:
Good morning, everybody.
[Translation]
I hope the last few days have been pleasant for you.
[English]
Colleagues, we are gathered for the 119th meeting of the Standing Committee on Procedure and House Affairs.
[Translation]
The committee is meeting again this morning to continue its study of the question of privilege related to cyber-attacks targeting members of Parliament.
[English]
Colleagues, I think we are all pretty good now about the rules on audio, but I am going to remind you very briefly every time. Please make sure you place your earpiece to the right of you. If you need more instructions, you have them.
I will also offer a friendly reminder that it is helpful, I think, for the efficiency and productivity of the committee, to have a timer in front of you. If you don't, it's all good. I'll have one, but I think it helps sometimes.
As in the last meeting, I have no issue, colleagues, with rolling over some time. For example, if we're in the first round and there are 30 seconds and you don't feel that you can get a quality question in with 30 seconds, that's okay. Give it back to the chair, and I'll roll it into the next round. It still keeps us in proper time. I think it's fair and more productive, instead of having to rush through things, to just roll it over. That offer always exists.
We are joined today for the full two hours—the first will be in session, so public, and the second will be in camera—by the senior leadership of the Communications Security Establishment.
I would like to welcome Caroline Xavier, chief, CSE, as well as Rajiv Gupta, associate head, Canadian Centre for Cyber Security.
Welcome, both of you.
You will have 10 minutes collectively to provide opening remarks. Please ensure your questions and your remarks are through the chair.
With that, I will turn it over to you.
:
Thank you, Mr. Chair, for the invitation to appear this morning.
My name is Caroline Xavier, as stated. I am the chief of the Communications Security Establishment, also known as CSE. I am joined by Rajiv Gupta, the associate head of CSE's Canadian Centre for Cyber Security, also known as the cyber centre.
I'd like to begin by providing the committee with a brief overview of the evolving threat landscape. Following this, I will speak to the mitigated threat activity that targeted Canadian parliamentarians and how CSE has been working and continues to work to support parliamentarians and protect our democratic institutions more broadly.
[Translation]
Canada’s adversaries are increasingly using cyber-threats to conduct espionage, move their foreign policy objectives forward and influence Canadian public opinion to their advantage.
Although we believe cybercrime continues to be the most likely cyber-threat affecting Canadians and Canadian organizations, the cyber-threat coming mainly from China—as well as from Russia, Iran and other countries—is more strategically significant.
[English]
Allow me to be more specific. The cyber-threat emanating from the PRC is significant in its volume and sophistication. PRC-sponsored cyber-threat actors will almost certainly continue targeting industries and technologies in Canada to give the PRC an advantage for its strategic priorities, whether political, economic, in security or in defence.
In parallel, Russia's invasion of Ukraine in February 2022 gave the world a new understanding of how cyber-activity is used to support wartime operations. It has demonstrated how nation states are increasingly willing and able to use misinformation and disinformation to advance their geopolitical interests.
Since 2021, the CSE has also observed that state-sponsored cyber-threat actors with links to Russia and the PRC continue to conduct most of the attributed cyber-threat activities targeting foreign elections. In the fourth iteration of our threats to democratic processes publication, released in December 2023, we outlined examples of cyber-activity against the democratic process that we have observed globally since 2021. These include distributed denial of service attacks, or DDoS, against election authority websites and electronic voting systems, unauthorized access to voter databases to collect private information, and spear phishing attacks against election officials and politicians, among others.
Given this observed activity, in the last few years, the CSE cyber centre has publicly released over eight alerts, four cyber-threat bulletins, and seven joint cybersecurity advisories with allies, all related to Chinese or Russian state-sponsored cyber-activity.
Canada's high degree of global connectivity and technological integration with our allies increases our threat exposure. Furthermore, Canada does not exist in a vacuum, so cyber-activity affecting our allies' democratic processes will also likely have an impact on Canada's.
In relation to the committee's study, I'd now like to provide a brief overview of the CSE's role and relationship with the House of Commons IT team.
The CSE takes its mandate and legal obligations very seriously. Under the cybersecurity and information assurance aspect of our mandate, the CSE acquires, uses and analyzes information from the global information infrastructure, or from other sources, to provide advice, intelligence, guidance and services to help protect electronic information and information infrastructure. Accordingly, pursuant to the CSE Act, the CSE and its cyber centre share intelligence and information with service providers and government clients, including appropriate authorities in Parliament.
