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Edition: U.S. Article Comments (1) Technology Apple pays user compensation over iPhone tracking Amazon plans new Android tablet for this fall Netflix price hike draws user ire, investor glee Twitter gears up auto-ads for big clients: sources No link seen between cellphones, brain tumor Royalty payments dog Pandora co-founder Apple's chief patent lawyer leaving: sources Alibaba.com in deal with Western Union for AliExpress SAP attacks $1.3 billion Oracle verdict at hearing Sony: Our tablets are coming . . . eventually Follow Reuters Facebook Twitter RSS YouTube Read Black men survive longer in prison than out: study 14 Jul 2011 Do tea, coffee drinkers have lower risk of MRSA superbug? 14 Jul 2011 Pentagon to treat cyberspace as "operational domain" 14 Jul 2011 Apple pays S.Korean user compensation over iPhone tracking 14 Jul 2011 WRAPUP 2-Obama pauses U.S. debt talks, lawmakers weigh options 3:37am EDT Discussed 121 Obama, lawmakers meet for 75 minutes on debt impasse 100 Obama and lawmakers regroup to seek debt deal 98 WRAPUP 1-Taxes still a stumbling block in U.S. debt talks Watched Flying sphere goes where man fears to tread Thu, Jul 14 2011 Mexico's largest marijuana farm 9:23am EDT Hefner's revenge; Ryan Reynolds stops traffic Fri, Jun 17 2011 Cyber theft illustrates Pentagon security challenge Tweet Share this Email Print Related News U.S. and China face vast divide on cyber issues Thu, Jul 14 2011 Turban suicide bomber kills Afghan cleric, four others Thu, Jul 14 2011 Government facilities targets of cyber attacks Wed, Jul 6 2011 Clinton slams Gaddafi threat to attack Europe Sat, Jul 2 2011 Cost of war at least $3.7 trillion and counting Wed, Jun 29 2011 Analysis & Opinion In wake of Mumbai attacks, Pakistan could help save dialogue with India On the Afghanistan-Pakistan border : cutting off the nose to spite the face Related Topics Technology » By David Alexander WASHINGTON | Thu Jul 14, 2011 7:14pm EDT WASHINGTON (Reuters) - A foreign intelligence service stole 24,000 files from a U.S. defense contractor earlier this year, a dramatic illustration of the threat confronting the Pentagon as it works to bolster military computer security, a top defense official said on Thursday. Deputy Defense Secretary William Lynn revealed the theft as he unveiled a new Pentagon cybersecurity strategy that designates cyberspace as an "operational domain" like sea, air and land where U.S. forces will practice, train and prepare to defend against attacks. Lynn said the theft occurred in March and was believed to have been carried out by a foreign intelligence service and targeted files at a defense contractor developing weapons systems and defense equipment. He declined to specify the country behind the attack, what company was hit or what the files contained. "It was 24,000 files, which is a lot," Lynn said. "But I don't think it's the largest we've seen." The theft was a dramatic illustration of the rising difficulties the Pentagon faces in protecting military and defense-related networks critical to U.S. security. Defense Department employees operate more than 15,000 computer networks and 7 million computers at hundreds of installations around the world. The department's networks are probed millions of times a day and penetrations have compromised huge amounts of data. Lynn said a recent estimate pegged economic losses from theft of intellectual property and information from government and commercial computers at over $1 trillion. NEW CYBERSTRATEGY In addition to calling for the Pentagon to treat cyberspace as an "operational domain," Lynn said the new strategy includes four initiatives aimed at bolstering network security by layering defenses and improving cooperation with other network operators. Lynn said as part of its active defenses, the Pentagon would introduce new operating concepts and capabilities on its networks, such as sensors, software and signatures to detect and stop malicious code before it affects U.S. operations. "Our strategy's overriding emphasis is on denying the benefit of an attack," he said in a speech at the National Defense University. "If an attack will not have its intended effect, those who wish us harm will have less reason to target us through cyberspace in the first place." The strategy also calls for greater U.S. military cooperation on cybersecurity with other government agencies, defense contractors and U.S. military allies abroad in order to take advantage of the open, interwoven nature of the Internet. Former Homeland Security Secretary Michael Chertoff, who now heads the Chertoff Group risk management firm, praised the strategy as a "good first step" but said the challenge would be filling in the details. "It's not put your pencil down, work is done," he said. "It really just sets the table for a lot of hard work thinking through the details of what the plans are going to be, what the capabilities have to be and how we're going to build the various layers of defense." He cited the possibility of creating secure communities on the Internet for some functions, finding ways to encourage individuals to practice computer security and sharing security-related information more widely between public and private sectors. "These are going to be hard things to do because they are going to require trade-offs," Chertoff said. "You're not going to eliminate the risk of cyberattacks. What you have to do is minimize and manage those risks." OFFENSE VERSUS DEFENSE General James Cartwright, vice chairman of the Joint Chiefs of Staff, said the Pentagon must shift its thinking on cybersecurity from focusing 90 percent of its energy on building better firewalls and only 10 percent on preventing hackers from attacking U.S. systems. "If your approach to the business is purely defensive in nature, that's the Maginot line approach," he said, referring to the French fixed defensive fortifications that were circumvented by the Nazis at the outset of World War Two. "If it's OK to attack me and I'm not going to do anything other than improve my defenses every time you attack me, it's very difficult to come up with a deterrent strategy," he said. Cartwright said part of the answer was to build up the military's offensive response capabilities. "How do you build something that convinces a hacker that doing this is going to be costing them and if he's going to do it, he better be willing to pay the price and the price is going to escalate, rather than his price stays the same and ours escalates," Cartwright said. "We've got to change the calculus." (Editing by Todd Eastham and Bill Trott) Technology Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) Eideard wrote: You have to say it was an evil foreign empire. Even if the likelihood is some script kiddie in Kalamazoo. Or Munchen. Jul 14, 2011 8:05pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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