February 7, 2019 | Local, C4ISR, Security

Cyber-warfare could be entering a new and alarming phase, ex-CIA analyst tells MPs

Murray Brewster · CBC News

Online attacks on Canada's financial system could become far more destructive as more militaries around the globe get involved in cyber operations, a security expert and former CIA analyst told a House of Commons committee Wednesday.

Christopher Porter, the chief intelligence strategist for the cyber security company Fireeye, Inc., testified that as NATO countries share their expertise on how to defend against and defeat online threats, "major cyber powers outside the alliance" will likely do the same.

The consequences, he said, could be dire.

The West's imposition of sanctions on "some countries" has in the past been met with denial-of-service attacks on financial services websites, he said — attacks that have only been disruptive.

"In the future, they may respond with destructive attacks aimed at permanently disabling financial services or altering data in ways that undermine trust in the global financial system, such as by delaying or impairing the trustworthy settlement of collateralized government debt," Porter said.

"For countries sufficiently sanctioned and therefore increasingly outside that financial system anyway, there is little incentive not to do so during a confrontation."

Where the threat comes from

He did not name the countries he believes pose an imminent threat, but North Korea, Russia and Iran are widely known to possess sophisticated cyber capabilities and — in some cases — loose associations with groups of private hackers.

The Commons public safety committee is studying security in the financial sector. Wednesday's hearing focused on online threats.

"I am gravely concerned about the militarization of cyber operations," said Porter, who spent nearly nine years at the CIA and served as the cyber threat intelligence briefer to White House National Security Council staff.

"(The) proliferation of cutting-edge offensive cyber power, combined with an increased willingness to use it with minimal blowback and spiraling distrust, has set the stage for more disruptive and destabilizing cyber events, possibly in the near future."

The cyber espionage threat Canada faces is still "moderate," said Porter, but his organization has noted at least 10 groups from China, Russia and Iran that have targeted Canada in the last few years.

His grim assessment was echoed by another private sector expert who appeared before the committee. Jonathan Reiber, head of cybersecurity at Illumio, an American business data center, said most of Washington's efforts to get everyone to step back from the cyber-warfare brink have gone nowhere.

He also suggested that online militarization was inevitable. "Adversaries have escalated in cyberspace, despite U.S. efforts at deterrence," he said.

The United States, Canada and other western nations must take a more aggressive stance to deter cyber aggression by "defending forward" and conducting offensive cyber operations to disrupt hacking, Reiber said.

The Liberal government's defence policy, released in June 2017, gave the Canadian military permission to conduct those kinds of operations.

"Nation states have the right to defend themselves in cyberspace just as they do in other domains," Reiber said.

Mutual defence

Determining the point at which a online attack provokes a real world military response is something that NATO and many western countries have been grappling with over the last five years.

The alliance has a mutual assistance clause, known as Article 5, which requires NATO nations to aid an ally under attack.

Liberal MP John McKay, head of the public safety committee, asked whether NATO's decision-making mechanisms are nimble enough to keep pace with cyber attacks.

Porter said he believes the system is sound. The challenge, he said, is to get all allies on the same page.

"I think a bigger issue is who is going to call for such a response and under what circumstances," he said. "In the States, I think, you're always waiting for a cyber Pearl Harbour destructive event."

Such a massive attack is still less likely than a series of smaller events, he said, "a death by a thousand cuts" that might not rise to the level of provoking allies.

https://www.cbc.ca/news/politics/cyber-warfare-could-be-entering-a-new-and-alarming-phase-ex-cia-analyst-tells-mps-1.5008956

