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National Defense University
Information Resources Management College
“The global hub for educating, informing, and connecting Information Age leaders.”
Cyber Security: “Defending Industry & 
Economic Prosperity”
Detroit, 27 September 2012
Dr. Robert D. Childs, 
Chancellor, National Defense University iCollege
1
Opinions and views expressed in this tutorial are those of the author and do not reflect the official policy or position of the Information Resources
Management College, the National Defense University, the Department of Defense, or the U.S. Government.
2
2“The global hub for educating, informing, and connecting Information Age leaders.”
Agenda
• Cyber Shockwave: the threat is here & now.
• Four cyber threats to industry and U.S. 
economic prosperity.
1. “Securing the Cloud” – Cloud Computing 
security.
2. “The Insider Threat” – espionage, data 
exfiltration & lost of intellectual property.
3. “Attacks on Critical Infrastructure, Industrial 
Control Systems (ICS) and SCADA.”
4. “Social Media” – the cyber workforce & security
• Educating the Cyber Workforce 
29/25/2012
3
3“The global hub for educating, informing, and connecting Information Age leaders.”
The Cyber Security Epidemic*
9/25/2012 3
* 
The trend continued in 2011
4
4“The global hub for educating, informing, and connecting Information Age leaders.”
Growth of the Asymmetric Cyber Threat
4
High
Low
Sophistication
Sophistication of
Hacking Tools & Elite Hackers
Increasing
1980 1985 1990 1995 2000
Sophistication 
Required of Common 
Hackers Declining
cross site scripting
password guessing
self‐replicating code
password cracking
exploiting known vulnerabilities
disabling audits
back doors
hijacking 
sessions
sweepers
sniffers
packet spoofing
graphic user interface
automated probes/scans
denial of 
service
www attacks
“stealth” / advanced 
scanning techniques
burglaries
network mgmt. diagnostics
distributed
attack tools
Staging
sophisticated C2
2010 ~ 2015
…next?  
“Industry is getting hacked [and] 
government is getting hacked. 
What we need to do is come 
together and form best practices.”
‐Gen. Keith Alexander,
U.S. Cyber Command
27 July 2012
Espionage & Data 
Exfiltration
Tools
Elite
Hackers
12/2/2011
5
5“The global hub for educating, informing, and connecting Information Age leaders.”
Threat #1 ‐ “Securing the Cloud”
• Cloud computing provides flexible, cost‐effective delivery of 
business or consumer IT services over the Internet. 
– Helps businesses improve service delivery, reduce  IT management costs 
and respond to dynamic business requirements. 
– Cloud resources can be rapidly deployed, easily scaled, and respond to 
increased demand, regardless of the user location. 
• Public and private cloud models, or a hybrid approach using 
both models, are now in use.
– Public clouds are acquired as a service and paid for on a per‐usage 
basis or by subscription. 
– Private clouds are owned and used by a single organization. 
– Private clouds offer many of the same benefits as public 
clouds, but give the owner greater flexibility and security.
5
IBM Global Technology Services
Thought Leadership White Paper
“Strategies for assessing cloud security,” Nov 2010
6
6“The global hub for educating, informing, and connecting Information Age leaders.”
Risk Concerns with Cloud Computing
• Cloud computing  introduces risk because essential services are often 
outsourced to 3rd party service providers.
– Inside the cloud, it is difficult to physically locate where data is stored. 
– Business data is stored and processed externally in multiple unspecified locations 
[sometimes overseas].
• Security processes that were once visible on physical 
computer servers are now hidden behind layers of “virtual 
machine” servers. 
– Harder for users to maintain data integrity, privacy, security, service availability, and 
demonstrate compliance with federal & state regulations. 
– Users from different corporations and trust levels often share the same set of computing 
resources, but with different security requirements. 
• This lack of visibility can cause concerns about:
– Data exposure, compromise, and theft [exfiltration].
– Application services &  reliability.
– Regulatory compliance.
– Overall security management.
6
IBM Global Technology Services
Thought Leadership White Paper
“Strategies for assessing cloud security,” Nov 2010
7
7“The global hub for educating, informing, and connecting Information Age leaders.”
