30 March 2000
Source: http://www.usia.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=00032902.glt&t=/products/washfile/newsitem.shtml


US Department of State
International Information Programs

Washington File
_________________________________

29 March 2000

Senator Leahy on Cyber Crime

  (Advocates stronger weapons to fight computer crime)(2170)

  Convinced that attacks against important computer systems are bound to
  increase, Democratic Senator Patrick Leahy from Vermont is urging his
  fellow lawmakers to take effective action to enhance laws against
  computer crime.

  Speaking at a Senate Judiciary Committee hearing on cyber attacks
  March 28, Leahy said, "Computer-related crime is one of the greatest
  challenges facing law enforcement." Citing statistics compiled by the
  Computer Emergency Response Team (CERT) Coordination Center, an agency
  focused on computer security issues, Leahy said "four million computer
  hosts were affected by computer security incidents in 1999 alone by
  damaging computer viruses."

  Leahy and other senators present at the hearing also cited the
  well-publicized February attacks on popular Worldwide Web sites such
  as Yahoo, eBay, Amazon.com and others.

  The Vermont Democrat has introduced legislation that would apply a
  number of strategies to cyber crime:

  -- improve education and training for law enforcement working for
  prosecution of computer crimes;
  -- expand investigative jurisdiction for agencies pursuing a cyber
  criminal;
  -- impose forfeiture provisions so cyber criminals would be forced to
  relinquish their equipment.

  At the same time he urged action in this arena, Senator Leahy
  cautioned his colleagues about passing legislation that "would do more
  harm than good." He continued, "We must make sure that our legislative
  efforts are precisely targeted on stopping destructive acts and that
  we avoid scattershot proposals that would threaten, rather than
  foster, electronic commerce and sacrifice, rather than promote, our
  constitutional rights."

  Following is the text as prepared for delivery:

  (begin text)

  Statement of Senator Patrick Leahy 
  Ranking Member, Senate Committee on the Judiciary Subcommittee on
  Technology, Terrorism and Government Information

  Hearing on "Cyber Attacks: Removing Roadblocks to Investigation and
  Information Sharing"

  March 28, 2000

  As we head into the twenty-first century, computer-related crime is
  one of the greatest challenges facing law enforcement. Many of our
  critical infrastructures and our government depend upon the
  reliability and security of complex computer systems. We need to make
  sure that these essential systems are protected from all forms of
  attack.

  Whether we work in the private sector or in government, we negotiate
  daily through a variety of security checkpoints designed to protect
  ourselves from being victimized by crime or targeted by terrorists.
  For instance, Congressional buildings like this one use cement pillars
  placed at entrances, photo identification cards, metal detectors,
  x-ray scanners and security guards to protect the physical space.
  These security steps and others have become ubiquitous in the private
  sector as well.

  Yet all these physical barriers can be circumvented using the wires
  that run into every building to support the computers and computer
  networks that are the mainstay of how we communicate and do business.
  This plain fact was amply demonstrated by the recent hacker attacks on
  E-Trade, ZDNet, Datek, Yahoo, eBay, Amazon.com and other Internet
  sites. These attacks raise serious questions about Internet security -
  questions that we need to answer to ensure the long-term stability of
  electronic commerce. More importantly, a well-focused and more malign
  cyber-attack on computer networks that support telecommunications,
  transportation, water supply, banking, electrical power and other
  critical infrastructure systems could wreak havoc on our national
  economy or even jeopardize our national defense. We have learned that
  even law enforcement is not immune. Last month we learned of a denial
  of service attack successfully perpetrated against a FBI web site,
  shutting down that site for several hours.

  The cyber crime problem is growing. The reports of the CERT
  Coordination Center (formerly called the "Computer Emergency Response
  Team"), which was established in 1988 to help the Internet community
  detect and resolve computer security incidents, provide chilling
  statistics on the vulnerabilities of the Internet and the scope of the
  problem. Over the last decade, the number of reported computer
  security incidents grew from 6 in 1988 to more than 8,000 in 1999. But
  that alone does not reveal the scope of the problem. According to
  CERT's most recent annual report, more than four million computer
  hosts were affected by computer security incidents in 1999 alone by
  damaging computer viruses, with names like "Melissa," "Chernobyl,"
  "ExploreZip," and by other ways that remote intruders have found to
  exploit system vulnerabilities. Even before the recent
  headline-grabbing "denial-of-service" attacks, CERT documented that
  such incidents "grew at a rate around 50% per year" which was "greater
  than the rate of growth of Internet hosts."

