As computer technology has advanced, federal agencies have become dependent on computerized information systems to carry out their operations and to process, maintain, and report essential information. Virtually all federal operations are supported by automated systems and electronic data, and agencies would find it difficult, if not impossible, to carry out their missions, deliver services to the public, and account for their resources without these information assets. Information security is thus especially important for federal agencies to ensure the confidentiality, integrity, and availability of their information and information systems. Conversely, ineffective information security controls can result in significant risk to a broad array of government operations and assets. Examples of such risks include the following: ● Resources, such as federal payments and collections, could be lost or stolen. ● Computer resources could be used for unauthorized purposes or to launch attacks on other computer systems. ● Sensitive information, such as taxpayer data, Social Security records, medical records, intellectual property, and proprietary business information, could be inappropriately disclosed, browsed, or copied for purposes of identity theft, espionage, or other types of crime. ● Critical operations, such as those supporting critical infrastructure, national defense, and emergency services, could be disrupted. ● Data could be added, modified, or deleted for purposes of fraud, subterfuge, or disruption. ● Agency missions could be undermined by embarrassing incidents that result in diminished confidence in the ability of federal organizations to conduct operations and fulfill their responsibilities. Cyber threats to federal information systems and cyber-based critical infrastructures are evolving and growing. In September 2007, we reported that these threats can be unintentional and intentional, targeted or nontargeted, and can come from a variety of sources. Unintentional threats can be caused by inattentive or untrained employees, software upgrades, maintenance procedures, and equipment failures that inadvertently disrupt systems or corrupt data. Intentional threats include both targeted and nontargeted attacks. A targeted attack is when a group or individual attacks a specific system or cyber-based critical infrastructure. A nontargeted attack occurs when the intended target of the attack is uncertain, such as when a virus, worm, or other malicious software is released on the Internet with no specific target. Government officials are concerned about attacks from individuals and groups with malicious intent, such as criminals, terrorists, and adversarial foreign nations. The Federal Bureau of Investigation has identified multiple sources of threats to our nation’s critical information systems, including foreign nations engaged in espionage and information warfare, domestic criminals, hackers, virus writers, and disgruntled employees and contractors working within an organization. Table 1 summarizes those groups and types of individuals that are considered to be key sources of cyber threats to our nation’s information systems and cyber infrastructures. These groups and individuals have a variety of attack techniques at their disposal. Furthermore, as we have previously reported, the techniques have characteristics that can vastly enhance the reach and impact of their actions, such as the following: ● Attackers do not need to be physically close to their targets to perpetrate a cyber attack. ● Technology allows actions to easily cross multiple state and national borders. ● Attacks can be carried out automatically, at high speed, and by attacking a vast number of victims at the same time. ● Attackers can more easily remain anonymous. The growing connectivity between information systems, the Internet, and other infrastructures creates opportunities for attackers to disrupt telecommunications, electrical power, and other critical services. As government, private sector, and personal activities continue to move to networked operations, as digital systems add ever more capabilities, as wireless systems become more ubiquitous, and as the design, manufacture, and service of information technology have moved overseas, the threat will continue to grow. Over the past year, cyber exploitation activity has grown more sophisticated, more targeted, and more serious. For example, the Director of National Intelligence stated that, in August 2008, the Georgian national government’s Web sites were disabled during hostilities with Russia, which hindered the government’s ability to communicate its perspective about the conflict. The director expects disruptive cyber activities to become the norm in future political and military conflicts. Consistent with the evolving and growing nature of the threats to federal systems, agencies are reporting an increasing number of security incidents. These incidents put sensitive information at risk. Personally identifiable information about Americans has been lost, stolen, or improperly disclosed, thereby potentially exposing those individuals to loss of privacy, identity theft, and financial crimes. Reported attacks and unintentional incidents involving critical infrastructure systems demonstrate that a serious attack could be devastating. Agencies have experienced a wide range of incidents involving data loss or theft, computer intrusions, and privacy breaches, underscoring the need for improved security practices. When incidents occur, agencies are to notify the federal information security incident center—the United States Computer Emergency Readiness Team (US-CERT). As shown in figure 1, the number of incidents reported by federal agencies to US-CERT has increased dramatically over the past 3 years, increasing from 5,503 incidents