In June 2022, the CSE received a report from the FBI, detailing emails targeting individuals around the world, including individuals who have been outspoken on topics relating to activities of the Chinese Community Party. The report included technical details and the names of 19 parliamentarians who had been targeted by this activity. However, from January to April 2021, more than a year earlier, the cyber centre had already shared reports with the House of Commons IT security officials, specifically detailing a serious matter of technical indicators of compromise by a sophisticated actor affecting House of Commons IT systems.
Upon receipt of this information, the CSE shared specific and actionable technical information about the activity with the House of Commons IT security officials, as well as with the Canadian Security Intelligence Service, or CSIS. Because of this information, the CSE and the House of Commons worked together to thwart the attempted compromise by this sophisticated actor.
[Translation]
We respect the fact that the House of Commons and the Senate are independent, and its representatives are responsible for determining the timing and the manner in which to communicate directly with MPs and senators. Last week, the committee’s clerk received a complete chronology of events describing measures the Communications Security Establishment took to inform and assist parliamentary officials in their efforts to detect and mitigate cyber-threats. It is important to highlight that the Communications Security Establishment’s engagement with House of Commons IT security stakeholders came well before the aforementioned Federal Bureau of Investigation report.
[English]
As the central technical resource for cybersecurity advice, we provide near real-time notifications, including to the House of Commons and Senate IT teams, and we have helped parliamentary IT security officials take quick and appropriate measures within their systems to protect their network and users against this and other threats.
When a cyber-threat is identified, the cyber centre sends out different types of notifications, including cyber flashes, which are urgent notifications delivered via email, daily updates about malware and vulnerabilities on a partner's IP space via the national cyber-threat notification service, and monthly summaries of national threat notification service data, showing how a subscriber's cyber hygiene ranks against anonymized peers in their sector.
When requested, we provide cyber-defence services and maintain an open line of communication to mitigate potential threats. To detect malicious cyber-activity on government networks, systems and cloud infrastructure, the cyber centre uses autonomous sensors, including network-based sensors—
:
Okay. I apologize for the interruption.
[English]
When requested, we provide cyber-defence services and maintain an open line of communication to mitigate potential threats.
To detect malicious cyber-activity on government networks, systems and cloud infrastructure, the cyber centre uses autonomous sensors, including network-based sensors, cloud-based sensors and host-based sensors. These defences protect systems of importance from an average of 6.6 billion attempted malicious actions per day.
CSC continues to monitor Government of Canada networks and systems of importance for cyber-threats. We are working in close coordination with government partners, including relevant security agencies.
We deliver foreign intelligence-informed cyber-defence.
[Translation]
Finally, I would like to call members’ attention to the solutions available to them. Indeed, the Canadian Centre for Cyber Security offers parliamentarians a support service, in addition to holding regular information sessions for political parties on cyber-threats, as well as providing a dedicated point of contact at the centre for accessing cybersecurity support.
[English]
Since 2017, the CSE has established four unclassified reports on cyber-threats to Canada's democratic processes, and our “National Cyber Threat Assessment 2023-2024” highlights how online foreign influence activities have become a new normal, with adversaries seeking to influence elections and impact international discourse related to current events.
Since 2014, interdepartmentally, the CSE's cyber centre has worked closely with Elections Canada to ensure that our election systems and infrastructure remain secure. The CSE also continues to work as part of the security and intelligence threats to elections task force, SITE. Cyber-incidents such as ransomware, DDoS and supply chain compromises are becoming more frequent across all industry sectors, and these incidents are negatively impacting our prosperity, privacy and security. That's why Bill is so important. It would give the government new tools and authorities to better bolster defences, improve security across critical federally regulated industry sectors, and protect Canadians and Canada's critical infrastructure from cyber-threats.
Four sectors are subject to the mandatory cyber-incident reporting in Bill : finance, energy, telecommunications and transportation. These were all prioritized due to their importance to both Canadians and other sectors. They are critical enablers. Bill C-26 will improve our ability to protect ourselves from both the threats we observe today and the threats we will face tomorrow.
The federal government intends to launch its updated national cybersecurity strategy, which will communicate Canada's long-term approach to addressing evolving threats in cyberspace. Central to the new strategy will be a shift in focus towards a whole-of-society approach to Canada's national cyber resilience, where public and private entities and all levels of government work in close partnership to defend against cyber-threats, including threats to our institutions. The government also recently announced the defence policy update, “Our North, Strong and Free”, which proposes a significant new investment in the CSE through budget 2024.
