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Paul Merrell

Data Transfer Pact Between U.S. and Europe Is Ruled Invalid - The New York Times - 0 views

  • Europe’s highest court on Tuesday struck down an international agreement that allowed companies to move digital information like people’s web search histories and social media updates between the European Union and the United States. The decision left the international operations of companies like Google and Facebook in a sort of legal limbo even as their services continued working as usual.The ruling, by the European Court of Justice, said the so-called safe harbor agreement was flawed because it allowed American government authorities to gain routine access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency, made it clear that American intelligence agencies had almost unfettered access to the data, infringing on Europeans’ rights to privacy. The court said data protection regulators in each of the European Union’s 28 countries should have oversight over how companies collect and use online information of their countries’ citizens. European countries have widely varying stances towards privacy.
  • Data protection advocates hailed the ruling. Industry executives and trade groups, though, said the decision left a huge amount of uncertainty for big companies, many of which rely on the easy flow of data for lucrative businesses like online advertising. They called on the European Commission to complete a new safe harbor agreement with the United States, a deal that has been negotiated for more than two years and could limit the fallout from the court’s decision.
  • Some European officials and many of the big technology companies, including Facebook and Microsoft, tried to play down the impact of the ruling. The companies kept their services running, saying that other agreements with the European Union should provide an adequate legal foundation.But those other agreements are now expected to be examined and questioned by some of Europe’s national privacy watchdogs. The potential inquiries could make it hard for companies to transfer Europeans’ information overseas under the current data arrangements. And the ruling appeared to leave smaller companies with fewer legal resources vulnerable to potential privacy violations.
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  • “We can’t assume that anything is now safe,” Brian Hengesbaugh, a privacy lawyer with Baker & McKenzie in Chicago who helped to negotiate the original safe harbor agreement. “The ruling is so sweepingly broad that any mechanism used to transfer data from Europe could be under threat.”At issue is the sort of personal data that people create when they post something on Facebook or other social media; when they do web searches on Google; or when they order products or buy movies from Amazon or Apple. Such data is hugely valuable to companies, which use it in a broad range of ways, including tailoring advertisements to individuals and promoting products or services based on users’ online activities.The data-transfer ruling does not apply solely to tech companies. It also affects any organization with international operations, such as when a company has employees in more than one region and needs to transfer payroll information or allow workers to manage their employee benefits online.
  • But it was unclear how bulletproof those treaties would be under the new ruling, which cannot be appealed and went into effect immediately. Europe’s privacy watchdogs, for example, remain divided over how to police American tech companies.France and Germany, where companies like Facebook and Google have huge numbers of users and have already been subject to other privacy rulings, are among the countries that have sought more aggressive protections for their citizens’ personal data. Britain and Ireland, among others, have been supportive of Safe Harbor, and many large American tech companies have set up overseas headquarters in Ireland.
  • “For those who are willing to take on big companies, this ruling will have empowered them to act,” said Ot van Daalen, a Dutch privacy lawyer at Project Moore, who has been a vocal advocate for stricter data protection rules. The safe harbor agreement has been in place since 2000, enabling American tech companies to compile data generated by their European clients in web searches, social media posts and other online activities.
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    Another take on it from EFF: https://www.eff.org/deeplinks/2015/10/europes-court-justice-nsa-surveilance Expected since the Court's Advocate General released an opinion last week, presaging today's opinion.  Very big bucks involved behind the scenes because removing U.S.-based internet companies from the scene in the E.U. would pave the way for growth of E.U.-based companies.  The way forward for the U.S. companies is even more dicey because of a case now pending in the U.S.  The Second U.S. Circuit Court of Appeals is about to decide a related case in which Microsoft was ordered by the lower court to produce email records stored on a server in Ireland. . Should the Second Circuit uphold the order and the Supreme Court deny review, then under the principles announced today by the Court in the E.U., no U.S.-based company could ever be allowed to have "possession, custody, or control" of the data of E.U. citizens. You can bet that the E.U. case will weigh heavily in the Second Circuit's deliberations.  The E.U. decision is by far and away the largest legal event yet flowing out of the Edward Snowden disclosures, tectonic in scale. Up to now, Congress has succeeded in confining all NSA reforms to apply only to U.S. citizens. But now the large U.S. internet companies, Google, Facebook, Microsoft, Dropbox, etc., face the loss of all Europe as a market. Congress *will* be forced by their lobbying power to extend privacy protections to "non-U.S. persons."  Thank you again, Edward Snowden.
