[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] CYBERSECURITY RESEARCH AND DEVELOPMENT: CHALLENGES AND SOLUTIONS ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON TECHNOLOGY & SUBCOMMITTEE ON RESEARCH COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ TUESDAY, FEBRUARY 26, 2013 __________ Serial No. 113-6 __________ Printed for the use of the Committee on Science, Space, and Technology Available via the World Wide Web: http://science.house.gov U.S. GOVERNMENT PRINTING OFFICE 79-926 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, [email protected]. COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. LAMAR S. SMITH, Texas, Chair DANA ROHRABACHER, California EDDIE BERNICE JOHNSON, Texas RALPH M. HALL, Texas ZOE LOFGREN, California F. JAMES SENSENBRENNER, JR., DANIEL LIPINSKI, Illinois Wisconsin DONNA F. EDWARDS, Maryland FRANK D. LUCAS, Oklahoma FREDERICA S. WILSON, Florida RANDY NEUGEBAUER, Texas SUZANNE BONAMICI, Oregon MICHAEL T. McCAUL, Texas ERIC SWALWELL, California PAUL C. BROUN, Georgia DAN MAFFEI, New York STEVEN M. PALAZZO, Mississippi ALAN GRAYSON, Florida MO BROOKS, Alabama JOSEPH KENNEDY III, Massachusetts RANDY HULTGREN, Illinois SCOTT PETERS, California LARRY BUCSHON, Indiana DEREK KILMER, Washington STEVE STOCKMAN, Texas AMI BERA, California BILL POSEY, Florida ELIZABETH ESTY, Connecticut CYNTHIA LUMMIS, Wyoming MARC VEASEY, Texas DAVID SCHWEIKERT, Arizona JULIA BROWNLEY, California THOMAS MASSIE, Kentucky MARK TAKANO, California KEVIN CRAMER, North Dakota VACANCY JIM BRIDENSTINE, Oklahoma RANDY WEBER, Texas CHRIS STEWART, Utah VACANCY ------ Subcommittee on Technology HON. THOMAS MASSIE, Kentucky, Chair JIM BRIDENSTINE, Oklahoma FREDERICA S. WILSON, Florida RANDY HULTGREN, Illinois SCOTT PETERS, California DAVID SCHWEIKERT, Arizona DEREK KILMER, Washington EDDIE BERNICE JOHNSON, Texas LAMAR S. SMITH, Texas ------ Subcommittee on Research HON. LARRY BUCSHON, Indiana, Chair STEVEN M. PALAZZO, Mississippi DANIEL LIPINSKI, Illinois MO BROOKS, Alabama ZOE LOFGREN, California STEVE STOCKMAN, Texas AMI BERA, California CYNTHIA LUMMIS, Wyoming ELIZABETH ESTY, Connecticut JIM BRIDENSTINE, Oklahoma EDDIE BERNICE JOHNSON, Texas LAMAR S. SMITH, Texas C O N T E N T S Tuesday, February 26, 2013 Page Witness List..................................................... 2 Hearing Charter.................................................. 3 Opening Statements Statement by Representative Thomas Massie, Chairman, Subcommittee on Technology, Committee on Science, Space, and Technology, U.S. House of Representatives.................................. 6 Written Statement............................................ 6 Statement by Representative Lamar S. Smith, Chairman, Committee on Science, Space, and Technology, U.S. House of Representatives................................................ 7 Written Statement............................................ 7 Statement by Representative Frederica S. Wilson, Ranking Minority Member, Subcommittee on Technology, Committee on Science, Space, and Technology, U.S. House of Representatives........... 9 Written Statement............................................ 10 Statement by Representative Larry Bucshon, Chairman, Subcommittee on Research, Committee on Science, Space, and Technology, U.S. House of Representatives....................................... 11 Written Statement............................................ 11 Statement by Representative Daniel Lipinski, Ranking Minority Member, Subcommittee on Research, Committee on Science, Space, and Technology, U.S. House of Representatives.................. 13 Written Statement............................................ 15 Witnesses: Mr. Michael Barrett, Chief Information Security Officer, PayPal, Inc. Oral Statement............................................... 17 Written Statement............................................ 19 Dr. Frederick R. Chang, President and Chief Operating Officer, 21CT, Inc. Oral Statement............................................... 34 Written Statement............................................ 36 Ms. Terry Benzel, Deputy Director, Cyber Networks and Cyber Security, USC Information Sciences Institute Oral Statement............................................... 46 Written Statement............................................ 48 Discussion....................................................... 62 Appendix I: Answers to Post-Hearing Questions Mr. Michael Barrett, Chief Information Security Officer, PayPal, Inc............................................................ 80 Dr. Frederick R. Chang, President and Chief Operating Officer, 21CT, Inc...................................................... 81 Ms. Terry Benzel, Deputy Director Cyber Networks and Cyber Security, USC Information Sciences Institute................... 83 Appendix II: Additional Material for the Record Department of Homeland Security letter submitted by Representative Frederica S. Wilson, Ranking Minority Member, Subcommittee on Technology, Committee on Science, Space, and Technology, U.S. House of Representatives...................... 88 National Science Foundation letter submitted by Representative Frederica S. Wilson, Ranking Minority Member, Subcommittee on Technology, Committee on Science, Space, and Technology, U.S. House of Representatives....................................... 91 CYBERSECURITY RESEARCH AND DEVELOPMENT: CHALLENGES AND SOLUTIONS ---------- TUESDAY, FEBRUARY 26, 2013 House of Representatives, Subcommittee on Research Committee on Science, Space, and Technology, Washington, D.C. The Subcommittees met, pursuant to call, at 10:01 a.m., in Room 2318 of the Rayburn House Office Building, Hon. Thomas Massie [Chairman of the Subcommittee on Technology] presiding. [GRAPHIC] [TIFF OMITTED] T9926.001 [GRAPHIC] [TIFF OMITTED] T9926.002 [GRAPHIC] [TIFF OMITTED] T9926.003 [GRAPHIC] [TIFF OMITTED] T9926.004 Chairman Massie. This joint hearing of the Subcommittee on Technology and the Subcommittee on Research will come to order. Good morning. Welcome to today's joint hearing entitled ``Cybersecurity Research and Development: Challenges and Solutions.'' In front of you are packets containing the written testimony, biographies, and truth-in-testimony disclosures for today's witnesses. Before we get started, since this is a joint hearing involving two Subcommittees, I want to explain how we will operate procedurally so all Members will understand how the question-and-answer period will be handled. As always, we will alternate between the majority and minority Members and allow all Members an opportunity for questioning before recognizing a Member for a second round of questions. We will recognize those Members present at the gavel in order of seniority on the full Committee, and those coming in after the gavel will be recognized in order of arrival. I now recognize myself for five minutes for my opening statement. We convene the first hearing of the Technology Subcommittee and the 113th Congress held jointly with my colleagues on the Research Subcommittee. This Subcommittee sits at the intersection of technology and innovation and is uniquely positioned to address topics affecting competitiveness of emerging high-growth industries. I look forward to learning from our witnesses today about cybersecurity research and development challenges, and I look forward to working with my colleagues to determine how we can eliminate barriers to entrepreneurship in our country going forward. In these difficult times, it is important that we continue to empower our Nation's innovators to maintain our economic competitiveness. I now yield two minutes of my time to the Chairman of the full Committee, Mr. Smith of Texas. [The prepared statement of Mr. Massie follows:] Prepared Statement of Subcommittee on Technology Chairman Thomas Massie We convene the first hearing of the Technology Subcommittee in the 113th Congress, held jointly with my colleagues on the Research Subcommittee. This Subcommittee sits at the intersection of technology and innovation, and is uniquely positioned to address topics affecting competitiveness of emerging high-growth industries. I look forward to learning from our witnesses today about cybersecurity research and development challenges, and I look forward to working with my colleagues to determine how we can eliminate barriers to entrepreneurship in our country going forward. In these difficult times, it is important that we continue to empower our nation's innovators to maintain our economic competitiveness. Chairman Smith. Thank you, Mr. Chairman, for yielding me the balance of your time. Mr. Chairman, the Preamble to the Constitution states that one of the primary responsibilities of our Federal Government is to provide for the common defense. More than 200 years later, the meaning has changed but the task remains the same. National defense in the digital age no longer just means protecting ourselves with arms against enemies who attack with traditional weapons. It now means protecting America from enemies who launch cyber attacks against our computers and networks. Cyber attacks against U.S. Government and private sector networks are on the rise. In the last few weeks, some of America's largest companies have been hacked. Even the most sophisticated companies can be vulnerable to cyber attacks. Recent targets include Apple, Facebook, Yahoo!, the New York Times, and the Wall Street Journal. Various agencies of the Federal Government also have been the target of attacks and attempted attacks. Unfortunately, evidence suggests that foreign governments may be among those responsible. Protecting America's cyber systems is critical to our economic and national security. Americans deserve better protection, and the Federal Government can help make sensitive information more secure. This challenge requires a thorough and comprehensive effort in both the public and private sectors. Private companies are increasing their investment in cybersecurity. Congress should support those efforts. Only Congress can provide the incentives and protections that would permit necessary information-sharing among companies, and more importantly, between private companies and the Federal Government. Today's hearing examines an important step that we can take to foster the kind of cooperation that this challenge requires. The Cybersecurity Enhancement Act introduced by Committee Members Michael McCaul and Daniel Lipinski coordinates research and development activities to better address evolving cyber threats. The legislation promotes much-needed research and development to help create new technologies and standards that better protect America's information technology systems. Cyber attacks threaten our national and economic security. To solve this problem, America needs a solution that involves a cooperation of many public and private sector entities. The McCaul/Lipinski legislation helps foster such an effort, which will make our computer systems more secure. I hope we can learn how to improve the bill today and quickly advance it through this Committee. Thank you, Mr. Chairman. I yield back the balance of your time. [The prepared statement of Mr. Smith follows:] Prepared Statement of Committee Chairman Lamar S. Smith The preamble to the Constitution states that one of the primary responsibilities of our federal government is to ``provide for the common defense.'' More than two hundred years later, the meaning has changed but the task remains the same. National defense in the digital age no longer just means protecting ourselves with arms against enemies who attack with traditional weapons. It now means protecting America from enemies who launch cyber attacks against our computers and networks. Cyber attacks against U.S. government and private sector networks are on the rise. In the last few weeks, some of America's largest companies have been hacked. Even the most sophisticated companies can be vulnerable to cyber attacks. Recent targets include Apple, Facebook, Yahoo! the New York Times and the Wall Street Journal. Various agencies of the federal government also have been the target of attacks and attempted attacks. Unfortunately, evidence suggests that foreign governments may be among those responsible. Protecting America's cyber systems is critical to our economic and national security. Americans deserve better protection and the federal government can help make sensitive information more secure. This challenge requires a thorough and comprehensive effort in both the public and private sectors. Private companies are increasing their investment in cybersecurity. Congress should support those efforts. Only Congress can provide the incentives and protections that would permit necessary information sharing among companies, and more importantly, between private companies and the federal government. Today's hearing examines an important step that we can take to foster the kind of cooperation that this challenge