On the same subject

November 26, 2020 | Local, Naval

DND says budget for Surface Combatants remains unchanged; PBO report expected in late February
In 2019, the PBO projected the cost of 15 CSC frigates to be nearly $70-billion. The defence department says the ships are still projected to cost between $56- and $60-billion. By Neil Moss; The Hill Times November 25, 2020 The Department of National Defence says there hasn't been an increase in cost to the largest defence procurement project in Canadian history, which will serve as the backbone of the Canadian Navy for years to come, as questions loom over delays, which could add billions to the price tag. Parliamentary Budget Officer (PBO) Yves Giroux is expecting to release an updated cost projection for the purchase of 15 Canadian Surface Combatants (CSC) in late February 2021. The 15 warships are replacing Canada's current fleet of Halifax-class frigates. The project is still pegged by DND to cost between $56- and $60-billion. “There have been no budget changes,” a DND spokesperson told The Hill Times. The ships were originally budgeted to cost $26-billion before their price was doubled by DND following a 2017 PBO report that estimated the costs to be $61.82-billion. The most recent projection of the cost of the CSC was done by the PBO in February 2019, which forecast the project could cost nearly $70-billion. The DND calculation does not include taxes that will be paid for construction, which the PBO projection does. The PBO was initially tasked to examine the CSC procurement by the House Committee on Government Operations and Estimates during the last parliamentary session and report back by the end of October, but that timeline was cut short by the prorogation of Parliament on Aug. 18. Now, the committee has passed a motion to have the PBO to report back by Feb. 5, 2021. Mr. Giroux told The Hill Times the PBO's report won't be finished until late February. “Given the complexity in the project themselves—the big procurement projects at DND—its not every day or even every year that the government purchases combat ships, so the comparisons are not very easy to do and there are not that many [countries] in the world where information is readily available [for comparison],” he said, noting the PBO hasn't been having difficulties with DND. The office recently criticized the department of finance for a lack of transparency. “Even if we get perfect information and totally complete and transparent information from DND, that is only one part of the ledger. It doesn't tell us whether the predicted cost compared favourably or not with other procurement projects by other navies in the world,” he said, adding difficulty arises when trying to compare different ships, with different capabilities, being built by different shipyards, and under different timelines. In response to the PBO's recent cost projection of Canada's Joint Support Ship procurement, DND said the comparisons that were being used didn't have the same capabilities. “It's not always easy to compare capabilities that vary greatly from one country to the other and that's one criticism we sometimes get when we're trying to cost defence projects, [that] we did not take into account sufficiently the fact that the Canadian capabilities are so much better than the competitors,” he said. Another issue when performing a cost analysis, Mr. Giroux said, is that navies procure varying numbers of ships and the cost per individual ship decreases with the more ships that are built. Mr. Giroux said the cost analysis is in the “early stages” and wouldn't comment on its early findings. He said the extended timeline is a result of the amount of work and the competing work that the PBO has been tasked with, such as costing COVID-19 supports. The DND spokesperson said costs for “personnel, operations, and maintenance” that will be needed throughout the life of the ships will be “greatly influenced” by the ship design and “only available later in the process.” In 2019, the Canadian government selected the BAE Type 26 as the frigate design for the CSC. Lockheed Martin is partnering with BAE Systems. The ships will be constructed at Irving Shipbuilding's Halifax shipyard. Irving and Lockheed Martin are currently “focused on integrating” the necessary elements from the Type 26 with the Canadian Navy's systems requirements for the CSCs, according to DND. The PBO will be comparing the cost of the Type 26 to the Type 31e, the FREMM, and other “competing” ships. Canadian Global Affairs Institute vice-president David Perry, an expert on defence procurement, recently wrote in The Hill Times that there are “rumblings” of delays to the CSC procurement and changes to the ship that could drive up the cost of the project. The CSC procurement has been going through a requirements reconciliation phase of the design process, which the spokesperson says has been “substantially completed,” adding that the preliminary design work has begun. “Significant progress has been made over the last 18 months to advance the selected design to meet the RCN's unique operational requirements. This progress has provided us with greater clarity about the complexity of the ship design and its associated combat systems, as well as better insight into the required time to complete the necessary design work before the start of construction,” the spokesperson said, but did not address if there are any delays. The PBO's 2019 reported indicated that a delay of one year would add $2.2-billion to the cost of the ships and a two-year delay would mean an added $4.5-billion. “There is no evidence suggesting that the pace of the project has improved as the work became more difficult—and that is without trying to account for any COVID-related impacts,” Mr. Perry wrote. During the first wave of the pandemic, Irving Shipbuilding reduced staff at their shipyard to about half. After the design phase of the ships is completed, Irving Shipbuilding will be awarded an implementation contract to build the ships. “The schedule to build and commission the ships will be better understood as design work progresses,” the DND spokesperson said. Mr. Giroux said he was surprised by how precise the information being provided to the PBO is. “I would expect some of the information to be secret for defence reasons [and] national security reasons, and very often they are,” he said. “We're provided with a level of information that is surprisingly detailed in my opinion.” “In terms of transparency from DND, it's a pleasant surprise so far,” he said, adding he also has been surprised with how Defence Minister Harjit Sajjan (Vancouver South, B.C.) and his officials have been transparent with the PBO. nmoss@hilltimes.com The Hill Times Other major defence procurement projects Arctic Offshore Patrol Ship (AOPS) Purpose: The AOPS will provide armed surveillance of Canadian waters, which includes the North, and help enforce Canada's sovereignty with its defence partners. First announced: in 2015 by the Harper government. Cost: $4.3-billion Timeline: First ship was delivered in July 2020 with the sixth and final ship planned for a 2024 delivery. Victoria-class modernization Purpose: To extend the life of Canada's four Victoria-class submarines so they have the capability to operate until the mid- to late-2030s. First announced: in 2017 by the Trudeau government. Cost: Unknown Timeline: Currently in the options-analysis phase. More information on the timeline and costs are expected when the current procurement phase is complete. Joint Support Ships Purpose: The two Joint Support Ships are replacing auxiliary oiler replenishment vessels that were decommissioned in 2016. First announced: in 2004 by the Martin government. Cost: $4.1-billion Timeline: First ship is expected to be delivered by 2024 and the second one is planned to be completed in 2025. Fighter Jet Replacement Purpose: Eighty-eight fighter jets to replace Canada's fleet of CF-18s that serve as the pillar of the Canadian Air Force. First announced: in 2010 by the Harper government. Cost: $15- to $19-billion Timeline: Proposals from three aerospace companies are currently being assessed—Saab's Gripen, Lockheed Martin's F-35, and Boeing's Super Hornet. A contract award is anticipated for 2022 with the first aircraft being delivered “as early as” 2025. The new fleet is planned to operate beyond 2060. Canadian Multi-Mission Aircraft Purpose: To replace the CP-140 Aurora fleet to have a “enhanced long-ranged, long-endurance, multi-mission capability.” First announced: in 2018 by the Trudeau government. Cost: Unknown Timeline: Has yet to begin the option analysis phase.
September 4, 2019 | Local, Aerospace

