Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information

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Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information October 1987 NTIS order #PB88-143185 Recommended Citation: U.S. Congress, Office of Technology Assessment, Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information, OTA-CIT-31O (Washington, DC: U.S. Government Printing Office, October 1987). Library of Congress Catalog Card Number 87-619856 For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, DC 20402-9325 (order form can be found in the back of this report) Foreword Government agencies, private sector organizations, and individual citizens are increasingly using sophisticated communications and computer technology to store, process, and transmit valuable information. The need to protect the con- fidentiality and integrity of such data has become vital. This report examines Fed- eral policies directed at protecting information, particularly in electronic communications systems. Controversy has been growing over the appropriate role of the government in serving private sector needs for standards development and, particularly, over the appropriate balance of responsibilities between defense/intelligence agencies and civilian agencies in carrying out this role. In defining these roles and striking an appropriate balance, both private sector needs, rights, and responsibilities, on one hand, and national security interests, on the other hand, need to be carefully considered. This report examines the vulnerability of communications and computer sys- tems, and the trends in technology for safeguarding information in these systems. It reviews the primary activities and motivations of stakeholders such as banks, government agencies, vendors, and standards developers to generate and use safeguards. It focuses on issues stemming from possible conflicts among Federal policy goals and addresses important trends taking place in the private sector. OTA prepared the report at the request of the House Committee on Govern- ment Operations and the Subcommittee on Civil and Constitutional Rights of the House Committee on the Judiciary. It is the second component of OTA’s assess- ment of new communications technologies. The first component, The Electronic Supervisor: New Technologies, New Tensions, was published in September, 1987. In preparing this report, OTA drew upon studies conducted by OTA project staff, contractor reports and consultants, a technical workshop, interviews with Federal and private sector representatives, and those involved in research, manufacturing, financial services, consulting, and technical standards develop- ment. Drafts of this report were reviewed by the OTA advisory panel, officials of the National Security Agency and the Department of Defense, the National Bureau of Standards, the General Services Administration, the Department of the Treasury, and other government agencies, and by interested individuals in standards setting organizations, trade associations, and professional and techni- cal associations. OTA appreciates the participation and contributions of these and many other experts. The report itself, however, is solely the responsibility of OTA, JOHN H. GIBBONS Director /// Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information Advisory Panel Granger Morgan, Chairman Carnegie Mellon University Peter Arment Robert Morris** Division of Telecommunications Chief Scientist State of New York National Computer Security Center National Security Agency Robert R. Belair Kirkpatrick & Lockhart Susan L. Quinones Condello, Ryan, Piscitelli Jerry J. Berman Chief Legislative Counsel Virginia du Rivage American Civil Liberties Union Research Director 9 to 5 National Association of Working H.W. William Caming Women Consultant Forrest Smoker Robert H. Courtney, Jr. Director President Corporate Telecommunications RCI North American Phillips Corp. Harry B. DeMaio* Willis H. Ware Director, Data Security Program Corporate Research Staff IBM Corp. The Rand Corp. John Harris Lawrence Wills Special Assistant to the President Director, Data Security Program American Federation of Government IBM Corp. Employees (AFL-CIO) Fred H. Wynbrandt James M. Kasson Assistant Director Vice President Criminal Identification and Information Rolm Corp. Branch Steven Lipner State of California Digital Equipment Corp. Gary T. Marx Professor of Sociology Massachusetts Institute of Technology **F; x-officio. NOTE: OTA appreciates and is grateful for the valuable assistance and thoughtful critiques provided by the ad- visory panel members. The panel does not, however, necessarily approve, disapprove, or endorse this report. OTA assumes full responsibility for the report and the accuracy of its contents. ! v OTA Project Staff Defending Secrets, Sharing Data: New Locks and Keys for Electronic Information John Andelin, Assistant Director, OTA Science, Information, and Natural Resources Division Fred W. Weingarten, Program Manager Communication and Information Technologies Program Project Staff Charles K. Wilk, Project Director Karen G Bandy, Analyst Jim Dray, Research Analyst Robert Kost, Analyst Mary Ann Madison, Analyst Joan Winston, Analyst Michael McConathy, Intern Paul Phelps, Editor Jeffrey P. Cohn, Editor Administrative Staff Elizabeth A. Emanuel, Administrative Assistant Audrey D. Newman, Administrative Secretary Sandra Holland, Secretary Rebecca A. Battle, Secretary Contents Page Chapter l. Executive Summary . 3 Chapter2. Introduction. 13 Chapter3. The Vulnerabilities of Electronic Information Systems . 23 Chapter4. Security Safeguards and Practices . 51 Chapter5. Improving Information Security . 95 Chapter6. Major Trends in Policy Development . .....................131 Chapter7. Federal Policy Issues and Options . .......151 Appendix A. Requesting Letters . ......163 Appendix B. National Policy on Protection of Sensitive, but Unclassified Information in Federal Government Telecommunications and Automated Information Systems . , . .165 Appendix C. The Data Encryption Standard . .168 Appendix D. Message Authentication, Public-Key Ciphers, and Digital Signatures . .........174 Appendix E. Acronyms. .182 Appendix F. Contributors and Reviewers . .183 Chapter 1 Executive Summary CONTENTS Page The Need for Information Security . 4 Safeguard Technology.. 5 Users’ Needs and Actions . 6 The Role of the Federal Government . 7 Policy Alternatives . + . 9 Chapter 1 Executive Summary As society becomes more dependent on com- Policy for information security, long domi- puter and communications systems for the con- nated by national security concerns, is now be- duct of business, government, and personal ing reexamined because of its broadening ef- affairs, it becomes more reliant on the confiden- fects on nondefense interests. At the center tiality and integrity of the information these of the current controversy is the appropriate systems process. Information security has be- role of the Federal Government in information come especially important for applications security. The immediate policy questions fo- where accuracy, authentication, or secrecy are cus on whether NSA, primarily an intelligence essential. agency, or the National Bureau of Standards (NBS), a civilian agency, should be responsi- Today’s needs for information security are ble for developing information security for non- part of a centuries’ long continuum that shifts defense applications. A fundamental issue is in emphasis with changing technology and so- how to resolve conflicts involving the bound- cietal values. Modern electronic information ary between the authority of the legislative and systems are expanding the need for both fa- executive branches to make policy when na- miliar and new forms of information security. tional security is a consideration; a topic with implications extending well beyond the nar- row confines of information security policy. Today’s needs for information secu- rity are a part of a centuries’ long A separate, but related dimension to policy- continuum. making involves recent efforts to provide ad- ditional Government controls on unclassified information in computer databases, some Fed- eral, some commercial. Proponents of greater Developing adequate information security Government controls argue that these data- technology is a challenging task. This task is bases make information so readily available further complicated since some of these evolv- to foreign governments, competitors, and those ing needs can only be satisfied with technol- having criminal intent, that uncontrolled ac- ogy that must itself be kept secret, according cess to them is a threat to national security. to Department of Defense sources, because re- vealing it could be damaging to U.S. intelli- Congress is responding to these issues by l gence operations. This situation raises the examining alternative Federal roles in infor- practical question of whether safeguards de- mation security. Each of the three basic options signed for use by defense and intelligence agen- for providing leadership-through NSA, NBS, cies can meet the needs of commercial users or greater reliance on the private sector—has without jeopardizing U.S. intelligence objec- its own particular drawbacks and none is likely tives, i.e., whether the National Security Agency to completely satisfy all national objectives. (NSA) can reconcile its traditional secret pos- ture with the openness needed to solve non- There are a number of national interests to defense problems. It also raises the broader be accommodated
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