requires. The Cybersecurity Enhancement Act, introduced by Committee Members Michael McCaul and Daniel Lipinski, coordinates research and development activities to better address evolving cyber threats. The legislation promotes much-needed research and development to help create new technologies and standards that better protect America's information technology systems. Cyber attacks threaten our national and economic security. To solve this problem, America needs a solution that involves the cooperation of many public and private sector entities. The McCaul-Lipinski legislation helps foster such an effort, which will make our computer systems more secure. I hope we can learn how to improve the bill today and quickly advance it through this Committee. Chairman Massie. Thank you. The Chair now recognizes Ms. Wilson for her opening statement. Ms. Wilson. Thank you, Chairman Massie, for holding this joint hearing on cybersecurity, and thank you to our witnesses for being here today. Before I begin, I would like to say that I am pleased to be the new Ranking Member of the Technology Subcommittee. As a longtime educator, principal, teacher, I am a big believer in the power of scientific innovation. Mr. Chairman, I am looking forward to working with you this Congress to help enable innovation that creates jobs and makes our Nation more secure. Today's hearing is a perfect example of the work this Subcommittee can do to bolster national security. Cyber crimes are ever increasing. In fact, the number of attacks reported by federal agencies increased by 782 percent between 2006 and 2012. The threats to federal systems in our critical infrastructure are not only growing in number but in the level of sophistication. Over the last month alone, the New York Times, the Wall Street Journal, the Washington Post, Twitter, and Facebook have all confirmed that they have been the target of sophisticated cyber attacks. These crimes may include identity theft, intellectual property theft, service disruptions, and even espionage. We are beginning to suffer the cost of cybercrime. A recent study found that cybercrime now costs a U.S. business 8.9 million on average per year. The problem is so pervasive that security experts now joke that there are only two types of American companies these days: those that have been hacked and those that don't know they have been hacked. Earlier this month, the President signed an Executive Order that begins the process of strengthening our networks of critical infrastructure against cyber attacks by increasing information-sharing and establishing a framework for the development of standards and best practices. But the President also acknowledged that Congress must act to pass comprehensive cybersecurity legislation. The bipartisan legislation introduced by our colleagues, Mr. McCaul and Mr. Lipinski, and under consideration today should be a part of this comprehensive package. I am looking forward to hearing any recommendations our witnesses might have about how to improve the legislation. Additionally, I hope to hear more from our witnesses about their thoughts on the role the Executive Order outlines for NIST. In the past, Congress has asked NIST to bring the private sector together to accelerate the development of voluntary standards. It seems appropriate that NIST be tasked with the similar role in cybersecurity, especially in light of their expertise in this field. Finally, I would be remiss if I did not mention the potential impact sequestration will have on our ability to deter, defend, and recover from cyber attacks. In a letter to Appropriations, the National Science Foundation indicated that vital investments in research and development would be jeopardized, and that one of the areas that could be impacted by sequestration is research into advances in cybersecurity. The Department of Homeland Security Science and Technology Directorate plays a large role in the development and deployment of cybersecurity technologies. The Directorate has indicated that under sequestration, they will have to cut their cybersecurity research by 30 percent, eliminating research and data, privacy, identity management, cybersecurity forensics, and security for cloud-based systems. The need to invest in research and development is critical as cyber threats continue to grow and involve. I hope we will not let sequestration delay and derail these essential investments. Thank you, Mr. Chairman, and I yield back the balance of my time. [The prepared statement of Ms. Wilson follows:] Prepared Statement of Subcommittee on Technology Ranking Minority Member Frederica S. Wilson Thank you, Chairman Massie for holding this joint hearing on cybersecurity, and thank you to our witnesses for being here today. Before I begin, I'd like to say that I am pleased to be the new Ranking Member of the Technology Subcommittee. As a longtime educator, I am a big believer in the power of scientific innovation. Mr. Chairman, I am looking forward to working with you this Congress to help enable innovation that creates jobs and makes our nation more secure. Today's hearing is a perfect example of the work this Subcommittee can do to bolster national security. Cyber crimes are ever-increasing. In fact, the number of attacks reported by federal agencies increased by 782 percent between 2006 and 2012. The threats to federal systems and our critical infrastructure are not only growing in number, but in the level of sophistication. Over the last month alone, The New York Times, The Wall Street Journal, The Washington Post, Twitter, and Facebook have all confirmed that they have been the target of sophisticated cyber attacks. These crimes may include identity theft, intellectual property theft, service disruptions, and even espionage. We're beginning to suffer the costs of cybercrime. A recent study found that cybercrime now costs a U.S. business $8.9 million on average per year. The problem is so pervasive that security experts now joke that there are only two types of American companies these days: those that have been hacked and those that don't know they've been hacked. Earlier this month, the President signed an executive order that begins the process of strengthening our networks and critical infrastructure against cyber attack by increasing information sharing and establishing a framework for the development of standards and best practices. But the President also acknowledged that Congress must act to pass comprehensive cybersecurity legislation. The bipartisan legislation introduced by our colleagues Mr. McCaul and Mr. Lipiniski, and under consideration today, should be part of this comprehensive package. I am looking forward to hearing any recommendations our witnesses might have about how to improve the legislation. Additionally, I hope to hear more from our witnesses about their thoughts on the role the executive order outlines for NIST. In the past, Congress has asked NIST to bring the private sector together to accelerate the development of voluntary standards. It seems appropriate that NIST be tasked with a similar role in cybersecurity-- especially in light of their expertise in this field. Finally, I'd be remiss if I did not mention the potential impact sequestration will have on our ability to deter, defend, and recover from cyber attacks. In a letter to appropriators, the National Science Foundation indicated that ``vital investments in research and development would be jeopardized'' and that one of the areas that could be impacted by sequestration is research into advances in cybersecurity. The Department of Homeland Security's Science and Technology Directorate plays a large role in the development and deployment of cybersecurity technologies. The Directorate has indicated that under sequestration they will have to cut their cybersecurity research by 30 percent, eliminating research in data privacy, identity management, cybersecurity forensics, and security for cloud based systems. The need to invest in research and development is critical as cyber threats continue to grow and evolve. I hope we will not let sequestration delay and derail these essential investments. Chairman Massie. Thank you, Ms. Wilson. I look forward to working with you as well on this Committee. The Chair now recognizes the Chairman of the Subcommittee on Research, Mr. Bucshon, for his opening statement. Mr. Bucshon. Thank you, Mr. Chairman. And good morning to everyone. I am pleased that we are holding a hearing today on such an important topic. According to a recent report published by the Government Accountability Office, there were nearly 50,000 cybersecurity incidents reported by federal agencies in 2012. Considering that number was 5,500 in 2006, there is no doubt that addressing cybersecurity needs is critical to global economic competitiveness and national security interests of our Nation. In December 2012, the Center for Applied Cybersecurity Research at Indiana University held a roundtable on cyber threats, objectives, and responses. This issue impacts everyone from children using the Internet in their homes to government and industry officials trying to ensure our domestic infrastructure is protected from cyber terrorists. During the Research Subcommittee hearing on February 14 on Networking and Information Technology Research and Development, or NITRD, witnesses testified about the cybersecurity threats our Nation faces and emphasized that cooperation is required for stakeholders to research and design ways in which to build and maintain safer computer network infrastructures. The NITRD program, which was the primary subject of that hearing, is the coordinating body which the McCaul/Lipinski Cybersecurity Enhancement Act appropriately utilizes to establish a strategic plan for specific cybersecurity research. I am encouraged that the legislation we are discussing today enhances the education and development of information technology professionals, including those who work in the areas of computer systems, computer security, and cybersecurity. I look forward to hearing from our witnesses about their experiences and their recommendations on addressing America's cybersecurity challenges. I now yield the balance of my time to Chairman McCaul. [The prepared statement of Mr. Bucshon follows:] Prepared Statement of Subcommittee on Research Chairman Larry Bucshon According to a recent report published by the Government Accountability Office, there were nearly 50,000 cybersecurity incidents reported by federal agencies in 2012. Considering that number was 5,500 in 2006, there is no doubt that addressing cybersecurity needs is critical to global economic competitiveness and national security interests of our nation. In December of 2012, the Center for Applied Cybersecurity Research at Indiana University held a ``Roundtable on Cyber Threats, Objectives, and Responses.'' This issue impacts everyone: from children using the Internet in their homes to government and industry officials trying to ensure our domestic infrastructure is protected from cyber terrorists. During the Research Subcommittee hearing on February 14 on Networking and Information Technology Research and Development (NITRD), witnesses testified about the cybersecurity threats our nation faces and emphasized that cooperation is required for stakeholders to research and design ways in which to build and maintain safer computer network infrastructures. The NITRD program, which was the primary subject of that hearing, is the coordinating body which the McCaul- Lipinski Cybersecurity Enhancement Act appropriately utilizes to establish a strategic plan for specific cyber security research. I am encouraged that the legislation we are discussing today enhances the education and development of information technology professionals, including those who work in the areas of computer systems, computer security, and cybersecurity. I look forward to hearing from our witnesses about their experiences and their recommendations on addressing America's cybersecurity challenges. Mr. McCaul. Thank you, Chairman Bucshon. I want to thank Chairman Massie, Chairman Smith, Ranking Members Lipinski and Wilson for allowing me to introduce this bill once again. Again, I believe this is the third time we have introduced this. Hopefully, the third time is a charm and we will get this important legislation passed. It passed overwhelmingly in two Congresses. I do believe this is the Congress where we will get cybersecurity legislation passed through the House, the Senate, and signed by the White House. It is imperative as we hear reports almost every day of hackings taking place not only within the critical infrastructures but within our Federal Government. The report about the Chinese military hacking into our military systems, stealing our military secrets, the attacks recently from Iran against Aramco in the Persian Gulf and against our financial institutions in the United States, and of course Russia, one of the most sophisticated countries that continue to hack this country on a daily basis. Whether it is criminal, whether it is espionage, or whether it cyber warfare, we cannot afford to wait any longer. The White House has acted through an Executive Order. I think it is imperative now that the Congress act and legislate as we are supposed to be doing. It is not a question of if, but when the next--or when a cyber Pearl Harbor will occur. And that is why I have worked very closely with my good friend Congressman Lipinski to bolster our Nation's cybersecurity research and development. On February the 15th, we introduced this bill once again, H.R. 756, the Cybersecurity Enhancement Act, which is identical to the legislation passed overwhelmingly by the House last Congress. It improves the coordination in government providing for a strategic plan to assess the cybersecurity risk and guide the overall direction of the federal cyber research and development. It updates--and this responsibility is to develop security standards for Federal computer systems and processes for agencies to follow. Our bill also establishes a federal university private sector task force to coordinate research and development, improving the training of cybersecurity professionals, and continues much-needed cybersecurity research and development programs at the National Science Foundation and the National Institute of Standards and Technology. Again, I would like to thank my colleague Chairman Smith for allowing me to introduce this bill once again. I appreciate your support for this bill, my colleague from Texas. And I look forward to working with my colleagues on this Committee to find solutions to the challenges of cyber research and development. And with that, I yield back. Chairman Massie. Thank you, Mr.