U.S. military eyes cyber defenses for banks, grid

By Jim Wolf

FORT MEADE, Maryland (Reuters) - Expanded U.S. government cyber defenses would be the best way to guard vital services, possibly including financial networks, from the "real probability" of a destructive online attack, the head of the military's new Cyber Command said.

Stretching a U.S. security umbrella over parts of the private sector is tricky for policymakers. Among the issues: how much to protect, who should be in charge, how to respond to any attack and whether Congress would have to vote new powers.

"The need is great, and there is no time to lose, as attacks and their potential effects would not discriminate between military and civilian users," Army General Keith Alexander said in a written statement for Congress on Thursday.

He said a destructive strike could come from a foreign foe, a militant group or a lone rogue.

Cyber Command expects a budget of roughly $150 million in the fiscal year starting October 1, up from $120 million in fiscal 2010.

In separate remarks to a small group of reporters near his Fort Meade, Maryland, headquarters on Wednesday evening, Alexander said he envisioned the creation of a "secure, protected zone" for certain critical infrastructure. It could include banks, power grids and other vital services that would be walled off and guarded by the thousands of cyber warriors under his command since Cyber Command began taking shape in May.

"That's probably what you're going to get to, and that makes a lot of sense," he said. "That was the best we could think of."

Alexander wears two major hats. Besides heading Cyber Command, he leads the Pentagon's super-secret National Security Agency. NSA helps protect government computer networks from penetration and runs a worldwide electronic eavesdropping system with satellites and ground stations.