Supervisory Special Agent R. David Mahon 1961 Stout Street, #1823 Denver, Colorado (303) 629-7171

1. FBI DenverCyber Squad Supervisory Special Agent R. David Mahon 1961 Stout Street, #1823 Denver, Colorado (303) 629-7171 INFRAGARD-DN@FBI.GOV

2. Presidential Decision Directive 63 • “The US will take the necessary measures to swiftly eliminate significant vulnerability to both physicaland cyber attacks on our critical infrastructures, including our cyber systems.” • May 22, 1998 • May 22, 2003

3. Presidential Decision Directive 63 • Increased government security by 2000 • Secure information system infrastructure by 2003 • Federal agencies to serve as model in reducing infrastructure vulnerabilities • Seeks participation of private industry

4. Special Function Agencies Banking & Finance Dept of Treasury DoJ / FBI Law Enforcement Internal Security Transportation Dept of Transportation Electric and Gas & Oil Dept of Energy DoD National Defense Information / Comms Dept of Commerce CIA Intelligence Emergency Law Enforcement Dept of Justice Government Services FEMA DoS Foreign Affairs Emergency Fire FEMA Public Health Services HHS Water Supply EPA Executive Office of the President OSTP (R&D) National Security Advisor National Coordinator National Infrastructure Assurance Council Critical Infrastructure Coordinating Group National Infrastructure Protection Center Critical Infrastructure Assurance Office Sector Lead Agency Information Sharing and Analysis Center(s) The Private Sector

5. PDD 63 Requires the FBI through the NIPC to: • Serve as national infrastructure threat gathering, assessment, warning, vulnerability & law enforcement investigation/response entity • Be linked electronically as a national focal point • Establish its own relationships with private sector • Be the principal means of coordinating US Govt response, mitigation, investigation and reconstitution efforts.

6. NIPC Mission • Detect, deter, warn of, investigate, and respond to attacks on critical infrastructures • Coordinate FBI computer intrusion investigations • Support other agencies and state & local governments involved in infrastructure protection

7. NIPC Mission • Share, analyze, & disseminate information • Provide training for Federal, state and local cyber investigators • Clearinghouse for technological developments • 24/7 watch and warning capability

8. NIPC Organization • Location • Located at FBIHQ in Washington, D.C., the NIPC is one of the fastest growing investigative areas in the FBI • Composition • Multiple government agencies • Federal, state, and local law enforcement • Private sector representatives

9. NIPC Programs

10. Key Asset Initiative

11. Key Asset Initiative • Develop Database for specific entities within each infrastructure • Key Asset: An organization, group of organizations, system, or group of systems is considered to be a key asset if it is determined that the loss of associated goods or services or information would have widespread and dire economic or social impact. • Develop Emergency Points of Contact • Cyber and Physical Threats • Contingency Planning • Vulnerability Assessments for Assets with National Importance

12. Critical Infrastructures • “Critical infrastructures are those physical and cyber-based systems essential to the minimum operations of the economy and government.” Presidential Decision Directive-63 May 1998

14. Information & Communications Electrical Power Gas & Oil Storage & Distribution Banking & Finance Physical Distribution Vital Human Services Information & Communications • Telecomm site power • Fuels for backup power • Corporate finance • Major bridges & crossings • Vehicles & routes for system service & response • Cooling water • 911 systems • Emergency response control Electrical Power • Control systems • Emergency coordination • Fuels for primary or backup power • Corporate finance • Major bridges & crossings • Vehicles & routes for system service & response • Cooling water • 911 systems • Emergency response services Gas & Oil Storage & Distribution • Control systems • Comms • Power for systems & facilities • Emergency backup power • Corporate finance • Major bridges & crossings • Vehicles & routes for system service & response • Cooling water • 911 systems • Emergency response services Banking & Finance • Transactions • Control systems • Comms • Power for systems & facilities • Emergency backup power • Fuels for backup power • Transport of canceled checks, etc. • Drinking water • 911 systems • Emergency response services Physical Distribution • Control systems • Comms • Power for systems & facilities • Emergency backup power • Energy for distribution systems • Fuels for backup power • Corporate finance • Cooling water • 911 systems • Emergency response services Vital Human Services • Control systems • Comms • Power for systems & facilities • Emergency backup power • Fuels for system support • Corporate & local government finance • Vehicles & routes for system service & response How are infrastructures on the left reliant on infrastructures across the top? New Thinking Required To Appreciate Infrastructure Interdependencies

15. Threat to water supply Pipeline disruption Two bridges down Two regional ISP’s out of service Power outage FBI phones jammed 911 unavailable Telephone service disrupted Bomb threats in two buildings Submarine cable lost Oil refinery fire What if…...

16. Computer Intrusion Program

17. Vulnerabilities: A New Dimension Physical vulnerabilities and threats are known. Cyber vulnerabilities are growing and are not well understood.