---- Mr. Bucshon. I yield back. Chairman Massie. Okay. Thank you, Mr. McCaul. And thank you, Mr. Bucshon. The Chair now recognizes Mr. Lipinski for his opening statement. Mr. Lipinski. Thank you, Chairman Massie. I want to thank you, Chairman Smith and Chairman Bucshon, for holding this hearing to examine the serious cybersecurity challenges faced by our Nation and what we can do to facilitate solutions, including the Cybersecurity Enhancement Act that Mr. McCaul said we recently reintroduced and I know that we have passed this overwhelmingly in a Democratic House. In a Republican House, hopefully, this time we can get it all the way through because our country especially needs it as the threats grow every year. Now, I want to echo my colleague's remarks about the nature and severity of the challenges we face in cybersecurity in both the public and private sectors. Four years ago, when we began working on this legislation, I said I had no doubt that our use of the Internet and other communication networks would continue to grow and evolve, and that threats from individual hackers, criminal syndicates, and even other governments would grow and evolve, too. Today, it remains difficult to imagine just how much more we will simultaneously benefit from and be made more vulnerable by information technology. Hacking is no longer just a realm of computer whizzes. Today, anyone can rent a botnet or gain access to other sophisticated hacking tools with just a few keystrokes and less than $100. Cybercrime threatens our national security, our critical infrastructure, businesses of all sizes, and every single American. As such, reducing our risk and improving the security of cyberspace will take the collective effort of both the Federal Government and the private sector, as well as scientists, engineers, and the general public. With respect to that collective effort, I need to emphasize the importance of research into the social and behavioral aspects of cybersecurity. People are perhaps the most significant part of our IT infrastructure, but they are also the weakest link. Many cyber attacks are successful because of human error, bad cyber hygiene such as unwittingly opening a malicious email. Having the most sophisticated security systems available won't make any difference if users don't change factory sets of all passwords or if they set easy-to-crack passwords. Understanding the human element and educating users to practice good cyber hygiene is necessary to combating threats and reducing risk. Mr. McCaul and I are hopeful that our R&D bill will be part of a comprehensive bipartisan cybersecurity bill. Previous efforts to move a larger bill have stalled over some significant policy disagreements, but I am hopeful that we will be able to resolve our differences and I look forward to working with both my colleagues and the Administration to ensure the development of a strong cybersecurity strategy this Congress. However, I am also concerned that top-line cuts to our federal R&D budgets will have a negative impact on any long- term cybersecurity strategy. So we must also take actions to mitigate the impact of those cuts. Today, we will hear from witnesses who are actively engaged in efforts to improve the security of our digital infrastructure. I look forward to their valuable insights and the challenges we face in tackling this complex issue and the role of cybersecurity R&D and education in any comprehensive solutions. I thank you, Mr. Chairman. I yield back the balance of my time. [The prepared statement of Mr. Lipinski follows:] Prepared Statement of Subcommittee on Research Ranking Minority Member Daniel Lipinski I want to thank both Chairman Massie and Chairman Bucshon for holding this hearing to examine the serious cybersecurity challenges faced by our nation. In particular, I look forward to hearing feedback from our witnesses on H.R. 756, The Cybersecurity Enhancement Act, that I recently reintroduced along with Mr. McCaul. I echo my colleagues' remarks about the nature and severity of the challenges we face in cybersecurity in both the public and private sectors. Four years ago when I began working on this legislation I said that I had no doubt that our use of the Internet and other communication networks would continue to grow and evolve, and that threats from individual hackers, criminal syndicates, and even other governments would grow and evolve too. Today it remains difficult to imagine just how much more we will simultaneously benefit from, and be made more vulnerable by, information technology. Hacking is no longer just the realm of computer whizzes. Today, anyone can ``rent'' a botnet or gain access to other sophisticated hacking tools with just a few key strokes and less than a hundred dollars. Cybercrime threatens our national security, our critical infrastructure, businesses of all sizes, and every single American. As such, reducing our risk and improving the security of cyberspace will take the collective effort of both the Federal government and the private sector, as well as scientists, engineers, and the general public. With respect to that collective effort, I need to emphasize the importance of research into the social and behavioral aspects of cybersecurity. People are perhaps the most significant part of our IT infrastructure, but they are also the `weakest link.' Many cyber attacks are successful because of human error--bad cyber hygiene--such as unwittingly opening a malicious email. Having the most sophisticated security systems available won't make any difference if users don't change factory-set default passwords or they set easy to crack passwords. Understanding the human element and educating users to practice good cyber hygiene is necessary to combating threats and reducing risk. Mr. McCaul and I are hopeful that our R&D bill will be part of a comprehensive, bipartisan cybersecurity bill. Previous efforts to move a larger bill have stalled over some significant policy disagreements, but I am hopeful that we will be able to resolve our differences and I look forward to working with both my colleagues and the Administration to ensure the development of a strong cybersecurity strategy this Congress. However, I am also concerned that top line cuts to our federal R&D budgets will have a negative impact on any long-term cybersecurity strategy. So we must also take actions to mitigate the impact of those cuts. Today, we will hear from witnesses who are actively engaged in efforts to improve the security of our digital infrastructure. I look forward to their valuable insight into the challenges we face in tackling this complex issue and the role of cybersecurity R&D and education in any comprehensive solution. Chairman Massie. Thank you, Mr. Lipinski. If there are Members who wish to submit additional opening statements, your statements will be added to the record at this point. It is now time to introduce our panel of witnesses. I yield to Ms. Lofgren of California, who will introduce our first witness. Ms. Lofgren. Well, thank you very much, Mr. Chairman. And it is indeed an honor to introduce Michael Barrett, who is the Chief Information Security Officer for PayPal, located in San Jose, California. He is the, as I say, the Chief Information Security Officer for PayPal, and in his role, he is responsible for ensuring the security of PayPal's 113 million users worldwide. Prior to joining PayPal, he was Vice President of Security and Utility Strategy at American Express, where he helped defined the company's Information Security Program, and in prior years, he was President of the Liberty Alliance, an Open Standards Consortium focused on identity management standards and guidelines. He was the driving force behind the introduction and standardization of the Alliance's federated identity concepts, and he also co-chaired its Identity Threat Prevention Working Group. He was twice named one of the 50 most powerful people in networking by Network World magazine, and it is wonderful that he is testifying today about our bill that focuses on NIST and NSF, but I am also pleased that he has identified in his testimony certain outdated statutes like EPCA, the Electronic Communications Privacy Act, that have prevented anti- cybercrime-related programs, which is also an important service that he is performing for the Committee today. So thank you for letting me introduce this important witness who comes from back home. And I yield back. Chairman Massie. Thank you, Ms. Lofgren. I recognize Chairman Smith to introduce our second witness. Chairman Smith. Thank you, Mr. Chairman. Chairman, our second witness, Dr. Frederick Chang, is a President and Chief Operating Officer of 21CT. 21CT appropriately is headquartered within Texas' 21st Congressional District, which is home to Cyber City USA, otherwise known as San Antonio, thanks in part to technology organizations like Dr. Chang's. Dr. Chang brings to us today with 30 years of public and private sector cybersecurity knowledge serving as the Director of Research at the National Security Agency and then in an executive role at SBC Communications. Additionally, he has served in academia at both the University of Texas in San Antonio and the University of Texas in Austin. He received his B.A. degree from the University of California San Diego and both his M.A. and Ph.D. degrees from the University of Oregon. We welcome you, Dr. Chang. And I yield back, Mr. Chairman. Chairman Massie. Thank you, Chairman Smith. Our final witness is Ms. Terry Benzel, the Deputy Director of Cyber Networks and Cyber Security of the USC Information Sciences Institute. As our witnesses should know, spoken testimony is limited to five minutes each after which Members of the Committee have five minutes each to ask questions. Your written testimony will be included in the record of this hearing. I now recognize our first witness, Mr. Michael Barrett, for five minutes. STATEMENT OF MR. MICHAEL BARRETT, CHIEF INFORMATION SECURITY OFFICER, PAYPAL, INC. Mr. Barrett. Chairman Bucshon, Chairman Massie, Ranking Member Lipinski, Ranking Member Wilson, and Members of the Subcommittee, thank you for the opportunity to testify today about what PayPal and the eBay Inc. family of companies are doing to protect our users from the growing cybersecurity challenges facing Internet-enabled companies and what our Nation's policymakers can do to assist us in tackling these problems. My name is Michael Barrett and I am the Chief Information Security Officer for PayPal. EBay and PayPal connects millions of buyers and sellers across the globe through eBay Marketplaces, PayPal, GSI, and other mobile-based businesses. And we believe all sustainable 21st century retail business models will use the Internet and mobile technology. However, as the Internet and mobile platforms become more attractive to consumers and businesses alike, they also attract criminals. Companies like PayPal will continue to work to protect the safety and security of our platform and our users. However, we believe that the traditional technical measures alone cannot significantly move the trend line and that there are concrete steps that industry and policymakers