Paul Merrell

Microsoft to host data in Germany to evade US spying | Naked Security - 0 views

  • Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.
  • Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.
  • On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.
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  • Microsoft and T-Systems' lawyers may well think that storing customer data in a German trustee data center will protect it from the reach of US law, but for all we know, that could be wishful thinking. Forrester cloud computing analyst Paul Miller: To be sure, we must wait for the first legal challenge. And the appeal. And the counter-appeal. As with all new legal approaches, we don’t know it is watertight until it is challenged in court. Microsoft and T-Systems’ lawyers are very good and say it's watertight. But we can be sure opposition lawyers will look for all the holes. By keeping data offshore - particularly in Germany, which has strong data privacy laws - Microsoft could avoid the situation it's now facing with the US demanding access to customer emails stored on a Microsoft server in Dublin. The US has argued that Microsoft, as a US company, comes under US jurisdiction, regardless of where it keeps its data.
  • Running away to Germany isn't a groundbreaking move; other US cloud services providers have already pledged expansion of their EU presences, including Amazon's plan to open a UK datacenter in late 2016 that will offer what CTO Werner Vogels calls "strong data sovereignty to local users." Other big data operators that have followed suit: Salesforce, which has already opened datacenters in the UK and Germany and plans to open one in France next year, as well as new EU operations pledged for the new year by NetSuite and Box. Can Germany keep the US out of its datacenters? Can Ireland? Time, and court cases, will tell.
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    The European Community's Court of Justice decision in the Safe Harbor case --- and Edward Snowden --- are now officially downgrading the U.S. as a cloud data center location. NSA is good business for Europeans looking to displace American cloud service providers, as evidenced by Microsoft's decision. The legal test is whether Microsoft has "possession, custody, or control" of the data. From the info given in the article, it seems that Microsoft has done its best to dodge that bullet by moving data centers to Germany and placing their data under the control of a European company. Do ownership of the hardware and profits from their rent mean that Microsoft still has "possession, custody, or control" of the data? The fine print of the agreement with Deutsche Telekom and the customer EULAs will get a thorough going over by the Dept. of Justice for evidence of Microsoft "control" of the data. That will be the crucial legal issue. The data centers in Germany may pass the test. But the notion that data centers in the UK can offer privacy is laughable; the UK's legal authority for GCHQ makes it even easier to get the data than the NSA can in the U.S.  It doesn't even require a court order. 
Paul Merrell

Internet Giants Erect Barriers to Spy Agencies - NYTimes.com - 0 views

  • As fast as it can, Google is sealing up cracks in its systems that Edward J. Snowden revealed the N.S.A. had brilliantly exploited. It is encrypting more data as it moves among its servers and helping customers encode their own emails. Facebook, Microsoft and Yahoo are taking similar steps.
  • After years of cooperating with the government, the immediate goal now is to thwart Washington — as well as Beijing and Moscow. The strategy is also intended to preserve business overseas in places like Brazil and Germany that have threatened to entrust data only to local providers. Google, for example, is laying its own fiber optic cable under the world’s oceans, a project that began as an effort to cut costs and extend its influence, but now has an added purpose: to assure that the company will have more control over the movement of its customer data.
  • A year after Mr. Snowden’s revelations, the era of quiet cooperation is over. Telecommunications companies say they are denying requests to volunteer data not covered by existing law. A.T.&T., Verizon and others say that compared with a year ago, they are far more reluctant to cooperate with the United States government in “gray areas” where there is no explicit requirement for a legal warrant.
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  • Eric Grosse, Google’s security chief, suggested in an interview that the N.S.A.'s own behavior invited the new arms race.“I am willing to help on the purely defensive side of things,” he said, referring to Washington’s efforts to enlist Silicon Valley in cybersecurity efforts. “But signals intercept is totally off the table,” he said, referring to national intelligence gathering.“No hard feelings, but my job is to make their job hard,” he added.
  • In Washington, officials acknowledge that covert programs are now far harder to execute because American technology companies, fearful of losing international business, are hardening their networks and saying no to requests for the kind of help they once quietly provided.Continue reading the main story Robert S. Litt, the general counsel of the Office of the Director of National Intelligence, which oversees all 17 American spy agencies, said on Wednesday that it was “an unquestionable loss for our nation that companies are losing the willingness to cooperate legally and voluntarily” with American spy agencies.
