Information Security: Federal Agencies Need to Improve Controls  
over Wireless Networks (17-MAY-05, GAO-05-383). 		 
                                                                 
The use of wireless networks is becoming increasingly popular.	 
Wireless networks extend the range of traditional wired networks 
by using radio waves to transmit data to wireless-enabled devices
such as laptops. They can offer federal agencies many potential  
benefits but they are difficult to secure. GAO was asked to study
the security of wireless networks operating within federal	 
facilities. This report (1) describes the benefits and challenges
associated with securing wireless networks, (2) identifies the	 
controls available to assist federal agencies in securing	 
wireless networks, (3) analyzes the wireless security controls	 
reported by each of the 24 agencies under the Chief Financial	 
Officers (CFO) Act of 1990, and (4) assesses the security of	 
wireless networks at the headquarters of six federal agencies in 
Washington, D.C.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-05-383 					        
    ACCNO:   A24237						        
  TITLE:     Information Security: Federal Agencies Need to Improve   
Controls over Wireless Networks 				 
     DATE:   05/17/2005 
  SUBJECT:   Computer networks					 
	     Computer security					 
	     Information security				 
	     Information technology				 
	     Internal controls					 
	     Regulatory agencies				 
	     Strategic planning 				 
	     Computer network protocols 			 
	     Computer security policies 			 
	     Policies and procedures				 
	     Security standards 				 

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GAO-05-383

United States Government Accountability Office

      GAO	Report to the Honorable Wm. Lacy Clay, House of Representatives

May 2005

INFORMATION SECURITY

        Federal Agencies Need to Improve Controls over Wireless Networks

                                       a

GAO-05-383

May 2005

INFORMATION SECURITY

Federal Agencies Need to Improve Controls over Wireless Networks

[IMG]

  What GAO Found

Wireless networks offer a wide range of benefits to federal agencies,
including increased flexibility and ease of network installation. They
also present significant security challenges, including protecting against
attacks to wireless networks, establishing physical control over
wireless-enabled devices, and preventing unauthorized deployments of
wireless networks. To secure wireless devices and networks and protect
federal information and information systems, it is crucial for agencies to
implement controls-such as developing wireless security policies,
configuring their security tools to meet policy requirements, monitoring
their wireless networks, and training their staffs in wireless security.

However, federal agencies have not fully implemented key controls such as
policies, practices, and tools that would enable them to operate wireless
networks securely. Further, our tests of the security of wireless networks
at six federal agencies revealed unauthorized wireless activity and
"signal leakage"-wireless signals broadcasting beyond the perimeter of the
building and thereby increasing the networks' susceptibility to attack
(see figure). Without implementing key controls, agencies cannot
adequately secure federal wireless networks and, as a result, their
information may be at increased risk of unauthorized disclosure,
modification, or destruction.

"Signal Leakage" from Wireless Networks Increases Security Risks to
Federal Data

                 United States Government Accountability Office

Contents

  Letter

Results in Brief
Background
Wireless Networks Provide Benefits and Present Challenges to

Agencies Controls Can Mitigate Wireless Network Security Challenges
Federal Agencies Lack Key Controls for Securing Wireless

Networks Selected Agencies Did Not Implement Wireless Networks

Securely Conclusions Recommendation for Executive Action Agency Comments

1 1 3

8 12

16

18 19 20 21

Appendixes

Appendix I: Objectives, Scope, and Methodology 23

Appendix II: Contacts and Staff Acknowledgments 26

Tables      Table 1: Examples of Wireless Network Security Threats       9 
               Table 2: Policies for Managing Wireless Network Risks       13 
              Table 3: Examples of Wireless Security Tools That Can Be    
                         Configured to Meet Agency Policies                14 
Figures    Figure 1: Example of a Wireless Infrastructure Mode Network     
                          Figure 2: Example of Wireless Ad Hoc Networking 4 5
            Figure 3: Wireless Networks Detected in a Section of Downtown 
                                        D.C.                                6 
             Figure 4: Example of Signal Leakage at Federal and Private   
                                     Facilities                            11 

Contents

Abbreviations

CFO Chief Financial Officer
FISMA Federal Information Security Management Act
IEEE Institute of Electrical and Electronics Engineers
NIST National Institute of Standards and Technology
OMB Office of Management and Budget

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.

A

United States Government Accountability Office Washington, D.C. 20548

May 17, 2005

The Honorable Wm. Lacy Clay House of Representatives

The use of wireless networks is increasingly popular among personal,
academic, business, and government users. Wireless networks extend the
range of traditional wired networks by using radio waves to transmit data
to wireless-enabled devices such as laptops and personal digital
assistants. Spurred on by increasing bandwidth and decreasing costs of
laptops and mobile computing, wireless networks are becoming widely
available in "hotspots" in cafes, retail centers, hotels, schools,
airports, and businesses.

