EnergySec & National Electric Cyber Security Organization (NESCO) Overview by Patrick Miller, EnergySec

EnergySec & National
Electric Cyber Security
Organization (NESCO)
Overview
2012 Technologies for Security and Compliance Summit
The Anfield Group
August 1-2 2012
Barton Creek Resort – Austin, TX

New, New Security Model
 Nation State quality adversaries
 Fear the auditor more than
attacker
 Regulatory avalanche forecast
 Constant compromise
 Ecosystem of organizations
 Information sharing is holy grail
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The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
with funding assistance from the U.S. Department of Energy

Info-Share to the Rescue!
 What does Information Sharing
really mean?
– Taking vs. Sharing
– Secrecy for secrecy’s sake
– Government doesn’t share well
(yet)
 Very useful approach, but not a
panacea
 Comes with trade-offs…
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Information Sharing Reality
Some Pros…
 What works, what
doesn’t
 Benchmarking
 Situational
awareness
 Tactical threat and
vulnerability analysis
 Community-sourcing
 Regulatory
compliance
 Mentoring
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Some Cons…
 Classification and
handling, both Gov
and Corporations
 Lawyers,
agreements and
contracts
 Consumers will
always outnumber
sharers
 Trust; n parties
 Doesn’t scale well

Who is EnergySec?
 Unique, non-profit, independent, public-
private information sharing organization
 Borne from Energy Sector
 Bottom-up vs. top-down
 TRUSTED
– By the industry, for the industry
– Non-profit 501(c)(3)
– Independent, private
– 10+ years of information sharing experience
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The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy

EnergySec Background
 10.2001: Precursor to E-Sec NW formed
 7.2004: E-Sec NW formalized and “founded”
– Asset owner/operator ONLY; all volunteer
 1.2008: SANS Information Sharing Award
 12.2008: Incorporated E-Sec NW as
EnergySec
 10.2009: 501(c)(3) nonprofit determination
 4.2010: EnergySec applied for NESCO DOE
FOA
 7.2010: EnergySec awarded NESCO FOA
 10.2010: NESCO became operational
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with funding assistance from the U.S. Department of Energy.

What EnergySec Is NOT…
 Not a lobbyist
 Not a vendor
 Not a consultant
 Not government agency
 Not a regulator
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EnergySec Staff
 Extensive applied sector experience
– Many years employment at asset owners
– Operations, security, audit, Sr mgmt, OT, IT
– Regional Entity leadership
– Independent consulting; big firms and
boutiques
– Built several successful companies
– EnergySec founders, Info-sharing pioneers
– Certified, trusted, highly connected, dedicated
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EnergySec Programs
 NESCO: Information Sharing &
Best Practices
 Advisory Service
 EnergySec University
– Education/Workforce
Development
 LIGHTS: Security in a box
(turnkey)
– Independent board
– Partnership with ICS-ISAC
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EnergySec Nonprofit
Umbrella
EnergySec
NESCO Advisory University Other…
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EnergySec Advisory
 Customized agenda; facilitated discussion
 Examine current and horizon energy
sector specific cyber security legislation
 Explore methods to meet compliance
obligations and enhance security posture
 Present threat, vulnerability and impact
landscape to executives and staff
 Highest concentration of advisors with
unique and hard-to-ﬁnd combination of
experience
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EnergySec University
 Professional/workforce development path
– Internal expertise as instructors
– Open faculty roster from best and brightest
– Courses in all IT/OT security-related
disciplines
 Internship matchmaking – coming soon
 Working closely with National Board of
Information Security Examiners (NBISE)
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What Is NESCO?
 R. 3183 “...the Secretary shall establish an
independent national energy sector cyber security
organization...”
– Department Of Energy issued FOA on March 31, 2010
 Purpose is to “establish a National Electric Sector
Cyber Security Organization that has the knowledge,
capabilities, and experience to protect the electric
grid and enhance integration of smart grid
technologies that are adequately protected against
cyber attacks.”
 “This organization will serve as a focal point to bring
together domestic and international experts,
developers, and users who will assess and test the
security of novel technology, architectures, and
applications.”
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NESCO Objectives
 Organize, lead and implement a public-private
partnership
 Focus cybersecurity research and development
priorities
 Identify and disseminate security best practices
 Organize the collection, analysis and dissemination of
infrastructure vulnerabilities and threats
 Work cooperatively with the DOE and other Federal
Agencies
 Enhance cybersecurity of the bulk power grid and
electric infrastructure
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Who Is NESCO?
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• Public
• Private
• Non-Reg
• Regulatory
• Fed, State…
• Product
• Service
• IOU
• Muni
• Coop
Asset Owners Vendor
Academia/Research
Govt

Connect & Support
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Utility
Asset
Owners

Membership Growth
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Member Demographics
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Academic
5%
Asset Owner
49%
Govt/Regulatory
11%
Vendor/Other
35%
Membership by Organization
Academic
2%
Asset Owner
64%
Govt/Regulatory
12%
Vendor/Other
22%
Membership by Individual
363 unique organizations1,050 Individual members
Predominately Asset Owner Driven Membership Base