should take to significantly mitigate the impact of cybercrime. For example, on a daily basis Internet companies are run into sites where they have been compromised and they are used as ``phishing'' or ``spoof sites.'' Recognizing the growing threat, PayPal launched an industry standards program called DMARC, which is intended to increase trust and combat email deception and fraud. DMARC allows senders to experience consistent authentication results for their messages at AOL, Gmail, Hotmail, Yahoo!, and any other email receiver implementing DMARC. The program removes the guesswork from the receiver's handling of any failed messages, limiting or eliminating the user's exposure to potentially fraudulent and harmful messages. In its first year, DMARC protected 60 percent of the world's email inboxes and rejected hundreds of millions of potentially fraudulent messages. In addition to email authentication, we have also been engaged in efforts to create a reliable identity management system. We have participated in two different programs: the National Strategy for Trusted Identities in Cyberspace (NSTIC) and the Fast Identity Online Alliance, or FIDO. NSTIC is a White House initiative led by the National Institute of Standards and Technology, which is intended to work collaboratively with all interested stakeholders to improve the privacy, security, and convenience of sensitive online transactions. PayPal will be offering more services to our customers over the coming months that directly support both the NSTIC vision, which we expect will result in many new benefits to both our customers and the Internet overall. PayPal was also one of the cofounders of the FIDO Alliance, which is intended to address the lack of interoperability among strong authentication solutions, as well as the problems users face with creating and remembering multiple usernames and passwords. By giving the option to replace passwords with authentication methods embedded in hardware, it can be used in biometric tools such as fingerprint scanners, voice and facial recognition, or more traditional security methods. Our goal is to provide an easier and safer solution to every company, vendor, and organization that needs to verify a user's identity. Although it is the responsibility of industry leaders like PayPal to ensure the safety and security of our platforms and our users, federal policymakers have an important role to play in creating a secure Internet and mobile ecosystem. What we have found from our years of combating cybercrime is that quantifying the forecast is difficult, if not impossible, because many incidents are not reported. Estimates of the magnitude and scope of cybercrime vary widely, making it difficult for policymakers and industry to fully understand the problem and the level of effort that will be needed to combat it. We recommend that policymakers fund some research that helps fill some of the information gaps that currently exist as it relates to cybercrime. We believe that this research will be a critical tool in arming policymakers, law enforcement, and industry against the growing threat of cybercrime. In addition, PayPal appreciates the bipartisan efforts of the Committee to create a legislative framework that creates innovative solutions to issues such as cybersecurity R&D, education and workforce training, and standards development. Importantly, it achieves these ends without creating undesired side effects, and we welcome the opportunity to work with the Committee on these priorities. To conclude, it is our hope that in the years to come the challenges we face today from cybercrime will be a faint memory. But until then, PayPal is committed to partnering with policymakers and private and public stakeholders to ensure that everything we do in our power to create an ecosystem that is safe and secure. I appreciate the opportunity to testify before the Committee and I look forward to your questions. [The prepared statement of Mr. Barrett follows:] [GRAPHIC] [TIFF OMITTED] T9926.005 [GRAPHIC] [TIFF OMITTED] T9926.006 [GRAPHIC] [TIFF OMITTED] T9926.007 [GRAPHIC] [TIFF OMITTED] T9926.008 [GRAPHIC] [TIFF OMITTED] T9926.009 [GRAPHIC] [TIFF OMITTED] T9926.010 [GRAPHIC] [TIFF OMITTED] T9926.011 [GRAPHIC] [TIFF OMITTED] T9926.012 [GRAPHIC] [TIFF OMITTED] T9926.013 [GRAPHIC] [TIFF OMITTED] T9926.014 [GRAPHIC] [TIFF OMITTED] T9926.015 [GRAPHIC] [TIFF OMITTED] T9926.016 [GRAPHIC] [TIFF OMITTED] T9926.017 [GRAPHIC] [TIFF OMITTED] T9926.018 [GRAPHIC] [TIFF OMITTED] T9926.019 Chairman Massie. I now recognize our next witness, Dr. Frederick Chang. STATEMENT OF DR. FREDERICK R. CHANG, PRESIDENT AND CHIEF OPERATING OFFICER, 21CT, INC. Dr. Chang. Chairman Massie, Chairman Bucshon, Chairman Smith, Ranking Member Wilson, Ranking Member Lipinski, Members of the Subcommittees, thank you for the opportunity to testify before you today on the hearing on the topic of cyber R&D challenges and solutions. My name is Frederick R. Chang and I am currently the President and COO of 21CT, Inc., a small high-tech company in Austin, Texas. In prior positions, I have served as the Director of Research at the National Security Agency, in academia at the University of Texas--at both the San Antonio and Austin campuses, and in the telecommunications industry. I would also mention that I have served as a member of the CSIS Commission on Cybersecurity for the 44th Presidency, and I am currently a member of the Texas Cybersecurity Education and Economic Development Council. I do not have to tell you that we are under attack in cyberspace. Those of us in the field of security have known about it for some time now, but now the problem has broadened and deepened its scope. Our friends know, our neighbors know, our kids know. The field of cybersecurity is too reactive and after-the- fact. We wait for something bad to happen and then we respond. We lack the fundamental scientific understanding of causes, of solutions, of countermeasures. Science uses words like evidence, metrics, repeatability, predictability. In cybersecurity these words are not used often enough. Indeed, when it comes to predictability, about the only thing we can predict with a high degree of confidence is that a determined hacker will be able to compromise the target system. At the turn of the 20th century, life expectancy in the United States was a little over 47 years. A century later, it was nearly 77 years. Why did this happen? A large part of the improvement can be traced to advances in public health and an improved understanding of the science of infectious diseases. After World War II, scientists isolated causes and developed solutions for diseases like polio, measles, and chickenpox. I am not arguing that the cybersecurity problem today is as bad as polio was in the '40s and '50s, but I am suggesting that we know how to make a dent in the problem. It won't be easy because the problem is truly a daunting one against a highly adaptive adversary. I believe that a broad and interdisciplinary approach will be necessary. I offered a few ideas in my written testimony. One of the major obstacles to more progress in cybersecurity is a lack of qualified and well-trained professionals in the field. Just as a generation of students became fascinated by and intellectually curious about space, science, and engineering after the launch of Sputnik, we need for that to happen now for a new generation of students about cyberspace science and engineering. The skills gap comes up time and time again. It was a key issue in our work on the CSIS Cybersecurity Commission co- chaired by Congressman McCaul and Congressman Langevin, and it was a key issue in our work on the Texas Cybersecurity Council. And representing a small company with ongoing demand for highly technical cyber hires, it is a constant challenge for us to identify and recruit the necessary expertise. Not only do we need a long-term pipeline of well-trained students to fill the many jobs that will be necessary, but the demand is particularly acute with respect to the requirement for the extremely deep technical skills needed to operate at the very highest levels. In a CSIS Commission report from 2010, there was an estimate that we have about 1,000 deeply technical people in the United States who can operate at the most elite levels but that we need something like 10,000 to 30,000. The report went on to say we not only have a shortage of the highly technically skilled people required to operate in support systems already deployed, but also and even more desperate--a more desperate charge of people who can design secure systems, write safe computer code, and create the evermore sophisticated tools to prevent, detect, mitigate, and reconstitute from damage due to system failures and malicious acts. The legislation in H.R. 2096 places front and center two of the items I believe are central to making more progress in improving the Nation's cybersecurity posture: research and development and cybersecurity workforce development. Let me close by saying that I have suggested some things in my testimony that will take a long time to implement. For example, producing a long-term, robust, and deeply technical cybersecurity workforce or creating a science of cybersecurity could take decades. I am reminded of an old proverb. The best time to plant a tree was 20 years ago. The second best time is now. It is my sincere hope that 20 years from now we can look back at this time and say that this is when we began to turn the tables on our cyber adversaries and took the advantage back. Thank you again for the opportunity to speak with you today. [The prepared statement of Dr. Chang follows:] [GRAPHIC] [TIFF OMITTED] T9926.020 [GRAPHIC] [TIFF OMITTED] T9926.021 [GRAPHIC] [TIFF OMITTED] T9926.022 [GRAPHIC] [TIFF OMITTED] T9926.023 [GRAPHIC] [TIFF OMITTED] T9926.024 [GRAPHIC] [TIFF OMITTED] T9926.025 [GRAPHIC] [TIFF OMITTED] T9926.026 [GRAPHIC] [TIFF OMITTED] T9926.027 [GRAPHIC] [TIFF OMITTED] T9926.028 [GRAPHIC] [TIFF OMITTED] T9926.029 Chairman Massie. Thank you, Dr. Chang. I now recognize our final witness, Ms. Terry Benzel. STATEMENT OF MS. TERRY BENZEL, DEPUTY DIRECTOR CYBER NETWORKS AND CYBER SECURITY, USC INFORMATION SCIENCES INSTITUTE Ms. Benzel. Thank you, Chairman Massie, Ranking Member Wilson, Chairman Bucshon, Ranking Member Lipinski, and Members of the Subcommittees. I am pleased to offer my perspective on cyber R&D challenges and solutions based on 30 years in the cybersecurity community. I bring an interesting perspective stemming from Principal at a startup company, Vice President at McAfee Software, and now the Deputy Director of our Cyber Networks and Cyber Security Division at the Information Sciences Institute, a research lab with the University of Southern California's Viterbi School where I direct the DETER project, a cybersecurity research, experimentation, and test facility. I would like to address four key points today: one, the importance of broadening the purview of cybersecurity R&D; two, the importance of research infrastructure for experimental cybersecurity R&D; three, the importance of new models for technology transfer from university research into commercial practices and products; and four, the importance of higher education for developing next-generation cybersecurity researchers and technologies. Let me start with the importance of broadening the purview of cybersecurity R&D. All too often our research is narrowly focused on single topics. For example, we have many people conducting excellent research in distributed denial of service, worms, botnets, and Internet routing, each studied individually and deeply. But believe me, our adversaries are not looking narrowly. In fact, they are looking at the combinations of these different kinds of threats and vulnerabilities, as well as combining that with cyber physical systems and social engineering. We can no longer afford to look narrowly at the hard problems. Even more so, cybersecurity is no longer solely an engineering discipline. We must involve economists, sociologists, anthropologists, and other disciplines. While there has been some progress in these areas by the National Science Foundation, DHS S&T, and others, my first recommendation is we must increase the breadth and scope of strategic cyber R&D and increase opportunities for multidisciplinary research. Let me next address the need for research infrastructure for cyber R&D. Historically, we have struggled to prove the value of security technologies. Security is often viewed as the absence of something bad happening. I didn't get broken into, so I must be secure. When I was a Vice President at McAfee Software, I visited large customers--banking, manufacturing, and retail--and I was always asked about return on investment, how much to spend and how best to leverage cybersecurity investments. The truth is we had no easy answers except, of course, to buy our products. We need to be able to conduct science-based cyber