President Donald Trump issued a National Security Presidential Memorandum on Thursday directing the establishment of a new program that will authorize private security companies to conduct offensive cyber operations against foreign transnational criminal organizations. The program will be overseen by the National Coordination Center, operating under the Homeland Security Task Force, with coordination between the Departments of Justice and Homeland Security.
The memo identified several categories of criminal activity eligible for private sector targeting, including ransomware attacks, sextortion schemes, phishing campaigns, financial fraud, and impersonation scams. Participating companies would be permitted to conduct cyber surveillance and offensive cyber effects operations against foreign groups engaged in cyber-enabled crimes against US government entities, American citizens, or US interests. The authorization represents the first instance of the federal government explicitly permitting private companies to conduct offensive cyberattacks overseas without prior court approval.
The program includes several safeguards and requirements for participating firms. Companies must pass vetting by Justice and Homeland Security officials and demonstrate technical proficiency, proven cyber operations experience, facility security, and personnel reliability. Participating companies are required to deposit $1 million in an escrow account, which would be forfeited for non-compliance with contractual obligations. The memo explicitly prohibits operations that could result in loss of life, serious injury, or actions that would constitute armed attack under international law.
Security researchers have offered mixed assessments of the initiative. One independent cybersecurity expert acknowledged the potential merit in targeting ransomware groups but raised concerns about the incentive structures, noting that private companies have historically profited from the status quo rather than working toward comprehensive solutions. The memo directs the relevant departments to develop specific program details within the next 60 days, with many operational particulars remaining to be defined.
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