The Trump administration issued a National Security Presidential Memorandum directing the establishment of a new program that will authorize private security firms to conduct offensive cyber operations against foreign transnational criminal organizations. The National Coordination Center, operating under the Homeland Security Task Force, will develop the program with oversight from the Departments of Justice and Homeland Security.
The initiative represents the first time the federal government has formally authorized private companies to conduct offensive cyberattacks against overseas hackers. According to an accompanying fact sheet, eligible targets include criminal groups engaged in ransomware operations, sextortion schemes, phishing campaigns, financial fraud, and impersonation scams. Participating companies would be permitted to conduct surveillance and offensive cyber operations against foreign groups defined as conducting cyber-enabled crime against the US government, American persons, or US interests, provided they are not institutional components of foreign governments.
The memo establishes several constraints on the program’s scope. Private firms must undergo vetting by Justice and Homeland Security departments before participation. Authorized operations cannot result in deaths, serious injuries, or actions constituting use of force under international law. Companies must meet minimum standards including technical proficiency, proven cyber operation experience, facility security, personnel vetting, and other factors deemed relevant by program executives. Participating firms are also required to deposit $1 million into escrow accounts, with forfeiture occurring in cases of contractual non-compliance.
Industry observers have raised considerations about the program’s implementation. Security researchers noted that while targeting ransomware groups has merit, the success of such efforts depends on appropriate incentive structures. Concerns have been raised regarding potential conflicts of interest, given that private cybersecurity companies have historically profited from existing conditions in the threat landscape.
The Justice and Homeland Security departments are directed to provide detailed program specifications within 60 days, with many operational aspects remaining to be defined.
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