AFIO: Cybertheft and the US Economy

[Andre Kesteloot]

*Cybertheft and the U.S. Economy.*In August 2011, the cybersecurity firm 
McAfee released an eye-opening report (PDF) detailing its investigation 
into a multi-year, most likely state-sponsored cyberattack that includes 
intrusions into the U.S. federal government and defense contractors, 
resulting in the theft of massive stores of intellectual property. The 
report's author and McAfee's vice president of threat research, Dmitri 
Alperovitch, describes these attacks, known as Operation Shady RAT, as a 
profound threat, indicative of a larger trend that may result in "the 
complete destruction" of the U.S. economy. Rather than focus on the 
potential for a theoretical "cyber Pearl Harbor," he says that U.S. 
policymakers should use all of the nation's power to stem the steady 
theft of national secrets.

What do you see as the broader implications for U.S. cybersecurity 
policy given these Shady RAT attacks?

The policy discussion up to date, at least in open circles, has been a 
bit misfocused. The challenge has been that everyone has been talking 
about waiting for this massive event--a "cyber Pearl Harbor"--but what's 
really happening is that we're suffering a "death by a thousand cuts." 
It's not one event, such as our electric grid going down, but rather a 
wholesale transfer of wealth from our economy (PDF) to our adversaries' 
economies that's been going on for the last six years or more. The 
results of these activities, especially theft, will manifest itself in 
dramatic ways over the years with reduced economic growth, reduced 
competitiveness, a loss of jobs, and everything that comes with that. 
While we should be worried about destructive attacks that can cause 
widespread damage, physical damage, and even potentially loss of life, 
the massive espionage (WSJ) that's been taking place is really the more 
pressing issue.

What's the first step to getting at this problem? [Read more: 
Masters/CouncilonForeignRelations 
<http://www.cfr.org/cybersecurity/cybertheft-us-economy/p25639>/11August2011] 

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