Wireless networks can offer federal agencies many potential benefits-
including flexibility and ease of installation. However, wireless networks
are widely known to be vulnerable to attack or compromise, and as a result
they can pose significant information security risks to agencies. Various
procedures and tools are available to secure these networks for use within
federal agencies.

In response to your request, our review had the following objectives: (1)
describe the benefits and challenges associated with securing wireless
networks, (2) identify the controls (policies, practices, and tools)
available to assist federal agencies in securing wireless networks, (3)
analyze the wireless security controls reported by each of the 24 agencies
covered by the Chief Financial Officers (CFO) Act of 1990,1 and (4) assess
the security of wireless networks at the headquarters of 6 federal
agencies in Washington, D.C.

We performed our work in the Washington, D.C., metropolitan area from
September 2004 to March 2005, in accordance with generally accepted
government auditing standards. Appendix I provides further detail about
our objectives, scope, and methodology.

Results in Brief	The availability of wireless networks presents federal
agencies with both opportunities and challenges. These networks offer
agencies increased flexibility and ease of installation over their
traditional wired networks.

131 U.S.C. 901(b).

However, agencies face unique challenges securing wireless networks- such
as protecting against wireless network attacks, establishing physical
control over wireless-enabled devices, and preventing unauthorized
deployments of wireless networks.

Federal agencies can implement various controls, including policies,
practices, and tools, to secure their wireless networks. For example,
wireless network security can be enhanced by establishing comprehensive
information security policies that address wireless security, configuring
security tools to meet defined agency policy requirements, implementing
comprehensive wireless monitoring programs, and training employees and
contractors on wireless policies. Without effective security controls for
wireless networks, agency information is at risk of unauthorized
disclosure, modification, or destruction.

Despite the risks associated with wireless networks, federal agencies have
not fully implemented key controls for securing these networks. For
example, nine federal agencies reportedly have not issued policies on
wireless networks. In addition, 13 agencies reported not having
established requirements for configuring or setting up wireless networks
in a secure manner. Further, the majority of federal agencies lack
wireless network monitoring to ensure compliance with agency policies,
prevent signal leakage, and detect unauthorized wireless devices. Finally,
18 agencies do not provide training programs in wireless security for
their employees and contractors.

The wireless networks at the six federal agencies we tested were not
secure. Specifically, we were able to detect wireless networks at each of
the agencies from outside of their facilities. Wireless-enabled devices
were operating with insecure configurations at all six of the agencies.
For example, in one agency we found over 90 laptops that were not
configured appropriately. Finally, there was unauthorized wireless
activity at all of the agencies that had not been detected by their
monitoring programs.

We are recommending that the Director of the Office of Management and
Budget (OMB) instruct agencies to ensure that wireless network security is
addressed in their agencywide information security programs. OMB officials
generally agreed with the report's content and identified planned actions
to address the recommendation.

Background	Wireless networks extend the range of traditional wired
networks by using radio waves to transmit data to wireless-enabled devices
such as laptops and personal digital assistants. Wireless networks are
generally composed of two basic elements: access points and other
wireless-enabled devices, such as laptops. Both of these elements rely on
radio transmitters and receivers to communicate or "connect" with each
other. Access points are physically wired to a conventional network, and
they broadcast signals with which a wireless device can connect. The
signal broadcast by the access point at regular intervals-several times
per second-includes the service set identifier, as well as other
information. Typically, this identifier is the name of the network.
Wireless devices within range of the signal automatically receive the
service set identifier, associate themselves with the wireless network,
and request access to the local wired network.

Wireless networks are characterized by one of two basic topologies,
referred to as infrastructure mode and ad hoc mode.

o 	Infrastructure mode-By deploying multiple access points that broadcast
overlapping signals, organizations can achieve broad wireless network
coverage. Commonly used on campuses or in office buildings, infrastructure
mode enables a laptop or other mobile device to be moved about freely
while maintaining access to the resources of the wired network (see fig.
1).

Figure 3: Wireless Networks Detected in a Section of Downtown D.C.

Source: GAO.

Wireless networks offer connectivity without the physical restrictions
associated with building wired networks. Though generally developed as an
extension to an existing wired infrastructure, a wireless network may be
stand-alone as well. The key reason for the growth in the use of wireless
networks is the increased bandwidth made possible by the 802.11 standard
and its successors. The implementation of the 802.11 family of standards
increased the data transfer rates offered by wireless networks, making
them comparable to those available in the wired environment.

