Legislature(2021 - 2022)ANCH LIO DENALI Rm

10/28/2021 09:00 AM Senate STATE AFFAIRS

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Audio Topic
09:02:10 AM Start
09:03:27 AM Presentation(s): Cybersecurity Issues and Solutions
12:11:11 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Joint with Senate Judiciary TELECONFERENCED
Cybersecurity Issues and Solutions
Opening Remarks by Senator Shower
Presentation by Mr. Burke Stephenson of Cybersec
Innovation Partners
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                        October 28, 2021                                                                                        
                           9:02 a.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 Senator Mike Shower, Chair (via teleconference)                                                                                
 Senator Lora Reinbold, Vice Chair (via teleconference)                                                                         
 Senator Mia Costello                                                                                                           
 Senator Roger Holland                                                                                                          
 Senator Scott Kawasaki (via teleconference)                                                                                    
                                                                                                                                
SENATE JUDICIARY                                                                                                                
                                                                                                                                
 Senator Roger Holland, Chair                                                                                                   
 Senator Mike Shower, Vice Chair (via teleconference)                                                                           
 Senator Shelley Hughes (via teleconference)                                                                                    
 Senator Jesse Kiehl (via teleconference)                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
SENATE JUDICIARY                                                                                                                
                                                                                                                                
 Senator Robert Myers                                                                                                           
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Kevin McCabe (via teleconference)                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  CYBERSECURITY ISSUES and SOLUTIONS                                                                            
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BURKE STEPHENSON, Freelance Cybersecurity Consultant                                                                            
Cybersec Innovation Partners                                                                                                    
London, England                                                                                                                 
United Kingdom                                                                                                                  
POSITION  STATEMENT: Delivered  a  presentation on  cybersecurity                                                             
issues and solutions.                                                                                                           
                                                                                                                                
MEGAN WALLACE, Director                                                                                                         
Legislative Legal Services                                                                                                      
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  Provided  legal  advice  about  meeting  in                                                             
executive  session  during   the  presentation  on  cybersecurity                                                               
issues and solutions.                                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:02:10 AM                                                                                                                    
CHAIR ROGER HOLLAND called the  joint meeting of the Senate State                                                             
Affairs  Standing Committee  and  the  Senate Judiciary  Standing                                                               
Committee to  order at  9:02 a.m.  Present at  the call  to order                                                               
from the  Senate State Affairs Committee  were Senators Costello,                                                               
Holland, and Chair Shower (via  teleconference). Present from the                                                               
Senate   Judiciary    Committee   were   Senators    Kiehl   (via                                                               
teleconference,  Hughes (via  teleconference) and  Chair Holland.                                                               
Senate  State  Affairs  Committee member,  Senator  Kawasaki  and                                                               
Senate Judiciary  Committee member,  Senator Reinbold  joined the                                                               
meeting thereafter (via teleconference).                                                                                        
                                                                                                                                
^PRESENTATION(S):  Cybersecurity Issues and Solutions                                                                           
      PRESENTATION(S):  Cybersecurity Issues and Solutions                                                                  
                                                                                                                                
9:03:27 AM                                                                                                                  
CHAIR HOLLAND stated  that the legislature is in  the 4th Special                                                               
Session of  the year and  while cybersecurity is not  included in                                                               
the   call,  an   opportunity  arose   to  hear   from  freelance                                                               
cybersecurity consultant Burke Stephenson  who works for Cybersec                                                               
Innovation  Partners.  He   will  present  information  regarding                                                               
cybersecurity issues  and solutions,  particularly as  they apply                                                               
in  Alaska.  He  asked  Senator  Shower if  he  had  any  opening                                                               
comments.                                                                                                                       
                                                                                                                                
9:04:17 AM                                                                                                                    
CHAIR SHOWER apologized for not  being able to attend the meeting                                                               
in person and  thanked Chair Holland for stepping in  at the last                                                               
moment to chair the meeting in his stead.                                                                                       
                                                                                                                                
9:04:50 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
9:06:03 AM                                                                                                                    
CHAIR HOLLAND reconvened the meeting.                                                                                           
                                                                                                                                
9:06:55 AM                                                                                                                    
BURKE  STEPHENSON, Freelance  Cybersecurity Consultant,  Cybersec                                                               
Innovation  Partners  (CIP),  stated  his  intention  to  educate                                                               
legislators about cybersecurity and why  it is important not just                                                               
to the State of Alaska, but industry wide.                                                                                      
                                                                                                                                
He began the  presentation with a quote from John  F. Kennedy who                                                               
said, "There  are risks  and costs  to action.  But they  are far                                                               
less than the long-range risks of comfortable inaction."                                                                        
                                                                                                                                
9:08:07 AM                                                                                                                    
MR.  STEPHENSON said  he would  set  the stage  by repeating  the                                                               
statement he  made to Senator  Shower last month.  He paraphrased                                                               
his remarks, which read:                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The   State  of   Alaska   has   suffered  4   separate                                                                    
     cyberattacks  in  less  than  2  years.  We  have  been                                                                    
     informing  and providing  evidence  directly to  Alaska                                                                    
     over  the  last  18  months of  why.  This  is  because                                                                    
     Alaska's  current   IT  and   cyber  vendors   are  NOT                                                                    
     providing   adequate   protection,  and   Alaska's   IT                                                                    
     infrastructure   in  Insecure.   This  is   an  obvious                                                                    
     statement, unfortunately what we  see every day is that                                                                    
     the obvious is constantly being overlooked.                                                                                
                                                                                                                                
     Over the  next few  minutes, I am  going to  define and                                                                    
     explain, with  irrefutable evidence why  this statement                                                                    
     is  indicative of  the cyber  security posture  for all                                                                    
     industries,  businesses,  business  verticals,  and  is                                                                    
     systemically  causing  billions  in losses  and  costs,                                                                    
     nothing  will change  unless we  change  it. This  also                                                                    
     includes the Alaskan Government.                                                                                           
                                                                                                                                
9:09:12 AM                                                                                                                    
MR.  STEPHENSON deviated  from his  prepared statement  to report                                                               
that cybercrime is the third  largest economy in the world, after                                                               
those of the U.S. and China.  He reported that in 2021 cybercrime                                                               
will produce  $6 trillion.  It is even  more profitable  than the                                                               
global  drug trade,  which is  more than  all national  disasters                                                               
combined.                                                                                                                       
                                                                                                                                
9:09:51 AM                                                                                                                    
MR. STEPHENSON  paraphrased the last  paragraph on page 1  of the                                                               
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     In  this  special  session  on  voting  integrity  this                                                                    
     report is one  of the most important  parts of ensuring                                                                    
     voter  integrity. If  a  voter  registration of  Alaska                                                                    
     Department of Elections website  can be breached, which                                                                    
     have  been  and  still  can   be,  then  all  data  and                                                                    
     information,  including the  integrity  of the  voter's                                                                    
     identification, is all at risk of manipulation.                                                                            
                                                                                                                                
MR.  STEPHENSON stated  that all  state  agencies are  vulnerable                                                               
because  the government  is interconnected.  He  advised that  he                                                               
provided  examples to  show that  cybercriminals eventually  will                                                               
gain entry  if there is  an access  point. Once they  have gained                                                               
access,  these cybercriminals  are  able  to access  information,                                                               
including voter information and  possibly manipulate or steal the                                                               
data.                                                                                                                           
                                                                                                                                
9:11:09 AM                                                                                                                    
MR.  STEPHENSON paraphrased  the introduction  on page  2 of  his                                                               
remarks, which read:                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Before  I start,  I want  to again  thank you  for this                                                                    
     opportunity. I  am honored and  humbled to be  asked to                                                                    
     present  to  you  in  one   of  our  Nation's  greatest                                                                    
     establishments   in  the   assurance  of   justice  and                                                                    
     freedom. I am  honored, that in my  realm of experience                                                                    
     and  professional  expertise  I   have  been  asked  to                                                                    
     provide  this  statement  to you  regarding  the  cyber                                                                    
     security  posture of  Alaska's State  Government. I  am                                                                    
     humbled, humbled  because of the constant  struggle and                                                                    
     my  endeavors against  the  multitude of  organizations                                                                    
     and people that would  like to prevent this information                                                                    
     and data from coming to light.  I am honored to be able                                                                    
     to demonstrate and prove  with evidence and irrefutable                                                                    
     data that our  work is paramount to  the cyber security                                                                    
     of a company, an organization,  a U.S. State, a Nation,                                                                    
     and the World.                                                                                                             
                                                                                                                                
     I will  explain why the current  cyber security posture                                                                    
     is in  a critically vulnerable position  (Code red) for                                                                    
     the  entire  Alaskan   State  Government  and  requires                                                                    
     immediate remediation  and addressing. Alaska  has been                                                                    
     repeatedly attacked by  so called, highly sophisticated                                                                    
     cyber   criminals,  possibly   from  adversary   Nation                                                                    
     States.  We  are  aware  of  four  (4)  reported  cyber                                                                    
     attacks.  Three (3)  of which  have occurred  after our                                                                    
     initial  intelligence  and   sharing  of  the  insecure                                                                    
     infrastructure  with   numerous  known   and  available                                                                    
     attack  vectors.  Two  (2)  cyber  attacks,  the  voter                                                                    
     website and  the Courts were warned  as vulnerabilities                                                                    
     by us prior to the attacks                                                                                                 
                                                                                                                                