reported in fiscal year 2006 to 16,843 incidents in fiscal year 2008 (about a 206 percent increase). The three most prevalent types of incidents reported to US-CERT during fiscal years 2006 through 2008 were unauthorized access (where an individual gains logical or physical access to a system without permission), improper usage (a violation of acceptable computing use policies), and investigation (unconfirmed incidents that are potentially malicious or anomalous activity deemed by the reporting entity to warrant further review). The growing threats and increasing number of reported incidents highlight the need for effective information security policies and practices. However, serious and widespread information security control deficiencies continue to place federal assets at risk of inadvertent or deliberate misuse, financial information at risk of unauthorized modification or destruction, sensitive information at risk of inappropriate disclosure, and critical operations at risk of disruption. In their fiscal year 2008 performance and accountability reports, 20 of 24 major agencies indicated that inadequate information system controls over financial systems and information were either a significant deficiency or a material weakness for financial statement reporting (see fig. 2). Similarly, our audits have identified control deficiencies in both financial and nonfinancial systems, including vulnerabilities in critical federal systems. For example, we reported in September 2008 that, although the Los Alamos National Laboratory—one of the nation’s weapons laboratories—implemented measures to enhance the information security of its unclassified network, vulnerabilities continued to exist in several critical areas. In addition, in May 2008 we reported that the Tennessee Valley Authority (TVA)—a federal corporation and the nation’s largest public power company that generates and transmits electricity us its 52 fossil, hydro, and nuclear power plants and transmission facilities—had not fully implemented appropriate security practice to secure the control systems used to operate its critical s infrastructures. Similarly, in October 2009 we reported that the National Aeronautics and Space Administration (NASA)—the civilian agency that oversees U.S. aeronautical and space activities—had not always implemented appropriate controls to sufficiently protect the confidentiality, integrity, and availability of the information and systems supporting its mission directorates. Over the last several years, most agencies have not implemented controls sufficiently to prevent, limit, or detect unauthorized access to computer networks, systems, or information. Our analysis of inspectors general, agency, and our own reports determined that agencies did not have adequate controls in place to ensure that only authorized individuals could access or manipulate data on their systems and networks. To illustrate, weaknesses were reported in such controls at 23 of 24 major agencies for fiscal year 2008. For example, agencies did not consistently (1) identify and authenticate users to prevent unauthorized access; (2) enforce the principle of least privilege to ensure that authorized access was necessary and appropriate; (3) establish sufficient boundary protection mechanisms; (4) apply encryption to protect sensitive data on networks and portable devices; and (5) log, audit, and monitor security-relevant events. At least nine agencies also lacked effective controls to restrict physical access to information assets. We previously reported that many of the data losses occurring at federal agencies over the past few years were a result of physical thefts or improper safeguarding of systems, including laptops and other portable devices. An underlying cause of information security weaknesses identified at federal agencies is that they have not yet fully or effectively implemented key elements for an agencywide information security program. An agencywide security program, required by the Federal Information Security Management Act (FISMA), is intended to provide a framework and continuing cycle of activities, including assessing and managing risk, developing and implementing security policies and procedures, promoting security awareness and training, monitoring the adequacy of the entity’s computer-related controls through security tests and evaluations, and implementing remedial actions as appropriate. Our analysis determined that 23 of 24 major federal agencies had weaknesses in their agencywide information security programs. Due to the persistent nature of these vulnerabilities and associated risks, we continued to designate information security as a governmentwide high-risk issue in our most recent biennial report to Congress, a designation we have made in each report since 1997. Over the past several years, we and inspectors general have made hundreds of recommendations to agencies for actions necessary to resolve prior significant control deficiencies and information security program shortfalls. For example, we recommended that agencies correct specific information security deficiencies related to user identification and authentication, authorization, boundary protections, cryptography, audit and monitoring, physical security, configuration management, segregation of duties, and contingency planning. We have also recommended that agencies fully implement comprehensive, agencywide information security programs by correcting weaknesses in risk assessments, information security policies and procedures, security planning, security training, system tests and evaluations, and remedial actions. The effective implementation of these recommendations will strengthen the security posture at these agencies. Agencies have implemented or are in the process of implementing many of our recommendations.