Finally, an important aspect of Canada's whole-of-society approach to our collective security includes practising good cyber hygiene, including safe social media practices, especially in those public roles. The cyber centre has released guidance on ways to protect yourself online. It also has cybersecurity resources for elections authorities, political campaigns and Canadian voters. I really encourage you to take a look at our website, getcybersafe.gc.ca. I would also encourage organizations that have been impacted by cyber-threats to contact the cyber centre, so that it can help share threat-related information with partners to help keep Canada and Canadians safe online.
Further, to make cyber-incident reporting easier for Canadians, the CSE is also working with its federal partners to establish a single-window solution for reporting cyber-incidents, with the ultimate goal being to ensure that Canadians can always find the help they need. This was a key recommendation this week from the Auditor General.
To conclude, the CSE and the cyber centre remain active in their collaboration with all partners, including the House of Commons, to improve Canada's cyber-resilience and protect our democratic institutions. We will continue to monitor any developing cyber-threats and share threat information with our partners and stakeholders, as always.
[Translation]
Once again, thank you for your invitation to appear before you today. We are pleased to be able to contribute to this important discussion and give you an overview of the way the Communications Security Establishment and the Canadian Centre for Cyber Security both work every day to protect Canadians and their democratic institutions.
Thank you for your attention.
[English]
When you have classified intelligence reporting, there's a lot of context and information, and then there's often a tear line, so there is another set of information that you can provide to an incident responder or to another organization to enable it to take immediate action in resolving an incident. In the lead-up to the incident, we would be sharing tear-line information: “Here is a sophisticated threat actor,” which, in cybersecurity terms, typically means a nation-state and is super important. It definitely reinforces the seriousness and the importance of the event.
However, all we're allowed to share, because of the intelligence, are the technical indicators. We didn't have the email addresses, so we would share the things that would be needed to find the email addresses. That's what we shared with the House of Commons, and we worked with the House of Commons collaboratively to figure out exactly what was going on, because typically you have a thread you need to pull.
Thank you to the witnesses. I appreciate your being here with us today.
This may be a bit of a repetition, but just so it's clear in my own mind too, you talked about the first communications with the House of Commons when you found out about the attacks in January 2021. Our concern, of course, is that there was a significant amount of time—and I certainly understand, in terms of the conversations that have been had, that you learned more as time went on, and you were reporting that. That's great. I think the key point here, though, is that at whatever point, none of this was reported to the individual MPs in question. This is what we have to investigate. We have to determine if this is the problem.
Could you go over again, for my own sake, why it's so important that there is almost that divide that occurs? There's this space where you're not directly communicating with the members once it's determined that there is this sophisticated actor, as you've labelled them. Why is that intermediary position so important? Why couldn't there have been maybe a joint communication with the members of Parliament who were impacted? Are you maybe looking at the advantages or disadvantages of that? This is constantly a learning process. I understand that as well. How will things maybe change in the future? Are you considering how we can move forward from this?
:
Thank you very much for the question.
One thing that's worth mentioning here is that we work really hard to try to ensure we inform Canadians and businesses as much as possible with the various publications that we put out. As mentioned, since 2017 we've put out three updates on “Cyber Threats To Canada's Democratic Process” and, in addition to that, four editions of the “National Cyber Threat Assessment”. Those are documents that help highlight some of the threats we're seeing and observing based on a whole bunch of research as well as the observations that have occurred in Canadian systems as well.
With that, one thing we also do is that we actually hold quite a number of information sessions, and we've held some with parliamentarians, supported by others like the service and the RCMP. We're very happy to be able to do joint information sessions with whoever would like us to be present, to educate them on the cybersecurity domain in particular, because the more people are aware of what the threats are, the more resilient we become as a country and as individuals.
The issue, though, is that we really are respectful of the independence of the House of Commons and the Senate, and we're really respectful of the role that the House of Commons administration plays in supporting parliamentarians. This is why we go through them, as we do for many service providers and other institutions that we deal with. We go through them, and we're at their service if they would like to have more support from us. We would be more than happy to continue to hold sessions with parliamentarians should the House of Commons administration want our assistance to do a joint session. We're definitely available to do that.
