The Final Fintech Cybersecurity Frontier?

A recently introduced bipartisan bill, the Space Infrastructure Act, could see space systems and services designated as critical national infrastructure by the U.S. government. Space is already one of 13 critical national infrastructure sectors in the U.K. It should come as no surprise that space technology is also something of an unseen force underpinning financial services cybersecurity, but is it being adequately funded?

Billions Of Invisible Transactions Fill The Night Sky

“When we look up at the night sky, we are seeing billions of invisible transactions using space technology, enabling us to travel, grow, and plan for our futures,” Chris Kubecka, CEO at nation-state incident management consultancy HypaSec, says. Kubecka, a former USAF veteran who also served in Space Command, handling command and control systems, talks of space IOT, microsatellites, 6G and beyond as reasons why multiple governments are focusing on space. “However, lots of legacy tech, geopolitical, criminal and cybersecurity risks make for juicy targets,” Kubecka says, concluding that the financial sector faces “multiple challenges ahead to plan, minimize, and mitigate cybersecurity issues in space.” Daniel Card, an industry cybersecurity consultant and founder of PwnDefend, agrees that space is an “opportunity space” and we need technology to “be safe everywhere from our fridge to our forces in space.” However, Card also points out that “satellites still have high latency and are also targeted by nation states in a range of ways.” There is still plenty of work to do, in other words.

Bogdan Gogulan, CEO at NewSpace Capital, a space-focused private equity firm, says that satellite technology plays a critical role in the financial sector “by enabling the secure transmission of encrypted data over long distances, preventing unauthorized access and eavesdropping, while reducing the risk of data breaches.” Man-in-the-middle attacks can be mitigated by the high accuracy transaction timing that satellites bring to the table, Gogulan adds.

Space Tech Funding As A Cybersecurity Spend

Gogulan says that a lack of adequate funding in space technology “hampers the scaling of innovation and sophistication in cybersecurity.” One area that can be seen as being highly relevant is that of quantum cryptography, according to Gogulan. “To ensure secure quantum key distribution over long distances,” he explains, “satellite-based quantum communication networks are being developed.” Without continued and sufficient investment is such networks, quantum cryptography scalability could be limited. “As a result,” Gogulan says, “conventional encryption methods may continue to be used, which are susceptible to advancements in cyber-attack techniques such as quantum computing-based attacks.” Not that Gogulan thinks the space ecosystem is stagnant, but to enable continued and sustainable growth, he says, “a number of measures could be implemented through a combination of policy changes, increased funding, collaboration between public and private sectors, and fostering innovation.”

Data Centers In Space

While satellites currently provide a secure means of communication across multiple international locations, Gogulan argues that they could also potentially offer “a viable alternative form of data center.” Indeed, the idea of a space cloud isn’t as far-fetched as it may sound. Microsoft has already announced an Azure space software developer kit and a partnership with LEOcloud to deliver space-based cloud services. And the European Commission has established ASCEND, the Advanced Space Cloud for European Net-zero emission and Data sovereignty, study. “There certainly are potential benefits,” Gogulan says, “placing data centers in space could offer a higher level of physical security as they would be less susceptible to physical attacks, natural disasters, and other terrestrial hazards.” He admits, however, that, at least for now, the drawbacks outweigh the benefits. These include cost, latency issues, and the dangers of space debris. “Transmitting data to and from space also introduces additional security concerns,” Gogulan continues, “data interception and privacy breaches could be more challenging to prevent or detect in space-based communication.” Microsoft does have some history when it comes to deploying data centers into hostile environments. The underwater data center, for example. “From a broad cyber security perspective and taking into consideration my distinct lack of qualifications as an Astrophysicist,” Ian Thornton-Trump, chief information security officer at threat intelligence company Cyjax, says, “I do know that space, in general, is more hostile than winter off the coast of Scotland’s Orkney Islands.”

Cyjax has customers who are directly impacted by space events and has built customized reporting tools providing risk information to assess the impact of space weather on on those customers’ operations. “To be fair,” Thornton-Trump says, “I don’t think there is a more dangerous and unforgiving environment to deploy a data center into other than in close proximity to an active volcano.”

Despite all the negatives, and potential for catastrophic loss, Thornton-Trump is surprisingly upbeat about Microsoft’s plan for space data. “I’m certain will drive innovation, self-healing capabilities, further energy efficiency and miniaturization of data processing capabilities,” he says, concluding, “the mission from a cyber security perspective is what it has always been: protect the data as it might help us build a better future.”