OMB Sets Guidelines for Federal Employee Laptop Security

By Brian Krebs
washingtonpost.com Staff Writer

Tuesday, June 27, 2006; 11:22 AM

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/27/AR2006062700540_pf.html


The Bush administration is giving federal civilian agencies 45 days to 
implement new measures to protect the security of personal information that 
agencies hold on millions of employees and citizens.

The new security guidelines, issued Friday by the White House Office of 
Management and Budget, cap a month marked by data thefts or disclosures at 
five different agencies that compromised Social Security numbers and other 
private data on millions of people.

To comply with the new policy, agencies will have to encrypt all data on 
laptop or handheld computers unless the data are classified as 
"non-sensitive" by an agency's deputy director. Agency employees also would 
need two-factor authentication -- a password plus a physical device such as 
a key card -- to reach a work database through a remote connection, which 
must be automatically severed after 30 minutes of inactivity.

Finally, agencies would have to begin keeping detailed records of any 
information downloaded from databases that hold sensitive information, and 
verify that those records are deleted within 90 days unless their use is 
still required.

OMB said agencies are expected to have the measures in place within 45 
days, and that it would work with agency inspector generals to ensure 
compliance. It stopped short of calling the changes "requirements," 
choosing instead to label them "recommendations" that were intended "to 
compensate for the protections offered by the physical security controls 
when information is removed from, or accessed from outside of the agency 
location."

That careful distinction indicates that the administration is under 
pressure to respond to the recent string of data mishaps, but that it could 
not quickly pull all the political and financial strings usually tied to 
regulatory mandates, according to James Lewis, director of technology and 
public policy at the Center for Strategic and International Studies.

"The encryption and authentication measures mean agencies are going to have 
to spend money that they weren't planning to spend, and so in that way it's 
probably easier for [OMB] to get a recommendation out than [a] command," 
Lewis said. "That said, this is more of an implied threat, because you 
usually don't threaten agencies with their inspector general unless you 
intend to lean on them."

"The safeguards that the White House is calling for are excellent," said 
Alan Paller, director of research for the SANS Institute, a security 
training group based in Bethesda, Md.. However, Paller said, agencies are 
likely to become preoccupied with a document attached to the memo that 
spells out nearly a dozen new "action items" devised by the National 
Institutes of Standards and Technology (NIST).

"The sad thing is that NIST grasped defeat from jaws of victory by crafting 
a document that requires agencies to spend a lot of time and tens of 
thousands of dollars in studies to figure out what to do next."

The new guidelines also drew a strong reaction from House Government Reform 
Committee Chairman Thomas M. Davis III (R-Va.), whose panel has awarded 
government-wide cyber-security efforts a grade of D-plus or worse for the 
past four years in a row.

"I sincerely hope this action leads to both better results and better 
practices -- and if not, perhaps Congress will have to step in and mandate 
specific security requirements," Davis said in a statement.

The recent string of data incidents began May 22, when the Department of 
Veterans Affairs disclosed that a laptop and external hard drive -- 
including the unencrypted names, Social Security numbers and birth dates 
for about 26.5 million veterans -- were stolen earlier in the month from 
the home of a VA employee.

On June 5, the Internal Revenue Service said a missing laptop contained the 
Social Security numbers, fingerprints and names of 291 employees and IRS 
job applicants. Two weeks later the Agriculture Department revealed that a 
hacker had broken into its network and stolen names, Social Security 
numbers and photos of some 26,000 employees and contractors in the 
Washington area.

Then on Thursday the Federal Trade Commission -- an agency whose mission 
includes consumer protection and occasionally involves suing companies for 
negligence in protecting customer information -- said it lost a pair of 
laptops that contained Social Security numbers and financial data related 
to different law enforcement investigations.

That same day, the Navy said it was investigating how Social Security 
numbers and other personal data for 28,000 sailors and family members wound 
up on a civilian Web site.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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