Legislation and Cyber Security

Data privacy and cyber security legislation have been a hot topic in Australia of late, with the implementation of the European GDPR, the Notifiable Data Breach Scheme under the Privacy Act 1988, and more recently, the Australian Government’s proposed Assistance and Access Bill (2018). The Assistance and Access Bill, in particular, is causing concern amongst the wider Australian public, privacy watchdogs, technology giants, and telecommunications providers about the level of government access to encrypted information. Aided by an international media “frenzy”, there is an increasing fear of over-regulation and unintended consequences for the privacy of individuals or organisations.

In our dealings with the public sector, it’s clear that there is a lack of legislation and regulation in Australia that is industry specific. Many within the Australian industry view cyber security as something they have to “put up with”, which means that it may not be allocated sufficient budget or regarded as the business enabler that it is. One of the most effective ways to encourage compliance with recognised standards (NIST, ISO27001, ISM, Essential 8 etc.) is to mandate it with legislation. Legislated compliance provides confidence to end-users and business stakeholders. (Greenwald, 2015)

Consider healthcare as an example. The industry is notoriously immature in cyber security maturity with more breaches suffered than any other sector (OAIC 2018). Statistically, over 50% of their data breaches occur due to human error (Verizon 2018), which speaks to a lack of training and enforced standards. By comparison, the US has healthcare-specific legislation in the form of the Health Insurance Portability and Accountability Act (HIPAA) that provides data privacy and security provisions for safeguarding medical information. Almost 1 million people have elected to opt out of the Australian Digital health Agency’s My Health Record due to a perceived lack of appropriate security measures. (ABC News, 2018) Australia’s adoption of a similar approach to the US’ HIPAA would go a long way towards improving the cyber maturity of Australian healthcare and the trust of the Australian public.

Another issue with the lack of industry-specific regulation and legislation is that organisations are not aware of their data privacy obligations. If an organisation suffers a data breach, non-compliance with their legal and regulatory obligations could equal large fines, greater financial loss, and potential loss of trust with their customers/stakeholders. For organisations and industries to thrive and grow they need to be digitally enabled and digitally driven to keep pace with competitors, both domestic and international. Organisations using cutting-edge technologies can create new products and services, and create better end-user experiences.

To innovate rapidly, cyber security must be prioritised and viewed as a business enabler rather than an expensive anchor. Legislation that has been drafted in cooperation with industry stakeholders will aid cybersecurity maturity and compliance in digital transformation and increase the resilience and performance of Australia on the world stage.

Do you think legislatively mandated compliance with cyber security standards is a good idea? Please feel free to comment your thoughts on this issue below. You can read more of my writing or discuss speaking requests at ssedgwick.com

Australian Government – The State of Cyber

Australia and Australians are targets for malicious actors—including serious and organised criminal syndicates and foreign adversaries—who are all using cyberspace to further their aims and attack our interests.” (MP, n.d.)

Amongst the never-ending acronyms of Canberra’s public service are government agencies and departments, who guide the direction and implementation of the Australian Government’s cyber security strategy. Agencies and departments such as the Australian Signals Directorate (ASD) and their subsidiary the Australian Cyber Security Centre (ACSC), the Attorney General’s Office, the Department of the Prime Minister and Cabinet (PM&C), the Department of Home Affairs, CERT Australia, and the Department of Defence (DoD). The collective aim of these agencies and departments is to improve the resilience and cyber security posture of the Australian Government, private industry, and its citizens. They are the first line of defence for Australia in the protection against cyber criminals, espionage, and insider threats. There are unique challenges faced by these organisations, and I will shed some light on these challenges and the progress of our government’s cyber security strategy since it’s introduction in 2016 (The Department of Prime Minister and Cabinet, 2016).

The 2016 Australian Cyber Security Strategy addressed five key goals;

1 – Governments, business and the research community together advance Australia’s cyber security through a national cyber partnership,
2 – Australia’s networks and systems are hard to compromise and resilient to cyber attacks,
3 – Australia promotes an open, free and secure cyberspace by taking global responsibility and exercising international influence,
4 – Australian businesses grow and prosper through cyber security innovation, and
5 – Australians have the cyber security skills and knowledge to thrive in the digital age.

These five goals are laudable fundamentals for which to strive. One of the main issues in achieving these goals is that the Cyber Security Strategy did not address exactly how it was going to implement these plans or quantitatively measure its progress. The Strategy breaks down the five goals into 33 separate action points, which may prove unwieldy. A better approach would be to identify the essential action points and prioritise them according to their severity of risk to the overall five goals.

