Password

2021 started off with a cybersecurity boom: The White House officially blamed Russia for the SolarWinds hack, where its foreign intelligence service compromised a software supply chain to spy on thousands of targets, from Microsoft and FireEye to the U.S. Departments of Commerce and Homeland Security. In April, the stolen data of 533 million Facebook users was leaked online. And in May, the Colonial Pipeline — a privately operated pipeline providing about 45% of the East Coast's fuel — was rendered nonfunctional due to a ransomware attack.

These recent incidents affecting U.S. government agencies, businesses, and citizens have only underscored the urgency of cybersecurity. Data breaches continue to strike banks and hospitals, government records offices, and social media firms. Criminals deploy ransomware attacks with increasing frequency, encrypting organizations’ data and holding it hostage. All the while, nation-states are developing more sophisticated cyber intrusion capabilities as many sectors continue to underinvest in protecting their systems and data.

The COVID-19 pandemic has only increased Americans' internet use and dependency, with remote work, schooling, health care visits, and social interactions taking place online more than ever before. The Biden administration has made cybersecurity a priority, from a recent summit with Russian President Vladimir Putin, to newly established White House positions, to a May executive order calling for the federal government to improve its efforts to “identify, deter, protect against, detect, and respond to these actions and actors.”

Within this national landscape, Virginia continues to expand its cybersecurity sector and cement its role in fostering next-generation cybersecurity talent, techniques, and technologies. The more digitized the country — and the more digitally dependent its population — the more important this leadership becomes.

With Great Connectivity Comes Great Risk

The cyber threat landscape is becoming more complex due to more widely deployed technologies, new attack vectors, and ever-more-sophisticated threat actors. One of the most significant cyber revolutions is the internet of things (IoT) — internet-connected devices, typically with less computing and battery power than a standard computer, deployed in everything from toasters to electrical grids. These IoT systems are increasingly entering not just houses and cars, but also public squares, government buildings, and private sector workplaces.

U.S. Internet of Things Spending

Across the country, Americans are joining the IoT fray: market analytics firm Statista places 2020 U.S. IoT spending at nearly $750 billion. That figure appears to be predominantly consumer- and private sector-driven; Gartner estimates that the U.S. government spent $15 billion in 2020 on IoT devices, for applications ranging from street lighting, to police surveillance, to toll management. According to Deloitte’s 2021 Connectivity and Mobile Trends Survey, 66% of American households now have smart devices.

By all accounts, connecting everything to the internet is hardly a fad. The market research firm IDC predicts that global IoT spending will have a compound annual growth rate of 11.3% over the 2020–2024 period, translating into trillions more to be spent on these technologies.

With each new connection, however, comes increased security risk. IoT devices link previously offline or noninternet-connected systems to the global web, making it possible for hackers to now target those devices from anywhere in the world. Compounding this problem is the often-poor security baked into these devices from the outset: weak encryption, easily guessable default passwords, and other major security issues.

Citizens and consumers will feel these harms personally. Hijacked thermostats and smart fridges could malfunction and make it impossible to use home appliances. Hacks of connected insulin pumps and heart monitors only increase the potential for cyberattacks to cause real-world physical harm. Information collected by these devices contributes to future data breach risks as well. This is the motivation behind Virginia’s new statewide IoT cybersecurity contest open to college faculty, graduate students, and undergrads: designing new cybersecurity protections for connected devices. The Commonwealth Cyber Initiative also funds research projects dealing with security for these devices.

Yet these changes, and risks, are not confined to the home. Industrial and manufacturing facilities — from energy grids and oil pipelines to vehicle factories and water treatment plants — are digitizing their business functions, too. In the process, many so-called industrial internet of things (IIoT) devices link these physical systems directly to the internet. Market research firm Juniper Research, for instance, predicted that IIoT connections would rise from 17.7 billion in 2020 to 36.8 billion in 2025, representing a massive public and private investment in this technology.

Connecting industrial systems online is compelling to businesses. The operator of a water treatment plant can get real-time data from chemical sensors; safety personnel on a factory floor can remotely deactivate machinery from their devices. Digitizing old, clunky industrial systems promises cost reduction for companies alongside potential gains in safety and system control. More connectivity brings more risk, and a rapidly growing market offers protections for these systems that manipulate the physical world.

Industrial Internet of Things Connections

Shifting Threat Vectors

Newfound connectivity is not the only problem facing digitally connected citizens, businesses, and government agencies. Cybercriminals’ growing use of ransomware — which infects computers, encrypts data, and holds it hostage until victims fork over cryptocurrency ransom — is likewise shifting the cybersecurity landscape.

The nonprofit Institute for Security & Technology’s Ransomware Task Force wrote in its April 2021 report that ransomware “has disproportionately impacted the healthcare industry during the COVID pandemic, and has shut down schools, hospitals, police stations, city governments, and U.S. military facilities.” The East Coast’s major fuel pipeline, the Colonial Pipeline, was struck by a ransomware attack earlier this year, after which Virginia declared a state of emergency. Fairfax County Public Schools, Virginia’s largest public school system, was itself hit with a ransomware attack in the fall of 2020.

