US Government Enlists Private Cyber Firms to Combat Transnational Cybercrime, Opening Doors for Israeli Industry
The US government has introduced a new White House memorandum establishing a program that authorizes private American cybersecurity companies to conduct active cyber operations against transnational criminal organizations. These operations, which include intelligence gathering and disruption or shutdown of computer systems, will be conducted under strict government control, supervision, and approval. Managed by the National Coordination Center (NCC), participating companies will undergo rigorous vetting and operate under protocols set by the Department of Justice and the Department of Homeland Security. All actions require prior written authorization and will be executed on behalf of the US government.
The program aims to leverage the technological innovation and agility of the private sector to fight fraud, cybercrime, and threats to citizens, businesses, and national security. Authorized activities range from cyber surveillance, collecting intelligence from systems without owner consent, to cyber influence operations involving manipulation, disruption, or disabling of information systems and infrastructure. However, any operation likely to cause death, serious injury, or qualify as use of force under international law is prohibited.
For the Israeli cybersecurity industry, this initiative presents significant opportunities. Lee Mozar, co-founder of Protego Capital, highlights the memorandum’s explicit inclusion of small and agile companies, recognizing that adversaries operate at a startup pace and defenses must match that speed. Many Israeli firms are incorporated in the US, potentially easing their eligibility, though final participation criteria will be detailed in regulations expected within 60 days. Mozar also notes opportunities beyond offensive cyber capabilities, including intelligence, data, automation, and oversight technologies.
Eric Kleinstein, managing partner at Galil Capital, sees the memorandum as a major shift in how the US government views private sector roles in active cyber defense, favoring experienced companies with proven government compliance. However, he warns of unresolved issues regarding responsibility and risk if private actions cause unintended damage or diplomatic incidents. Shai Nisan Michel of Marlin Ventures emphasizes the memorandum’s model of government retaining authority while trusted private firms provide speed, expertise, and advanced technology, noting Israel’s operationally tested cyber capabilities as a valuable asset.
The memorandum also reflects broader trends in addressing cyber threats amid AI advancements. Gil Geron, CEO of Orca Security, suggests that involving private companies in active defense acknowledges the strategic necessity of harnessing industry innovation to keep pace with AI-accelerated cybercrime. While AI may ultimately benefit defenders more than attackers, the US recognizes it cannot compete alone. For Israeli companies, this framework could expand demand not only for offensive cyber tools but also for intelligence, data, and controlled automation solutions. The detailed participation rules, security requirements, and liability frameworks are expected soon, potentially reshaping US cybercrime combat strategies and opening new avenues for Israeli cybersecurity firms in the American market.