The 802.11 standard was first approved by the Institute of Electrical and
Electronics Engineers (IEEE) in 1997. IEEE's goal was to develop and
establish a technology standard that insured global interoperability among
wireless products, regardless of their manufacturers. This initial
wireless standard was useful for certain applications, but the data
transfer rate it specified was far slower than that of wired networks.
Responding to the data transfer rate limitations set by the initial
standard, the IEEE released several additional standards with the intent
of increasing the transfer rates and making wireless functionality
comparable to that of wired networks. The significant increases in data
transfer rates of the new standards, coupled with the availability of
affordable wireless-enabled devices, contributed to the rapid adoption of
wireless networks.

Federal Laws and Guidance Provide a Framework for Wireless Security
Policies

The Federal Information Security Management Act (FISMA)2 requires each
agency to develop, document, and implement an agencywide information
security program to provide security for the data and information systems
that support the agency's operations and assets. FISMA gives OMB many
responsibilities for overseeing the agency information security policies,
including developing and overseeing the implementation of policies and
standards for information security; requiring agencies to identify and
provide information security protections commensurate with the risk and
magnitude of the harm resulting from unauthorized access, use, disclosure,
modification, or destruction of federal information and information
systems; and coordinating the development of standards and guidance. OMB
annually reports to Congress on the progress of agencies' compliance with
FISMA.3 Accordingly, agencies need to evaluate the risks and develop
policies for emerging technologies such as wireless networks.

The National Institute of Standards and Technology (NIST) develops
standards that agencies are required to follow and guidelines recommending
steps that agencies can take to protect their information and information
systems. In November 2002, NIST released Wireless Network Security:
802.11, Bluetooth and Handheld Devices (Special Publication 800-48), which
is intended to provide agencies with guidance for establishing secure
wireless networks. The guidance recognizes that maintaining a secure
wireless network is a continuous process requiring additional effort
beyond that required to maintain other networks and systems. Accordingly,
NIST has recommended that federal agencies

o 	perform risk assessments and develop security policies before
purchasing wireless technologies and anticipate that their unique security
requirements will determine which products should be considered for
purchase;

o 	wait to deploy wireless networks for essential operations until after
agencies have fully assessed the risks to their information and system
operations and have determined that they can manage and mitigate those
risks;

244 U.S.C. S:3544(b). 344 U.S.C. S:3543(a)(8).

o 	assess risks, test and evaluate security controls more frequently than
they would on a wired network.

Currently, NIST is in the process of developing a follow-up to this
publication, which will reflect the recent updates to the 802.11 network
standards.

Wireless Networks Provide Benefits and Present Challenges to Agencies

Wireless networks offer federal agencies two primary benefits: increased
flexibility and easier installation. Because wireless networks rely on
radio transmissions, federal employees can work in a variety of ways. For
example, users can take laptops to meetings, create ad hoc networks, and
collaboratively develop products or work on projects. In addition, if a
federal agency has installed a wireless infrastructure, users with
wirelessenabled devices can work throughout the agency's facilities
without having to be in a particular office. Finally, an agency employee
traveling with a wireless-enabled device may be able to connect to an
agency network via any one of the many public Internet access points or
hotspots found in hotels or in commercial, retail, or transportation
centers. This ability to connect to the agency's systems via wireless
networks can increase employee productivity.

Ease of installation is commonly cited as a key attribute of wireless
networks. Generally, deployments of wireless networks do not require the
complicated undertakings that are associated with wired networks. For
example, the ability to "connect" the network without having to add or
pull wires through walls or ceilings or modify the physical network
infrastructure can greatly expedite the installation process. As a result,
a wireless network can offer a cost-effective alternative to a wired
network. In addition to their increased ease of installation, wireless
networks can be easily scaled from small peer-to-peer networks to very
large enterprise networks that enable roaming over a broad area. For
example, an agency can greatly expand the size of its wireless network and
the number of users it can serve by increasing the number of access
points.

Wireless Networks Present Wireless networks face all of the information
security risks that are Additional Challenges for associated with
conventional wired networks, such as worms and viruses, Federal
Information malicious attacks, and software vulnerabilities, but there are
significant

challenges that are unique to the wireless network environment. InSecurity
implementing wireless networks, federal agencies face three overarching

challenges to maintaining the confidentiality, integrity, and availability
of their information:

o  protecting against attacks that exploit wireless transmissions,

o  establishing physical control of wireless-enabled devices, and

o  preventing unauthorized wireless deployments.

Protecting Against Wireless Protecting against wireless network security
attacks is challenging because Network Security Exploits is information is
broadcast over radio waves and can be accessed more easily Challenging by
attackers than can data in a conventional wired network. For example,

wireless communications that are not appropriately secured are vulnerable
to eavesdropping and other attacks. Poorly controlled wireless networks
can allow sensitive data, passwords, and other information about an
organization's operations to be easily read by unauthorized users. In
addition, wireless networks can experience attacks from unauthorized
parties that attempt to modify information or transmissions. Table 1
provides examples of the different types of attacks that can threaten
wireless networks and the information that they are transmitting.