  • Many point to an episode in 2012, when Russian security researchers uncovered a state espionage tool, Flame, on Iranian computers. Flame, like the Stuxnet worm, is believed to have been produced at least in part by American intelligence agencies. It was created by exploiting a previously unknown flaw in Microsoft’s operating systems. Companies argue that others could have later taken advantage of this defect.Worried that such an episode undercuts confidence in its wares, Microsoft is now fully encrypting all its products, including Hotmail and Outlook.com, by the end of this year with 2,048-bit encryption, a stronger protection that would take a government far longer to crack. The software is protected by encryption both when it is in data centers and when data is being sent over the Internet, said Bradford L. Smith, the company’s general counsel.
  • Mr. Smith also said the company was setting up “transparency centers” abroad so that technical experts of foreign governments could come in and inspect Microsoft’s proprietary source code. That will allow foreign governments to check to make sure there are no “back doors” that would permit snooping by United States intelligence agencies. The first such center is being set up in Brussels.Microsoft has also pushed back harder in court. In a Seattle case, the government issued a “national security letter” to compel Microsoft to turn over data about a customer, along with a gag order to prevent Microsoft from telling the customer it had been compelled to provide its communications to government officials. Microsoft challenged the gag order as violating the First Amendment. The government backed down.
  • Hardware firms like Cisco, which makes routers and switches, have found their products a frequent subject of Mr. Snowden’s disclosures, and their business has declined steadily in places like Asia, Brazil and Europe over the last year. The company is still struggling to convince foreign customers that their networks are safe from hackers — and free of “back doors” installed by the N.S.A. The frustration, companies here say, is that it is nearly impossible to prove that their systems are N.S.A.-proof.
  • In one slide from the disclosures, N.S.A. analysts pointed to a sweet spot inside Google’s data centers, where they could catch traffic in unencrypted form. Next to a quickly drawn smiley face, an N.S.A. analyst, referring to an acronym for a common layer of protection, had noted, “SSL added and removed here!”
  • Facebook and Yahoo have also been encrypting traffic among their internal servers. And Facebook, Google and Microsoft have been moving to more strongly encrypt consumer traffic with so-called Perfect Forward Secrecy, specifically devised to make it more labor intensive for the N.S.A. or anyone to read stored encrypted communications.One of the biggest indirect consequences from the Snowden revelations, technology executives say, has been the surge in demands from foreign governments that saw what kind of access to user information the N.S.A. received — voluntarily or surreptitiously. Now they want the same.
  • The latest move in the war between intelligence agencies and technology companies arrived this week, in the form of a new Google encryption tool. The company released a user-friendly, email encryption method to replace the clunky and often mistake-prone encryption schemes the N.S.A. has readily exploited.But the best part of the tool was buried in Google’s code, which included a jab at the N.S.A.'s smiley-face slide. The code included the phrase: “ssl-added-and-removed-here-; - )”
Paul Merrell

From Radio to Porn, British Spies Track Web Users' Online Identities - 1 views

  • HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs. The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.
  • Amid a renewed push from the U.K. government for more surveillance powers, more than two dozen documents being disclosed today by The Intercept reveal for the first time several major strands of GCHQ’s existing electronic eavesdropping capabilities.
  • The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens — all without a court order or judicial warrant
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  • A huge volume of the Internet data GCHQ collects flows directly into a massive repository named Black Hole, which is at the core of the agency’s online spying operations, storing raw logs of intercepted material before it has been subject to analysis. Black Hole contains data collected by GCHQ as part of bulk “unselected” surveillance, meaning it is not focused on particular “selected” targets and instead includes troves of data indiscriminately swept up about ordinary people’s online activities. Between August 2007 and March 2009, GCHQ documents say that Black Hole was used to store more than 1.1 trillion “events” — a term the agency uses to refer to metadata records — with about 10 billion new entries added every day. As of March 2009, the largest slice of data Black Hole held — 41 percent — was about people’s Internet browsing histories. The rest included a combination of email and instant messenger records, details about search engine queries, information about social media activity, logs related to hacking operations, and data on people’s use of tools to browse the Internet anonymously.
  • Throughout this period, as smartphone sales started to boom, the frequency of people’s Internet use was steadily increasing. In tandem, British spies were working frantically to bolster their spying capabilities, with plans afoot to expand the size of Black Hole and other repositories to handle an avalanche of new data. By 2010, according to the documents, GCHQ was logging 30 billion metadata records per day. By 2012, collection had increased to 50 billion per day, and work was underway to double capacity to 100 billion. The agency was developing “unprecedented” techniques to perform what it called “population-scale” data mining, monitoring all communications across entire countries in an effort to detect patterns or behaviors deemed suspicious. It was creating what it said would be, by 2013, “the world’s biggest” surveillance engine “to run cyber operations and to access better, more valued data for customers to make a real world difference.”