  CERT has tracked recent trends in severe hacking incidents on the
  Internet and made the following observations. First, hacking
  techniques are getting more sophisticated. That means law enforcement
  is going to have to get smarter too, and we need to give them the
  resources to do this. Second, hackers have "become increasingly
  difficult to locate and identify." These criminals are operating in
  many different locations and are using techniques that allow them to
  operate in "nearly total obscurity."

  I commend the FBI Director for establishing the Pittsburgh High Tech
  Computer Crimes Task Force to take advantage of the technical
  expertise at CERT to both solve and prevent newly emerging forms of
  computer network attacks. Senator Hatch and I are working together on
  legislation that would encourage the development of such regional task
  forces.

  Cyber crime is not a new problem. We have been aware of the
  vulnerabilities to terrorist attacks of our computer networks for more
  than a decade. It became clear to me, when I chaired a series of
  hearings in 1988 and 1989 by the Subcommittee on Technology and the
  Law in the Senate Judiciary Committee on the subject of high-tech
  terrorism and the threat of computer viruses, that merely "hardening"
  our physical space from potential attack would only prompt committed
  criminals and terrorists to switch tactics and use new technologies to
  reach vulnerable softer targets, such as our computer systems and
  other critical infrastructures. The government has a responsibility to
  work with those in the private sector to assess those vulnerabilities
  and defend them. That means making sure our law enforcement agencies
  have the tools they need, but also that the government does not stand
  in the way of smart technical solutions to defend our computer
  systems.

  Encryption helps prevent cyber crime. That is why, for years, I have
  advocated and sponsored legislation to encourage the widespread use of
  strong encryption. Encryption is an important tool in our arsenal to
  protect the security of our computer information and networks. The
  Administration made enormous progress when it issued new regulations
  relaxing export controls on strong encryption. Of course, encryption
  technology cannot be the sole source of protection for our critical
  computer networks and computer-based infrastructure, but we need to
  make sure the government is encouraging -- and not restraining -- the
  use of strong encryption and other technical solutions to protecting
  our computer systems.

  The private sector must assume primary responsibility for protecting
  its computer systems. Targeting cyber crime with up-to-date criminal
  laws and tougher law enforcement is only part of the solution. While
  criminal penalties may deter some computer criminals, these laws
  usually come into play too late, after the crime has been committed
  and the injury inflicted. We should keep in mind the adage that the
  best defense is a good offense. Americans and American firms must be
  encouraged to take preventive measures to protect their computer
  information and systems. Just recently, internet providers and
  companies such as Yahoo! and Amazon.com Inc., and computer hardware
  companies such as Cisco Systems Inc., proved successful at stemming
  attacks within hours thereby limiting losses.

  Prior legislative efforts were designed to deter cyber crime. Congress
  has responded again and again to help our law enforcement agencies
  keep up with the challenges of new crimes being executed over computer
  networks. In 1984, we passed the Computer Fraud and Abuse Act, and its
  amendments, to criminalize conduct when carried out by means of
  unauthorized access to a computer. In 1986, we passed the Electronic
  Communications Privacy Act (ECPA), which I was proud to sponsor, to
  criminalize tampering with electronic mail systems and remote data
  processing systems and to protect the privacy of computer users. In
  the 104th Congress, Senators Kyl, Grassley and I worked together to
  enact the National Information Infrastructure Protection Act to
  increase protection under federal criminal law for both government and
  private computers, and to address an emerging problem of computer-age
  blackmail in which a criminal threatens to harm or shut down a
  computer system unless their extortion demands are met.

  In this Congress, I have introduced a bill with Senator DeWine, the
  Computer Crime Enforcement Act, S. 1314, to set up a $25 million grant
  program within the U.S. Department of Justice for states to tap for
  improved education, training, enforcement and prosecution of computer
  crimes. All 50 states have now enacted tough computer crime control
  laws. These state laws establish a firm groundwork for electronic
  commerce and Internet security. Unfortunately, too many state and
  local law enforcement agencies are struggling to afford the high cost
  of training and equipment necessary for effective enforcement of their
  state computer crime statutes. Our legislation, the Computer Crime
  Enforcement Act, as well as the legislation that Senator Hatch and I
  are crafting, would help state and local law enforcement join the
  fight to combat the worsening threats we face from computer crime.

