Contractor agrees to new security protocols after exposing sensitive DISA data to Russia

Netcracker Technology Corp. signed an agreement to keep U.S. customer data in U.S. systems, settling a case that goes back to the Bush administration.

Shutterstock image. Copyright  enzozo.
 

The Department of Justice announced an agreement Dec. 11 with contractor Netcracker Technology Corp. that would result in the company implementing additional security protocols that would ensure its U.S.-based technology clients do not store sensitive information and data overseas.

The agreement allows NTC to avoid prosecution over a series of potential contract violations, possibly dating back to the Bush administration, that U.S. investigators believe may have left the Defense Information Systems Network vulnerable to access by Russian nationals and hacking groups. In exchange, NTC agreed to a series of enhanced security protocols, including a new monitoring system to detect unauthorized access of U.S. customer data, additional background checks for NTC employees. In addition, NTC will agree to locate infrastructure for U.S. customers in the United States.

"We are pleased Netcracker has agreed to invest in enhanced security protocols that will reduce the risk of unauthorized access to its clients' sensitive data," said Acting Assistant Attorney General Boente in a statement announcing the agreement. "As threats to our critical infrastructure increase, especially from abroad, these protocols serve as a model for the kind of security that U.S. critical infrastructure should expect from the firms they use to develop, install, and maintain technology in their networks."

The alleged violations relate to NTC's work as a subcontractor under two contracts managed by the Computer Sciences Corporation (since merged with other firms) to provide both software and services as well as customization for core code related to the DISN. Both contracts were agreed upon in 2008 and specified that any contractor personnel working on the DISN must be U.S. citizens with secret or top-secret clearances.

According to the statement of facts, Netcracker, informed the Defense Information Systems Agency in January 2011 that uncleared Russian nationals had been working on DISA-related projects and told officials that they believed this was permitted under the contract agreement.

In July 2011, DISA, NTC and CSC all agreed to revised contract guidelines that would permit the work of foreign nationals under those conditions. DISA subsequently discovered more incongruities that "resulted in an unacceptable degradation of the level of security DISA had intended to achieve," according to government documents. An investigation found project code and other information stored on a server based in Moscow, as well as unspecified evidence that NTC employees in Russia and Ukraine knew they were working on projects related to DISA.

In November 2015, NTC paid an $11.4 million fine for violating the False Claims Act by using uncleared personnel to write software for the DISN. According to court documents, Army contractor John Kingsley alleged that the code written by the programmers included "numerous viruses" that could have harmed DOD networks.

The deal demonstrates the extent to which the U.S. government is concerned about how its data can be sent or stored by contractors across the world, and the ability of nation-state adversaries or hacking groups to access data that is stored or duplicated on foreign networks. U.S. officials operate under the assumption that Russian laws mandate that data stored within its borders be subject to search by the FSB.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.