  • A document from the GCHQ target analysis center (GTAC) shows the Black Hole repository’s structure.
  • The data is searched by GCHQ analysts in a hunt for behavior online that could be connected to terrorism or other criminal activity. But it has also served a broader and more controversial purpose — helping the agency hack into European companies’ computer networks. In the lead up to its secret mission targeting Netherlands-based Gemalto, the largest SIM card manufacturer in the world, GCHQ used MUTANT BROTH in an effort to identify the company’s employees so it could hack into their computers. The system helped the agency analyze intercepted Facebook cookies it believed were associated with Gemalto staff located at offices in France and Poland. GCHQ later successfully infiltrated Gemalto’s internal networks, stealing encryption keys produced by the company that protect the privacy of cell phone communications.
  • Similarly, MUTANT BROTH proved integral to GCHQ’s hack of Belgian telecommunications provider Belgacom. The agency entered IP addresses associated with Belgacom into MUTANT BROTH to uncover information about the company’s employees. Cookies associated with the IPs revealed the Google, Yahoo, and LinkedIn accounts of three Belgacom engineers, whose computers were then targeted by the agency and infected with malware. The hacking operation resulted in GCHQ gaining deep access into the most sensitive parts of Belgacom’s internal systems, granting British spies the ability to intercept communications passing through the company’s networks.
  • In March, a U.K. parliamentary committee published the findings of an 18-month review of GCHQ’s operations and called for an overhaul of the laws that regulate the spying. The committee raised concerns about the agency gathering what it described as “bulk personal datasets” being held about “a wide range of people.” However, it censored the section of the report describing what these “datasets” contained, despite acknowledging that they “may be highly intrusive.” The Snowden documents shine light on some of the core GCHQ bulk data-gathering programs that the committee was likely referring to — pulling back the veil of secrecy that has shielded some of the agency’s most controversial surveillance operations from public scrutiny. KARMA POLICE and MUTANT BROTH are among the key bulk collection systems. But they do not operate in isolation — and the scope of GCHQ’s spying extends far beyond them.
  • The agency operates a bewildering array of other eavesdropping systems, each serving its own specific purpose and designated a unique code name, such as: SOCIAL ANTHROPOID, which is used to analyze metadata on emails, instant messenger chats, social media connections and conversations, plus “telephony” metadata about phone calls, cell phone locations, text and multimedia messages; MEMORY HOLE, which logs queries entered into search engines and associates each search with an IP address; MARBLED GECKO, which sifts through details about searches people have entered into Google Maps and Google Earth; and INFINITE MONKEYS, which analyzes data about the usage of online bulletin boards and forums. GCHQ has other programs that it uses to analyze the content of intercepted communications, such as the full written body of emails and the audio of phone calls. One of the most important content collection capabilities is TEMPORA, which mines vast amounts of emails, instant messages, voice calls and other communications and makes them accessible through a Google-style search tool named XKEYSCORE.
  • As of September 2012, TEMPORA was collecting “more than 40 billion pieces of content a day” and it was being used to spy on people across Europe, the Middle East, and North Africa, according to a top-secret memo outlining the scope of the program. The existence of TEMPORA was first revealed by The Guardian in June 2013. To analyze all of the communications it intercepts and to build a profile of the individuals it is monitoring, GCHQ uses a variety of different tools that can pull together all of the relevant information and make it accessible through a single interface. SAMUEL PEPYS is one such tool, built by the British spies to analyze both the content and metadata of emails, browsing sessions, and instant messages as they are being intercepted in real time. One screenshot of SAMUEL PEPYS in action shows the agency using it to monitor an individual in Sweden who visited a page about GCHQ on the U.S.-based anti-secrecy website Cryptome.
  • Partly due to the U.K.’s geographic location — situated between the United States and the western edge of continental Europe — a large amount of the world’s Internet traffic passes through its territory across international data cables. In 2010, GCHQ noted that what amounted to “25 percent of all Internet traffic” was transiting the U.K. through some 1,600 different cables. The agency said that it could “survey the majority of the 1,600” and “select the most valuable to switch into our processing systems.”