Australian National Audit Office (ANAO) audit reports of various federal agencies make it clear that the government has more work to do in the implementation of its Strategy Action Plan. The ANAO found that the majority of the agencies it audited did not meet the mandatory standards set by the ASD in April 2013, the Top 4 Mitigation Strategies. The Top 4 are a subset of the ASD Essential Eight, which will soon replace the Top 4 as the minimum standard with which Australian Government agencies must meet. The Essential eight are:

  1. Application Whitelisting
  2. Restrict administrative privileges
  3. Patch Application
  4. Patch Operating Systems
  5. Disable untrusted Microsoft Office macro
  6. Multi-factor authentication
  7. User application hardening
  8. Daily backup of important data

The only agency in the ANAO’s purview considered “Top 4 compliant” and “resilient” was the Department of Human Services (DHS). The Australian Taxation Office (ATO) has since achieved Top 4 compliance too.

Whether compliance with the ASD’s Top 4 or any other government regulation signifies an organisation is cyber-resilient is arguable. When too great a focus is on compliance, it can create a “tick the box” culture instead of addressing the principal risks and threats to an organisation’s assets. The ANAO hit the nail on its proverbial head in their recent Performance Audit Report describing what makes an organisation “cyber-resilient”: “cyber-resilient organisations demonstrate a leadership culture and behaviours that prioritise cybersecurity and focus on it. They do more than comply with mandatory requirements; they demonstrate an effective security culture.” (Australian National Audit Office, 2018)

One could be forgiven for not fully understanding which government advice to follow. There is a plethora of different advice and regulations to which industry and government alike can subscribe and align themselves. ASD Top 4, ASD Essential 8, ASD Top 35, Australian Information Security Manual (ISM), Australian Defence Security Manual (DSM), ISO27001, National Institute of Standards and Technology (NIST) Cyber Security Framework, PCI-DSS, Notifiable Data Breach (NDB) Scheme, and the list goes on.  Therein lies another problem. An overabundance of security advice can lead to confusion and cause organisations to either do nothing, over-compensate or attempt to comply with an ineffective mix of national and international standards.

A lack of budget allocation may also be to blame for the slow progress of increasing cyber security maturity, with $230 million earmarked for Australia’s Cyber Security Strategy over four years. The US Government budget for cyber security is approximately A$26 billion, and the UK Government has alotted A$800 million to their cyber security efforts.  When you consider the likelihood of cyber attacks and the possible damage caused by breaches to critical infrastructure and national security, one could argue that spending on cyber is a long way from being sufficient.

It is certainly not all bad news though. The government has opened four Joint Cyber Security Centres (JCSC) throughout Australia which allows the sharing of threat intelligence and collaboration between government, academia, and industry. An additional $30 million in funding has been granted to an industry-led Australian Cyber Security Growth Network that “brings together businesses and researchers to provide a foundation for the development of next-generation products and services required to live and work securely in our increasingly connected world.” (Aust Cyber, 2018)

The Department of Home Affairs has developed initiatives such as the Cyber Security Challenge which promotes the cyber security industry to graduates, with a particular focus on women in cyber. The reforms of the Protective Security Policy Framework (to be released October 1st 2018) to a “principles-based” approach is a welcome change to the previous unwieldy and overly prescriptive version. The revision seeks to simplify the framework by separating guidance material and mandatory requirements. Alastair Macgibbon, the National Cyber Security Adviser & Head of Australian Cyber Security Centre, has also dramatically increased the ACSC’s staff numbers in a relatively short amount of time. This increase in resources will assist to develop collaboration between industry and government further and improve Australia’s cyber resilience and standing on the global cyber stage.

Advanced information and communication technologies (ICT) are necessary for the success of the industry, consumer, and government activities and ICT security should be of the highest priority. Australia is taking steps to address the threats from advancing technology. However, we are lagging behind the pace of other Western countries. (Austin, 2016)

A robust and effective cyber security strategy is critical to the protection of Australia and its citizens and for a profitable technology-led industry.  Effective strategy implementation across government, a cyber-aware and resilient culture, continued collaborative engagement between government and industry, a unified and simplified approach to regulations and standards, and adequate funding is required for Australia to thrive in the digital age and successfully respond to cyber incidents, deter cyber attacks, and protect against threats from both cyber criminals and foreign interference.

As published in Australian Security Magazine Aug/Sep Edition https://issuu.com/apsm/docs/emag_asm_aug_sep_2018/12