President Donald Trump issued a National Security Presidential Memorandum on Thursday establishing a new program that authorizes private sector security companies to conduct offensive cyber operations against foreign transnational criminal organizations. The initiative represents the first instance of the federal government explicitly permitting private companies to launch cyberattacks against overseas hackers.
The program will be overseen by the National Coordination Center, operating under the Homeland Security Task Force, with supervision provided by the Departments of Justice and Homeland Security. Private firms participating in the initiative would be permitted to conduct surveillance and offensive cyber operations targeting foreign groups engaged in cyber-enabled crime against the US government, American persons, or US interests. According to an accompanying fact sheet, eligible targets include organizations responsible for ransomware attacks, sextortion schemes, phishing campaigns, financial fraud, and impersonation scams.
The memo specifies restrictions on permissible operations, prohibiting actions that would result in loss of life, serious injury, or actions that rise to the level of armed attack under international law. Companies seeking to participate must undergo vetting by Justice and Homeland Security departments and meet minimum standards regarding technical proficiency, operational history, facility security, and personnel screening. Each participating company must also deposit $1 million into an escrow account, which will be forfeited for non-compliance with contractual terms.
Security researcher Kevin Beamont acknowledged potential merit in targeting ransomware groups but raised concerns about the incentive structures, noting that private cyber companies have historically resisted changes that might reduce their business opportunities. The specific operational guidelines and implementation details remain to be determined, with the Justice and Homeland Security departments directed to provide comprehensive specifications within 60 days.
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