFT will automatically determine the nature of the recipient device and make the appropriate technical arrangements. Designed with reliability in mind, the proprietary firmware is hardened against transmission errors or other communications problems and will optionally retry data that fails internal integrity checking. Preston Abbey solutions provide long-term dependability for secure document handling requirements, as well as an upgrade path for new features.
Preston Abbey solutions require minimum engineering changes or network alterations. They enable users of legacy equipment to migrate easily and effectively to modern, inexpensive paperless solutions. Speed is mandatory and is provided by mature platforms that Preston Abbey leverages to provide robust solutions for critical document handling. The Preston Abbey solutions are fully automated and feature a simple web interface, ensuring quick and easy configuration and set-up. Once installed, they will operate continuously without user intervention.
About Preston Abbey
Preston Abbey develops reliable, mission critical communications solutions that secure the connectivity and delivery of confidential and sensitive documents for government and DOD agencies. Headquartered in the heart of the Washington, D.C. metropolitan area's technology corridor, Preston Abbey has unparalleled experience, expertise and knowledge of secure fax technology for government deployments. For more information visit the website at: www.prestonabbey.com.
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