Table 1: Examples of Wireless Network Security Threats

Eavesdropping	The attacker monitors transmissions for message content. For
example, a person listens to the transmissions on a network between two
workstations or tunes in to transmissions between a wireless handset and a
base station.

Traffic analysis	The attacker, in a more subtle way, gains intelligence by
monitoring transmissions for patterns of communication. A considerable
amount of information is contained in the flow of messages among
communicating parties.

Masquerading	The attacker impersonates an authorized user and exploits the
user's privileges to gain unauthorized access in order to modify data.

Replay	The attacker places himself between communicating parties,
intercepting their communications, and retransmitting them; this is
commonly referred to as "Man-in-the-Middle."

                         (Continued From Previous Page)

Message modification	The attacker alters a legitimate message by deleting
or modifying it.

Jamming	Attackers flood a wireless network with excess radio signals to
prevent authorized users from accessing it. Other devices that emit radio
signals, such as cordless phones and microwaves, can also disrupt or
degrade wireless network performance.

Source: NIST.

Physical Control of Wireless-Physical control of wireless-enabled devices
takes on new importance in Enabled Devices Takes on New maintaining
information security. Areas of physical risk include the

Importance in Maintaining Security

placement and configuration of wireless access points and control of the
wireless-enabled device that connects to the agency's network. For
example, it can be difficult to control the distance of wireless network
transmissions, because wireless access points can broadcast signals from
150 feet to as far as 1,500 feet, depending on how they are configured. As
a result, wireless access points can and do broadcast signals outside
building perimeters. Figure 4 illustrates how poorly positioned or
improperly configured wireless access points may radiate signals beyond
the physical boundaries of the agency's facility or the range within which
the agency desires to send its signal. Wireless signals broadcast from
within an agency's facility that extend through physical walls, windows,
and beyond a building's perimeter-commonly known as "signal leakage"-can
increase an agency's susceptibility to the various attacks described in
table 1 above.

Figure 4: Example of Signal Leakage at Federal and Private Facilities

Source: GAO.

In addition to the challenge of signal leakage, it can be difficult for
wireless network administrators to track the physical location of
wireless-enabled devices. For example, in conventional wired networks,
users are required to physically plug in to the agency's networks via
cable. This allows administrators to determine where each device is
connected. However, with a wireless network, pinpointing a
wireless-enabled device's location can be difficult because the device is
mobile. As a result, it can be harder for information security officials
to locate unauthorized devices and eliminate the risks they pose.

Unauthorized Wireless Unauthorized wireless networks create two main
challenges for agencies' Deployments Create New information security. The
first challenge comes from legitimate agency Challenges for Agencies'
organizations, employees, or contractors seeking to benefit from the
Information Security flexibility of wireless networks. Because of the
affordability and

availability of wireless network equipment, well-meaning individuals might

install unauthorized wireless-enabled devices or wireless access points
into an agency's traditional wired network environment without the
approval of the agency's chief information officer. As a result, agency
information security officials might be unaware that wireless networks are
being used and would therefore be unable to take the appropriate
mitigating actions- such as protecting against potential wireless attacks
or preventing signal leakage.

The second challenge stems from the increasing availability and
integration of wireless technology into products such as laptops. For
example, agencies that are not seeking to install a wireless network may
find that as they purchase new equipment they are buying wireless-enabled
devices. In some instances, these devices are not available without
wireless technology. As a result, an agency may inadvertently procure
wireless network components that could pose risks to its enterprise. It is
critical that agencies understand whether or not the equipment they are
procuring is wireless-enabled and determine how they will mitigate the
risks it can pose to their information and systems.

Controls Can Mitigate Wireless Network Security Challenges

Controls such as policies, practices, and tools can help to mitigate
wireless network security challenges that federal agencies face. These
controls include

o 	developing comprehensive policies that govern the implementation and
use of wireless networks,

o 	defining configuration requirements that provide guidance on the
deployment of available security tools,

o 	establishing comprehensive monitoring programs that help to ensure that
wireless networks are operating securely, and

o 	training employees and contractors effectively in an agency's wireless
policies.

Developing Comprehensive Developing comprehensive information security
policies that address the Policies Can Mitigate security of wireless
networks can help agencies mitigate risks. FISMA Security Risks to
Wireless recognizes that development of policies and procedures is
essential to cost-Networks effectively reducing the risks associated with
information technology to an

acceptable level. NIST specifies 13 elements4 that should be addressed in
a policy for securing wireless networks. These elements can be broadly
organized into the following three categories: (1) authorized use, (2)
identification of requirements, and (3) security controls.

