When it comes to sensitive information that requires safeguarding, what readily comes to mind is customers' personally identifiable information (PII), a company’s proprietary business information, and various state secrets that constitute classified information.
However, the United States has created another sensitive data category under the Executive Order, which requires protection by law or policy, although it is not classified as Controlled Unclassified Information (CUI).
This article explains what CUI encompasses, its various types, and underlying security requirements.
What Is Controlled Unclassified Information (CUI)?
Controlled Unclassified Information (CUI) is a data category that the United States federal government produces or interacts with.
While it's not classified, its dissemination and access are restricted due to its sensitive nature, such as privacy issues, proprietary business information, law enforcement information, and others. CUI could include national security information, financial data, tax records, patent data, or many other types of sensitive data.
What does “basic” mean in the context of CUI?
The term “basic” in the context of CUI refers to one of the two divisions in which CUI is categorized: Basic and Specified. The “Basic” in CUI refers to information that needs to be safeguarded using standard procedures outlined in the National Institute of Standards and Technology's (NIST) document 800-171. Companies that handle CUI Basic need to comply with these measures.
On the other hand, "Specified" CUI is information that requires safeguarding based on unique legislation, regulations, or government-wide policies that lay out specific handling measures apart from or in addition to the "Basic" ones.
How Does CUI Basic Differ from CUI Specified?
Controlled Unclassified Information (CUI) is divided into two categories: CUI Basic and CUI Specified.
CUI Basic refers to information that requires the standard level of protection per the CUI program. It means that the information needs to be safeguarded and disseminated according to a uniform, predefined set of basic handling procedures the federal government outlines.
On the other hand, CUI Specified is information that requires stricter or additional handling controls due to specific laws, regulations, or government-wide policies. The agency or program overseeing the particular information type specifies these extra protective measures.
In essence, the main difference between CUI Basic and CUI Specified lies in the level and specifics of the handling requirements. Where CUI Basic follows a general set of protection guidelines, CUI Specified has more detailed, stringent, or additional requirements for safeguarding and dissemination.
What Data Types are Classified as CUI Basic?
Controlled Unclassified Information (CUI) Basic includes various types of sensitive data that require protection. While the specific data types can be extensive and depend on the context of the agency and information in question, some common examples can include:
Personally Identifiable Information (PII): This includes any data that could potentially identify a specific individual, such as social security numbers, passport numbers, or driver's license numbers.
Proprietary Business Information: In addition to personally identifiable information, CUI includes any sensitive data related to businesses. Examples include trade secrets and commercial or financial information that is confidential or privileged.
Law Enforcement Information: It includes sensitive law enforcement techniques or procedures, ongoing criminal investigation data, victim or witness identities, etc.
Critical Infrastructure Information: Information about the physical and virtual systems and assets so vital that their incapacity or destruction would have a debilitating effect on security, national economic security, public health, or safety.
Intellectual Property: Unpublished data from research projects, copyrighted information, and other creative works.
Federal Contract Information: Information not intended for public release, provided by, or made for the government under contracts to develop or deliver products or services to the government.
Privacy Information: Information that implicates the privacy rights or personal interests of individuals, including personnel, medical, and similar files.
Protection of Natural Resources: Information on natural resources related to efforts to protect, conserve, or restore them.
Note that it’s important to consult the CUI Registry for a comprehensive listing of CUI categories and subcategories and to understand any additional handling requirements. The exact nature of CUI Basic can vary by agency and depend on the specific laws, regulations, and government-wide policies that dictate information handling.
The Security Requirements For Managing CUI Basic Data
The security requirements for managing Controlled Unclassified Information (CUI) Basic data are outlined in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171.
The requirements are grouped into 14 families:
- Access Control: Limit system access to authorized users and limit what they can do within the system.
- Awareness and Training: Make sure all users are aware of the risks of their actions and trained to carry out their roles and responsibilities securely.
- Audit and Accountability: Create a record of who does what within the system for later review and analysis.
- Configuration Management: Control the configuration of systems to ensure their integrity.
- Identification and Authentication: Make sure individuals using systems are who they claim.
- Incident Response: Develop procedures to respond to and recover from system threats.
- Maintenance: Regularly maintain systems and tools to ensure they continue functioning securely.
- Media Protection: Properly protect and manage system media, both digital and physical.
- Personnel Security: Apply the “least privilege” principle and assign user roles and permissions based on job functions.
- Physical Protection: Secure the physical facilities and grounds housing system resources.
- Risk Assessment: Regular risk assessments should be done to inform decision-making.
- Security Assessment: Regularly review and test system security mechanisms.
- System and Communications Protection: Apply technical measures (like firewalls and encryption) to protect connections within or between systems.
- System and Information Integrity: Regularly review system logs and alerts and respond to them quickly.
These are the baseline requirements for CUI Basic data protection. Contractors and subcontractors are often expected to adhere to these guidelines as part of third-party risk management.