9:13:11 AM                                                                                                                    
MR. STEPHENSON provided his personal  background. He said he is a                                                               
U.S.  Army veteran  with top  security clearance.  He has  worked                                                               
within the  North Atlantic Treaty  Organization (NATO).  While in                                                               
the  US Army  he  served  in the  National  Security Agency.  His                                                               
cybersecurity training  started with the Rainbow  Books, which is                                                               
a series  of computer  security standards  developed by  the U.S.                                                               
Department  of  Defense  (DoD)  in the  1980s  and  1990s.  After                                                               
leaving the  US Army, he  became a  DoD contractor in  the United                                                               
Kingdom (UK) at an intelligence  gathering center for Europe. His                                                               
understanding   of  cybersecurity   and  data   manipulation  was                                                               
enhanced with  this assignment. After  that he moved  into vendor                                                               
and  partner solutions  as a  lead engineer  and became  familiar                                                               
with many different companies and the solutions they offer.                                                                     
                                                                                                                                
MR.  STEPHENSON related  that  for  the past  five  years he  has                                                               
focused  on cybersecurity,  working with  a technology  developed                                                               
inside NATO called  "truth serum." This work  uncovered a Stuxnet                                                               
[a  malicious  computer worm],  like  a  malware solution  inside                                                               
NATO.  This  tool  also  uncovered ways  that  the  Chinese  were                                                               
attempting  to steal  data from  the Joint  Strike Fighter  (JSF)                                                               
program. He said he mentioned  this because several slides in the                                                               
presentation  show technology  the  Chinese  have stolen  through                                                               
various DoD contractors and allied  partner nations. He said this                                                               
work has  helped him focus  his discovery skills to  identify the                                                               
penetration    access    points   on    public-facing    internet                                                               
infrastructure.                                                                                                                 
                                                                                                                                
9:18:25 AM                                                                                                                    
MR.  STEPHENSON  said  cybercriminals use  websites  and  public-                                                               
facing infrastructure  vulnerabilities for their  initial access.                                                               
Once inside, they work to  achieve elevated access before running                                                               
a malware or  ransomware attack. He now ranks  the attack vectors                                                               
from   1-10  or   low  to   critical,  based   on  national   and                                                               
international industry standards.                                                                                               
                                                                                                                                
9:20:13 AM                                                                                                                    
MR. STEPHENSON paraphrased the four known Alaska cyberattacks                                                                   
described on page 3 of the presentation, which read:                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     1st Cyber  Attack: 26th  April 2018.  Alaska's Division                                                                  
     of Public  Assistance (DPA),  a department  in Alaska's                                                                    
     Department  of Health  and Social  Services (DHSS)  was                                                                    
     breached  with a  trojan virus.  It  exposed more  than                                                                    
     100,000   Alaskan   citizen's   Personal   Identifiable                                                                    
     Information   (PII).   It   was  also   found   to   be                                                                    
     noncompliant with the  Health Insurance Portability and                                                                    
     Accountability Act a.k.a. HIPAA.                                                                                           
                                                                                                                                
          • https://www.manageengine.eu/log-                                                                                    
             management/data-breaches/alaska-households-                                                                        
             cyber-attack.html                                                                                                  
                                                                                                                                
     2nd   Cyber  Attack:   September  2020.   Alaska  State                                                                  
     Government's  voter registration  website was  breached                                                                    
     exposing  again   the  PII  of  over   113,000  Alaskan                                                                    
     citizens. This  breach was  announced in  late November                                                                    
     2020.                                                                                                                      
                                                                                                                                
          • https://www.manageengine.eu/log-management/data                                                                     
             -breaches/alaska-households-cyberattack.html                                                                       
          • In May 2020 we notified Alaskan Government                                                                          
             representatives   that    this   website    was                                                                    
             critically  vulnerable  and   needed  immediate                                                                    
             attention after having assisted the  FBI with a                                                                    
             similar security issue with  the Central Voting                                                                    
             system (www.vote.gov)  redirecting to  a Korean                                                                  
             DNS.                                                                                                               
          • This Actionable Intelligence was acknowledged;                                                                      
             however, we  were informed  that  the State  of                                                                    
             Alaska would not be engaging at that time. This                                                                    
             was due to  the recent  COVID Pandemic  and the                                                                    
           subsequential knock on effects to Alaska.                                                                            
                                                                                                                                
               o We understand that statement, however,                                                                         
                  question  the   rationale.  In   our  vast                                                                    
                  professional  experience,   these  exposed                                                                    
                  cyber vulnerabilities act like  beacons to                                                                    
                  cyber criminals.                                                                                              
          • To ignore a warning of cyber insecurity is                                                                          
             foolish and  unsafe. Failing  remediation could                                                                    
             constitute being complicit by being complacent,                                                                    
             or even negligent - especially when the person,                                                                    
             or persons  informed include  Chief Information                                                                    
             Security  Officers   (CISOs)   and  any   Chief                                                                    
             Officers (CxO) or Board Member.                                                                                    
          • The insecurity across the country is systemic                                                                       
             and not confined  to a  single sector,  but all                                                                    
             sectors  including   Banks,   Healthcare,   and                                                                    
             Insurers, just to name a few.                                                                                      
                                                                                                                                
9:24:25 AM                                                                                                                    
MR. STEPHENSON continued to paraphrase the known Alaska                                                                         
cyberattacks described on page 3 of the presentation, which                                                                     
read:                                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
       3rd Cyber Attack: April 2021-Malware was placed on                                                                     
     Alaska's court system email.                                                                                               
                                                                                                                                
          • On 1st April 2021 I emailed the Alaska state                                                                        
             Attorney General and the State Governor. A copy                                                                    
             of this  email  is  included for  reference  in                                                                    
             Appendix  [D].  Please  note  in  the  bulleted                                                                    
             section of warnings  of vulnerable web  site, I                                                                    
             specifically  identified   the  Alaska   Courts                                                                    
             website.   This   item   is   highlighted   for                                                                    
             referencing purposes.                                                                                              
                                                                                                                                
     4th Cyber Attack: Breached in May 2021-The Department                                                                    
     of Health and Social Services (DHSS)                                                                                       
                                                                                                                                
MR.  STEPHENSON  said the  only  response  he received  from  the                                                               
Alaska government was in early  May 2020, indicating they did not                                                               
want to engage. A copy of the  email is included in Appendix D of                                                               
this report.                                                                                                                    
                                                                                                                                
9:25:57 AM                                                                                                                    
MR. STEPHENSON paraphrased page 4 of the presentation, which                                                                    
read:                                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
9:25:58 AM                                                                                                                    
     Even  though the  data and  warnings that  have already                                                                    
     been provided to  the State of Alaska  shows a systemic                                                                    
     lack  of   cyber  security,  in  preparation   of  this                                                                    
     statement,  I  wanted to  have  a  more up-to-date  and                                                                    
     deeper understanding of the  cyber posture for Alaska's                                                                    
     Government.   My   preparations   initially   uncovered                                                                    
     ninety-eight   (98)   Government   websites   including                                                                    
     twenty-two  (22)   main  Government   Departments,  and                                                                    
     organizations  linked to  the  Alaskan Government.  One                                                                    
     example  of  an  organization   is  the  Alaska  Energy                                                                    
     Authority. These  organizations have  a .org and  not a                                                                    
     .gov ending  on their website  and domain name  but are                                                                    
     still linked via Alaskan Government websites.                                                                              
                                                                                                                                
9:27:04 AM                                                                                                                    
     As  a  cursory  check  I  accessed  each  of  the  main                                                                    
     Government  Department  websites  just  as  any  normal                                                                    
     person would using  a standard web browser.  I did this                                                                    
     to  confirm   that  these  websites  were   active  and                                                                    
     accessible.   Of   the   twenty-two   (22)   Government                                                                    
     Departments, eight (8) were 'Not  Secure'. That is one-                                                                    
     third (1/3)  of the  official webpages for  the Alaskan                                                                    
     Government  Departments  have   cyber  security  issues                                                                    
     rendering them  not secure.  These not  secure websites                                                                    
     include:                                                                                                                   
                                                                                                                                
          • Alaska State Legislature                                                                                            
          • Department of Military and Veterans Affairs -                                                                       
             Division of Homeland  Security Amber Alert                                                                         
          • Alaska Court System                                                                                                 
          • Department of Natural Resource                                                                                      
          • Department of Natural Resources - Division of                                                                       
             Forestry                                                                                                           
          • Department of Law                                                                                                   
          • Regulatory Commission of Alaska                                                                                     
          • Department of Revenue - Tax Division                                                                                
                                                                                                                                
MR. STEPHENSON said he circled items in the presentation in red                                                                 
to highlight that the website is not secure.                                                                                    
                                                                                                                                
9:27:51 AM                                                                                                                    
MR. STEPHENSON paraphrased page 5 of the presentation, which                                                                    
read:                                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     A  website  can be  considered  'Not  Secure' for  many                                                                    
     reasons. In  July 2018,  Google made  an update  to its                                                                    
     browser  to  include  a "Not  Secure"  warning  in  the                                                                    
     address  bar  as shown  circled  in  red in  the  above                                                                    
     screenshots. This  means that the website  is not using                                                                    
     a  secure  connection,  meaning  that  the  data  being                                                                    
     transferred, viewed,  and entered  is not  encrypted. A                                                                    
     not secure  warning can result  for many  reasons. Some                                                                    
     are  misconfigurations  that   can  quickly  be  fixed,                                                                    
     others  are  more  serious including  issues  with  the                                                                    
     encryption  or  the  encryption  certificate  and  keys                                                                    
     being,  or sometimes  not being  used. This  action was                                                                    
     initiated by  Google, as stated,  in 2018, in  hopes to                                                                    
     help  promote  secure encryption  connections  ensuring                                                                    
     that  the  data  being  used  and  in  transit  on  the                                                                    
     internet  is encrypted.  Sadly  today,  3 years  later,                                                                    
     this is  an obvious  configuration missed by  many, but                                                                    
     capitalized upon by cyber criminals.                                                                                       
                                                                                                                                