Table 2: Policies for Managing Wireless Network Risks

Authorize use of wireless networks:	identify who may use WLAN technology
in an agency

describe the type of information that may be sent over wireless links

describe who can install access points and other wireless equipment

describe conditions under which wireless devices are allowed

describe limitations on how the wireless device may be used, such as
location

provide guidelines on reporting losses of wireless devices and security
incidents

Identify requirements:	describe the hardware and software configuration of
all wireless devices

provide guidelines for the protection of wireless clients to
minimize/reduce theft

identify whether Internet access is required

Establish security controls: define standard security settings for access
points

provide limitations on the location of and physical security for access
points

define the frequency and scope of security assessments including access
point discovery

provide guidelines on the use of encryption and key management

Source: NIST.

By establishing policies that address the issues in table 2 above,
agencies can create a framework for applying practices, tools, and
training to help support wireless network security.

4National Institute of Standards and Technology, Wireless Network
Security: 802.11, Bluetooth and Handheld Devices, Special Publication
800-48 (Gaithersburg, Md.: November 2002).

Defining Configuration Defining requirements for how specific wireless
security tools or wireless-Requirements Can Improve enabled devices should
be used or configured can help to improve network the Security of Wireless
security in accordance with agency policy. For example, configuration

requirements can guide agency employees in identifying and setting
upNetworks wireless security tools such as encryption, authentication,
virtual private networks, and firewalls (see table 3).

Table 3: Examples of Wireless Security Tools That Can Be Configured to
Meet Agency Policies

Encryption	Encryption protects the confidentiality of information
traversing wireless networks by transforming data into code form
(ciphertext).

Authentication	Authentication technologies such as smart cards or time
synchronized tokens help to establish the validity of a user's claimed
identity and prevent unauthorized access to data and systems.

Virtual private Virtual private networks allow users in two separate
physical

networks	locations to establish network connections over a shared public
infrastructure, such as the Internet, with functionality that is similar
to that of a private encrypted network.

Firewalls	Firewalls are network devices or systems that run special
software to control the flow of network traffic among networks or between
a host and a network. Firewalls on wireless networks can be used to
protect a wireless network from unauthorized access and to prevent some
types of behaviors.

Source: NIST.

In addition to helping promote the effective and efficient use of security
tools, establishing settings or configuration requirements for devices
such as wireless access points can help agencies manage the risks of
wireless networks. It is important to secure wireless access points to
ensure that they are not tampered with or modified. Configuration
requirements can guide the placement and signal strength of wireless
access points to minimize signal leakage and exposure to attacks.

Comprehensive Wireless Comprehensive wireless network monitoring programs
are important Network Monitoring Is a security for protecting wireless
networks and their information. Key Security Practice Comprehensive
wireless monitoring programs usually focus on

o  detecting signal leakage,

o  determining compliance with configuration requirements, and

o  identifying authorized and unauthorized wireless-enabled devices.

Effective monitoring programs typically employ site surveys and wireless
intrusion detection systems to accomplish these goals. Site surveys
involve using wireless monitoring tools that identify wireless-enabled
devices such as wireless access points, laptops, and personal digital
assistants. Site surveys can include exterior scans of a building to
detect signal leakage. Such scans can inform agency personnel about the
strength of wireless signals and the effectiveness of wireless access
point configuration. In addition, site surveys can assist agencies in
detecting unauthorized wireless-enabled devices.

A wireless network intrusion detection system can be used to automatically
detect inappropriate activity, ensure that configuration requirements are
followed, and ensure that only authorized wirelessenabled devices are
functioning. Such a detection system scans radio signals to obtain
information on a wireless network, analyzes the information based on set
security policy, and then responds to the analysis accordingly. An
intrusion detection system for wireless networks includes positioning
sensors, similar to access points, near authorized access points or in
other areas that require monitoring. A wireless detection system can be
combined with a system designed for wired networks to provide
comprehensive network monitoring, but neither type alone provides adequate
security for both wired and wireless networks.

Training Staff is a Fundamental Element of Successful Wireless Security

Training employees and contractors in an agency's wireless policies is a
fundamental part of ensuring that wireless networks are configured,
operated, and used in a secure and appropriate manner. For security
policies to be effective, those expected to comply with them must be aware
of them. FISMA mandates that agencies provide security awareness training
for their personnel, including contractors and other users of information
systems that support the operations and assets of the agency.5 It is
important to provide training on technology to ensure that users comply
with current policies. NIST also strongly recommends specific

544 U.S.C. S:3544(b)(4).

training on wireless security and asserts that trained and aware users are
the most important protection against wireless risks.