Sweden’s Saab undecided on whether it will participate in Canadian fighter-jet competition
THE CANADIAN PRESS Days after Airbus Defence and Space pulled out of the $19-billion race to replace Canada's aging fighter jets, the only European firm still eligible to compete says it has not decided whether it will. Saab Canada president Simon Carroll says the Swedish firm is interested in entering its Gripen jet against its two remaining competitors, both of which are from the United States: Boeing's Super Hornet and Lockheed Martin's F-35. However, Mr. Carroll told The Canadian Press on Tuesday that his company is still analyzing the competition's nitty-gritty details – including a security requirement that forced out two other European jet makers. All bidders are required to explain by Sept. 20 how they plan to ensure their planes can integrate with the top-secret Canada-U.S. intelligence network known as “Two Eyes,” which is used to co-ordinate the defence of North America. But in announcing its withdrawal from the competition on Friday, Airbus said meeting the requirement would place “too significant of a cost” on non-U.S. aircraft. French firm Dassault cited the same requirement when it pulled its Rafale jet in November. “We are still looking at that security assessment side of things from the Two-Eyes perspective,” Mr. Carroll said. “We don't see any major issues with it as this point in time. Having said that, we're still reviewing everything through the whole [request for proposals] at this point in time and we will reserve the right to make our judgment on whether or not we provide a bid.” Airbus also raised concerns about changes to a long-standing policy that requires bidders on military contracts to legally commit to invest as much money in Canadian products and operations as they get out of contracts they win. Bidders can now instead establish “industrial targets,” lay out a plan for achieving those targets and sign non-binding agreements promising to make all efforts to achieve them. Such bids do suffer penalties when the bids are scored, but are not rejected outright. That change followed U.S. complaints the previous policy violated an agreement Canada signed in 2006 to become one of nine partner countries in developing the F-35. The agreement says companies in the partner countries will compete for work associated with purchases of the planes. While Saab has previously raised its own concerns about the change, saying it would shortchange Canadian taxpayers and industry, Mr. Carroll said it was “not a hurdle” and that “we think we have a very good offering for what we can offer in Canada.” Even participating in the competition is not a cheap proposition for fighter-jet makers; while Carroll would not speak to the potential cost to Saab, analysts have previously pegged the cost in the millions of dollars. While companies are expected to submit their plans to meet the Two Eyes security requirement on Sept. 20, the government has said it will provide feedback and let bidders amend their submissions. Final bids aren't expected until next winter, with a formal contract signed in 2022. The first plane won't arrive until at least 2025. Successive federal government have been working to replace Canada's CF-18s for more than a decade. Mr. Carroll praised the government for being transparent as it has worked for years to launch the competition, which followed an aborted attempt between 2010 and 2012 to buy F-35s without a competition. “We're supportive of the government processes and what they've done moving forward,” he said. “The transparency from the government has been very good. They've given ample opportunity for us to review documents. They've been very open in saying that these are the dates and these are the times.” https://www.theglobeandmail.com/canada/article-swedens-saab-undecided-on-whether-it-will-participate-in-canadian/
December 20, 2019 | Local, Aerospace