9:29:09 AM                                                                                                                    
MR. STEPHENSON continued to paraphrase page 5 of the                                                                            
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     I  wanted to  investigate  the  presence of  additional                                                                    
     Alaska  subdomains  to  gain an  understanding  of  the                                                                    
     scope of  the Alaskan Government websites  and presence                                                                    
     on  the internet.  This took  me  to the  first of  the                                                                    
     recently discovered  ninety-eight (98)  websites listed                                                                    
     in  alphabetical   order,  www.akenergyauthorty.org.  A                                                                    
     great example  and opportunity to look  at exactly what                                                                    
     an  organization  under  the Alaskan  Government  might                                                                    
     look  like.  Unfortunately,  this  immediately  started                                                                    
     with a "Not Secure" website  as shown in the screenshot                                                                    
     below. It also identified  an additional six subdomains                                                                    
     now taking  total websites  needing to  be investigated                                                                    
     for cyber  security to one  hundred and four  {104). In                                                                    
     addition, two of the subdomains  had an additional open                                                                    
     port,  and  the  server  hosting the  website  had  two                                                                    
     additional open  ports, four ports in  total, that will                                                                    
     each require further ingestion.                                                                                            
                                                                                                                                
9:30:51 AM                                                                                                                    
MR.   STEPHENSON  continued   to   paraphrase  page   5  of   the                                                               
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     I decided  to take an initial  Cyber Rated Index  (CRI)                                                                    
     score of the Alaska  Energy Authority website.  This is                                                                    
     where  the  cyber  security  posture  started   rapidly                                                                    
     spiraling  into  critical.  As  shown  in  the  picture                                                                    
     below  there are critical  cyber  security issues  with                                                                    
     the Public  Key Infrastructure  (PKI) certificate  used                                                                    
     on   the  website,   4   Common   Vulnerabilities   and                                                                    
     Exposures  (CVEs) all  with  a MEDIUM  risk rating  per                                                                    
     the   Common  Vulnerability   Scoring   System   (CVSS)                                                                    
     version    3.1,   and   additional    cyber    security                                                                    
     vulnerabilities   identified  elevating   this  website                                                                    
     and organization  to  a critical  cyber security  risk.                                                                    
     In other words,  a CRI score of  F (FAILURE).                                                                              
                                                                                                                                
9:31:28 AM                                                                                                                    
SENATOR KAWASAKI joined the meeting (via teleconference).                                                                       
                                                                                                                                
9:32:15 AM                                                                                                                    
MR. STEPHENSON  referenced the  picture on  page 5  and explained                                                               
that the Public Key Infrastructure  (PKI) certificate shown has a                                                               
10-year lifespan and will not  expire until 2027. This is despite                                                               
the fact that  best practice and the industry standard  for a PKI                                                               
certificate  is a  maximum of  three  years, but  PKIs are  often                                                               
limited  to months.  He highlighted  that if  cybercriminals gain                                                               
access to  an organization and  have obtained a  PKI certificate,                                                               
they want the longest certificate  lifespan to avoid requesting a                                                               
renewal.  Simply because  the PKI  certificate shown  has a  long                                                               
lifespan  does not  mean a  cybercriminal has  access, but  it is                                                               
indicative  of cybercriminal  activity.  He noted  that he  works                                                               
with one  of the  largest IT and  cybersecurity providers  in the                                                               
world  that recently  discovered  a  website with  cybercriminals                                                               
lying in wait,  gaining privileges similar to  what happened with                                                               
the SolarWinds attack. The  PKI certificate hides cybercriminals,                                                               
but he  is able  to find  them and  investigate them  further. He                                                               
acknowledged  that a  PKI certificate  may not  be indicative  of                                                               
cybercriminal behavior, but it should be investigated.                                                                          
                                                                                                                                
9:34:44 AM                                                                                                                    
MR. STEPHENSON mentioned the four  common vulnerabilities or CVEs                                                               
listed in the photo on slide 5 [Original punctuation provided]:                                                                 
                                                                                                                                
     • 4 Common Vulnerabilities and Exposure (CVEs) - all                                                                       
        MEDIUM RISK                                                                                                             
      • Failed every data protection law, regulation and                                                                        
        standard, GOPR, PCI, DSS, HIPAA, NIST, etc.                                                                             
      • Website does not redirect HTTP to HTTPS ensuring                                                                        
        website security (i.e., NOT SECURE)                                                                                     
     • Addition open ports                                                                                                      
        • Potentially managed by a 3rd party - General                                                                          
        Communications, Inc. in Anchorage, Alaska                                                                               
                                                                                                                                
9:34:49 AM                                                                                                                    
MR.  STEPHENSON  said  that once  a  vulnerability  is  announced                                                               
publicly,  the   company  creates  a  common   vulnerability  and                                                               
exposure  and  assigns  a  numeric   to  that  vulnerability  and                                                               
provides a patch.  He clarified that every CVE he  cites is known                                                               
and exploitable.  If it exists  on a  system, it can  be actively                                                               
used by cybercriminals to gain access.                                                                                          
                                                                                                                                
9:35:29 AM                                                                                                                    
MR.  STEPHENSON noted  that he  also mentioned  that the  website                                                               
failed  data  protection   laws  and  regulations,  specifically,                                                               
Europe's  general  data  protection requirement  regulation.  The                                                               
Payment  Card  Industry  Data Security  Standard  (PCI  DSS)  for                                                               
banking,  healthcare   HIPPA,  and  the  National   Institute  of                                                               
Standards and Technologies (NISTs).  Furthermore, the website did                                                               
not redirect from http. He explained  that when a user accesses a                                                               
website through a  browser, there are two ports:  http and https.                                                               
The  unsecured http  port presents  information  to the  browser,                                                               
which was the  web interface started years ago.  The secure https                                                               
port  has since  been  incorporated. Http  is typically  assigned                                                               
port A and https is assigned port 443 on a server.                                                                              
                                                                                                                                
9:36:29 AM                                                                                                                    
MR.  STEPHENSON stated  that he  always advises  turning off  the                                                               
http  port A  because  there is  no reason  to  have an  unsecure                                                               
protocol  open. But  what he  discovered  is not  only were  both                                                               
ports open,  but if he  asked his  browser to access  the website                                                               
over  the unsecure  http, it  would  not redirect  to the  secure                                                               
https. All data on that unsecure  site is viewable by anybody, he                                                               
said.                                                                                                                           
                                                                                                                                
9:37:27 AM                                                                                                                    
MR. STEPHENSON directed attention to  the screenshot on page 6 of                                                               
the cyber  rated index  of the  legislative website.  The results                                                               
were checked again just last  night to confirm these findings. He                                                               
said he would  explain the security vulnerabilities  later in the                                                               
presentation.                                                                                                                   
                                                                                                                                
9:38:00 AM                                                                                                                    
MR. STEPHENSON turned to page 7 and paraphrased the conclusion,                                                                 
which read:                                                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     CONCLUSION                                                                                                               
                                                                                                                                
     The  cyber  security  posture   of  the  Alaskan  State                                                                    
     Government  is   not  an  anomaly.   Unfortunately,  we                                                                    
     experience   many  similar   cyber  postures   in  many                                                                    
     organizations  and industries,  including  the very  IT                                                                    
     and cyber security vendors in  which rely upon daily. I                                                                    
     have additional  information that  I have  prepared for                                                                    
     you in this brief.                                                                                                         
                                                                                                                                
     They are:                                                                                                                  
                                                                                                                                
          • Appendix A: pg.8  -  The initial  Cyber  Rated                                                                  
             Index (CRI) report I provided to Alaskan                                                                           
             Senators just last month                                                                                           
          • Appendix B: pg. 16 - Excerpt of email  sent on                                                                  
             9th April 2020 warning of elections website                                                                        
          • Appendix C: pg. 18 - Excerpt of email  sent on                                                                  
             30th May 2020 to Commissioner at Alaska                                                                            
             Department of Administration                                                                                       
          • Appendix D: pg.  19 -  The  email to  Alaska's                                                                  
             Attorney General warning that the Alaska Court                                                                     
             system was vulnerable, among others                                                                                
          • Appendix E:  pg.  21  -   Weaponizing  of  the                                                                  
             internet                                                                                                           
          • Appendix F: pg. 23  - Lack  of cyber  security                                                                  
             with IT and Cyber vendors                                                                                          
        • Appendix G: pg. 25 - Where to go from here?                                                                       
          • Appendix H: pg. 26 - Additional Information and                                                                 
             References -  third party  professional reports                                                                    
             validating the  critical  necessity  to  ensure                                                                    
             cyber  security   to  public   facing  internet                                                                    
             webpage infrastructure                                                                                             
          • Appendix I: pg. 28 - Partners                                                                                   
                                                                                                                                
9:40:03 AM                                                                                                                    
MR.   STEPHENSON  continued   to   paraphrase  page   7  of   the                                                               
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     There is one connection that  I would like to highlight                                                                    
     between  Appendix E:  Weaponizing of  the internet  and                                                                    
     Appendix F:  Lack of cyber  security with IT  and Cyber                                                                    
     vendors.  In Weaponizing  of  the  internet, I  briefly                                                                    
     cover  STUXNET  and   how  unknown  Microsoft  zero-day                                                                    
     vulnerabilities were  utilized to gain  initial access.                                                                    
     Now  I want  to correlate  that to  the information  in                                                                    
     Appendix F where I  briefly cover SolarWinds, codenamed                                                                    
     SUNBURST.  Senators and  Representatives, understanding                                                                    
     the direct  connection between these two  are paramount                                                                    
     to understanding the problem.                                                                                              
                                                                                                                                
9:40:38 AM                                                                                                                    
CHAIR SHOWER  interjected to relay  a request the  committee move                                                               
into executive session  because of the sensitivity  of the topic.                                                               
He  advised   that  he  had   instructed  his  aide   to  contact                                                               
Legislative Legal Services for clarification.                                                                                   
                                                                                                                                