experimentation and tests just as in other scientific disciplines, real hypothesis-based testing, what-if scenarios, repeatable, demonstrable results. We provide this in the DHS- and NSF-funded DETER project where we provide tools and methodologies for researchers to live in the future creating new capabilities not yet imaginable. We must as a Nation create a paradigm shift in experimental cybersecurity. While NSF, DHS S&T, DOE, and DARPA have all invested in cyber testbeds and ranges, the results are uneven and not widely available. And this brings me to my second recommendation. Formulate a research strategy agenda to develop a broad multi- organizational cybersecurity experimentation and testing capability. Let me now address technology transfer. We have had major investments over the last 20 to 30 years, yet we are still inadequately prepared. Much research fails to see the light of day. While historically we have had insufficient awareness of the complexity of cybersecurity tech transfer, we have had scattershot approaches to cyber R&D, and a mismatch between markets and threats. To address these growing demands, it is imperative we create new models of technology transfer where the government-funded efforts help steer strategic cybersecurity R&D and their new university public partnerships. As I have said already, we need to finally have education. More than just training, we need to educate the next generation of researchers and technologists and we need to do this by offering hands-on exercises and educational opportunities. Let me summarize. We are beginning to see progress in all of these areas. NSF, DHS, and others deserve recognition for the focus they have brought to strategic programs. However, the current steps are not enough. We are lacking by orders of magnitude. In order to shift the dynamic in the battlefield, the Security Enhancement Act of 2013 includes provisions for these recommendations. Taken together, the four recommendations I have outlined today form a basis for multipronged, sustainable, national projects to address R&D challenges, and I urge you to take action now. Thank you for your time. [The prepared statement of Ms. Benzel follows:] [GRAPHIC] [TIFF OMITTED] T9926.030 [GRAPHIC] [TIFF OMITTED] T9926.031 [GRAPHIC] [TIFF OMITTED] T9926.032 [GRAPHIC] [TIFF OMITTED] T9926.033 [GRAPHIC] [TIFF OMITTED] T9926.034 [GRAPHIC] [TIFF OMITTED] T9926.035 [GRAPHIC] [TIFF OMITTED] T9926.036 [GRAPHIC] [TIFF OMITTED] T9926.037 [GRAPHIC] [TIFF OMITTED] T9926.038 [GRAPHIC] [TIFF OMITTED] T9926.039 [GRAPHIC] [TIFF OMITTED] T9926.040 [GRAPHIC] [TIFF OMITTED] T9926.041 [GRAPHIC] [TIFF OMITTED] T9926.042 [GRAPHIC] [TIFF OMITTED] T9926.043 Chairman Massie. Thank you, Ms. Benzel. I thank all the witnesses for their testimony today. Reminding Members that Committee rules limit questioning to five minutes, the Chair will at this point open the round of questions. And I now recognize myself for five minutes. Mr. Barrett, as a representative of private industry, it was good to hear you acknowledge that it is PayPal's responsibility to ensure security for PayPal's customers. But you alluded to some gaps in the research that exists and that there might be a role for the Federal Government to fund research in these gaps. Can you motivate the need for federal funding in this area and then also talk about what some of those gaps are? Mr. Barrett. Yes, I alluded to this problem a little bit in my oral testimony. Essentially, we have a problem at the moment which is we actually don't know how bad the problem is. We--it sounds perverse to say it that way, but essentially, there are hugely disparate estimates that you see flying around in various publications of the scale of the problem. Everybody agrees it is getting worse, but I have three rhetorical questions that I would like to ask and they are significant ones. And actually, at the moment, I defy anybody to answer them. So again, I am purely talking about cybercrime, not cyber terrorism or cyber warfare. So I work for a commercial enterprise so we have a narrow worldview. So the questions are these: how much money is lost to cybercrime on an annual basis in the United States alone? And I am not talking about how much money people like me spend on running a defensive team. I am actually talking about dollars that our customers--and therefore we--lose. So that is question one. Question two is where does it go? Is it all going back into the United States or is it going overseas? And what are the distributions of country? Now, various people in my industry have various hypotheses about where it is going, and certainly, my team has all sorts of interesting hypotheses. But fundamentally, it is unsupported by large-scale data. And then finally, do those countries actually have good programs themselves to manage cybersecurity, and do they in fact prosecute cyber criminals? Do they even recognize cybercrime violations as being violations of law or are they just oh, well? It is kind of the equivalent of doing some antisocial act and there are no consequences. We have no answers to those questions today and they are really important ones that I think are at the heart of what the Federal Government could do to help understand the problem better. Chairman Massie. Thank you. My next question is for Ms. Benzel. In this bill we are contemplating expanding funding at universities which are typically open universities where sharing is encouraged. And you mentioned the DeterLab at your institution, which is funded by DHS and DOD I think. Can you tell us or give us some level of comfort that we wouldn't be funding efforts that could then be used by our adversaries? Thank you. Ms. Benzel. Being part of a major university and having a deep faith in the need for education, we do run an open facility. It is funded, as I said, by Department of Homeland Security. And so the DeterLab is a national--and yes--it is an international resource that is available for anyone to be able to use. Obviously, we vet our users. Our approach within the DETER system is to be looking at defenses. And defenses need to be something that can be openly developed. Looking at security by obscurity is sure to get us into trouble. Now, having said that, I am being a deep believer in being able to educate our next generation and to do publications, et cetera, there are opportunities to do research in other environments which might be more closed and might be providing some classified support for. But we advocate an openness in educating the next generation. Thank you. Chairman Massie. Thank you very much. DeterLab makes a lot more sense than DeterLab. Ms. Benzel. We do try and deter the attackers as we say. Thank you. Chairman Massie. Okay. I now recognize Ranking Member Ms. Wilson for five minutes. Ms. Wilson. Thank you, Mr. Chairman. Mr. Chairman, as outlined in my opening statement, a few of the agencies within our Committee's jurisdiction have indicated that sequestration could impact their cybersecurity research and development portfolios. I would like to place two letters in the record, one from NSF and one from DHS, detailing those potential impacts. To all, in his testimony, Dr. Chang recommends that the legislation raise the trajectory of cybersecurity research and development spending from its historical levels because it would create long-term benefits in our effort to improve the Nation's cybersecurity posture. As you are all likely aware, sequestration is set to take effect on Friday. Sequestration will cut federal R&D budgets by 8.2 percent, and agencies like NSF and DHS have indicated that research in cybersecurity may be affected. How would the security posture of the United States be impacted if sequestration were to take effect and cybersecurity research and development was significantly cut? Dr. Chang? Dr. Chang. In the 2010 CSIS report, we reported a number of about 2/10 of one percent of the federal R&D budget was spent on cybersecurity. And I looked recently. That number is just a little bit larger now. If you think about the priorities that the Nation is now placing on cybersecurity, the fact that it is something less than one percent seems to be a small number. It is not for me to determine what the priorities are but that just strikes me as a sort of a low number. I guess I am suggesting that it needs to be a long-term prospect. I mentioned this analogy with planting trees. I am suggesting that we need to plant a few trees to place some bets on some research issues that are going to build over time. Research certainly won't guarantee answers, but as I mentioned as related to infectious diseases, we need to understand causes. We need to understand solutions. We need to understand countermeasures. We know how to do it. We have done it before. We have gone after large public programs before. And my suggestion is research is required to make some long-term bets and begin changing the vector on what the defensive posture looks like. Ms. Wilson. Ms. Benzel? Ms. Benzel. Yes, I think that we have begun to see some progress in the funding, of course, at a very small level as Dr. Chang says in being strategic about our cybersecurity R&D. If we are to slow that down as a result of funding cuts with sequestration, then we have set ourselves back. We are already on the losing end of an asymmetric battle. And giving our adversaries another year to gain a leg up while we fight our own internal budget is only going to make the situation much worse. You know, as it is with funding cycles with places like the National Science Foundation it takes close to a year from the time I, as a researcher, have an idea, submit that idea, and get a contract. And so again introducing another delay as a result of the budget battles is only going to set us back. And in particular, a point in time when these agencies have become much more strategic, better coordinated, and better focused in their research. We have researchers in the pipeline. We have projects that are happening today, and we can't afford to stop them, slow them down, or lessen and weaken their effects while the adversaries are on a dramatic increase as we have seen recently. The change that we see in the adversarial landscape in the last year is ten times what we saw in the ten years before. And so any gap in funding is going to be extremely detrimental. Thank you. Ms. Wilson. Thank you, Mr. Chair. Chairman Massie. On the gentlelady's request to include two letters in the record? Ms. Wilson. I have them. Chairman Massie. Without objection, so ordered. [The information appears in Appendix II] Chairman Massie. I now recognize Chairman Bucshon for five minutes. Mr. Bucshon. Thank you, Mr. Chairman. And there has been some emphasis on the importance of social science research and cybersecurity, among other areas, partly because so much security has to do with human behavior. And the Cybersecurity Enhancement Act supports this type of work in Section 104 of the legislation. The question is--I will direct this to Mr. Barrett first-- is--let me say a couple of things that have been funded recently--$1.2 million to pay seniors to play video games, $764,825 to study how college students use mobile devices for social networking. So with these type of things being funded, how should we prioritize social science research conducted by the National Science Foundation to ensure that such work is focused on critical national needs such as cybersecurity? Mr. Barrett. I am not sure whether it is necessarily proper for me to have an opinion on how Congress should prioritize the work of the National Science Foundation, but I do think there are key research gaps, and certainly, in a number of areas in part about cybersecurity education, which is woefully lacking across the spectrum from young kids up through college-level curricula and various different levels. As Dr. Chang alluded earlier, we don't frankly have enough information security professionals in the field. There is essentially a major skills shortage there. There was basically zero unemployment in my field throughout the recession. And that in its own right is saying something. Very clearly, there is a lot of work that can be done in understanding behavior around how people interact with computers from a security perspective. And that certainly is a topic worthy of research. Because if you don't understand how people use the computers, especially for security tasks, then it is very hard to see what you can do with them. But I should---- Mr. Bucshon. Yes, thank you very much. And again, the Cybersecurity Enhancement Act supports this type of work. Dr. Chang, do you have anything to add? Dr. Chang. I do. Thank you. I mention in my written testimony that cybersecurity is a wicked problem, wicked not meaning evil but wicked being resilient to solution. A characteristic of the wicked problem is that what you believe is a solution may actually make things worse. As it relates to that kind of the human component, I