How Organizations Can Ensure Compliance with CUI Basic Guidelines
Organizations can ensure data compliance with Controlled Unclassified Information (CUI) Basic guidelines through the following steps:
- Educate and Train Employees: All employees who handle CUI must be aware of the requirements and trained to identify, handle, and safeguard CUI correctly.
- Implement Security Controls: Use the guidelines outlined in the National Institute of Standards and Technology (NIST) Special Publication 800-171 to implement the required security controls in your organization’s systems. This includes access control, awareness and training, audit and accountability, configuration management, identification and authentication, incident response, and more.
- Establish a Data Classification System: Create a system to aid in identifying and classifying sensitive data like CUI. Consider using data loss prevention (DLP) solutions to help automate this process.
- Regular Auditing: Regular audits will help ensure compliance and expose areas needing improvement. These audits should involve checking proper labeling, assessing the effectiveness of current controls, and verifying whether staff members understand and adhere to procedures.
- Create an Incident Response Plan: Establish an emergency response plan to deal with potential cybersecurity incidents. This plan should include identifying the incident, containing the threat, eradication, recovery, lessons learned, and reporting to the appropriate government agency.
- Documentation: Maintain comprehensive documentation of your compliance activities. This should include all policies, procedures, employee training materials, audit trails, and incident responses.
- Partner with a Compliance Expert: If the organization does not have the internal resources, hiring a third-party expert or consultant with experience in CUI compliance can be beneficial.
Remember, compliance is not a one-time task. It requires a commitment to ongoing training, auditing, and updating security controls.
The Penalties for Failing to Protect CUI Basic Information
Controlled Unclassified Information (CUI) entails sensitive information that is not classified but requires safeguarding. Failure to protect CUI can lead to various penalties depending on the degree of the violation. These penalties can include:
Loss of government contracts: This is one of the most immediate and significant consequences. The government can terminate contracts with an organization that fails to protect CUI adequately.
Financial penalties: Depending on the specifics of the contract and the stipulations contained within, there might be financial penalties for breaches of CUI protocols. These could be outlined in the contract itself or levied as part of a lawsuit for damages associated with the breach.
Legal consequences: Legal action may be taken if the breach leads to the leaking of sensitive, non-classified information. This action could involve fines or even imprisonment, especially if the breach results in damages or is linked to illegal activities.
Reputational damage: Failing to protect CUI can lead to significant reputational harm. The lost trust may affect the government contracts and extend to other private sector clients and customers.
Increased scrutiny and audits: If an organization fails to protect CUI, it may face increased scrutiny from the government, including more frequent and thorough audits to ensure compliance.
Mandatory corrective measures: The organization may be required to implement corrective measures, like additional security protocols, to prevent future breaches.
Note: The exact penalties usually depend on the specific context, including the nature of the missed protection, whether it was intentional or accidental, and the extent of the perceived or actual damage.
How Does CUI Basic Fit Into the Overall Cybersecurity Strategy For Federal Contractors?
Controlled Unclassified Information (CUI) Basic is a vital part of cybersecurity strategies for federal contractors. Here's why:
Compliance with Federal Regulations
Federal contracts often require compliance with CUI Basic regulations, falling under the National Institute of Standards and Technology’s (NIST) standards (particularly NIST SP 800-171). Meeting these standards is necessary for securing federal contracts.
Safeguarding Sensitive Information
Contractors that handle sensitive but unclassified federal data must ensure proper protections are in place. This includes, but isn’t limited to, training, data protection, access management, critical infrastructure protection, and incident response procedures. Managing CUI Basic properly helps prevent data breaches that could compromise mission-critical information.
Risk Management
Compliance with CUI Basic helps identify, assess, and mitigate potential cybersecurity risks. These steps toward better risk management contribute to a more robust cybersecurity posture.
Cybersecurity Maturity Model Certification (CMMC)
For contractors dealing with the Department of Defense (DoD), correctly handling CUI Basic can help prepare for and achieve various levels of the Cybersecurity Maturity Model Certification (CMMC) certification, which is now required for DoD contracts.
Reputation and Trust
Contractors that handle CUI Basic securely can improve their trustworthiness and reputation, which could lead to more opportunities for federal contracts in the future.
Essentially, handling CUI Basic should be an essential part of the cybersecurity strategy for any federal contractor to comply with federal guidelines and ensure the integrity and security of sensitive data.
Learn How Fortra's Data Classification Can Protect Your Sensitive Secrets
Implementing a CUI-compliant program is not a one-time effort but requires regular review and updates to adapt to changing data regulations and cybersecurity landscapes.
Fortra has the requisite data protection tools—including Fortra's Data Classification—to safeguard your sensitive data and ensure proper CMMC compliance.
Contact us today to learn how our interlocking solutions will keep your sensitive data in the right hands without compromising productivity.