CHAIR HOLLAND  said he was  not overly concerned because  much of                                                               
this  information is  already  available to  the  public, but  he                                                               
would like to hear from  Legislative Legal. He suggested that the                                                               
committee take  a short break  and noted  that a text  thread was                                                               
running among the  committee members. He asked  Mr. Stephenson if                                                               
he had anything to add.                                                                                                         
                                                                                                                                
9:43:12 AM                                                                                                                    
MR. STEPHENSON  confirmed that he  was accessing  the legislative                                                               
system through a web browser  interface. He found vulnerabilities                                                               
and if he  could find them, so  can cybercriminals. Nevertheless,                                                               
he  agreed with  Senator  Shower that  it is  not  wise to  speak                                                               
publicly  about vulnerabilities.  He noted  that  because of  the                                                               
sensitivity of the  topic, he only invited  Mark Sayampanathan to                                                               
join this briefing.                                                                                                             
                                                                                                                                
9:44:28 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
9:54:40 AM                                                                                                                    
CHAIR HOLLAND  reconvened the meeting and  advised Mr. Stephenson                                                               
to disconnect  from the  Teams meeting and  call the  800 number,                                                               
844-586-9085,  since the  committee  plans to  go into  executive                                                               
session.                                                                                                                        
                                                                                                                                
9:56:38 AM                                                                                                                    
SENATOR HUGHES  asked for the  number and Chair  Holland repeated                                                               
it.                                                                                                                             
                                                                                                                                
SENATOR SHOWER clarified the area code.                                                                                         
                                                                                                                                
9:57:42 AM                                                                                                                    
SENATOR  KIEHL   pointed  out  that  in   executive  session  the                                                               
committee  could only  discuss the  things that  present a  great                                                               
threat to the state. Thus  far, the presentation has only covered                                                               
general cybersecurity items and  those topics cannot be discussed                                                               
in executive  session. He cautioned  the committee to  be careful                                                               
about  how  it splits  the  conversations  because a  substantial                                                               
amount of  the information  would be  appropriate for  the public                                                               
session.  He acknowledged  that  it would  be  difficult for  the                                                               
chair to decide how to split the topics.                                                                                        
                                                                                                                                
9:58:32 AM                                                                                                                    
CHAIR HOLLAND  asked Mr. Stephenson whether  the committee should                                                               
move into executive session immediately.                                                                                        
                                                                                                                                
9:59:05 AM                                                                                                                    
MR.  STEPHENSON   replied  his  intention  was   to  discuss  the                                                               
vulnerabilities of  the Alaska Legislature's website  in addition                                                               
to  some of  the others  he previously  mentioned. He  offered to                                                               
tailor his comments to cybersecurity for Alaska.                                                                                
                                                                                                                                
9:59:40 AM                                                                                                                    
CHAIR  HOLLAND  clarified that  there  would  be no  votes  taken                                                               
during  this  meeting or  while  the  committee is  in  executive                                                               
session.  This is  a presentation  so legislation  was not  being                                                               
considered.                                                                                                                     
                                                                                                                                
10:00:07 AM                                                                                                                   
SENATOR  HUGHES asked  if it  would  be appropriate  to have  Tim                                                               
Banaszak, the Information Technology  Manager, participate if the                                                               
committees  will  go into  executive  session  and discusses  the                                                               
Alaska State Legislature website in particular.                                                                                 
                                                                                                                                
CHAIR HOLLAND offered his belief that it would be appropriate.                                                                  
                                                                                                                                
10:00:30 AM                                                                                                                   
MR.   STEPHENSON  advised   that  he   planned  to   discuss  the                                                               
weaponizing of the internet as  well as the lack of cybersecurity                                                               
with IT  and cyber vendors,  neither of which  correlate directly                                                               
to the Alaska  government. He said he could either  go over those                                                               
now  or  leave it  to  the  members to  read  in  the report.  He                                                               
proceeded  to  explain  that  the  weaponizing  of  the  internet                                                               
explains how the  U.S. and Israeli agencies developed  a code for                                                               
Stuxnet  [malware   to  adversely   affect  an   Iranian  nuclear                                                               
facility].  It  used  a  Microsoft  vulnerability  zero  day  for                                                               
access. Stuxnet  showed the world  that the internet can  be used                                                               
for cyberwarfare.                                                                                                               
                                                                                                                                
10:01:40 AM                                                                                                                   
MR.  STEPHENSON noted  the two  screen  shots of  the U.S.  joint                                                               
strike  fighter and  the Chinese  passenger airliner  on page  22                                                               
reference  the   technologies  that  have  been   stolen  through                                                               
cybertheft. He described the way  this correlates to the State of                                                               
Alaska:                                                                                                                         
                                                                                                                                
     Think of  SolarWinds. They had  supply chain  into tens                                                                    
     of  thousands  of  companies because  they  provided  a                                                                    
     solution.  So every  IT cybersecurity  hosting whatever                                                                    
     vendor  the  State  of Alaska  uses,  is  inherently  a                                                                    
     supply  chain vulnerability  being  brought in,  making                                                                    
     your government  insecure. And that's  how I  tie those                                                                    
     two together.                                                                                                              
                                                                                                                                
10:02:38 AM                                                                                                                   
SENATOR KAWASAKI offered  his view that much  of this information                                                               
is  available online  and  that  it should  be  presented to  the                                                               
entire  legislature  rather than  in  executive  session to  just                                                               
these two committees.                                                                                                           
                                                                                                                                
10:03:28 AM                                                                                                                   
SENATOR  HUGHES offered  her  understanding  that any  legislator                                                               
could call and join the executive session.                                                                                      
                                                                                                                                
10:03:54 AM                                                                                                                   
SENATOR KAWASAKI restated his position.                                                                                         
                                                                                                                                
10:04:30 AM                                                                                                                   
MR. STEPHENSON  interjected to explain  that he  uses open-source                                                               
intelligence (OSINT)  available on the internet.  He described it                                                               
as the interactions  of the computers interfacing  with web pages                                                               
and  the  browser.  OSINT  uses   information  that  is  publicly                                                               
available  to anyone.  However, this  does not  mean that  people                                                               
have  the  ability  to  decipher  the  information  or  determine                                                               
existing vulnerabilities.                                                                                                       
                                                                                                                                
10:05:20 AM                                                                                                                   
CHAIR  HOLLAND  expressed  doubt  that 60  legislators  could  be                                                               
convened  via  telephone  in  the  next hour  to  listen  to  the                                                               
presentation.                                                                                                                   
                                                                                                                                
10:05:51 AM                                                                                                                   
CHAIR SHOWER  stated that Megan Wallace,  Director of Legislative                                                               
Legal Services, was available to advise the committee.                                                                          
                                                                                                                                
10:07:10 AM                                                                                                                   
CHAIR HOLLAND recognized Megan Wallace.                                                                                         
                                                                                                                                
10:07:15 AM                                                                                                                   
MEGAN WALLACE, Director,  Legislative Legal Services, Legislative                                                               
Affairs Agency, Alaska State  Legislature, Juneau, Alaska, stated                                                               
that it was brought to her  attention that the committee wants to                                                               
discuss  cybersecurity issues  that  may  potentially affect  the                                                               
security  of state  agencies. She  cited Uniform  Rule 22(b)  and                                                               
recommended, in  conjunction with advice from  Tim Banaszak, that                                                               
these discussions  be held in  executive session. She  added that                                                               
while there  may be  interest at some  point in  briefing another                                                               
group of  legislators or the  public on  the issues that  will be                                                               
considered,  her  recommendation is  to  delay  that until  after                                                               
there  has been  a  more deliberative  process  of assessing  the                                                               
risks.                                                                                                                          
                                                                                                                                
10:08:55 AM                                                                                                                   
CHAIR    HOLLAND   summarized    his    understanding   of    her                                                               
recommendation.                                                                                                                 
                                                                                                                                
10:09:25 AM                                                                                                                   
MS. WALLACE explained that it  is difficult to give comprehensive                                                               
advice without  knowing the matters  that would be  discussed out                                                               
of executive  session versus in  executive session. Based  on her                                                               
understanding  of the  information  that will  be presented,  her                                                               
recommendation is to hear it in executive session.                                                                              
                                                                                                                                
10:10:00 AM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
10:11:37 AM                                                                                                                   
CHAIR  HOLLAND  reconvened  the  meeting  and  advised  that  Mr.                                                               
Stephenson would speak on the  non-sensitive issues he previously                                                               
mentioned.  At that  point  then the  committee  would move  from                                                               
Teams to the phone lines for an executive session.                                                                              
                                                                                                                                
10:12:14 AM                                                                                                                   
CHAIR SHOWER  agreed with  the plan to  listen to  less sensitive                                                               
topics before moving into executive session.                                                                                    
                                                                                                                                
10:12:39 AM                                                                                                                   
CHAIR  HOLLAND asked  Mr.  Sayampanathan to  put  himself on  the                                                               
record. He stated the committee was having audio issues.                                                                        
                                                                                                                                
10:13:04 AM                                                                                                                   
MARK SAYAMPANATHAN advised  that he was unable  to participate in                                                               
the chat committee members were having.                                                                                         
                                                                                                                                
10:13:22 AM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
10:14:14 AM                                                                                                                   
CHAIR HOLLAND reconvened the meeting.                                                                                           
                                                                                                                                
10:14:21 AM                                                                                                                   
SENATOR  HUGHES  pointed out  that  whoever  was controlling  the                                                               
livestream  through AKL.TV  is not  supposed to  stream when  the                                                               
committee is at ease. She  asked if streaming is occurring during                                                               
the committee at eases.                                                                                                         
                                                                                                                                
10:14:38 AM                                                                                                                   
CHAIR  HOLLAND agreed  that when  the  committee is  at ease  the                                                               
broadcast  should   stop.  He  recommended  that   the  committee                                                               
exercise caution.  Seeing no further  questions or  comments from                                                               
the committee, he asked Mr. Stephenson to continue.                                                                             
                                                                                                                                