am reminded of a concept known as risk homeostasis, and that is basically the idea that people have sort of a risk level that they generally operate at, and if they believe that something is now more safe, they will actually act riskier. There are some classic experiments showing that when taxi drivers are given better safety on their taxicabs, let us say antilock brakes, you would think that the incidents of accidents would actually go down because the cars are safer, you can steer better and stuff at high speeds. It turns out that the level of accidents might actually go up a little bit because the taxi driver started thinking they were safe and started driving faster and causing more accidents. Same thing might be happening in cybersecurity such that you are actually making--you are telling the user that they are actually now more safe. When they think now I am more safe, and now I am going to start doing riskier things. And so it is just a sort of very complex thing where you have the best intention that a solution is making something better but it actually makes it worse. Mr. Bucshon. Thank you. And this will be directed at Ms. Benzel. I am a parent. I have kids. And I know how my kids almost shut down one of my computers, essentially a black screen. I had to get a computer guy to come out and get it back, and there were literally hundreds of viruses and Trojans and everything else. So I mean I am amazed at what children can do on a computer. And however, there are threats that are directed at all of us through children. Does the current parental control technology adequately protect minors against this type of threat if used properly or are there areas of research and developmental efforts to address this? Ms. Benzel. Yes, I would have to say I am not a particular expert in the current set of parental control technology that is out there. I believe that looking at how we model the human behavior and understanding, as Dr. Chang said, the relationship between the way people use their computers. And I am just as concerned about our children as we are to the seniors or the uneducated users. And so I believe that we do need to advance that technology, but I would have to get back to you on the state-of-the-art in the current parental technology. Mr. Bucshon. Thank you. I yield back. Chairman Massie. Thank you. I now recognize Mr. Lipinski for five minutes. Mr. Lipinski. Thank you, Mr. Chairman. As many people here know, I am a--used to be--maybe I still am--a political scientist, and I know that there is--I have seen plenty of bad social science research in my time. But I think it is important--and I am not trying to start a fight here on this but I know that the--I pay attention--I look to see what is going on and what is being said about some of the supposedly bad research that is being funded. And my understanding is--was the $1.2 million videogame claim was given a pants-on-fire by PolitiFact because it was helping to study how to keep seniors sharp and keep their cognitive skills up as they are getting older. But that said, I mean there is some bad research but we need to be doing good research. Obviously, there are--as all of you have pointed out--social science research and how people interact is key because it is one of the weakest links that we have right now in cybersecurity. I wanted to ask about technology transfer. Ms. Benzel had mentioned barrier technology transfer in your testimony. I have a great deal of interest in this, particularly in areas like cybersecurity. It is vital that we translate as much federal research as possible to new products and new companies that we can help keep our cyber infrastructure secure, and also it has the added benefit of creating new jobs so long as we can also address the workforce and education issues that our witnesses have raised. But I just want to ask the panel, what steps can Federal Government take the best partner with industry in encouraging technology transfer in the cybersecurity sector? Ms. Benzel? Ms. Benzel. Yes, thank you very much for your question. It is an important area. So we do need Federal Government to help us fill the gap between the university research and industry. And I think I can speak somewhat authoritatively to that having spent much time in a university, as well as being a Vice President of Research at McAfee. We have all heard about the Valley of Death. So we really do have some models that are broken between expecting that industry can just pick up and take research prototypes that have been developed in a university kind of setting. So we need strategic funding which pushes us in a particular direction with an awareness. The DHS S&T program run by Dr. Doug Maughan has introduced new efforts to work with VCs to its signet organization to be able to get venture capitalists and to have the researchers be aware of technology transfer from the day that they write their proposals. The National Science Foundation had introduced its Transition to Practice. I am arguing that we need a lot more of these sorts of things where we have very early-on awareness of where we want to go. And as a researcher, we want to do the fundamental basic research, and that is absolutely necessary. But as researchers, we also want to see our work have an impact. And we need help in working with the different types of organizations. And that is where we call for, as the bill currently does, industry partnerships with venture capitalists, with different kinds of technology organizations. There is really nothing currently in that middle to help fill the gap between the research dollars and the product dollars. And I have to say, unfortunately, it is not realistic to believe that industry can simply pick up and do it. Industry is focused on its near-term market, next quarter features, and are totally market-driven and sales driven, particularly in today's economy. And so we need some bridging dollars which should come from combinations of university, public/private partnerships, and federal funding in that new area. Thank you very much. Mr. Lipinski. Dr. Chang, do you want to add something? Dr. Chang. Sure. I will just support what Terry mentioned. There is this model I like to use: technology transfer is a contact sport. So it is not uncommon for the private sector to establish sort of I guess what you might call lab-lets or sort of mini-labs with the university. And the folks in the private sector would work sort of shoulder-to-shoulder with the folks at the university such that when an innovation is developed, it isn't sort of tossed over the cubicle wall and you would like for the private sector company to incorporate it. But rather, they are generated together. To the extent that this kind of notion, of kind of, working hand-in-hand between the government, between the private sector and academia would be representative of this notion of let us develop the technologies together. Technology transfer is a contact sport. Let us have them work together. I think that is a useful concept here. Mr. Lipinski. Thank you. A quick question. Mr. Barrett mentioned NSTIC. I just want to know when will we be able to do--instead of having passwords, have a thumbprint that we use to identify ourselves? Chairman Massie. Very quickly, please. Mr. Barrett. Yes, we are actually working on that. That is the FIDO Alliance work that I mentioned at the beginning, which is trying to develop open standards to actually make those kind of technologies become much more widely used. And I think you will actually see products deployed in the market before the end of the year that do exactly that. Chairman Massie. Thank you. I now recognize Mr. Hultgren. Mr. Hultgren. Thank you, Chairman. Thank you all for being here. I appreciate it very much. This would be first addressed to all of you. My understanding is this growing mass of data that is available online certainly has implications for cybersecurity. In some ways, I know the data can be analyzed to help identify potential cyber threats, but I also know in another way the data provides bad actors with additional opportunities to exploit that data. I wonder can you discuss how the emerging big data phenomenon poses both challenges and opportunities for cybersecurity research and development, and also just any recommendations you might have for policymakers to address this phenomenon in a beneficial way and not a harmful way? Dr. Chang. Sure. I guess I will kind of mention the notion of dual use. So many of the cyber technologies are so-called dual use. So my company, 21CT, Inc., basically has capabilities to analyze big data to sort of find suspicious behaviors in an attempt to improve the defensive posture of somebody's network. At the same time, an adversary could use similar technologies to sort of target folks similarly to look for vulnerabilities and so forth. So it is always kind of a really important kind of balancing act and kind of risk assessment proposition such that you will always know that the technologies that could be used for defense could potentially be flipped over. So it is important to kind of understand both sides, understand the technologies deep enough and then make sure you sort of come to the right balance point. Ms. Benzel. Well, as a researcher I find big data to be very exciting. From the research point of view and networking and network cybersecurity, we have always been lacking in data. And so again, DHS has its PREDICT program and some of the researchers in my organization have done some really groundbreaking work at analyzing the data, mapping the Internet, the first Internet census to give us information both about the known spaces and the dark spaces. Clearly, in all of our research, there are two sides to it and we need to be very understanding about how things could be used against us. I say the other point to also bring in to this discussion about big data are issues with privacy. And so as citizens, we need to understand how the data is being used, stored, and moved about in transit. Mr. Hultgren. Mr. Barrett, before you answer, I would love to hear your thoughts on this as well, but I have one other additional question I would like to ask you so if maybe you can respond to both. We already talked a little bit about authentication--online authentication and the challenges there. I understand many European governments issue voluntary electronic identification cards combining two unique identifiers to serve as a type of online passport. But for various reasons, I believe the United States is unlikely to endorse any sort of government-sanctioned identification mechanism. I understand businesses have been working for years on providing different online identity schemes to consumers and that the Administration's National Strategy for Trusted Identities in Cyberspace, or NSTIC, intend to use that work to find common standards for online identities. I wondered in your view should the government be involved at all in this process? If so, is NIST the appropriate agency to coordinate the effort? How do we ensure privacy? And what prevents this effort from eventually resulting in regulations that inhibit innovation? Mr. Barrett. So we have been enthusiastic supporters of the NSTIC initiative ever since it was first proposed. Simply because, as Congresswoman Lofgren said when she introduced me, a decade ago I chaired the Liberty Alliance, which is an open standards organization in the identity management space. It has actually proven quite difficult to develop really large-scale identity ecosystems on the Internet. We show a lot of promise for users, and so tying that back to the question about breaches in big data, the silver lining in the cloud of all of the data that has been published in last few years essentially as a byproduct of criminal activities is that we now actually understand how consumers in large-scale use passwords in particular. And the answer is a depressingly large number of them, something like 2/3 of them, use the same password absolutely everywhere they go on the Internet, with a net effect that their security of every single account they possess is now the security of that least secure place they visited. And so having an ecosystem that is built around consumers managing their own identity online and allowing the Federal Government to help kind of just appropriately nudge that but not place too constricting a role is very important. And that is actually why a guy on my team was the first Co-Chair of the Identity Ecosystem Steering Group so-- Mr. Hultgren. My time is expired. Thank you all very much. Thank you, Mr. Chairman. Chairman Massie. Thank you. I now recognize Mr. Bera. Mr. Bera. Thank you, Mr. Chairman. As an academic physician who comes out of a research background, I truly appreciate the analogy with healthcare and what we do in medicine and the importance of doing research in our academic and research universities. The fact that we do a lot of experiments, that we