Cloud  Computing Security – Promises & Disappointments
79/25/2012
8
8“The global hub for educating, informing, and connecting Information Age leaders.”
Threat #2 ‐ “The Insider Threat”
• "In March 2012, it was reported that Blue Cross Blue Shield of Tennessee paid out a settlement of 
$1.5 million to the U.S. Department of Health and Human Services arising from potential violations 
stemming from the theft of 57 unencrypted computer hard drives that contained protected health 
information of over 1 million individuals."
• "A retailer reported in May 2011 that it had suffered a breach of its customers’ card data. The 
company discovered tampering with the personal identification number (PIN) pads at its checkout 
lanes in stores across 20 states."
• "In mid‐2009 a research chemist with DuPont Corporation reportedly downloaded proprietary 
information to a personal e‐mail account and thumb drive with the intention of transferring this 
information to Peking University in China and also sought Chinese government funding to 
commercialize research related to the information he had stolen."
• "Between 2008 and 2009, a chemist with Valspar Corporation reportedly used access to an internal 
computer network to download secret formulas for paints and coatings, reportedly intending to 
take this proprietary information to a new job with a paint company in Shanghai, China."
• "In December 2006, a product engineer with Ford Motor Company reportedly copied 
approximately 4,000 Ford documents onto an external hard drive in order to acquire a job with a 
Chinese automotive company."
89/25/2012
* "Cyber Threats Facilitate Ability to Commit Economic Espionage," U.S. 
government General Accountability Office (GAO) report # GAO‐12‐876T, 
dated 28 June 2012
9
9“The global hub for educating, informing, and connecting Information Age leaders.”
The Ultimate “Insider Threat” – Wiki‐Leaks
9/25/2012 9
Julian Assange, an Australian Internet activist,Bradley E. Manning, United States Army
Pvt. Manning, disgruntled over U.S. war efforts, allegedly stole, downloaded and smuggled 
electronic documents out of the headquarters he was assigned disguised as music CDs. 
In 2010, over 391,832 secret documents on the Iraqi war, 77,000 classified Pentagon documents on the Afghan 
conflict, and 250,000 individual cables — the daily traffic between the State Department and more than 270 
American diplomatic outposts around the world – were stolen and leaked to Internet activists.     
[http://topics.nytimes.com/top/reference/timestopics/organizations/w/wikileaks/index.html]
Fareed Khan/Associated Press
10
10“The global hub for educating, informing, and connecting Information Age leaders.”
Data Protection Against Insider Threats 
10
11
11“The global hub for educating, informing, and connecting Information Age leaders.”
Steps for Protecting Against the “Insider Threat”
• Designate a senior manager to overseeing business 
sensitive information sharing and safeguarding efforts 
for the company.
– Have written policies acknowledged by all employees.
• Implement an insider threat detection and prevention 
program. 
– Establish standards for what constitutes normal use and 
authorized access to business information.
– Policies should also address the company’s right to 
monitor use of company network resources.
• Perform self‐assessments of employee compliance 
with business sensitive information sharing and use 
policiess.
– Results reported annually to a senior managers’ steering 
group or Board of Directors.
119/25/2012
12
12“The global hub for educating, informing, and connecting Information Age leaders.”
Threat #3 – “Attacks of ICS & SCADA Systems”
• Information technology (IT) and software enable 
almost everything we do in the public & private 
sectors.
– Especially in our critical infrastructures (water, electricity, 
transportation, financial, public health, emergency 
response, etc.).
• Cyberspace interconnects this global network of 
Critical Infrastructure and Key Resources.
• What controls our Critical Infrastructures?
–Industrial control systems (ICS)
–Supervisory control and data acquisition (SCADA)
9/25/2012 12
13
13“The global hub for educating, informing, and connecting Information Age leaders.”
What Does an Attack on ICS/SCADA Look Like?
Suki Video
139/25/2012
14
14“The global hub for educating, informing, and connecting Information Age leaders.”