10:15:10 AM                                                                                                                   
MR. STEPHENSON paraphrased his conclusion  on page 7. He recapped                                                               
that his  intent was  to draw  a correlation  between weaponizing                                                               
the internet,  including brief coverage  of Stuxnet,  how unknown                                                               
Microsoft zero-day vulnerabilities were  used to gain the initial                                                               
access, and  the information  in Appendix  F that  briefly covers                                                               
SolarWinds,   code  name   SUNBURST.  Understanding   the  direct                                                               
connection between  these two is  paramount to  understanding the                                                               
problem, he said.                                                                                                               
                                                                                                                                
10:15:50 AM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
10:16:39 AM                                                                                                                   
CHAIR HOLLAND reconvened the meeting  and asked Mr. Stephenson to                                                               
resume.                                                                                                                         
                                                                                                                                
10:17:09 AM                                                                                                                   
MR. STEPHENSON continued to paraphrase the conclusion on page 7                                                                 
of the presentation, which read:                                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Understanding the  problem means steps can  be taken to                                                                    
     mitigate the  problem. The connection  I would  like to                                                                    
     make  clear is  that the  same methods  of exploitation                                                                    
     and  manipulation that  were used  by  the agencies  in                                                                    
     STUXNET were  also used in SUNBURST.  These methods are                                                                    
     being used  daily against companies and  governments to                                                                    
     devastating effect.                                                                                                        
                                                                                                                                
     To close my  opening statement, and before  I dive into                                                                    
     the  data and  examples,  I would  like  to re-read  my                                                                    
     opening statement as now  the clarity and understanding                                                                    
     of  that statement  should ring  true and  act for  the                                                                    
     urgent  call to  arms  before the  next  attack on  the                                                                    
     Alaskan State Government undoubtedly occurs.                                                                               
                                                                                                                                
     "The   State  of   Alaska  has   suffered  4   separate                                                                    
     cyberattacks  in  less  than  2  years.  We  have  been                                                                    
     informing  and providing  evidence  directly to  Alaska                                                                    
     over  the  last  18  months of  why.  This  is  because                                                                    
     Alaska's  current   IT  and   cyber  vendors   are  NOT                                                                    
     providing   adequate   protection,  and   Alaska's   IT                                                                    
     infrastructure   is  Insecure.   This  is   an  obvious                                                                    
     statement, unfortunately what we  see every day is that                                                                    
     the obvious is constantly being overlooked."                                                                               
                                                                                                                                
     Inaction will not fix the  problem nor make it go away,                                                                    
     it  will  simply  compound the  challenges  and  costs.                                                                    
     Ensuring   voting   integrity   is  critical   to   our                                                                    
     Democracy. Senators, we stand ready for service.                                                                           
                                                                                                                                
10:19:13 AM                                                                                                                   
MR. STEPHENSON directed attention to Appendix E on page 21 of                                                                   
the presentation. He paraphrased Appendix E, which read:                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     APPENDIX E: WEAPONIZING OF THE INTERNET                                                                                  
                                                                                                                                
     The age of the computer  and the internet has developed                                                                    
     and  rapidly advanced  science and  technology for  the                                                                    
     benefit of the world, the  United States, and the State                                                                    
     of Alaska. One such  amazing example is the accelerated                                                                    
     advancements in  the medical  field. This  computer age                                                                    
     has also  seen the  accelerated growth and  reliance on                                                                    
     IT systems  in our  daily lives.  It has  brought about                                                                    
     the  internet   and  the  ability  to   share  and  use                                                                    
     information open  and freely in seconds  to anywhere in                                                                    
     the world.  It has  provided the  ability to  have live                                                                    
     video chats, like the one  we are on today. Compared to                                                                    
     just 20  years ago this was  practically impossible and                                                                    
     required either telephone, satellite link or travel.                                                                       
                                                                                                                                
     In all  the immense benefits  this has brought,  it has                                                                    
     also created  the weaponization  of the  same internet.                                                                    
     The first  real display of this  weaponization occurred                                                                    
     with  the STUXNET  malware used  to cause  catastrophic                                                                    
     effect  on the  Iranian Nuclear  Facility. STUXNET  was                                                                    
     first discovered  in 2010. That  is only 11  years ago.                                                                    
     It was developed to  attack targeted programmable logic                                                                    
     controllers  (PLCs) manufactured  by  Siemens that  are                                                                    
     used to  automate machine processes  specifically those                                                                    
     in Nuclear  Facilities. It is now  widely accepted that                                                                    
     STUXNET  was created  by the  intelligence agencies  of                                                                    
     the  United States  and Israel.  So, we  have basically                                                                    
     created our own worst nightmare.                                                                                           
                                                                                                                                
10:21:45 AM                                                                                                                   
MR. STEPHENSON continued to paraphrase Appendix E of the                                                                        
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     One   fact   about   STUXNET   that   is  particularly                                                                     
     interesting  is that  it exploits  multiple  previously                                                                    
     unknown  Windows  zero-day  vulnerabilities  to  infect                                                                    
     computers  and  spread.  Does  that  ring  a  bell  for                                                                    
     anyone?  Just  this  past   month  there  have  been  a                                                                    
     number   of   newly  identified    Microsoft   zero-day                                                                    
     vulnerabilities     including      the    Autodiscover                                                                     
     vulnerability.    What    makes    the    Autodiscover                                                                     
     vulnerability  particularly  bad is  not the fact  that                                                                    
     it is  a serious  attack  vector that  cyber  criminals                                                                    
     can and  have  used, but  the fact  that Microsoft  was                                                                    
     aware of this  vulnerability for  5 years.                                                                                 
                                                                                                                                
     Reference: Article published on  27th September 2021 by                                                                
     the  Register   states  how   Microsoft  knew   of  the                                                                    
     Autodiscover vulnerability 5 years ago.                                                                                    
     https://www.theregister.com/2021/09/27/microsoft                                                                           
     exchange autodiscover/                                                                                                   
                                                                                                                                
10:22:59 AM                                                                                                                   
MR. STEPHENSON continued to paraphrase Appendix E on page 21 of                                                                 
the presentation, which read:                                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     We  can  also learn  a  lot  from the  unfortunate  and                                                                    
     treasonous  release  of  the  thousands  of  classified                                                                    
     documents  by Edward  Snowden in  2013.  Some of  those                                                                    
     documents included  classified briefing  documents from                                                                    
     the National  Security Agency  (NSA). They  explain the                                                                    
     ability that the  United States had to  take control of                                                                    
     IT systems even  after a fresh and  new installation of                                                                    
     software and  firmware.  What  we discern from  this is                                                                    
     that the  United States  had these  capabilities before                                                                    
     the Snowden debacle in 2013.  What this again reaffirms                                                                    
     is the  complete insecurity of every  connected system,                                                                    
     especially everything that is Information Technology.                                                                      
                                                                                                                                
10:24:06 AM                                                                                                                   
     From 2010, to 2013, and  fast forward to 2021, Alaska's                                                                    
     Government,  just  like  all  U.S.  State  Governments,                                                                    
     implemented   and  became   dependent  on   IT  systems                                                                    
     throughout  every  department, organization,  district,                                                                    
     and incorporated town.  All the Personable Identifiable                                                                    
     Information  (PII)  and  other data  considered  to  be                                                                    
     sensitive  or  classified  has  been  consolidated  and                                                                    
     stored  on IT  systems,  clouds,  databases, and  such.                                                                    
     This wealth  of information is invaluable  to criminals                                                                    
     for a multitude of nefarious purposes.                                                                                     
                                                                                                                                
                                                                                                                                
10:24:54 AM                                                                                                                   
MR. STEPHENSON reviewed the examples on page 22 of the                                                                          
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Cyber  Threats  That are  NOT  Caught  or Prevented  by                                                                    
     Other Solutions                                                                                                            
                                                                                                                                
        If there were others then these and many other cyber                                                                    
        intrusions, attacks, etc., would have been prevented                                                                    
                                                                                                                                
      • https;J/www.cnbc.com/2011/11/08/chinese-theft-of-                                                                     
          sensitive-us-military-technolOft:Still-hua-                                                                         
          problem.html                                                                                                        
      •     China builds the J-20, a new stealth fighter                                                                        
          jet, they were reportedly helped by industrial                                                                        
       espionage. The design resembles the F-22. And the                                                                        
         FC-31 Gryfalcon, in development, resembles the                                                                         
          Lockheed F-35 Joint Strike Fighter                                                                                    
        •  "What Beijing has been very good at Is                                                                               
          targeting U.S. defense contractors, getting Into                                                                      
          their computer systems through various types of                                                                       
          essentially c:yber warfare and steaUngthe designs                                                                     
          of some of America's best military assets: said                                                                       
         Harry Kezlanls, director of defense studies at                                                                         
         the Center for the National Interest, a think                                                                          
          tank founded by former President Richard Nixon.                                                                       
          • According to Kazlanls, the Chinese have been                                                                        
             able to  hack into  computer networks  to steal                                                                    
             designs and other Information on U.S. carriers,                                                                    
             advanced defense systems as weH as the F-22 and                                                                    
             F-35 jets.                                                                                                         
        • https?IIJNww,claHyman co ykfscJencetecbllfllde;-                                                                      
          389312?/Chlnese:A:                2fl-stealth-jet-                                                                    
          baR4::rnlljtaCY::Qlanwtplen-                                                                                          
          haclcpl'5;;mafres:pubHc- d@byt html                                                                                   
                                                                                                                                
10:26:02 AM                                                                                                                   
MR. STEPHENSON reviewed the second example on page 22 of the                                                                    
report, which read:                                                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     • https://www.extremetech.com/extreme/300313-report-                                                                     
        chinas-new-comac-c919-jetliner-is-built-with-                                                                         
        stolen-technology                                                                                                     
                                                                                                                                
