A presidential memorandum signed by U.S. President Donald Trump on Wednesday establishes a program that permits vetted private U.S. companies to conduct offensive and intelligence-gathering cyber operations. These operations will be carried out under direct federal control and oversight, targeting foreign cyber-enabled transnational criminal organizations (TCOs).
The program is managed by the National Coordination Center (NCC), which operates under the Homeland Security Task Force. Co-executive directors designated by the Attorney General and the Secretary of Homeland Security will ensure all operational actions remain under federal supervision. The Department of Justice (DOJ) and the Department of Homeland Security (DHS) will oversee the private firms involved.
Participating companies are authorized to execute 'cyber surveillance operations' and 'cyber effects operations.' These actions are directed against TCOs involved in activities such as ransomware attacks, financial scams, sextortion, phishing campaigns, and impersonation scams. The memorandum specifies that operations will not be sanctioned if they result in loss of life or rise to the level of use of force or armed attack under international law.
To participate, U.S. companies must undergo rigorous vetting and sign formal contracts with the DOJ or DHS. These contracts may require a bond or escrow of at least $1 million, which would be forfeited if a company fails to comply with operational requirements. Participating firms may also enter commercial agreements with other private entities for threat intelligence, as well as with federal, state, and other agencies.
This initiative marks a shift in U.S. cyber policy by expanding the private sector's role in national security efforts against cybercrime. It aims to leverage the capabilities of private companies to combat threats that cost American consumers billions annually. The policy also expands the types of cyber activity the DOJ may decline to prosecute, moving beyond previous allowances for white-hat hackers conducting security research.
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