As a matter of fact, the public safety department has been in touch with the Sergeant-at-Arms, and there are three sessions currently scheduled for caucus that we'll be part of, for example, with Public Safety as well as the RCMP and the service. This is to show you that these are services that we are prepared to do, but we are just trying to continue to be very respectful of the processes that are in place and, more importantly, the independence of the House of Commons in this role.
:
Thank you very much for the question and the clarification.
We are an organization that considers itself very much a learning organization, so we continue to look for ways to improve. This is part of that learning, to be able to see where we can improve our processes, in addition to all the external review bodies and various reports that are going on with regard to other issues, like foreign interference.
We will continue to learn from this to improve those processes and work with the House of Commons to identify a better way forward.
In general, though, when it comes to identifying an individual who may be impacted by a cyber-incident because we learned of it from a foreign source, we pass on that information in general to the service, as I mentioned earlier, for the reason that then it becomes a domestic issue and is not within our wheelhouse. It is also not the way in which we function with respect to our act. Sometimes the RCMP will be engaged, especially if it's going to be something that requires a law enforcement lens. In this case, we did pass it on to the House of Commons as well as to CSIS, so that they could pass on the information to the necessary MPs.
:
Thank you for the question.
I’m not sure which CBC article you’re referring to. However, I can tell you that, during an interview with Ms. Bureau, if memory serves, we talked about the resources and skills the Communications Security Establishment needs and is looking for.
In that interview, I said that the Canadian Centre for Cyber Security and the Communications Security Establishment were not the only ones looking for those skills. In fact, those skills are very sought after throughout Canada and the world, because everything is becoming digital.
I think it’s worth mentioning that there is immense interest in the Communications Security Establishment. That is why we feel very capable in distributing our resources, based on the budget allocated to us.
:
Yes. As mentioned, a cyber-incident is usually a moment of crisis for an organization. As a result, our job is to be there as a support. Sometimes we're the ones contacting an organization to say to them that we are seeing something that is of concern. Sometimes they have identified the cyber-incident, and we call them and ask if there is anything we can do to help. Sometimes we do have that regular, ongoing, two-way communication.
However, sometimes a company might choose to have an external service provider provide them the support, so then we're just more in monitoring and wait and see....
It's not automatic that an organization will come to us or continue to want to engage with us. It's not because they're not wanting to. Sometimes, especially when dealing with cybercrime, we're dealing with ransomware. We don't encourage the payment of ransomware, and sometimes that's another reason a company might not want to deal with us, as a government entity. They're afraid that it could mean something.
Although we are not all law enforcement—we're not a regulator—we work hard to build trusting relationships, and I feel that we do that on a daily basis. However, I don't want to mislead anybody to think that means that we know all the elements of cyber-incidents that happen in the private sector, for example, or with critical infrastructure.
Ms. Xavier, I think you've painted a picture today that you provide a service to clients, and those clients could be within the government or elsewhere. When you're made aware of information, you provide that information to organizations or departments.
I could probably pose the question, you know, that this is something that could happen to the defence department. We can look at our support for Ukraine and all of the efforts that Russia is doing to those people around this table who still support Ukraine.... Russia has taken many approaches to try to undermine our support on that file.
If this happened in defence, you would provide that information to defence as your client. Would you consider them a client in that instance? You'd provide them with information, and then it would be up to defence to determine internally, with their own security people that they have and their own IT people, what they do.
Is that a fair comparison in terms of how, if this happened somewhere else in the organization, you'd take the same approach?
:
We are very much like a service, as you mentioned. When we are made aware of an incident or when we see something through the tools we have, the intent, our goal, is as much as possible to get the information to the right people, to enable them to act and mitigate the threat first. On what happens in a case like a Government of Canada system, deputies, for example, are the ones accountable within each of the departments, and then they have accountability to a minister.
When we pass on that information to an IT department within a government organization, they are the ones who are going to take the necessary steps, with our support as well as, for example, that of Shared Services Canada. It depends on the department.
In an industry as well, it's the same: We'll contact the IT organizations and tell them we've seen something and they are to act on behalf of their organization. Often there will be this back-and-forth that we talked about before in terms of gathering more information for them to act on.
We do this actually quite regularly, because we do this in a pre-notification ransomware initiative that we have put in place with our U.S. partners, for example. Over 500 organizations have been contacted by us at what we call a “CISO level” to be able to thwart an attack before it happens, saving them millions of dollars.