MR.  STEPHENSON  stated that  the  new  Chinese [C919]  passenger                                                               
[narrow body jet built by  the Commercial Aircraft Corporation of                                                               
China  (COMAC)] has  technology for  parts and  components stolen                                                               
through  various means  including cyber  theft. This  photo shows                                                               
components and the source of the stolen data.                                                                                   
                                                                                                                                
10:26:25 AM                                                                                                                   
MR. STEPHENSON turned to page 23 of the report and paraphrased                                                                  
Appendix F, which read:                                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     APPENDIX F:  LACK OF  CYBER SEUCITV  WITH IT  AND CYBER                                                                  
     VENDORS                                                                                                                  
                                                                                                                                
     The level of lacking  cyber security is systemic across                                                                    
     our IT and cyber security  vendors that we use and rely                                                                    
     on every day. I have  personally researched over 150 of                                                                    
     the   top   IT   and   cyber   security   vendors   and                                                                    
     manufacturers. The  systemic lack of  fundamental cyber                                                                    
     security  across  their  plethora  of  internet  facing                                                                    
     websites, domains and subdomains  is a standing example                                                                    
     of the lack  of knowledge and expertise,  by these very                                                                    
     professionals, to close the  initial access points used                                                                    
     by cyber criminals.                                                                                                        
                                                                                                                                
10:27:12 AM                                                                                                                   
MR. STEPHENSON described  a discovery he made last  week. He said                                                               
he  looked  into  a  main  IT  provider  in  the  U.S.  based  on                                                               
information he had  seen on the internet. He  discovered that one                                                               
of  their VPNs  had expired  PKI certificates  that were  running                                                               
encryption  algorithms that  can be  hacked in  6-10 minutes.  He                                                               
notified the vendor  of his findings but  ultimately the provider                                                               
decided not  to proceed. Unfortunately,  in his view this  is the                                                               
standard reaction, he said.                                                                                                     
                                                                                                                                
10:28:18 AM                                                                                                                   
MR. STEPHENSON  returned to the report  on Appendix F on  page 23                                                               
of the presentation, which read:                                                                                                
                                                                                                                                
[Original punctuation provided]                                                                                                 
                                                                                                                                
     Take  for example  the  SolarWinds  breach. This  well-                                                                    
     known cyber  attack and breach  was an  amazing example                                                                    
     of the  cunning, patience,  and skill  that we  face in                                                                    
     today's cyber criminal. This  breach alone has affected                                                                    
     over  18,000  companies  worldwide including  the  U.S.                                                                    
     Federal Government and Department  of Defense. The cost                                                                    
     of the cleanup  of this one single  attack is estimated                                                                    
     in the $billions.                                                                                                          
                                                                                                                                
                                                                                                                                
10:28:51 AM                                                                                                                   
     This  attack  was  so prolific  and  damaging  that  it                                                                    
     caused the  United States Senate  to conduct  a hearing                                                                    
     dedicated  to  understanding  how  and  why  this  took                                                                    
     place. Testimonies  were heard  from some of  the Chief                                                                    
     Executives  and cyber  experts  from many  professional                                                                    
     and  top  tier  cyber  companies  including  SolarWinds                                                                    
     themselves. They answered many  questions posed by U.S.                                                                    
     Senators;  however,   the  absolute  single   and  most                                                                    
     important  question was  never asked  by anyone,  not a                                                                    
     Senator,  not   an  investigator,  no  one.   That  one                                                                    
     question  is: How  did  the  cybercriminal(s) gain  the                                                                    
     initial access into SolarWinds?                                                                                            
                                                                                                                                
10:29:38 AM                                                                                                                   
MR. STEPHENSON continued to review Appendix F on page 23 of the                                                                 
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     While  the SolarWinds  cyberattack was  sophisticate in                                                                    
     the total  scope, the  initial access  was not.  It was                                                                    
     simple. It was  not by any means  sophisticated. It was                                                                    
     a website that the cyber  criminals were able to breach                                                                    
     and spoof.  This got them inside  the infrastructure of                                                                    
     SolarWinds   and   allowed   the  criminals   to   move                                                                    
     internally undetected for months.                                                                                          
                                                                                                                                
     The  cyber criminals  gained  access  to SolarWinds  by                                                                    
     exposing     readily    available     cyber    security                                                                    
     vulnerabilities   on  their   public  facing   internet                                                                    
     webpages  and infrastructure.  Just  like  the ones  in                                                                    
     Alaska's Government.  The cyber criminals were  able to                                                                    
     create a duplicate website with  a different URL, but a                                                                    
     website   that   looked   identical  to   an   official                                                                    
     SolarWinds  website.  This  tactic  is  called  website                                                                    
     spoofing. They were then able  to exploit the known and                                                                    
     readily  available  vulnerabilities on  their  internet                                                                    
     systems   to   gain    access,   eventually   attaining                                                                    
     administrative access.  Once they  had this,  they were                                                                    
     able to use the SolarWinds  IT systems to assign a real                                                                    
     PKI  encryption certificate  to  their spoofed  website                                                                    
     giving  the website  the added  appearance  of being  a                                                                    
     valid  SolarWinds  website.  From there  the  criminals                                                                    
     used  their   time  and   privileged  access   to  move                                                                    
     laterally within the company  and insert malicious code                                                                    
     into an  update of  the SolarWinds software  that would                                                                    
     eventually be pushed out to their customers.                                                                               
                                                                                                                                
10:31:47 AM                                                                                                                   
MR. STEPHENSON continued to paraphrase Appendix F on page 23 of                                                                 
the presentation, which read [Original punctuation provided]:                                                                   
                                                                                                                                
     So why  was this question  never asked, or  answered in                                                                    
     this emergency U.S. Senate hearing?                                                                                        
                                                                                                                                
10:32:00 AM                                                                                                                   
Microsoft was notified  by us in August 2019  about the existence                                                               
of  hundreds  of  security  flaws  in  the  CRYPT32.DLL.  One  of                                                               
Microsoft's API modules. This security  flaw was discovered by us                                                               
using  Whitethorn.  We  contacted  Microsoft  and  disclosed  the                                                               
information pertaining  to the security  vulnerability. Microsoft                                                               
performed their  own internal  research to  try to  discover this                                                               
vulnerability and  were unable. After  their response back  to us                                                               
stating  that they  were unable  to locate  the vulnerability  we                                                               
replied with further information on  the vulnerability and how to                                                               
identify  it.   Again,  Microsoft   was  unable  to   locate  the                                                               
vulnerability. In  the end  it took  us hand-walking  their cyber                                                               
security  'experts' through  the discovery  of the  vulnerability                                                               
that resulted  in the  patch and  announcement of  CVE- 2020-0601                                                               
for  Windows CryptoAPI  Spoofing Vulnerability.  The severity  of                                                               
this vulnerability is rated as HIGH with  a score of 8.1 out of a                                                               
possible 10 according to  National Vulnerability Database's (NVD)                                                               
latest version, version 3.1.  The National Vulnerability Database                                                               
is a database  maintained by the National  Institute to Standards                                                               
and  Technology,  a.k.a.  NIST.   NIST  is  a  physical  sciences                                                               
laboratory  and  non-regulatory  agency   of  the  United  States                                                               
Department of Commerce.                                                                                                         
                                                                                                                                
     Reference:   https://nvd.nist.gov/vuln/detail/CVE-2020-                                                                  
     0601                                                                                                                     
                                                                                                                                
10:35:10 AM                                                                                                                   
MR. STEPHENSON continued  to review Appendix F on page  24 of the                                                               
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     What is  worse. The updated version  of the CRYPT32.DLL                                                                    
     included a  minimum of  4 embedded  certificates, i.e.,                                                                    
     vulnerabilities.  We know  this because  we scanned  it                                                                    
     with  Whitethorn  after  its release.  After  the  CVEs                                                                    
     release the  CRYPT32.DLL that was being  used by ZenMAP                                                                    
     (NMAP  security scanner)  utilized version  6 and  held                                                                    
     379 certificates with the same spoofing capability.                                                                        
                                                                                                                                
     A few months later Microsoft  was again contacted by us                                                                    
     because   I   had    first-hand   discovered   critical                                                                    
     vulnerabilities on  their internet presence  in Israel.                                                                    
     At this time, we agreed to  act in the best interest of                                                                    
     all  and as  conscientious cyber  professionals proving                                                                    
     the information to  Microsoft. We all want  to make the                                                                    
     world and the internet  a safer place, right? Microsoft                                                                    
     took the  information and were  able to remove  some of                                                                    
     the most  critical vulnerabilities that  we identified.                                                                    
     What  remains   puzzling  to  this  very   day  is  why                                                                    
     Microsoft   will  not   extend   the   same  level   of                                                                    
     professionalism  and engage  us in  discussions on  the                                                                    
     vast number  of other internet vulnerabilities  we have                                                                    
     discovered and notified them  about. To date, Microsoft                                                                    
     continues to refuse to engage,  and only try to push to                                                                    
     their free  disclosure program. They  are not  alone in                                                                    
     this  practice. Just  last week  an Apple  iOS zero-day                                                                    
     was released  by a  vulnerability hunter  because Apple                                                                    
     refused  to responsibly  engage with  them and  fix the                                                                    
     vulnerability.                                                                                                             
                                                                                                                                
10:38:19 AM                                                                                                                   
MR. STEPHENSON continued to review Appendix F on page 24 of the                                                                 
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The  final example  that I  will provide  demonstrating                                                                    
     how rife  the IT  and cyber  security industry  is with                                                                    
     cyber security vulnerabilities  and their negligence to                                                                    
     engaged  will  be  an   example  using  the  zero-trust                                                                    
     Rockstar Zscaler.  Over the course  of a few  months, I                                                                    
     compiled  the Cyber  Rated Index  (CDI) scores  of over                                                                    
     150 of the  top IT and cyber security  companies in the                                                                    
     world.  Zscaler   was  included  in   this  compilation                                                                    
     Scoring  an  F  and   having  discovered  a  number  of                                                                    
     vulnerabilities     that    places     the    company's                                                                    
     infrastructure and  solutions at unquestionable  risk -                                                                    
     think SolarWinds.                                                                                                          
                                                                                                                                