Lockheed Martin And Canadian UAVs To Improve Unmanned Beyond Visual Line Of Sight Operations
Calgary, Alberta, December 17, 2019 – The ability to fly unmanned aerial vehicles (UAVs) beyond the visual line of sight (BVLOS) significantly improves their effectiveness and potential. The increased range of BVLOS operations requires real-time airspace situational awareness for the UAV pilot and support crew to ensure safe, repeatable operations. Canadian UAVs and Lockheed Martin Canada CDL Systems have signed a memorandum of understanding to provide an unmanned traffic management solution to meet this challenge. This solution will build a complete airspace picture necessary to conduct unmanned operations beyond visual line of sight in Canada and beyond. “A complete airspace picture is an absolutely necessity to conduct unmanned flights beyond visual line of sight,” said Dustin Engen, Lockheed Martin Canada CDL Systems Business Development Manager. “When combined, Canadian UAV's Sparrowhawk radar and our VCSi product will offer all users this complete picture and provide the necessary situational awareness for BVLOS flights in Canada and abroad.” Lockheed Martin Canada CDL Systems will provide integration support for the vehicle control station software called VCSi, a universal Ground Control System based on more than 1.5 million flight hours in military and commercial flight operations. Canadian UAVs will integrate their low-cost, ground-based radar, Sparrowhawk, into VCSi to provide users with a complete airspace picture of manned and unmanned aviation tracking with collision avoidance. Sparrowhawk has been instrumental in Canadian UAVs' first permitted BVLOS flights outside of restricted airspace in Canadian history. The company will also develop hardware and artificial intelligence software as part of Project Skysensus, a five-year investment from Canada's Industrial and Technological Benefit (ITB) Policy. “With Canadian UAVs' advanced market position in BVLOS operations, we are seeing a lot of gaps in what the general market offers to solve fundamental technological issues in unmanned aviation,” said Sean Greenwood, President of Canadian UAVs. “As a result, we developed a technology roadmap that invests in a comprehensive toolset to increase flight safety and repeatability as these operations increase in volume and airspace complexity. We have been working with Lockheed Martin CDL Systems for several years and we are very excited by this agreement to formalize the relationship.” About Lockheed Martin Canada Lockheed Martin Canada has been Canada's trusted defence partner for nearly 80 years and has a proud legacy of providing innovative naval systems and sustainment solutions for Canada and abroad. For more than three decades, Lockheed Martin Canada has demonstrated its capability and commitment to the Royal Canadian Navy as the Prime Contractor and Combat System Integrator for the HALIFAX Class Frigates. The company employs approximately 1,000 employees at major facilities in Ottawa, Montreal, Halifax, Calgary, and Victoria, working on a wide range of major programs spanning the aerospace, defence and commercial sectors. About Canadian UAVs Canadian UAVs is a military-grade unmanned aviation services company based in Calgary, Alberta. With flight safety as our first priority, we provide UAV (Unmanned Aerial Vehicle) solutions for a range of applications. We provide low-cost surveillance, monitoring, training, and reporting for commodity-based operations, utilities, military and real estate through UAVs. In 2018, CUAVS became the first company in Canadian history to fly Beyond Visual Line of Sight (BVLOS) as part of Transport Canada's BVLOS Task Force trials View source version on Lockheed Martin: https://news.lockheedmartin.com/lockheed-martin-canadian-uavs-improve-unmanned-beyond-visual-line-sight-operations

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