  Our computer crime laws must be kept up-to-date as an important
  backstop and deterrent. I believe that our current computer crime laws
  can be enhanced and that the time to act is now. We should pass
  legislation designed to improve our law enforcement efforts while at
  the same time protecting the privacy rights of American citizens. Such
  legislation should make it more efficient for law enforcement to use
  tools that are already available - such as pen registers and trap and
  trace devices - to track down computer criminals expeditiously. It
  should ensure that law enforcement can investigate and prosecute
  hacker attacks even when perpetrators use foreign-based computers to
  facilitate their crimes. It should implement criminal forfeiture
  provisions to ensure that hackers are forced to relinquish the tools
  of their trade upon conviction. It should also close a current
  loophole in our wiretap laws that prevents a law enforcement officer
  from monitoring an innocent-host computer with the consent of the
  computer's owner and without a wiretap order to track down the source
  of denial-of-service attacks. Finally, such legislation should assist
  state and local police departments in their parallel efforts to combat
  cyber crime, in recognition of the fact that this fight is not just at
  the federal level.

  I have been working with Senator Hatch on legislation to accomplish
  all of these goals and look forward to discussing these proposals with
  law enforcement and industry leaders.

  Civil Fraud Laws May Also Need Strengthening. There is no question
  that fraud is one of the most pressing problems facing the Internet.
  According to the Director of the FBI, frauds have tainted Internet
  sales of merchandise, auctions, sweepstakes and business opportunities
  and the North American Securities Administrators Association estimates
  that Internet-related stock fraud alone results in billions of dollars
  of loss to investors each year. I understand that the FBI and the
  National White Collar Crime Center are jointly sponsoring the Internet
  Fraud Complaint Center, which will help assist in the investigation of
  fraudulent schemes on the Internet and will compile data on
  cyber-frauds. I applaud this endeavor.

  In looking for ways to combat Internet fraud, we should consider
  whether the Justice Department's authority to use civil enforcement
  mechanisms against those engaged in frauds on the Internet should be
  enhanced.

  Legislation must be balanced to protect our privacy and other
  constitutional rights. I am a strong proponent of the Internet and a
  defender of our constitutional rights to speak freely and to keep
  private our confidential affairs from either private sector snoops or
  unreasonable government searches. These principles can be respected at
  the same time we hold accountable those malicious mischief makers and
  digital graffiti sprayers, who use computers to damage or destroy the
  property of others. I have seen Congress react reflexively in the past
  to address concerns over anti-social behavior on the Internet with
  legislative proposals that would do more harm than good. A good
  example of this is the Communications Decency Act, which the Supreme
  Court declared unconstitutional. We must make sure that our
  legislative efforts are precisely targeted on stopping destructive
  acts and that we avoid scattershot proposals that would threaten,
  rather than foster, electronic commerce and sacrifice, rather than
  promote, our constitutional rights.

  Technology has ushered in a new age filled with unlimited potential
  for commerce and communications. But the Internet age has also ushered
  in new challenges for federal, state and local law enforcement
  officials. Congress and the Administration need to work together to
  meet these new challenges while preserving the benefits of our new
  era.

  I thank Senators Kyl, Feinstein and Schumer for their attention to
  this important issue.

  (end text)


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29 March 2000

Senator Kyl on Cyber Crime

  (Senators seek protections from attacks aimed at computers)(1190)

  Computer attacks on some of the most well-known sites on the Worldwide
  Web in February made a dramatic statement about the potential
  vulnerability of the electronic infrastructure that has become so
  important in the U.S. economy. The U.S. Senate Judiciary Committee is
  looking at strategies that may create greater security and stronger
  response in the event of a cyber attack.

  Republican Senator Jon Kyl from Arizona chaired a hearing on the issue
  March 28, calling the February attacks a "wake-up call about the need
  to protect our critical computer networks."

  "Law enforcement must be equipped with the resources and authorities
  necessary to swiftly trace a cyber attack back to its source and
  appropriately prosecute them," Kyl said, asserting that punishment of
  attackers will serve as a deterrent to others.

  Senator Kyl has introduced legislation to strengthen the power of law
  enforcement working to apprehend and prosecute a computer hacker. His
  bill would:

  -- increase police powers to follow the trail of a computer attacker;
  -- lower the threshold of damages for federal prosecution of a
  particular cyber attack;
  -- allows youths 15 or older to be tried as adults for
  computer-related crime.

  Further, Senator Kyl advocates a far-reaching awareness of the
  society's vulnerability to cyber attack. "We need to encourage or
  mandate individuals and systems' administrators to tap into the
  resources available to ensure their own security, and that of others
  connected to the Internet."

  Following is the text of the statement as prepared for delivery:

  (begin text)

  Statement by U.S. Senator Jon Kyl (R-Arizona)

  Chairman, Senate Judiciary Subcommittee on Technology, Terrorism and
  Government Information

  March 28, 2000

  "Cyber Attack: Roadblocks to Investigation and Information Sharing"

  The subcommittee will please come to order. Let me first welcome
  everyone to this hearing of the Subcommittee on Technology, Terrorism,
  and Government Information. Today, we will examine various roadblocks
  to the protection of our information systems from cyber attack. Using
  the recent denial of service attacks as a backdrop, we will discuss
  some of the things that inhibit swift investigation and prosecution of
  cyber crimes, and the sharing of vulnerability and threat information
  among the private sector and with organizations affiliated with the
  federal government. This is the sixth public hearing we have held in
  the past three years on the critical issue of securing our nation's
  information infrastructure, although the issue has received a great
  deal of attention recently.