10:39:44 AM                                                                                                                   
MR. STEPHENSON continued to review Appendix F on page 24 of the                                                                 
presentation, which read:                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     I contacted a previous  co-worker, their vice president                                                                    
     of  Federal.  He  had an  employee  and  mutual  friend                                                                    
     contact  me. I  provided  information  about the  cyber                                                                    
     security  vulnerabilities  and  was given  the  contact                                                                    
     information for a Mr. Desai,  their CISO. Following our                                                                    
     conversation, I  reached out directly  to Mr.  Desai on                                                                    
     22nd January 2021.   He never responded that  or any of                                                                    
     my  attempts to  engage and  help. Others  that I  work                                                                    
     with, including the CEO Andy  Jenkinson, who is also on                                                                    
     this call,  also reached out  to a number  of Zscaler's                                                                    
     executives including  their CEO. Not one  response from                                                                    
     all the attempted contacts and  warnings we provided of                                                                    
     insecurity, including noncompliance  to data protection                                                                    
     laws and regulations.                                                                                                      
                                                                                                                                
10:40:46 AM                                                                                                                   
MR. STEPHENSON  said he  mentions this  because these  are global                                                               
companies that are  in breach of data  protection laws, including                                                               
Europe's  General  Data  Protection Regulation  and  California's                                                               
Consumer  Protection Act.  These known  vulnerabilities exist  on                                                               
their websites  and infrastructure  and their customers'  data is                                                               
vulnerable and exploitable by cyber criminals.                                                                                  
                                                                                                                                
10:41:51 AM                                                                                                                   
MR. STEPHENSON  directed attention  to Appendix H  on page  26 of                                                               
the presentation  to highlight Application  Programming Interface                                                               
and vulnerabilities, which read:                                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
   1. IBM Security: A recent report by  IBM Security proving                                                                    
     that  two-thirds  of  all  cloud  based  cyber  attacks                                                                    
     originate through insecurities  (misconfigured APls) on                                                                    
     the public  facing internet  webpages, domains,  and IT                                                                    
     systems.                                                                                                                   
     a. https://siliconangle.com/2021/09/16/ibm-report-                                                                       
        finds-two-thirds-cloud-breaches-traced-miscon-                                                                        
        figured-apis/                                                                                                         
                                                                                                                                
MR.   STEPHENSON  explained   that  an   Application  Programming                                                               
Interface  (API)  is  a software  intermediary  that  allows  two                                                               
applications to  communicate with  one another. One  problem with                                                               
APIs is the  vulnerabilities provided. For example,  files can be                                                               
added and deleted on the server  at the location of the URL. This                                                               
illustrates  the potential  for  malicious  code entries  through                                                               
APIs.                                                                                                                           
                                                                                                                                
MR. STEPHENSON referred to the second  item in Appendix H on page                                                               
26 of the presentation, which read:                                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     2.  HackerOne: 2021  Hacker Report  showing 96%  of all                                                                    
     hackers are working on websites                                                                                            
                                                                                                                                
                                                                                                                                
10:43:42 AM                                                                                                                   
MR.  STEPHENSON  explained  that  the  use  of  "hacker"  doesn't                                                               
necessarily mean  "bad guys." This report  identifies websites as                                                               
the  biggest risk  for breaching.  APIs and  Android applications                                                               
can be breached because people  access websites while using their                                                               
devices. Further,  operating systems  are affected  since servers                                                               
use the iOS to host  the websites. These things cumulatively show                                                               
why  the  public-facing  internet is  constantly  overlooked  for                                                               
other penetration solutions.                                                                                                    
                                                                                                                                
10:44:36 AM                                                                                                                   
MR. STEPHENSON directed  attention to the third  item in Appendix                                                               
H on page 27 of the presentation, which read:                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     3.McAfee report  referenced in a recent  article by CSO                                                                    
     Online  stating  how  the  initial  infiltration  of  a                                                                    
     highly sophisticated  cyber attack  carried out  by one                                                                    
     of   China's   APT   groups  originated   through   the                                                                    
     vulnerabilities on the web servers.                                                                                        
     a.   https:llwww.csoonline.com/article/3633632/how-                                                                        
     apts-become-long-term-lurkers-tools-and-    techniques-                                                                  
     of-a-targeted-attack.html                                                                                                
                                                                                                                                
     4. The  Open Web Application Security  Project (OWASP).                                                                    
     A  nonprofit  foundation  that  works  to  improve  the                                                                    
     security  of software.  OWASP publishes  a yearly  'Top                                                                    
     10'  web application  security risks  to eliminate  and                                                                    
     provides  information  on   cyber  security  risks  and                                                                    
     vulnerabilities.                                                                                                           
     a. https://owasp.org/www-project-top-ten/                                                                                
                                                                                                                                
MR.  STEPHENSON stated  that breaches  to  Solar Winds,  Colonial                                                               
Pipeline,  Florida  School  District   and  health  care  attacks                                                               
happened through the public-facing internet.                                                                                    
                                                                                                                                
10:45:30 AM                                                                                                                   
MR. STEPHENSON directed  attention to the fifth  item in Appendix                                                               
H on page 27 of the presentation:                                                                                               
                                                                                                                                
 [Original punctuation provided.]                                                                                               
                                                                                                                                
      EA Games  breached through  insecure cookies.  Cookies                                                                    
      play an important role in today's internet usage. They                                                                    
      have been  designed to  help improve  interaction with                                                                    
      websites  and can  track,  personalize,  and  collate,                                                                    
      collect, and  share Personal  Identifiable Information                                                                    
      (PII) about each  user's session. Cookies can  also be                                                                    
      extremely dangerous as  they can contain PII  and data                                                                    
      including  login   ID  and   passwords,  as   well  as                                                                    
      keylogging and other data entered on a website.                                                                           
                                                                                                                                
10:46:12 AM                                                                                                                   
     An  example on  how critical  a  cookie can  be is  the                                                                    
     recent  breach of  Electronic Artists  (EA) Games.  The                                                                    
     hacker purchased login and  password information from a                                                                    
     cookie off  the Dark  Web for  $10. They  then inserted                                                                    
     the cookie into an  insecure, and exploitable subdomain                                                                    
     and used  this to obtain  access to EA Games  and steal                                                                    
     the source code for the new FIFA 21 game.                                                                                  
                                                                                                                                
MR.  STEPHENSON  said  this concludes  all  of  the  non-Alaskan-                                                               
specific information he planned to share today.                                                                                 
                                                                                                                                
10:47:07 AM                                                                                                                   
CHAIR HOLLAND  stated he appreciated  Appendix G. He  related his                                                               
understanding  that many  of the  cybersecurity problems  are not                                                               
with agencies such as the  Alaska state agencies but with vendors                                                               
using the IT system.                                                                                                            
                                                                                                                                
10:47:47 AM                                                                                                                   
SENATOR  KIEHL asked  if  the  hacks to  the  Alaska Division  of                                                               
Elections  and   the  Alaska  Court   System  were  due   to  the                                                               
vulnerabilities he identified.                                                                                                  
                                                                                                                                
10:48:07 AM                                                                                                                   
MR.  STEPHENSON responded  that he  has not  been engaged  by the                                                               
state so  he could not specifically  answer this. He said  he was                                                               
not a  first-hand party to  those cybersecurity  breaks. However,                                                               
he  was aware  of  the vulnerabilities  that  would have  allowed                                                               
hackers to access the system.                                                                                                   
                                                                                                                                
SENATOR  KIEHL  recalled  that  he said  the  Stuxnet  virus  was                                                               
introduced via  the internet. He  related his  understanding that                                                               
the two primary theories were that  the virus was introduced by a                                                               
thumb drive  or early  installation in the  supply chain  but not                                                               
via the internet.                                                                                                               
                                                                                                                                
10:48:48 AM                                                                                                                   
MR. STEPHENSON  answered that he  was correct. He  explained that                                                               
he used  "internet" loosely. He  stated that they  used Microsoft                                                               
zero day  vulnerabilities, which is  across the internet.  It was                                                               
not specifically a direct attack.                                                                                               
                                                                                                                                
SENATOR  KIEHL  explained the  reason  he  asked was  because  he                                                               
viewed  the  presentation  as  a  slice of  the  broad  topic  of                                                               
cybersecurity. Some  things were not discussed,  such as delivery                                                               
by  email,  ransomware,  or  encryption  issues.  He  asked  what                                                               
approach a  large organization, such  as state  government should                                                               
take with respect to cybersecurity.                                                                                             
                                                                                                                                
10:49:51 AM                                                                                                                   
MR.  STEPHENSON  stated that  he  works  for the  Joint  Analysis                                                               
Center as  a lead IT  administrator for  a couple of  systems. IT                                                               
typically divides up the  responsibility into sections, including                                                               
network,  Windows,  data storage  or  a  specific email  section.                                                               
Thus,   experts  help   manage   the  systems   for  each   area.                                                               
Cybersecurity experts  must know everything, which  is a daunting                                                               
task. He stated  his approach was to focus on  a specific area of                                                               
specific vulnerability.  Cybersecurity has  layers that  all need                                                               
to be  protected. If the web  interface is removed the  site will                                                               
be vulnerable regardless  of inner protections. All  of the hacks                                                               
have  resulted   from  vulnerabilities   on  the   public  facing                                                               
internet.                                                                                                                       
                                                                                                                                
MR.   STEPHENSON   highlighted   that  cybersecurity   has   many                                                               
solutions. Cyber  criminals look at  three things. First,  if the                                                               
public  face is  exposed;  second, their  ability  to access  the                                                               
site;  and  third,   that  since  the  face   is  not  adequately                                                               
protected,   the  inside   is   also  not   protected  from   the                                                               
cyberattack.                                                                                                                    
                                                                                                                                