Federal Agencies Lack Key Controls for Securing Wireless Networks

Agencies often lack key controls for securing wireless networks, such as

o 	comprehensive policies that govern the implementation and use of
wireless networks,

o 	configuration requirements that provide guidance on the settings and
deployment of available security tools,

o 	comprehensive monitoring programs that help to ensure that wireless
networks are operating securely, and

o 	training in an agency's wireless policies for both employees and
contractors.

If agencies do not establish effective controls for securing federal
wireless networks, federal information and operations can be placed at
risk.

Agencies Have Not Developed Comprehensive Policies for Wireless Networks

Many agencies have not developed policies addressing wireless networks,
and those that have often omitted key elements. Nine of the 24 major
agencies reported having no specific policies and procedures related to
wireless networks. Thirteen agencies stated that they had established
policies that authorize the operation and use of wireless networks. Twelve
of these 13 agencies also reported that their policies extended to the use
of wireless networks by contractors. Two federal agencies reported having
policies that forbid the use of wireless networks or devices.

Policies for many of the agencies did not address acceptable use of
wireless networks. For example, 7 of the 13 agencies with policies had not
established an acceptable use policy or provided specific guidance on the
type of information agency personnel were allowed to transmit using
wireless networks. NIST guidance recommends that acceptable use policies
delineate the type of information that may be sent over wireless networks,
in order to reduce the risk that sensitive information will be exposed.
Without establishing acceptable use policies, agencies will not be able to
determine whether wireless networks are being used appropriately.

The lack of such a policy could result in unauthorized disclosure of
agency information or could increase the agency's risk of a security
breach.

Most Agencies Have Not Set Configuration Requirements for Wireless
Networks

Thirteen of 24 agencies reported not having configuration requirements for
wireless networks. Further, the configuration requirements submitted by
the remaining 11 agencies were often incomplete, omitting key elements
that NIST guidance identifies-such as the use of and settings for security
tools, including encryption, authentication, virtual private networks, and
firewalls; the placement and strength of wireless access points to
minimize signal leakage; and the physical protection of wireless-enabled
devices. Two of the 11 agencies with policies had established
configuration requirements that addressed all of these elements. However,
the configuration requirements of the other 9 agencies did not cover key
areas of wireless security. For example,

o 	Three agencies did not have policies explaining how to configure
wireless access points and other wireless-enabled devices.

o 	Five agencies have not developed detailed guidance describing how to
physically secure wireless-enabled devices.

Most Agencies Lack Comprehensive Wireless Network Monitoring Programs

Most of the major agencies have not established comprehensive wireless
network monitoring programs for detecting signal leakage or ensuring
compliance with security policies. For example, 14 agencies, including 4
agencies that permit wireless networks, do not monitor for signal leakage.
Additionally, 19 agencies report not monitoring the data flowing through
their systems to ensure that users of wireless networks are complying with
acceptable use policies. Further, 14 agencies have not established
programs to monitor wireless networks to ensure compliance with
configuration requirements.

Fifteen agencies reported monitoring for the existence of unauthorized or
"rogue" wireless networks. Of these 15 agencies, only 6 continuously
monitored their facilities 24 hours a day. The remaining 9 agencies
monitored only periodically, sometimes as rarely as twice a year. The lack
of continuous monitoring, combined with the ease of setting up wireless
networks, creates a situation in which wireless networks can be operating
in agencies with neither authorization nor the required security
configurations. Consequently, agencies may not be able to determine
whether security policies are being implemented in an appropriate manner,

whether employees are conforming to policy, and-more importantly- they may
not have a full understanding of the existing risks to agency information
and information systems. Even if an agency does not allow wireless
networks, monitoring is one of the most effective ways to ensure
compliance with agency policy.

The Majority of Agencies Have Not Established Wireless Security Training
Efforts

Eighteen of the 24 agencies have not established any training programs for
their employees and contractors on wireless security or the policies
surrounding wireless networks. FISMA requires that agencies provide
information security awareness training to all personnel, including
contractors. Awareness about wireless security challenges can assist
employees in complying with policies and procedures to reduce agency
information security risks. Without such training, employees and
contractors may practice behaviors that threaten the safety of the
agency's data. For example, employees may use wireless-enabled devices-
configured to attach to wireless networks automatically-to access the
agency's private wired network. An attacker might connect to such a
device, accessing the agency's network under a legitimate user's
authority.

