Aerospace & Defense Cybercrime Enforcement Is Now Open To Private Bidders By Jill Goldenziel ,
Forbes contributors publish independent expert analyses and insights. Jill Goldenziel writes & consults on security, law, & business risk. Follow Author Aug 18, 2026, 08:59pm EDT --:-- / --:-- This voice experience is generated by AI. Learn more . This voice experience is generated by AI. Learn more . Summary A new Presidential Memorandum, issued August 12, authorizes vetted private corporations to assist federal law enforcement in combating cyber-enabled transnational criminal organizations (CE-TCOs). This initiative addresses billions lost annually to cybercrime, leveraging private sector capabilities against foreign-based threats. Under federal contract and supervision, firms can conduct cyber surveillance and "effects operations" to disrupt criminal networks. While the memo includes safeguards like requiring written government approval and prohibiting actions causing serious harm, it introduces significant legal risks. The Computer Fraud and Abuse Act's exception for "lawfully authorized" activities remains untested, leaving firms vulnerable to liability. Moreover, "cyber effects operations" could be perceived as an act of force by other nations, potentially escalating international tensions and holding the U.S. responsible for private actions. Employees also face personal risks abroad, lacking sovereign immunity. Unaddressed issues include collateral damage to innocent third parties and the fate of American data on targeted systems.
JOINT BASE ANDREWS, MARYLAND - AUGUST 11: U.S. President Donald Trump speaks to reporters after stepping off Air Force One on August 11, 2026 in Joint Base Andrews, Maryland. The next day the White House released a National Security Presidential Memorandum on Countering Cyber Enabled-Transnational Criminal Organizations. Getty Images On August 12, a new Presidential Memorandum authorized the federal government to deputize vetted private corporations to conduct activities in support of law enforcement operations against cyber-enabled transnational criminal organizations. It is an innovative answer to a scourge of cybercrime that costs Americans billions of dollars a year. It also creates legal risk that no company has been asked to carry before, and that no court has tested.
According to the White House’s fact sheet accompanying the memorandum, Americans reported losing “over $20.8 billion” to cyber-enabled crime in 2025, including ransomware, phishing, financial fraud, sextortion, and impersonation schemes online. 73% of U.S. adults report having experienced an online scam or attack. Seniors, children, and low-income families are disproportionately targeted. Many of the cyber-enabled transnational criminal organizations (CE-TCOs) behind these scams and attacks originate abroad, and U.S. law enforcement cannot reach them fast enough. Private sector capabilities are better equipped to do so, but they are typically barred by law from touching attackers’ systems. The Computer Fraud and Abuse Act, enacted in 1986, criminalizes accessing a computer “without authorization” and knowingly transmitting code that intentionally causes damage. Its drafters could not have foreseen today’s challenges of combatting cybercrime.
The memo crafts a framework for private firms to conduct cyber surveillance operations and cyber effects operations against CE-TCOs under federal government contract and supervision. It defines…