Taking advantage of outdated, possibly unpatched systems is a serious problem as well. “Advanced persistent threats are using not only novel new techniques, but also older exploits that can prey on outdated technology to exploit public and private sector networks,” said Adam Maruyama, manager, customer success and federal practice lead for the Cortex Xpanse platform at Palo Alto Networks in Arlington.

Tracking and Responding to Cyber Threats

Business and government agencies increasingly need to track and respond to these cyber threats. It’s why threat intelligence, network defense, and incident response needs have driven a rapidly expanding national cybersecurity services market. 

Nationally, firms like FireEye, CrowdStrike, and Palo Alto have rapidly grown in recent years to service clients across public and private sectors.

Virginia serves as a key nexus for this work. The Commonwealth has more than 650 cybersecurity companies in its borders, the most per capita in the country, according to the CyberVA Commission. Virginia-based cybersecurity professionals span private companies, universities, the nonprofit sector, and the United States defense and intelligence communities. Consumer website Comparitech recently listed Virginia as the top state in the country for information security jobs.

It’s not just companies and government agencies. FS-ISAC — the global cyber intelligence-sharing organization for the financial sector — is headquartered in Fairfax County. The nonprofit Global Resilience Federation that connects many cyber intelligence-sharing communities, and which grew out of FS-ISAC, is also based in Fairfax County; its members span five continents and numerous critical industries.

“Virginia is uniquely positioned to facilitate and host collaboration between the federal government and industry,” said Ernie Magnotti, chief information security officer at Leonardo DRS. “Government and industry need to get better at aligning in the fight. Virginia is the place where that alignment is happening.”

Virginia is uniquely positioned to facilitate and host collaboration between the federal government and industry. Government and industry need to get better at aligning in the fight. Virginia is the place where that alignment is happening.

Ernie Magnotti Chief Information Security Officer, Leonardo DRS

Fostering Cyber Talent

Flashy new cyber defense technologies, however, mean little without humans to manage and improve them — and without personnel focusing their time and talents on the constant battle of maintaining strong cybersecurity. In short, none of this works in the absence of cyber talent.

(ISC)2, a membership association of certified cybersecurity professionals, estimated that cybersecurity industry growth would create 4 million unfilled jobs around the world by 2022. This high demand and low supply persist in the United States — a full-on talent shortage.

Government agencies, companies, universities, and nonprofits are moving to close this gap. Investing in the cybersecurity talent pipeline can yield large payoffs for employers who need the skills; universities, conversely, can send graduates into well-paying jobs in a growing field. Not to mention that investing in the future cyber workforce helps boost the economy and protect citizens, companies, and the country. The Information Systems Security Association and the analysis firm Enterprise Strategy Group found in a 2017 report that the cyber skills shortage was exacerbating the data breach problem: There weren’t enough cybersecurity staff, and non-cybersecurity staff weren’t adequately trained.

As a growing tech hub and the seat of much of the U.S. government's military and intelligence presence, the Commonwealth is uniquely positioned to improve cybersecurity by fostering businesses that can make the internet a safer place through private-public partnerships and workforce exchanges.

Adam Maruyama Manager, Consumer Success and Federal Practice Lead, Palo Alto Networks

As universities across the country launch their own cybersecurity and cybersecurity policy programs – from smaller community colleges to large research universities – so have those in Virginia. The Commonwealth created the Tech Talent Investment Program, a $2 billion initiative to double the number of graduates in computer science and related fields.

Today, the University of Virginia offers numerous cybersecurity classes. Its undergraduate cyber team also won its third National College Cyber Defense Competition in 2020, sponsored by Raytheon. George Mason University launched a new cybersecurity engineering department that same year, and the University of Richmond has continued offering its online cybersecurity boot camp through the COVID-19 pandemic.

“As a growing tech hub and the seat of much of the U.S. government’s military and intelligence presence, the Commonwealth is uniquely positioned to improve cybersecurity by fostering businesses that can make the internet a safer place through public-private partnerships and workforce exchanges," Maruyama said.

Building a Cyber-Resistant Future

Investment in cybersecurity is only growing. Crunchbase reports that venture capital investors poured nearly $8 billion into cybersecurity deals globally in 2020, with U.S. companies receiving over 76% of that funding.

The Biden administration, meanwhile, has already asked Congress for a $10 billion commitment in spending on civilian cybersecurity programs. $750 million of that, for instance, would go toward “lessons learned” from the SolarWinds hack. Members of the Cyberspace Solarium Commission recommend hundreds of millions be spent on the Cybersecurity and Infrastructure Security Agency (CISA) in the Department of Homeland Security.

All told, connectivity is increasing, and threats along with it — but so is public and private investment in a more secure, resilient digital future.

“We’ve seen a lot of bad news about the state of the internet and cybersecurity, but I want to remind people that the internet can also be a force for economic, social, and political growth,” Maruyama said.

Cybersecurity threats will never go away. Nor will the broad economic, social, and national security risks of online connectivity. But the many benefits, opportunities, and potential futures offered by new technologies — from smart health devices to cloud computing — mean cybersecurity will continue to be an increasingly critical part of building a safer digital world.

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