look for solutions and we fail a lot, but we are constantly feeding that back into the system. And then we have that major breakthrough. Where we fall down in the academic centers--and Ms. Benzel touched on it--is we don't know how to then take those ideas to market. You touched on the issue of technology transfer and how important that is. I am a firm believer that we would not be able to do the research that we do without the Federal Government's funding of our academic centers. But we do need to do a better job with technology transfer. What would your suggestion be as a best practice model of taking idea to market given that you have worked on both sides of this? Ms. Benzel. Well, thank you very much. You know, I agree with Dr. Chang. It is a contact sport. We can't do the wait- until-the-end-and-throw-it-over. And so I think the best practice model is early engagement. Engage early and often. So they say encouraging the fundamental research funding organizations to call out for tech transfer from day one from the time you write your proposal and come up with your idea, opportunities for communications and meetings with a variety of industry partners, opportunities to understand the needs that are out there and to work with different kinds of funding models both with things such as venture capital organizations who might be willing to take some of the risk in early technology and also on the university side. So at the University of Southern California we have the Stevens Institute that works with our researchers early on. So early and often. Thank you. Mr. Bera. Absolutely. Now, also as a former Associate Dean out of University of California Medical School, we focus a lot on the workforce issue recruiting the best and the brightest and then retaining those individuals. You know, on the issue of cybersecurity, on the issue of making sure we have the computer science professionals, we don't have enough engineers in this country and we are not graduating enough engineering students or programmers. In other sectors of IT we are certainly trying to get that workforce from abroad. But on the issue of cybersecurity, we need a homegrown workforce because this-- these are issues that are critical to national security. Dr. Chang, you touched on this a bit. What are some models that we can use to continue to recruit and retain the best and the brightest to go into areas of information technology and then go into both the service sector working for the Federal Government, working for our Department of Defense and Department of Homeland Security? Because they can make 10 times as much going off into the private sector but we need some of the best and the brightest working to protect our country. Dr. Chang. I was recently in a meeting with some folks in Austin where we talked about a very sort of broad approach that would incorporate trying to recruit students of many ages in many disciplines. There is a program that has recently started in New Jersey. It is referred to as Cybersecurity Centers, and they basically have these kind of initial competitions that begin attracting people from all walks of life, maybe former military. There are 16 roles, just a whole group of folks. And then depending on how they do in that initial competition--and it is a fun competition. It sort of capitalizes on people's interest in just competing and sort of a person-on-person competition. And then depending on how you do with that, the people who are more skillful sort of move on. But it is this notion of can we come up with ideas that attract many, many people, and then if they have a particular propensity to kind of move forward, then you can kind of winnow them down. I mentioned that there was this need for extremely technical deeply elite people. But you have to have a broad funnel to kind of bring them in and then a way to successfully kind of pull out the people who operate the highest levels. Mr. Bera. Wonderful. So playing off of what you just mentioned, I would ask our Committee to look at returning veterans, men and women who have already shown their patriotism to this country, already understand the service to our Country and the immediate need to protect ourselves and looking for strategic ways to get those folks engaged through our modern GI Bill and so forth to get these skills. I yield back. Chairman Massie. Thank you. I recognize Mr. Schweikert. Mr. Schweikert. Thank you, Mr. Chairman. Mr. Barrett, first off, you have a bunch of PayPal folks in Scottsdale, don't you? Yes, it is--when I am in-district, I seem to start every morning having coffee with them. We all attend the same Starbucks. As a company, you have been trying to roll out a number of different products, you know, cell phone billfolds or some of those types of mechanics. When we are talking about cybersecurity, how much is the threat on this site slowing down your adoption and introduction of new products? Mr. Barrett. That is a really interesting question. It is hard to measure. There is certainly good evidence that consumers have been worried about security aspects of Internet solutions ever since the beginning of the Internet. And there is certainly some evidence that they care in the same way about mobile solutions, for example, and that they want to see that they are appropriately protected in those areas. The difficulty, of course, is in saying how much does the apparent lack of those features really impact their adoption? And so, for example, if you see a--one solution that has a lot of barriers to it, in terms of it is hard to use and has a lot of security features; but on the other hand, you have another very similar product that was much easier to use because it didn't have all these apparent security things that you have to do. Whether or not the consumers actually believe that, the one with the more security features is actually safer. And that ties back to the initial research we were talking about a little while ago. Mr. Schweikert. Well, Mr. Barrett, some of that is the adoption side. I am interested on your engineering side. Is it a suppressing effect to the design, you know, studio you would have on the introduction of new technologies? Mr. Barrett. If I am understanding the question correctly, it would depend on how much overhead we impose on the engineering teams in terms of how much we try to partition them and so forth. So, if we were working on confidential projects, then clearly we will partition those off as well as, yes, we do impose a number of security overheads as we develop those applications. But it is a--it has lots of tentacles in terms of---- Mr. Schweikert. It is just having a fixation on expansion, economic growth, and new technology. I have always wondered how much of a suppressing effect I have over here. Mr. Chairman, Ms.--is it Benzel? Do you agree with Mr. Barrett's earlier comments that we-- it is hard to have a quality census of how many bad actors, bad events, bad things that are actually going on in the cyber marketplace? Ms. Benzel. Well, most absolutely. I thought his questions were very astute and exactly right on. So---- Mr. Schweikert. So as a Member of Congress, where would you send me if I really wanted to get from your academic, sort of, view of the world as much data saying, look, here is what the best census we have of banking attacks and this type of attacks? Or where would you go? Ms. Benzel. I think that is a very hard question. I mean, clearly, some of our intelligence agencies on the dark side have a good census of some of the levels of attacks that are happening, particularly in nation-state and against nation targets. The different industries tend to keep those things pretty closely held. Now, some of the work that has been done in the past to set up the Information-Sharing and Analysis Centers, the ISACs, are places where that knowledge is known but held close to the chest. Mr. Schweikert. Okay. And so right now, you are not sure there is a good collection of the census, shall we say? Ms. Benzel. Oh, I don't believe so. Mr. Schweikert. Okay. Mr. Chairman, Dr. Chang--and sorry, I am down to just a few, but you actually started to touch on something that I would love to have an extended discussion with you. And that is, how do we finance ourselves right now? Right now, we are sort of in a classic academic sort of model of finance, primary research. And hopefully, there is something that comes out of it. But what you were describing a little while ago in your experience sounds more like almost the X-prize-type mechanic of bringing people together, whether it be a garage engineer or an academic. And the person that produces something great gets to move forward. Do you think it is time we also start to wedge and design some other ways to finance innovation here? Dr. Chang. I will answer that in--maybe in kind of in connection with the question you asked to Mr. Barrett. Basically, security today is not where it needs to be, and fundamentally, somebody is going to have to pay to move security up. It will be the government because they have to prosecute more criminals. It will be software companies because they have to make software more secure. It will be people because people are bearing losses. So overall I would love to have a longer conversation. Mr. Schweikert. Mr. Chairman, thank you for your patience. Sorry. Chairman Massie. Thank you. If Dr. Chang would like to respond in writing for the record, that would be fine. I now recognize Ms. Esty. Oh, I am sorry. Mr. Peters. Sorry. Mr. Peters. Thank you, Mr. Chairman. And I appreciate the chance to be here today. This is an important industry in my district as well in San Diego, both because we are developing a lot of the software and also because the Navy has a lot of--or the military has a lot of interest in the field. And Dr. Chang, I am glad you are a UCSD grad, too. I appreciate that. My question is sort of, you know, we know that--I think it was yesterday that the Global Information Security Workforce Study from Booz Allen Hamilton said that 56 percent of cybersecurity professionals feel that security organizations are short-staffed and that the cybersecurity field is projected to grow 11 percent annually over the next five years. And so there is--I think it is widely understood that there is a gap in the workforce. But what I am sort of interested in is what are the--what is the field of cybersecurity from an academic sense? You described it as an interdisciplinary exercise. We know it is not just computer science or software. But if you were trying to certify someone in cybersecurity, kind of--do you have a sense--maybe you can help me understand what it is that that person would need to know. And that is for anyone. Dr. Chang. Sure. I can start. So there are the traditional disciplines that you learn in computer science about programming, about algorithms, about discrete math and so forth. You would add some elements to that in order to focus more specifically in cybersecurity. And so you would add more about networking, perhaps more about analysis. There is this interesting conversation happening at universities now where they talk about--that there is a classic computer science major and that maybe there ought to be a cybersecurity major as well. So there are many things in common but it is different enough such that it is worth an interesting dialogue about the extent that there is the creation of a specific major in cybersecurity. Mr. Peters. Well, I guess I think it would be helpful for us because the intent of the legislation before us is to kind of secure our future in that. But if we don't know kind of what we are educating--if you don't understand--if you don't have a sense or a consensus about what it is we are seeking to educate people in, we are going to--I think we face some of the concerns that we are not going to be or that the money is going to be bleeding, or we are not going to be effective? So if it is anthropology or if it is law in addition to these technical things, is there a way to land that plane? Ms. Benzel. So first off, I think you need to make a distinction between education and training. So many of the training organizations and CISSP certifications, that is one level of something that is about operations and being able to run things. And then there is the education challenge in terms of creating new researchers and new educators and Ph.D.'s. I think that we are just as a community--as Dr. Chang said--beginning to put forth master's curriculums in cybersecurity. USC is just about to introduce one starting next fall. And really, there are different fields. So cybersecurity is not one narrow field. So there are cybersecurity researchers in defenses, in active security, in mathematical analysis, in networking. And so even in a master's degree, there will be specializations in these different areas drawing from primarily a computer science curriculum but also some engineering, some systems kind of work, networking, and