Security News > 2021 > March > National Security Risks of Late-Stage Capitalism

The hack gave the attackers access to the computer networks of some 18,000 of SolarWinds's customers, including US government agencies such as the Homeland Security Department and State Department, American nuclear research labs, government contractors, IT companies and nongovernmental agencies around the world.

The company outsourced much of its software engineering to cheaper programmers overseas, even though that typically increases the risk of security vulnerabilities.

When national security is compromised by high-flying technology companies that fob off cybersecurity risks onto their customers, something similar is at work.

The first is information asymmetry: buyers can't adequately judge the security of software products or company practices.

The only way to force companies to provide safety and security features for customers and users is with government intervention.

In today's underregulated markets, it's just too easy for software companies like SolarWinds to save money by skimping on security and to hope for the best.

News URL

https://www.schneier.com/blog/archives/2021/03/national-security-risks-of-late-stage-capitalism.html