Selected Agencies Did Not Implement Wireless Networks Securely

We tested the wireless network security at the headquarters of six federal
agencies in Washington, D.C., and identified significant weaknesses
related to signal leakage, configuration, and unauthorized devices.

o 	Signal leakage-We were able to detect signal leakage outside the
headquarters buildings at all six agencies. In one case, we were able to
detect an agency's network while we were testing at another agency several
blocks away. By not managing signal leakage, agencies increase their
susceptibility to attack. In addition, the confidentiality of agency data
may be diminished because an unauthorized user could be eavesdropping or
monitoring wireless traffic.

o 	Insecure configurations-We also found wireless-enabled devices
operating with insecure configurations at all six agencies. For example,
at one agency over 90 wireless laptops were attempting to associate with
wireless networks while they were connected to the agency's wired
networks. This configuration could provide unauthorized access to an
agency's internal networks. In all six agencies we found wireless devices
operating in ad hoc mode. In over half of these cases the ad hoc networks
could be detected outside of the building and could have

provided access to the agency's networks. We found these situations at
agencies without monitoring programs as well as at agencies with extensive
monitoring programs.

o 	Unauthorized wireless-enabled devices-We detected unauthorized
wireless-enabled devices at all six agencies. These devices included both
unauthorized wireless access points and ad hoc wireless networks. None of
the six agencies we tested maintained continuous wireless monitoring.
Three had programs that would periodically test portions of their
facilities; however, periodic monitoring was not sufficient to prevent
unauthorized wireless activity.

Signal leakage, insecure configuration, and unauthorized wireless devices
pose serious risks to the confidentiality, integrity, and availability of
the information of the six agencies we tested. Because attackers in a
wireless environment can focus on an easily discernable location, such as
a headquarters building, federal agencies need to be especially concerned
about signal leakage, insecure configurations, and unauthorized devices.
If wireless signals emanate from a building, they could make the agency a
target of attack.

Conclusions	Wireless networks can offer a wide range of benefits to
federal agencies, including increased productivity, decreased costs, and
additional flexibility for the federal workforce. However, wireless
networks also present significant security challenges to agency
management. The affordability of wireless technology, along with the
increasing integration of wireless capabilities into equipment procured by
the federal government, increases the importance of developing appropriate
policies, procedures, and practices. Such actions could help ensure that
wireless devices and networks do not place federal information and
information systems at increased risk.

Currently, the lack of key controls in federal agencies means that
unauthorized or poorly configured wireless networks could be creating new
vulnerabilities. In some instances, the lack of policies and procedures
for assessing and protecting wireless networks is impeding agency efforts
to effectively address wireless security. In other cases, agencies'
ineffective compliance monitoring hinders their ability to detect
unauthorized wireless devices, ensure compliance with agency policies, and
supervise behavior on wireless networks. Finally, the majority of agencies
have not trained

their employees and contractors in the challenges of wireless networking
and in agency policies concerning this technology.

Our testing at six major federal agencies found significant security
weaknesses: signal leakage, insecure configurations of wireless equipment,
and unauthorized devices. Wireless network security is a serious,
pervasive, and crosscutting challenge to federal agencies, warranting
increased attention from OMB. If these challenges are not addressed,
federal agency information and operations will be at increased risk.

Recommendation for Executive Action

Because of the governmentwide challenges of wireless network security, we
recommend that the Director of OMB instruct the federal agencies to ensure
that wireless network security is incorporated into their agencywide
information security programs, in accordance with FISMA. In particular,
agencywide security programs should include

o 	robust policies for authorizing the use of the wireless networks,
identifying requirements, and establishing security controls for
wirelessenabled devices in accordance with NIST guidance;

o  security configuration requirements for wireless devices that include

o 	available security tools, such as encryption, authentication, virtual
private networks, and firewalls;

o 	placement and strength of wireless access points to minimize signal
leakage; and

o  physical protection of wireless-enabled devices;

o 	comprehensive monitoring programs, including the use of tools such as
site surveys and intrusion detection systems to

o  detect signal leakage;

o  ensure compliance with configuration requirements;

o  ensure only authorized access and use of wireless networks; and

o 	identify unauthorized wireless-enabled devices and activities in the
agency's facilities; and

o  wireless security training for employees and contractors.

Agency Comments 	In providing oral comments on a draft of this report,
representatives of OMB's Office of Information and Regulatory Affairs and
Office of General Counsel told us that they generally agreed with the
contents of the report. OMB officials told us that NIST is developing
updated wireless guidance for the federal agencies, which is scheduled to
be issued for comment in August 2005. Further, OMB stressed that the
agencies have the primary responsibility for complying with FISMA's
information security management program requirements. OMB told us that as
part of its annual review of agency information security programs, it
would consider whether agencies' programs adequately addressed emerging
technology issues such as wireless security before approving them.

We are sending copies of this report to the Director of OMB and to
interested congressional committees. We will provide copies to other
interested parties upon request. The report will also be available on
GAO's Web site at http://www.gao.gov.