10:53:13 AM                                                                                                                   
MR.  STEPHENSON  stated  that criminals  target  any  opportunity                                                               
based on their open-source  intelligence information gathered but                                                               
not necessarily  to target a  specific group or  organization. He                                                               
said  that  his  role  is  to eliminate  the  attack  vectors  to                                                               
eliminate the opportunity to target an organization.                                                                            
                                                                                                                                
10:54:11 AM                                                                                                                   
SENATOR  HUGHES recalled  his opening  remarks indicated  that he                                                               
warned    the   Division    of   Elections    about   cyberattack                                                               
vulnerabilities. She said she has  four questions. First, how far                                                               
in advance of the election  was the division warned. Second, what                                                               
type of communication  he used to contact the division  and if it                                                               
was by email and any response  from them. Third, she asked if the                                                               
cyber  criminals are  able  to  detect his  activity  when he  is                                                               
checking and  warning agencies,  and if so,  if they  observe any                                                               
precautions taken by the organization.                                                                                          
                                                                                                                                
10:55:14 AM                                                                                                                   
MR.  STEPHENSON responded  that  he  was not  sure  if he  should                                                               
answer now or in executive session.                                                                                             
                                                                                                                                
10:55:26 AM                                                                                                                   
CHAIR  HOLLAND said  he  would  leave it  to  his discretion  but                                                               
suggested  he may  wish  to hold  off and  answer  it during  the                                                               
executive session.                                                                                                              
                                                                                                                                
10:56:05 AM                                                                                                                   
MR.  STEPHENSON answered  that cyber  criminals are  not able  to                                                               
track  his  movements. He  sends  a  request  to the  server  who                                                               
responds back with  the capabilities. It provides  a laundry list                                                               
of  information  that  provides  him with  the  webpage  and  the                                                               
infrastructure that he  can click on and use.  The information he                                                               
uses is  not trackable  but there  are organizations  that report                                                               
and openly track what other people use their tools to do.                                                                       
                                                                                                                                
CHAIR HOLLAND  asked him to  repeat his  response as part  of his                                                               
response was inaudible.                                                                                                         
                                                                                                                                
MR.  STEPHENSON  said  he  responded   to  Senator  Hughes'  last                                                               
question  by  saying that  what  he  does  cannot be  watched  or                                                               
monitored on the  internet because his action is  with the server                                                               
and  the website.  He acknowledged  that there  are organizations                                                               
that  do  track tools  others  use  but  they  do not  track  his                                                               
movements.                                                                                                                      
                                                                                                                                
He  acknowledged  there  are  a  lot of  solutions  such  as  the                                                               
cybersecurity "onion" model that focuses  on one part but not the                                                               
entire infrastructure.                                                                                                          
                                                                                                                                
10:57:21 AM                                                                                                                   
SENATOR  KIEHL   said  there  are   never  enough   resources  in                                                               
corporations or government  to meet the public's  needs or wants.                                                               
He acknowledged that  the state would be more secure  if it hired                                                               
his  firm  and  every  other cybersecurity  firm.  He  noted  the                                                               
precautions he  takes at  home, including a  gun safe,  and asked                                                               
why the  legislature should  be concerned  about its  website and                                                               
not focus  on other things  where there is  personal identifiable                                                               
information.                                                                                                                    
                                                                                                                                
10:59:26 AM                                                                                                                   
MR.  STEPHENSON  responded that  what  he  is presenting  is  not                                                               
commonly implemented  across the  board. He stated  his intention                                                               
is to help,  educate, and fix. He explained that  he engages with                                                               
professionals in every industry.  Initially, the IT professionals                                                               
are affronted by the information he provides.                                                                                   
                                                                                                                                
10:50:26 AM                                                                                                                   
MR. STEPHENSON referred  to the gun safe analogy  and pointed out                                                               
that the  gun safe is locked,  the front door is  locked but some                                                               
things are left outside. CIP could  show you that your front door                                                               
was left wide  open and the safe  is wide open in  plain view. He                                                               
offered his view that the  importance to government is connected.                                                               
Hackers breached  SolarWinds at one  location but it was  not the                                                               
attacker's end goal.                                                                                                            
                                                                                                                                
MR. STEPHENSON referred to his  initial comments that highlighted                                                               
that his firm  has been tracking a cyberattack  in progress. Just                                                               
as  at SolarWinds,  the attacker  spoofed  the website,  elevated                                                               
their privileges  and assigned a  PKI certificate.  This attacker                                                               
is  slowly finding  where it  wants to  penetrate the  system. An                                                               
attacker's goal may not be  the legislature although the attacker                                                               
may use ransomware  or encrypt the information it  finds and sell                                                               
it  on the  internet.  However,  their real  interest  may be  to                                                               
access other  information it can  find throughout  the government                                                               
infrastructure.   It    could   get   into    critical   national                                                               
infrastructure such as power, water,  and sewage. He said waiting                                                               
gives them  access through vulnerabilities.  It is just  a matter                                                               
of time, he said.                                                                                                               
                                                                                                                                
11:01:15 AM                                                                                                                   
CHAIR HOLLAND  stated his intention  to take  a short at  ease to                                                               
break the MS Teams links and then go to executive session.                                                                      
                                                                                                                                
11:02:22 AM                                                                                                                   
At ease for the committees to go into executive session.                                                                        
                                                                                                                                
11:59:47 AM                                                                                                                   
CHAIR   HOLLAND  reconvened   the  meeting   and  announced   the                                                               
committees were out of executive session.                                                                                       
                                                                                                                                
12:00:21 PM                                                                                                                   
SENATOR HUGHES thanked  the chair for the extended  time for this                                                               
hearing. The  public heard the  presentation at the  beginning of                                                               
the hearing, including that cybersecurity  uses a different scale                                                               
for  grading. First,  she asked  if it  was possible  to raise  a                                                               
score of "F"  to an "A." Second,  she asked if he  has raised any                                                               
government's  score.  Third,  she  asked if  there  is  any  best                                                               
practice  for  state  government  portals for  reporting  and  to                                                               
ensure review  of any warnings  issued. She acknowledged  that he                                                               
wrote to  the Alaska attorney  general since cyberattacks  can be                                                               
criminal  by  nature.  She  wondered  if  someone  familiar  with                                                               
cybersecurity would be a better point of contact.                                                                               
                                                                                                                                
12:02:13 PM                                                                                                                   
CHAIR HOLLAND asked if Mr. Stevenson was still available.                                                                       
                                                                                                                                
[An unidentified person commented that  Mr. Stephenson was in the                                                               
process of rejoining the teleconference].                                                                                       
                                                                                                                                
12:02:28 PM                                                                                                                   
MR. STEPHENSON advised that he didn't hear the question.                                                                        
                                                                                                                                
12:02:41 PM                                                                                                                   
SENATOR HUGHES restated the question.                                                                                           
                                                                                                                                
12:03:49 PM                                                                                                                   
MR.  STEPHENSON answered  no,  he has  not  improved any  state's                                                               
cybersecurity but  he has  done so  with other  organizations and                                                               
companies. As  the legislature's  IT manager  stated, all  of the                                                               
findings must  be analyzed. Each  entity must assess  the threat.                                                               
Each  entity's website  is different.  Typically, CIP  would work                                                               
with IT teams to provide solutions.                                                                                             
                                                                                                                                
12:04:47 PM                                                                                                                   
MR. STEPHENSON said the second  question is difficult since a lot                                                               
of  companies   offer  cybersecurity   solutions.  He   said  the                                                               
cybersecurity community is large.  He commented that IT personnel                                                               
could  spend all  their time  listening to  people present  their                                                               
solutions  to   issues.  He  currently   works  as   a  freelance                                                               
consultant for  Cybersec but he  works for other  companies, too.                                                               
He  presented  data based  on  Cybersec's  interactions with  the                                                               
webserver. If  you have  a process it  can help.  He acknowledged                                                               
the need for checks and balances  to cut through the chaff to get                                                               
to the valuable information. He  suggested that this is something                                                               
that should be addressed within the IT infrastructure.                                                                          
                                                                                                                                
12:06:50 PM                                                                                                                   
CHAIR  SHOWER  reminded  members  that this  information  is  not                                                               
confidential  and the  legislature is  not breeching  security by                                                               
meeting   to  discuss   how  to   improve   security  to   thwart                                                               
cyberattacks.  The  value of  this  meeting  is to  identify  how                                                               
vulnerable the state is to  cyberattacks. He recommended that the                                                               
state devote whatever time and  financial resources are necessary                                                               
to address cybersecurity  since the state has  been hacked. Those                                                               
cybersecurity breeches could  result in data mining.  He said the                                                               
third largest economy on the  planet is cybercrime, which affects                                                               
businesses,   government  and   individuals.  He   remarked  that                                                               
reviewing  agency  security  measures   is  not  meant  to  blame                                                               
agencies for not doing a better  job but to identify any weakness                                                               
and correct  them. He characterized  it as a continual  battle to                                                               
"defend your castle." He viewed this as the beginning step.                                                                     
                                                                                                                                
12:09:58 PM                                                                                                                   
MR.  STEPHENSON  said  he  appreciates  when  people  listen.  He                                                               
offered to assist the committee.                                                                                                
                                                                                                                                
12:10:32 PM                                                                                                                   
CHAIR HOLLAND  commented that  it would  likely take  time, money                                                               
and expertise to address cybersecurity.                                                                                         
                                                                                                                                
12:11:11 PM                                                                                                                   
There being  no further business  to come before  the committees,                                                               
Chair  Holland  adjourned  the   Senate  State  Affairs  Standing                                                               
Committee  and Senate  Judiciary  Standing  Committee meeting  at                                                               
12:11 p.m.                                                                                                                      

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