Microsoft stands to receive nearly a quarter of Covid relief funds destined for U.S. cybersecurity defenders, sources told Reuters, angering some lawmakers who don’t want to increase funding for a company whose software was recently at the heart of two big hacks.
Congress allocated the funds at issue in the COVID relief bill signed on Thursday after two enormous cyberattacks leveraged weaknesses in Microsoft products to reach into computer networks at federal and local agencies and tens of thousands of companies.
One breach attributed to Russia in December grabbed emails from the Justice Department, Commerce Department and Treasury Department.
The hacks pose a significant national security threat, frustrating lawmakers who say Microsoft’s faulty software is making it more profitable.
Microsoft previously said it prioritizes fixing attacks that it sees in wide use.
More precisely, the money has been budgeted for Microsoft, according to four people briefed on the choice, largely to help other federal agencies upgrade their existing Microsoft deals to improve security of their cloud systems.
A key service Microsoft provides, known as activity logging, allows its clients to keep watch on data traffic within their part of the cloud and spot inconsistencies that could reveal hackers at work.
Officials have sought access to Microsoft’s premium tracking capability after discovering the lack of logs made it much harder to investigate recent hacks tied to nation states.
Microsoft said that while all its cloud products have security features, “larger organizations may require more advanced capabilities such as a greater depth of security logs and the ability to investigate those logs and take action.” It did not address the fairness issues raised by lawmakers.
While some senior U.S. cyber officials feel they have no choice but to pay up, Wyden and three other lawmakers have publicly raised concerns about the plan.
Most major software has been penetrated by well-financed teams of hackers at one time or another, but the ubiquity of Microsoft’s products makes it a prime target.
The alleged Russian spying, known for exploiting software from SolarWinds, hit nine government agencies and 100 private companies, many of whom were exploited through manipulation of a Microsoft system.
More recent sprawling hacks into tens of thousands of servers around the world running Microsoft Exchange by a handful of attackers, including some tied to the Chinese government, relied on four previously unknown flaws in the way those servers handled web versions of Outlook email. China has denied backing the attacks.
Microsoft has turned security offerings into a significant source of revenue, with the business generating $10 billion annually, up 40% from the previous year.
Rep. Dutch Ruppersberger of the House appropriations committee said Congress must look into “why security is an afterthought in the procurement process” and move away from approving only the lowest bidders.
The government could impose new regulations, said Curtis Dukes, a former head of the defensive mission at the National Security Agency now at the nonprofit Center for Internet Security, which works closely with CISA.