then bringing in an understanding of human behavior. Mr. Peters. I guess there is going to be some sense we are going to have to keep adjusting as we go. Ms. Benzel. That is right. There is not one answer that fits all. Mr. Peters. Mr. Barrett, maybe quickly, you might touch on the first of your rhetorical questions which is how much money are we losing? Do you have a sense of how we go about answering that question? Mr. Barrett. I believe the answer is we need to put in place more detailed reporting frameworks in order to actually ascertain the scope of the problem. Because the estimates range all over the place, I mean as low as a few billion up into the trillion range. My own personal view is it is probably in the tens of billions of range. But that would be hard to---- Mr. Peters. That would be something that would be done by industry presumably. Is that right? Mr. Barrett. I believe so, yes. Mr. Peters. Okay. Mr. Barrett. It certainly could be done. A reporting framework could be developed, but at the moment, what we have is entirely voluntary and it models how much money is lost with how much the company spends on defenses, and those two numbers are quite different as well. And how much do you turn away? Mr. Peters. Again, I very much appreciate your being here. Thank you, Mr. Chairman. Chairman Massie. Thank you. I want to recognize Ms. Esty--Etsy. Ms. Esty. Esty, not the crafting website. Although I would be much wealthier if it were mine. Thank you very much, Mr. Chairman. For Dr. Chang and Ms. Benzel, both of you had talked about the need to create a science of cybersecurity. And if you can elaborate a little bit on that, what are the metrics we would need? If we don't know right now if a company is more secure than it was a month ago, where do we even start with this? What sort of research do we need? What sort of metrics do we need to develop so that we even know what we are talking about? Dr. Chang. Well, that is one of the key issues. We actually don't have the right language, the right set of metrics to even begin to understand this notion of whether my--the computer this year is more secure than it was last year, if this computer is more secure than somebody else's. There is kind of this idea of understanding the limits of what is possible. So that is what a science allows you to do. Can I understand how secure something can be? We sort of don't know, kind of what is possible, you know, what are kind of the control bounds. Cybersecurity is an adversarial science. And like anything adversarial, we will probably never completely eliminate it. But if we can establish some sort of control bars that basically say we are going to make it harder for an adversary to kind of get through and maybe the difficulty that their--you know, if we make it too hard for them to get through, then, they will quit trying. But it is this motion of kind of setting some control bars and trying to keep it within that. We certainly won't eliminate crime. Ms. Benzel. So we advocate being able to do experimental science. So in many other sciences we have workbenches and labs and we can go in and we can also repeat our peers' experiments and be able to understand what they are. Unfortunately, in computer science and in--particularly in cybersecurity, the experiments are very ad hoc. And so it might work once or it might work in my lab or in my example. This is one of the challenges also in technology transfer. It may have worked in some researcher's lab under some conditions, but I don't know that it is really going to work. So what we really advocate is that we need an experimental science where we can create hypotheses, we can do an experiment, see the results, modify some parameters, rerun the experiment. And my colleagues similarly have an opportunity to do that just as they would in any of the hard sciences. Ms. Esty. Are there any of the federal agencies that are actually doing work on this notion of the metrics that we would even use to measure? Dr. Chang. I am aware of some work that has started at NIST, and I would tell you I haven't looked at the work in more detail. I probably need to. But I am recalling from some years ago, oh, maybe 2009 or 2010 within the Computer Security Division at NIST, they started up a program in metrics. It is something I would need to look at further. But I believe there is some activity happening. Ms. Benzel. Metrics is a very difficult area in security and has plagued us for a long time. I would say that DARPA has started some work there and some very fundamental research. The National Science Foundation and DHS S&T always include metrics as a research topic in their calls. Ms. Esty. And one final question. As I know some colleagues and friends of my son who is a junior in college, if you could elaborate a little bit more on this adversarial science notion because I think it is different--it strikes me as different than a lot of times what attracts people to science and a sense of the purity and how you go about thinking about recruiting young people designing programs--if they need to have this back-and-forth adversarial approach. Dr. Chang. I would have to do some more thinking about this, but the models of the human immune system strike me as a reasonable model. So basically, the human immune system is fighting off adversaries of all kinds. And it is just sort of amazing how versatile and how flexible the human immune system is. The human immune system--by the way, about one percent of human cells are leukocytes, are actually defensive. So when you think about the body is basically allocating about one percent of its cells to defense, that is a pretty substantial number. If you look at the number of lines of computer code, I doubt one percent is dedicated to defense. The other model that seems to make sense to me in terms of the science is in the field of actually agriculture. So agriculture also has pests, and the pests try to eat the crops. And you can either make the crops more resilient or you kill the pests. I mean that is another sort of adversarial model that seems to be relevant. Chairman Massie. Thank you. I want to thank Chairman McCaul for his initiative with this bill and his persistence in reintroducing it and especially his patience today. And I recognize him now for five minutes. Mr. McCaul. I thank the Chairman. And Dr. Chang, let me say thank you for your service on the CSIS Commission and to the Nation and to the University of Texas in Austin. And Ms. Benzel, I agree with you our adversaries are moving forward, moving ahead. They are attacking our federal agencies every day. In support--and building a record in support of this legislation, I see this bill doing several things, applying NIST standards to the Federal Government. It provides--it bolsters research and development in this area, a private- sector university federal task force, education and awareness piece and procurement standards within the Federal Government. And I would like to go through each of you and if you could tell me how you believe--if you do--that this legislation will advance the cause for enhancing cybersecurity for this Nation. Mr. Barrett? Mr. Barrett. I would give a very brief answer which is maybe not quite so brief. In general, philosophically, we think that cybersecurity, as Dr. Chang said, is a wicked problem. And as such, there is probably no single bill that could be passed that will, on its own, materially change the trend line. But on the other hand, the sort of lack of a grand unification theory shouldn't stop us from doing good work. And this bill would definitely appear to be falling into that place where it does no harm and it also does good work in the specific areas it has chosen. Mr. McCaul. That is a very good point. I think--I served on the Speaker's Cybersecurity Task Force, and our first action was to do no harm by legislation. So I appreciate you saying that. Dr. Chang? Dr. Chang. Thank you. So in advance of reading the bill if I could have picked two things that are critical to improving the Nation's cybersecurity posture it would be research and development and workforce development. And so this legislation to me is just right on target relative to addressing the top two problems. I guess I would add, as I mentioned in my spoken testimony, the notion that we need to be patient about this. You know, I guess it would be great if we could sort of plant a forest and all the trees turn into something that resulted in wonderful research. But we--I see this legislation as important in that it is at least planting a few trees. It allows us to plant some--a few things that will grow into the future. I would sure hate to be sitting here ten years from now, 20 years from now still saying that we actually don't understand causes. We don't understand solutions. We don't understand countermeasures. And this legislation I believe begins planting a few trees. Thank you. Mr. McCaul. And thanks for making the point about the cyber workforce in the Federal Government. I think that is very, very important as well. Ms. Benzel? Ms. Benzel. Yes, thank you for the opportunity and thank you for your perseverance in this area. I agree with my colleagues. There is no one answer. It is a very difficult field. But I was quite--very impressed to see this particular bill in two areas that I would call out. And one is the technology transfer recognition of the difficulty of that problem. And I have worked in a number of different public-private partnerships over the years. I was part of the PCAST Committee back in the early 2000s. I see that the opportunity here to do some real planning around university kinds of partnerships and bringing the universities into it so it is a three--tri-part aspect is very exciting in the bill. The other one is in the science of cybersecurity and understanding that there is a need for research and development kinds of testbeds and experimentation. That is called out in the bill for experimental science. So I think technology transfer and experimental cybersecurity have a chance to be fundamentally changing. And of course the education and training are important, too. Mr. McCaul. Well, let me thank the witnesses for your expertise and for appearing here today. Mr. Chairman, thank you for allowing me to participate in this hearing even though I don't sit on the Subcommittee. And I look forward to the markup and hopefully overwhelmingly passage of the bill and signed into law by the President. Thank you. I yield back. Chairman Massie. Thank you, Chairman McCaul. In closing this joint hearing, I would like to recognize Chairman Bucshon for a moment to say a few words. Mr. Bucshon. Thank you, Mr. Chairman. I just want to remind everyone about a few facts. Overall spending in the Federal Government has gone up 17 percent since 2008. This year, we are on track to spend $3.6 trillion with a tax collection of $2.7 trillion, which, by the way, is the highest amount in history that is being projected. We have 16.5 trillion in national debt, over 1 trillion in annual deficits for the past five years running. Recently reported, 110 billion in inappropriate payments the government made just last year across a multitude of federal programs and the current sequester is 85 billion. I agree that spending cuts need to be more targeted. That is why the House has passed two bills over the last year that would target these cuts more appropriately. So I think that we are very well aware of research and development dollars that need to be there, not only on cybersecurity but other issues. And we will work towards this--a resolution that will help with that situation. Thank you. I yield back. Chairman Massie. Thank you. I want to thank the witnesses for traveling here today and for their valuable testimony and to the Members for their questions. Members of the Committee may have additional questions for you and we will ask you to respond to those questions in writing. The record will remain open for two weeks for additional comments and written questions for Members. The witnesses are excused and this hearing is adjourned. [Whereupon, at 11:33 a.m., the Subcommittees were adjourned.] Appendix I ---------- Answers to Post-Hearing Questions Responses by Mr. Michael Barrett [GRAPHIC] [TIFF OMITTED] T9926.044 Responses by Dr. Frederick R. Chang [GRAPHIC] [TIFF OMITTED] T9926.045 [GRAPHIC] [TIFF OMITTED] T9926.046 Responses by Ms. Terry Benzel [GRAPHIC] [TIFF OMITTED] T9926.047 [GRAPHIC] [TIFF OMITTED] T9926.048 [GRAPHIC] [TIFF OMITTED] T9926.049 [GRAPHIC] [TIFF OMITTED] T9926.050 Appendix II ---------- Additional Material for the Record Department of Homeland Security letter submitted by Representative Frederica S. Wilson [GRAPHIC] [TIFF OMITTED] T9926.051 [GRAPHIC] [TIFF OMITTED] T9926.052 [GRAPHIC] [TIFF OMITTED] T9926.053 National Science Foundation letter submitted by Representative Frederica S. Wilson [GRAPHIC] [TIFF OMITTED] T9926.054 [GRAPHIC] [TIFF OMITTED] T9926.055