Real Life: Malware Takes Down Production Line
Case Profile: Daimler Chrysler
Summary
In August 2005, 13 US auto plants were shut down by a simple Internet 
worm. Despite professionally installed firewalls separating the Internet, 
the company network and the control network, the Zotob worm had made 
its way into the control system (probably via a laptop).
Once in the control system, it was able to travel from plant to plant in 
seconds. Approximately 50,000 assembly line workers ceased work during 
the outages.
Cause of incident
Introduction of malicious code via a secondary pathway into the control 
network.
Cost impact
$14 Million (estimated)
14
Source: http://www.tofinosecurity.com/why/Case‐Profile‐Daimler‐Chrysler
15
15“The global hub for educating, informing, and connecting Information Age leaders.”
Compromising the Electrical Grid with a Smart Phone
9/25/2012 15
Max Cornelisse – Electrical Grid Video (in Danish)
How easy is it to gain control of the electrical power running your business?
16
16“The global hub for educating, informing, and connecting Information Age leaders.”
Attacking Critical Infrastructure
9/25/2012 16
Computer worms. 
A computer worm discovered can be designed to 
specifically targets industrial software and equipment and 
cause physical destruction. 
The worm initially spreads indiscriminately, but includes 
a highly specialized malware payload that is designed to 
target only specific SCADA systems that are configured to 
control and monitor specific industrial processes.  For 
example, an electric power generator.
17
17“The global hub for educating, informing, and connecting Information Age leaders.”
How to Secure the Nation’s Critical Infrastructure
• The Federal Energy Regulatory Commission (FERC)
– Established a division to mitigate cyber threats on the electric grid [19 
Sep 2012].
– Best practice & communications with private‐section businesses.
– but, still lacks many of the enforcement capabilities  (cyber legislation) 
it needs from Congress.
• “Guide to Industrial Control Systems (ICS) Security”      
NIST Special Publication 800‐82
– Nat’l Institute of Standards & Technology (NIST) “Best Practices.”
• Supervisory Control and Data Acquisition (SCADA) systems.
• Distributed Control Systems (DCS).
• Control system configurations, Programmable Logic Controllers (PLC).
– Appendix C: lists approximately 30 national and  international 
organizations developing secure operating procedures for ICS.
179/25/2012
18
18“The global hub for educating, informing, and connecting Information Age leaders.”
Threat #4 ‐ Social Media ‘Pros & Cons”
Pros of social networking
• Valuable for marketing, consumer 
outreach,  releasing new product 
information, and personnel 
recruiting. 
• Communication between senior 
executives, employees, 
colleagues, and industry partners.  
• Often the primary means through 
which younger employees [“the 
Millennials”] communicate with 
friends and families. 
Potential security risks
• Possible source of violations of 
company information use 
policies.
• Proprietary information loss and 
exfiltration due to malware, social 
engineering, and phishing attacks.
• Network bandwidth drain. 
9/25/2012 18
19
19“The global hub for educating, informing, and connecting Information Age leaders.”
Social Media & the Cyber Workforce
• As part of educating the workforce, there needs 
to be written social media policies on:
– Video upload & download.
– Blogs  & online diary posts.
– Text messaging use.
– File sharing software use – e.g., Bit Torrent.
– Using certain cell phone applications (“apps”) – e.g., 
GPS tracking for cyber stalking.
– Lending corporate network access to 3rd parties using 
smart phone technology.
• Policies should also address the company’s right 
to monitor use of company resources.
19
20
20“The global hub for educating, informing, and connecting Information Age leaders.”
Questions?
Dr. Robert D. Childs
Chancellor, National Defense University – iCollege
300 5th Avenue, Marshall Hall
Washington, DC 20319  USA
Office: 1 202 685 3886
Fax: 1 202 685 3974
e‐mail: ChildsRD@ndu.edu
iCollege website: www.ndu.edu/iCollege
9/25/2012
20
Opinions and views expressed in this tutorial are those of the author and do not reflect the official policy or position of the Information Resources
Management College, the National Defense University, the Department of Defense, or the U.S. Government.

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IRMC_Crains_CIO_Awards_Detroit_Sep2012_ver2