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In our Kokoda Foundation report in early 2011, we called for an updated National Cyber Security Strategy together with a cyber capability plan to be developed across government and industry. The vulnerabilities inherent in cyberspace made it imperative for Australia to develop the requisite strategy, capabilities, policy, tactics, techniques, and procedures for employing the full suite of cyber operations to ensure freedom of action in cyberspace and, to the maximum extent practicable, the safety and security of Australian citizens using cyberspace.

So, what progress has been made with the Cyber Strategy in the intervening two years? The Australian Government’s much anticipated 2012 Cyber White Paper was shelved and replaced with a proposal for a more general discussion paper on the digital economy. Responsibility for the paper was shifted from the Department of Prime Minister and Cabinet to the Department of Digital Economy, run by Communications Minister Stephen Conroy.

This latter move did not instill us with much confidence given that the predominance of Government cyber knowledge and expertise is resident in other Departments. Having said this we must emphasise that we are not arguing for the lead to be with the Australian Department of Defence. We agree with the thrust of President Obama’s February 2013 directive that directed the civilian Department of Homeland Security to steer improvements in protections for private industry, instead of giving the lead to the US military’s National Security Agency. It is important to not treat cyber security as a “war zone”.

At the start of the Cyber White Paper development process in June 2011, the Attorney-General had said the White Paper would build on the Government’s 2009 Cyber Security Strategy and the establishment of the Cyber Security Operations Centre (CSOC), CERT Australia, the Cyber Safety Plan and the Digital Economy Strategy. Whilst the recent National Security Strategy made some pronouncements related to cyber issues, it could not be viewed as an updated Cyber Security Strategy and, significantly, made no additional funding commitments to address what we view as a clearly escalating threat. Indeed, the 2013 National Security Strategy called for integrated cyber policy and operations and identified malicious cyber activity as a key national security risk. It is difficult to see how these points can be anything more than rhetoric without sufficient funding. Furthermore, the Strategy argues for engaging with business and strengthening cyber security partnerships between government and industry. Again, these good words sound hollow without sufficient funding tied to them.

The unprecedented sophistication and reach of recent cyber attacks demonstrate that malicious actors have the ability to compromise and control millions of computers that belong to governments, private enterprises and ordinary citizens worldwide. In a useful contribution last year, Georgia Tech in the US argued that if we are going to prevent motivated adversaries from attacking our systems, stealing our data and harming our critical infrastructure, the broader community of security professionals — including academia, the private sector and government — must work together to understand emerging threats and to develop proactive security solutions to safeguard the Internet and physical infrastructure that relies on it.

To meet this escalating threat, we need a National Cyber Security Strategy that seeks to maintain and enhance the benefits the nation derives from its activities and capabilities in cyberspace while shaping the strategic environment and strengthening the foundations of its national capabilities. Its key objectives should be to:

  • strengthen security and safety in cyberspace;
  • maintain and enhance the strategic advantages afforded to Australia by cyberspace;
  • energise the cyber industrial base that supports the nation;
  • accelerate innovation to address the growing threat; and
  • provide cyber security awareness, training and education through a coordinated national effort with the necessary resources to be effective.

An Australian National Cyber Security Strategy should draw upon all elements of national power – economic, diplomatic, military, informational, technological, and societal.

Armed with a National Cyber Security Strategy that sets out strategic objectives and approaches, Australia could integrate the various agendas that call for individual security, corporate security, national security, and international security. Calls for action within these agendas are likely to become more strident as cyber crime, cyber espionage, cyber attacks and security breaches increase in frequency, complexity and sophistication. Indeed, most indicators point to future cyber crime and cyber attacks becoming more severe, more complex, and more difficult to prevent, detect, and address.

An emerging but rarely discussed issue is that of active defence or cyber attack. Criminals and foreign intelligence services are targeting Australian companies and government agencies. Unfortunately, cyber “defence” has its limitations. Companies and agencies must be able to detect the attackers and take more aggressive action to defend their networks and protect their information. The setting of security standards for companies is important, but that is only part of the equation. There needs to be more public debate about just what companies can and cannot do to defend themselves in cyberspace. For example, clarity is needed around what action is reasonable in defence of one’s intellectual property.

Commentators are now talking about active defence and while some have defined it precisely, the term continues to cover a broad spectrum. For example, it is used to cover software that scans for viruses without breaching systems on the one hand, while on the other, it is used to cover tools that defend against a cyber attack by disrupting the attacker’s network. Lying between these two ends of the active defence spectrum is the action of hacking into a server to protect data that an intruder is trying to steal.

While Government has a key role in cyber security, it is vital to ensure that all Australians accept the notion of shared responsibility. However, effective deterrents to cyber crime and cyber attacks are not known, available nor accessible to a majority of people or organisations, many of whom still underestimate the scope and severity of the threat. More accurate intrusion reporting to regulators, law enforcers and national security practitioners could see issues related to cyber security, including cyber crime, become recognised as a more immediate priority. Businesses may be reluctant to invest fully in comprehensive cyber security until after a catastrophic cyber event. Given the critical role of industry in owning and operating much of our nation’s critical infrastructure, the Australian Government has a vested interest in improving the public debate around cyber security and in encouraging the necessary investment by the private sector.

However, nothing to date, or in train, appears to address the cyber-related capability gaps that would enable a current baseline cyber posture to be developed, a consolidated view of all requirements and gaps to be presented, and future remediation and implementation plans to be developed. As a result, cyber capability gaps across the Australian Government will continue to hinder the agencies’ ability to plan for and conduct effective cyber operations.

The Australian Government acknowledged in its 2009 Defence White Paper that new disruptive technologies that could threaten network capabilities were likely to increase, and that the threat and complexity of cyber warfare was also likely to increase. The Defence White Paper also argued that the emerging threat would require significant and sustained investment in new technology and analytical capability to guard the integrity of information and ensure the successful conduct of operations. That new money for a whole of Government response has not been forthcoming.

It is as vital to develop incentives to change the behaviour of IT providers, business operators and the general public as it is to increase the level of public awareness about potential vulnerabilities. 

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