President Trump signed a national security presidential memorandum on Wednesday that establishes a framework for private sector participation in offensive cyber operations. The directive aims to leverage private companies’ capabilities and innovation to conduct cyber-attacks against foreign criminal entities under the direction, control and authority of the U.S. government.
The policy represents a significant shift in cybersecurity authority, traditionally reserved for government agencies. Under the memorandum, private firms would not have unlimited hacking capabilities but would instead be authorized to conduct limited cyber operations at the government’s direction. The White House cited concerns about ransomware attacks, financial fraud, and other crimes perpetrated by foreign-based criminal organizations, referred to in the memo as transnational criminal organizations (TCOs).
The Trump administration has previously signaled its intent to expand private sector involvement in cybersecurity matters. A national cybersecurity policy released in March outlined plans to create incentives designed to “unleash the private sector” against foreign adversaries. However, legal experts have raised questions regarding potential risks that private companies could face as they become involved in international digital conflicts.
The new framework directs the Department of Homeland Security, through the national coordination center, to establish a program overseeing cyber operations against foreign TCOs. Participating companies must first undergo vetting and will be required to maintain a bond or escrow of at least $1 million. Under federal supervision, approved firms would conduct cyber surveillance operations and cyber effects operations against specified targets. Cyber effects are defined to include potential manipulation, disruption, denial, degradation or destruction of information systems and networks.
The involvement of private companies in cyber operations against criminal and other targets is not unprecedented but has generated controversy in the past due to concerns about escalation risks, unintended consequences, and coordination challenges between agencies.
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