Cybercrime Enforcement Is Now Open To Private Bidders

BusinessAerospace & DefenseCybercrime Enforcement Is Now Open To Private BiddersByJill Goldenziel,Contributor.Forbes contributors publish independent expert analyses and insights. Jill Goldenziel writes & consults on security, law, & business risk.Follow AuthorAug 18, 2026, 08:59pm EDTSummaryA 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.Show More 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 ImagesOn August 12, a new Presidential Memorandum authorized the federal government to deputize vetted private corporations to conduct activities in support of law enforcem...