  The latest attacks on 8 well-known Internet sites like eBay, Yahoo,
  and CNN raised public awareness, and hopefully will serve as a wake-up
  call about the need to protect our critical computer networks.
  Uncertainty caused by the attacks contributed to a 258 point drop in
  the Dow Jones Industrial Average and halted a string of 3 days of
  consecutive record-high closes of the technology-laden Nasdaq
  Composite Index. As the New York Times noted in an editorial, "Just
  when Americans have begun to get accustomed to the pervasive influence
  of the Internet, a wave of anonymous assaults on Web Sites has roiled
  the stability of the newly emerging cyberworld." Although disruption
  to these sites was substantial, the damage did not even approach what
  it could have been, based on the Internet's known vulnerabilities.

  Catching and punishing those who commit cyber crimes is essential for
  deterring future attacks. When a cyber attack occurs, it is not
  initially apparent whether the perpetrator is a mischievous teenager,
  a professional hacker, a terrorist group, or a hostile nation. Law
  enforcement must be equipped with the resources and authorities
  necessary to swiftly trace a cyber attack back to its source and
  appropriately prosecute them. Today, we will discuss some impediments
  to law enforcement in cyber space, and how the bill I recently
  introduced with Sen. Shumer would remove some of these impediments. In
  particular, this bill would: modify trap and trace authority so law
  enforcement will no longer need to obtain a warrant in every
  jurisdiction through which a cyber attack traveled; remove the current
  $5000 minimum in damages for a case to be considered for federal
  prosecution; remove the current 6 month minimum sentence for cyber
  crimes that has led to lesser serious attacks not being prosecuted;
  and allows youths 15 or older to be considered for federal prosecution
  for committing serious computer crimes.

  These recent attacks also illustrated one crucial point that must be
  understood when dealing with securing the information infrastructure:
  We are only as strong as our weakest link. If only one sector of
  society heeds warnings and fixes computer vulnerabilities, that is not
  enough. The cyber criminal, terrorist, or enemy nation will search for
  another sector that has ignored warnings and not used proper computer
  security. The February denial of service attackers first infected
  university computers with programs that then launched massive amounts
  of invalid inquiries to the victims, shutting them down to legitimate
  customers. Computer capacity is increasing so rapidly that individuals
  with personal computers at home and work can now be used for similar
  types of attacks. We must examine the best way to secure all parts of
  our information infrastructure from attack. In order to do that, all
  individuals, businesses, and agencies with computers must get serious
  about security.

  Last Fall, Carnegie Mellon University's Computer Emergency Response
  Team posted warnings about these types of denial of service attacks.
  The FBI's National Infrastructure Protection Center (NIPC) also posted
  warnings, and even provided a tool for anyone to download to check if
  their system was infected with the attack program. Many people heeded
  those warnings and used the tool, but not enough to prevent the
  attacks from occurring. We need to encourage or mandate individuals
  and systems administrators to tap into the resources available to
  ensure their own security, and that of others connected to the
  Internet.

  Finally, overall protection from attack necessitates that information
  about cyber vulnerabilities, threats, and attacks be communicated
  among companies, and with government agencies. Cooperation among
  competitors, while adhering to anti-trust laws must be considered when
  trying to create Information Sharing and Analysis Centers (ISACs) in
  each portion of the private sector. Additionally, the Freedom of
  Information Act may need to be updated to encourage companies to share
  information with the federal government. Communication is crucial for
  protection, and these roadblocks must be removed.

  Our witnesses are well suited to address these issues. Mr. Louis
  Freeh, Director of the FBI, will discuss limitations to effective
  investigation and prosecution of cyber crimes under current law. He
  will explain how the Shumer-Kyl Bill brings some provisions of current
  law into the Computer Age. On our second panel, Mr. Rich Pethia,
  Director of the Computer Emergency Response Team (CERT) at
  Carnegie-Mellon University will testify about CERT's role in analysis
  of computer vulnerabilities and better ways of "getting the word out"
  and ensuring warnings are heeded. Mr. Harris Miller, President of the
  Information Technology Association of America, will present industry's
  perspective on impediments to information sharing of threats and
  vulnerabilities among private sector companies and government
  agencies.

  (end text)