Feds roll out cyber plan as Hill vows legislation

US says America is losing cyber war to China; officials vow to find compromise on legislation

Associated Press
Feds roll out cyber plan as Hill vows legislation
.

View photo

U.S. Cyber Command Commander, National Security Agency Director …

WASHINGTON (AP) -- Declaring that America is losing an aggressive cyber-espionage campaign waged from China, administration officials and lawmakers on Wednesday agreed to push legislation that would make it easier for the government and industry to share information about who is getting hacked and what to do about it.

They say this new partnership, codified by law and buoyed by President Barack Obama's new executive order, is critical to keeping countries like China, Russia and even Iran from rummaging in American computer networks and targeting proprietary data they can use to wreak havoc or compete against U.S. businesses.

The pledge from legislators and Obama's top security aides already has special interest groups scrambling to influence the outcome, which remains uncertain in a bitterly divided Congress focused on other high-priority issues like immigration and gun control.

"Until Congress acts, President Obama will be fighting to defend this country with one hand tied behind his back," said Senate Majority Leader Harry Reid, D-Nev., who promised Wednesday to advance a bipartisan proposal "as soon as possible."

On Tuesday, Obama signed an executive order that relies heavily on participation from U.S. industry in creating new voluntary standards for protecting information. The order also expands the government's effort to share threat data with companies.

But officials warned that the order doesn't do enough to address the threat they say could paralyze U.S. commerce. At issue is the legal liability facing companies if they divulge information, and whether companies should be compelled to meet certain security standards.

"The government is often unaware of malicious activity targeting our critical infrastructure," said Gen. Keith Alexander, head of the National Security Agency and U.S. Cyber Command.

"These blind spots prevent us from being in a position of helping critical infrastructure defend itself and it prevents us from knowing when we need to defend the nation," Alexander told industry and government officials Wednesday at the Commerce Department.

In the House, Reps. Mike Rogers, R-Mich., and Dutch Ruppersberger, D-Md., both on the Intelligence Committee, have revived their pro-industry legislation that would keep secret any information a company shares with the government. It also would shield businesses from anti-trust litigation if they share threat data with their competitors.

But privacy advocates who helped bring about a veto threat of the legislation last year said the legislation still unfairly gives the secretive NSA a central role in collecting data from the private sector.

Rogers and Ruppersberger say their bill would only allow companies to share technical data, like an IP address, and that the NSA is in the best position to understand the information because of its role in chasing foreign-based hackers.

"We are in a cyber war. Most Americans don't know it ... and at this point, we're losing," said Rogers.

Last year's Senate bill was considered more balanced by privacy advocates because it gave a more central role to the Homeland Security Department. But that legislation, pushed by Sens. Susan Collins, R-Maine, and Joe Lieberman, I-Conn., tanked after the U.S. Chamber of Commerce said the bill's system of setting up industry standards would strangle businesses with unnecessary regulation. Sen. Jay Rockefeller, D-W.Va., chairman of the Commerce Committee, is expected to take on the effort this year now that Lieberman has retired and Collins is no longer the ranking Republican on the Homeland Security panel.

Congress has been struggling for more than three years to reach a consensus on cybersecurity legislation. Given that failure and the escalating risks to critical systems, Obama turned to the order as a stopgap measure with the hope that lawmakers will be able to pass a bill this year.

Liz Gasster, a vice president at the Business Roundtable, which represents CEOs at such corporations as Target and Coca-Cola, said companies probably aren't going to alert federal officials after being hacked — then turn around and share that information with their competitors — "until companies are given sufficient liability and anti-trust protections." Those protections would have to be codified by Congress.

Gasster and other industry representatives say business leaders know the cyberthreat is real and it would be in their favor to work closely with the federal government to prevent the next big attack, or at least deal with it more effectively.

"To them, it gets to the core of their business — their profitability," Gasster said of the CEOs she represents.

___

Follow Anne Flaherty on Twitter at https://twitter.com/AnneKFlaherty

Rates

View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

    AdChoicesagoodcooksSponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

    Bloomberg
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • Norwich Information Security MS

    Online, accredited, top ranked. NSA Center of Academic Excellence. Recognized by the Department of Homeland Security. Download your free brochure!

    AdChoicesNorwich UniversitySponsored
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Best Womens Wrinkle Creams 2014

    Mom reveals simple wrinkle solution that has researchers very excited. Try this free solution today to look and feel years younger.

    AdChoicesBellaLabs.comSponsored
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • 10 rock-solid stocks for conservative investors

    10 rock-solid stocks for conservative investors Shares with low volatility can beat their indexes with less risk Bloomberg News/Landov U.S. Bancorp is the cheapest S&P 500 stock

    MarketWatch
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Tired of Living Paycheck to Paycheck?

    New website reveals how to save $1,000's when you're living paycheck to paycheck. See exactly how.

    AdChoices Media ForceSponsored
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com