Senator Michael Casey testifies during his confirmation hearing before the Senate Select Committee on Intelligence at the Hart Senator’s Office Building on Capitol Hill in Washington, DC, on July 12, 2023.
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Michael C. Casey, director of the National Counterintelligence and Security Center, said the United States needs to prepare for more cyberattacks from a growing number of threat actors around the world, with China being the biggest threat actor.
China “has been the most active actor by far, and it’s pushing us in every direction and in the most severe ways,” he said Tuesday at CNBC’s CEO Council Summit in Washington, D.C.
Casey said there has been a 200% increase in cyber incidents and ransomware requests across the board. He said China has realized over the years that America’s advantage in the world is in technology, which makes the U.S. a huge target. And it’s not stopping. “Because America continues to be successful, and it works,” Casey said. “China publishes a list of desired technologies, they get it, and it works.”
When it comes to intellectual property threats, one that CEOs should be aware of is the increased use of what he calls “human assets” — the people within an organization who could be recruited to steal IP, data, or whatever the bad actors are after.
Because CEOs and other executives can’t see every conversation and interaction between employees around the world, Casey told CNBC’s senior Washington correspondent Eamon Javers that the best way to thwart nation-state recruitment is to deploy a layered defense.
“CEOs need to think hard about what secrets their companies want to keep and who needs access to that information,” he said.
Another issue to look at is the potential for employees to become human assets in the first place. “Employees who are having financial or marital problems are open to being taken advantage of,” Casey says. That’s why programs are needed to identify these employees and provide them with the help they need. “I’m amazed at how many companies are unaware of the insider threat at all,” he adds.
Another issue CEOs are grappling with is the fear that they will alienate the tech talent they need, much of which is of Chinese descent.
“China is an authoritarian country and should not be confused with Chinese Americans or people of Chinese descent,” Casey said. “In some cases, they may be in a more vulnerable position because they have relatives back home, but companies need to know how to distinguish that.”
The best strategy for CEOs is to share information with public authorities: “If you don’t know your local FBI agent, you’re doing it wrong,” he said.
And with China and Russia already targeting critical U.S. infrastructure, like water supplies, CEOs need to train for worst-case scenarios if those systems go down.
“Leaders need to know what to do if the worst happens,” Casey said.