If you have any questions or wish to discuss this report, please contact
either Gregory Wilshusen at (202) 512-6244 or Keith Rhodes at (202)
5126412. We can also be reached at [email protected] or [email protected].
Key contributors to this report are listed in appendix II.

Sincerely yours,

Gregory C. Wilshusen Director, Information Security Issues

Keith A. Rhodes Chief Technologist

Appendix I

                       Objectives, Scope, and Methodology

The objectives of our review were to

o 	describe the benefits and challenges associated with securing wireless
networks,

o 	identify the controls (policies, practices, and tools) available to
assist federal agencies in securing wireless networks,

o 	analyze the wireless policies and practices reported by each of the 24
agencies covered by the Chief Financial Officers (CFO) Act of 1990,1 and

o 	test the security of wireless networks at the headquarters of six major
federal agencies in Washington, D.C.

For the first three objectives, the scope of our review included (1) the
24 agencies under the CFO Act and focused on wireless networks conforming
to the 802.11x standard. For the fourth objective, we tested the wireless
network security at 6 major federal agencies. Our review did not evaluate
the risks that remote wireless users, such as teleworkers, might pose to
agency systems.

To determine the benefits and challenges of using 802.11x wireless
networks securely, we reviewed federal and private-sector technical
documents, including National Institute of Standards and Technology (NIST)
guidance and leading private sector practices. Additionally, we documented
the various benefits and challenges of wireless networks with
representatives from private-sector wireless security providers, federal
experts and agency officials, and financial institutions.

To determine what controls were available to agencies for securing their
802.11x wireless networks, we reviewed federal and private-sector
technical documents, including NIST guidance and leading private-sector
practices. Additionally, we documented various controls for securing
wireless networks-such as policies, practices, and tools-with
representatives of private-sector wireless security providers, federal
experts and agency officials, and financial institutions.

To determine the wireless security practices and policies used at federal
agencies, we conducted a survey of the 24 CFO agencies. We developed a

131 U.S.C. 901(b).

Appendix I
Objectives, Scope, and Methodology

series of questions that were incorporated into a Web-based survey
instrument. We tested this instrument with one federal agency and
internally at GAO through our Chief Information Officer's office. The
survey included questions on the agencies' use of wireless networks and
their policies and procedures for securing them. For each agency to be
surveyed, we identified the office of the chief information officer,
notified each office of our work, and, distributed a link to each office
via e-mail to allow them to access the Web-based survey. In addition, we
discussed the purpose and content of the survey with agency officials when
they requested it. All 24 agencies responded to our survey. We did not
verify the accuracy of the agencies' responses; however, we reviewed
supporting documentation that the agencies provided to validate their
responses. We contacted agency officials when necessary for follow-up.

Although this was not a sample survey and, therefore, there were no
sampling errors, conducting any survey may introduce errors-commonly
referred to as nonsampling errors. For example, difficulties in how a
particular question is interpreted, in the sources of information that are
available to respondents, or in how the data are entered into a database
or analyzed can introduce unwanted variability into the survey results. We
took steps in the development of the survey instrument, the data
collection, and the data analysis to minimize these nonsampling errors.
For example, a survey specialist designed the survey instrument in
collaboration with GAO staff with subject-matter expertise. Then, as
stated earlier, it was pretested to ensure that the questions were
relevant, clearly stated, and easy to comprehend. When the data were
analyzed, a second, independent analyst checked all computer programs.
Because this was a Web-based survey, respondents entered their answers
directly into the electronic questionnaire. This eliminated the need to
have the data keyed into a database, thus removing an additional potential
source of error.

To assess the state of wireless security at a selected group of federal
agencies, we conducted onsite network surveys at 6 of the 24 CFO agencies.
We selected 6 agencies in various stages of wireless implementation: 2 had
established wireless networks, 1 had a pilot system, 2 did not have any
authorized wireless networks, and 1 forbade the use of wireless. At each
agency's Washington, D.C., headquarters, we scanned for signal leakage and
wireless activity, using wireless monitoring tools both inside and outside
the agency's facility. For security purposes, we do not identify the 6
agencies in the report.

Appendix I
Objectives, Scope, and Methodology

We performed our work in the Washington, D.C., metropolitan area from
September 2004 to March 2005, in accordance with generally accepted
government auditing standards.

Appendix II

                       Contacts and Staff Acknowledgments

GAO Contact	J. Paul Nicholas, (202) 512-4457 Assistant Director

Staff 	In addition to the person mentioned above, Mark Canter, Lon Chin,
West Coile, Derrick Dicoi, Neil Doherty, Joanne Fiorino, Suzanne Lightman,

Acknowledgments	Kush Malhotra, and Christopher Warweg made key
contributions to this report.

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