18. New Risks and Threats • Cyber vulnerability stems from easy accessibility to infrastructures via Internet Tools to do harm are widely available and do not require a high degree of technical skill Globalization of infrastructures increases exposure to potential harm Interdependencies of systems make attack consequences harder to predict and perhaps more severe

19. Likely Sources of Attack 81% 76% 49% 31% 25% Foreign Competitors Independent Hackers CSI/FBI 2001 Computer Crime and Security Survey Source: Computer Security Institute

20. Unauthorized use of computer system within the last 12 months 64% 25% 11% Yes No Don’t Know CSI/FBI 2001 Computer Crime and Security Survey Source: Computer Security Institute

21. Types of Attacks 26 40% Theft of Proprietary Info System Penetration Denial of Service Laptop Unauthorized Access by Insider Insider Abuse of Net Access Virus 36% 64% 49% 91% 94% CSI/FBI 2001 Computer Crime and Security Survey Source: Computer Security Institute

22. Cyber Threats • Unstructured Threats • Insiders • Recreational Hackers • Institutional Hackers • Structured Threats • Organized Crime • Industrial Espionage • Hacktivists • National Security Threats • Terrorists • Intelligence Agencies • Information Warfare

23. Hackers

24. Types of Attacks • Denial of Service • Hijacked Domain Names • Defacement of Web Page

25. Vladimir Levin Organized Crime: Bank Transfers • In 1994, hackers compromised passwords to impersonate account holders • Attempted 40 transfers totaling $10 million • Actual losses of $400,000 • 5 individuals arrested • All pled guilty to either bank fraud or conspiracy to commit bank fraud

26. CREDIT CARD EXTORTION • Russian hackers break into more than 40 e-commerce businesses/databases in 10 states • One business had 38,000 credit-card numbers compromised; another had 15,700 credit cards numbers stolen • Businesses contacted by subjects – they offered to “fix” the problem for a price. • And, one victim company hired a hacker as a computer security consultant!!

27. CREDIT CARD HACKERS… • November, 2000: Undercover sting set up in Seattle; two subjects lured to US • Subjects demonstrate their hacking prowess for their new “employers,” then arrested on the spot • 250 gigabytes of stolen data recovered through a “reverse hack” into the subjects’ computers

28. Terrorist Groups Usama Bin Laden Aum Shinrikyo

29. Terrorists • Terrorist fundraising, communications on Internet • Ramzi Yousef: • Plotted to bomb 11 U.S. airliners in Pacific • Details of plot encrypted on laptop • Tamil Tigers: web site defacement • Zapatista National Liberation Army (EZLN)

30. Information Warfare “Several countries have or are developing the capability to attack an adversary’s computer systems.” “Developing a computer attack capability can be quite inexpensive and easily concealable: it requires little infrastructure, and the technology required is dual-use.” George Tenet, CIA Director 2/2/99

31. Information Warfare ". . . attaining one hundred victories in one hundred battles is not the pinnacle of excellence. Subjugating the enemy's army without fighting is the true pinnacle of excellence." Sun Tzu, The Art of War c. 350 B.C. “Information warfare is the use of, destruction or manipulation of information on a computer network to destroy the enemy’s telephone network, fuel pipelines, electric grid, transportation control system, national funds transfer system. . .in order to achieve a strategic victory.” --Beijing Jianchuan Zhishi (Chinese Press) 30 June, 1999

32. Ownership of Problem Risk is shared among public and private interests Partnership is the Foundation for Infrastructure Protection

33. INFRAGARD A Government and Private Sector Alliance

35. InfraGard Overview • Voluntary Program/Public and Private Sectors • National Identity, yet Locally Flexible • Information Shared Locally and Nationally • Fosters Trust Between Members, Locally and Nationally

36. Forum for members to communicate Prompt dissemination of threat warnings Help in protecting computer systems Education and training on infrastructure vulnerabilities A community that shares information in a trusted environment Membership Benefits

37. Primary Features • Intrusion Alert Network • Secure Web Site • Seminars and training

38. Intrusion Alert Network • Member sends encrypted message about attack • to NIPC and FBI Field Office via E-mail • Detailed description • Sanitized description • NIPC transmits sanitized description to • other members via E-mail • NIPC analyzes incident • Trends identified and reported • Investigation opened if appropriate

39. Secure Web Site • Information about recent intrusions • Archives of intrusion incidents • Original research on security issues • Chat and conference with other members • InfraGard news • Links to other security sites • Contact information

40. Chapter begun November 15, 2000 Membership from every infrastructure sector Quarterly meetings of general membership Individual sectors meet more frequently Training planned on vulnerabilities, risk assessment, solutions Denver InfraGard Chapter

41. DENVER INFRAGARD • CEO/Senior level briefing projects planned • Educational initiatives underway involving computer forensic training; regional cyber crimes survey • “Action” item projects underway with private sector

43. IFCC MISSION STATEMENT • To develop a national strategic plan to address fraud over the Internet, and to provide support to law enforcement and regulatory agencies at all levels of government for crimes that occur over the Internet. www.ifccfbi.gov

44. PURPOSE OF THE IFCC • DEVELOP NATIONAL STRATEGY • IDENTIFY AND TRACK FRAUD • ANALYZE INTERNET CRIME TRENDS • TRIAGE INTERNET COMPLAINTS • DEVELOP INVESTIGATIVE PACKETS • FORWARD INFO TO APPROPRIATE AGENCY www.ifccfbi.gov

46. ADVANTAGES WHICH THE INTERNET PROVIDES CRIMINALS • Identification and Location of victims • Victims do not see or speak to fraudsters • Accepted vehicle for commerce • Minimal cost to set up web page • Technology has made Internet company set up very easy www.ifccfbi.gov

47. IFCC INTERNET COMPLAINTS • 2000 AVG 1,848 PER MONTH • 2000* TOTAL 14,787 • 2001 AVG 4,155 PER MONTH • 2001 TOTAL 49,863 • 2002 AVG 5,942 PER MONTH • 2002** TOTAL 35,657 * MAY 8, 2000 THROUGH DECEMBER 31, 2000 ** JANUARY 1, 2002 THROUGH JUNE 1, 2002 www.ifccfbi.gov

48. Federal Bureau of Investigation FBI – Denver Division Cyber Squad Tel: (303) 629-7171 1961 Stout Street Suite 1823 Fax: (303) 628-3240 Denver, Colorado 80294 infragard-dn@fbi.gov