IT analysts expect bailout to invite increase in cyberattacks
Hackers are likely to be tempted by the flow of funds through federal networks, forecasters say.
The federal bailout of financial institutions could prompt a surge in cyberattacks against government networks, said one market research firm, in a series of predictions for 2009.
"[With] this infusion of hundreds of billions of dollars flowing through government, there's this perfect storm" for hackers to infiltrate networks in an attempt to steal, manipulate or redirect funds intended for banks, said Mark Kagan, research manager at the Framingham, Mass., market analysis firm IDC Government Insights, during a webinar on Friday.
The number of attacks could increase by more than 40 percent as a result of the economic rescue and attempts to breach networks could grow more sophisticated, according to Kagan. Agencies must have in place contingency plans to ensure sensitive information is protected, he said.
In a separate, but related prediction for 2009, Government Insights forecast increased government investment in fraud detection tools to intercept threats to electronic health care systems in addition to the bailout funds.
"When money is involved, people will find a way to gain access to the system," Kagan said. "If government wants to ensure this money that will be flowing will benefit those in need, fraud prevention must be designed into the system processes in the beginning." He said Congress failed to include proper oversight mechanisms in the initial bailout program, created on Oct. 3. "It's easier to go after hundreds of millions of dollars in cyberspace than robbing banks or hijacking ships," he added.
Other predictions for 2009 included an acceleration in "anytime, anywhere" communications with wireless devices and better management of a remote workforce. President-elect Barack Obama's support of next-generation technologies will drive greater use of blogs, wikis and social networking tools for cross-agency and government-to-citizen communication, the firm said.
"There will be a push to make real-time government data available, [which] will allow citizens to track [legislation], comment and take action in a cyber community," said Adelaide O'Brien, research manager at Government Insights.
Fewer federal employees will retire than expected, due in part to the weak economy, slowing the "talent pool leak" that has been predicted for a number of years, Government Insights projected. Also, federal spending on information technology will remain steady, and more agencies will invest in "pay as you go" software models and governmentwide shared services to save money, the analysts said.