Membership Overview
 NESCO Members of Sept 30 2011 (1
year)
– 788 NESCO members
– 278 unique organizations
 NESCO Members as of July 12 2012:
– 1050 individuals
– 363 unique organizations
Note: This represents a nearly 50% annual
growth rate
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Social Media Outreach
 NESCO mailing list: 3536
 NESCO Twitter followers: 2635
 NESCO LinkedIn group members: 535
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Direct Outreach
 3 Town Hall meetings
 19 Voice of the Industry (VOI)
meetings
 82 TAC notices; 149 follow up
threads
 71 presentations/panels
 94 event participation
 37 blog mentions
 43 interviews and article citations
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Engage, Equip & Empower
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 Sharing requires trust
 Trust is built on relationships
 Our approach…
– Bringing people together
– Flexible technology options and
solutions to extend and enhance
relationships
– Organic growth; birds of a feather

NESCO Is Technology
 Secure collaboration portal
– Wiki
– Working groups
– Discussion forums
– Email distribution lists
 Rapid Notification System
 Social Media
– LinkedIn, Twitter, Facebook
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NESCO Tools
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 Email distribution lists
 Secure collaboration wiki
 Secure instant messaging
 Rapid notification
mechanisms
 Resource repository
 Most technologies have non-
attribution (anonymous)
options

NESCO Resource Repository
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 Best/common practices
 Policy, process, procedure
 Compliance approaches
 Document Templates
 Code snippets, scripts
 System configurations
 Links to useful security sites
 And more…

NESCO Tactical Analysis
Center
 Supports ES-ISAC and ICS-CERT
 Open & private source intelligence
 Asset owner volunteer handler
SMEs with virtual “dashboards”
 Rapid, community-sourced analysis
 Secure communications
 Rapid notification system
 Daily diaries, trending
 Quarterly & annual reports
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ES-ISAC, ICS-CERT and TAC
 An analogy… triage and long term care
 Basic differences of the TAC
– Operated by an independent non-profit org
– Not associated with a federal regulatory agency
• DOE partner is non-regulatory
• Funding expires in 2014, only “seed” money provided
• Funding model involves cost-share, so industry bears
cost throughout entire effort
– Electric sector specific
– Provides feeds, when requested to NERC & DHS
& …
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ES-ISAC, ICS-CERT and TAC
 Basic differences of the TAC
– Covers all entities, not just Registered Entities
under the NERC Functional Model
• Not just Bulk Electric w/ CA and CCA
• Includes smart grid, distribution, QF generation
– NESCO staff work alongside industry handlers
– RNS has direct access to security staff
– Volunteer reporting structure, not mandatory
– Private position offers unique vendor
relationships
– Anonymized pass through for bi-directional
sharing
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NESCO Products
 Whitepapers
– DNS Exfiltration
– Security Logging Best Practices and
Capability Maturity Models
– Public Key Infrastructure, Automated Metering
Infrastructure and Industrial Control Systems
– DOE Electric Sector Cybersecurity Capability
Maturity Model (ES-C2M2) – coming soon!
– What else would you like to see?
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NESCO Products
 Rapid Notification System
– Night Dragon webcast
– Duqu webcast
– Multiple TAC notices
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NESCO Success Stories
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…is fantastic
that [DOE
produces] a
document that
deals with a
subject so
technical and
that it makes
available to
the public.
http://goo.gl/0xiWp

 Spearphishing notices from asset owner
shared with DHS for action
– Result: DHS ICS-CERT advisory issued
 Accounts from service contractor posted to
Internet reviewed for asset owner data
– Result: Direct contact warning to specific
parties
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 Exposed control systems posted on
Internet matched to asset owners
– Result: Direct contact warning to specific
parties
 EnergySec spearphishing attempt
– Result: Cross-organization comparison with
general industry advisory; IOCs published
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 Industry and [some] Regional Entities
seeking to modify process for Technical
Feasibility Exceptions to maximize security
benefit
– Result: NESCO provided independent and
impartial discussion forum, webinar and
industry feedback loop for proposed change
to process
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NESCO Funding Model
 Department of Energy FOA
 Cooperative agreement
 Cost-share is ~40%, ramps
over life of 3.5 year “seed”
window
 At end of seed
window, NESCO is fully
funded by industry
 Supported by underwriters
and TAC subscriptions
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NESCO Summary
 Focused on building trust through
relationships to further security
collaboration and sharing
 Flexible technology facilitates and
catalyzes information/resource sharing
efforts
 Supports existing successful programs
 Security voice of the electric sector
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Get Connected
 EnergySec Summit: September 25-28
– NESCO Town Hall
– CISO Forum
– Policy and Technical Tracks
 EnergySec University Courses
– NERC CIP Training: Las Vegas 10/25
– NERC CIP Training: Sacramento 12/4
– Cybersecurity for Operations: Nashville 11/7
 NESCO Voice of the Industry (VOI)
Meetings
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Get Connected
 www.energysec.org
 www.energysec.org/join
 www.energysec.org/tac-subscription-
service
 TAC@energysec.org
 New NESCO website soon!
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Questions?
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Patrick C Miller
Principal Investigator, National Electric Sector Cybersecurity Organization
President & CEO, EnergySec
patrick.miller@energysec.org
503.446.1212 (desk)
@patrickcmiller (twitter)
www.energysec.org

EnergySec & National Electric Cyber Security Organization (NESCO) Overview by Patrick Miller, EnergySec

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