  • According to Joss Wright, a research fellow at the University of Oxford’s Internet Institute, tapping into the cables allows GCHQ to monitor a large portion of foreign communications. But the cables also transport masses of wholly domestic British emails and online chats, because when anyone in the U.K. sends an email or visits a website, their computer will routinely send and receive data from servers that are located overseas. “I could send a message from my computer here [in England] to my wife’s computer in the next room and on its way it could go through the U.S., France, and other countries,” Wright says. “That’s just the way the Internet is designed.” In other words, Wright adds, that means “a lot” of British data and communications transit across international cables daily, and are liable to be swept into GCHQ’s databases.
  • A map from a classified GCHQ presentation about intercepting communications from undersea cables. GCHQ is authorized to conduct dragnet surveillance of the international data cables through so-called external warrants that are signed off by a government minister. The external warrants permit the agency to monitor communications in foreign countries as well as British citizens’ international calls and emails — for example, a call from Islamabad to London. They prohibit GCHQ from reading or listening to the content of “internal” U.K. to U.K. emails and phone calls, which are supposed to be filtered out from GCHQ’s systems if they are inadvertently intercepted unless additional authorization is granted to scrutinize them. However, the same rules do not apply to metadata. A little-known loophole in the law allows GCHQ to use external warrants to collect and analyze bulk metadata about the emails, phone calls, and Internet browsing activities of British people, citizens of closely allied countries, and others, regardless of whether the data is derived from domestic U.K. to U.K. communications and browsing sessions or otherwise. In March, the existence of this loophole was quietly acknowledged by the U.K. parliamentary committee’s surveillance review, which stated in a section of its report that “special protection and additional safeguards” did not apply to metadata swept up using external warrants and that domestic British metadata could therefore be lawfully “returned as a result of searches” conducted by GCHQ.
  • Perhaps unsurprisingly, GCHQ appears to have readily exploited this obscure legal technicality. Secret policy guidance papers issued to the agency’s analysts instruct them that they can sift through huge troves of indiscriminately collected metadata records to spy on anyone regardless of their nationality. The guidance makes clear that there is no exemption or extra privacy protection for British people or citizens from countries that are members of the Five Eyes, a surveillance alliance that the U.K. is part of alongside the U.S., Canada, Australia, and New Zealand. “If you are searching a purely Events only database such as MUTANT BROTH, the issue of location does not occur,” states one internal GCHQ policy document, which is marked with a “last modified” date of July 2012. The document adds that analysts are free to search the databases for British metadata “without further authorization” by inputing a U.K. “selector,” meaning a unique identifier such as a person’s email or IP address, username, or phone number. Authorization is “not needed for individuals in the U.K.,” another GCHQ document explains, because metadata has been judged “less intrusive than communications content.” All the spies are required to do to mine the metadata troves is write a short “justification” or “reason” for each search they conduct and then click a button on their computer screen.
  • Intelligence GCHQ collects on British persons of interest is shared with domestic security agency MI5, which usually takes the lead on spying operations within the U.K. MI5 conducts its own extensive domestic surveillance as part of a program called DIGINT (digital intelligence).
  • GCHQ’s documents suggest that it typically retains metadata for periods of between 30 days to six months. It stores the content of communications for a shorter period of time, varying between three to 30 days. The retention periods can be extended if deemed necessary for “cyber defense.” One secret policy paper dated from January 2010 lists the wide range of information the agency classes as metadata — including location data that could be used to track your movements, your email, instant messenger, and social networking “buddy lists,” logs showing who you have communicated with by phone or email, the passwords you use to access “communications services” (such as an email account), and information about websites you have viewed.
  • Records showing the full website addresses you have visited — for instance, www.gchq.gov.uk/what_we_do — are treated as content. But the first part of an address you have visited — for instance, www.gchq.gov.uk — is treated as metadata. In isolation, a single metadata record of a phone call, email, or website visit may not reveal much about a person’s private life, according to Ethan Zuckerman, director of Massachusetts Institute of Technology’s Center for Civic Media. But if accumulated and analyzed over a period of weeks or months, these details would be “extremely personal,” he told The Intercept, because they could reveal a person’s movements, habits, religious beliefs, political views, relationships, and even sexual preferences. For Zuckerman, who has studied the social and political ramifications of surveillance, the most concerning aspect of large-scale government data collection is that it can be “corrosive towards democracy” — leading to a chilling effect on freedom of expression and communication. “Once we know there’s a reasonable chance that we are being watched in one fashion or another it’s hard for that not to have a ‘panopticon effect,’” he said, “where we think and behave differently based on the assumption that people may be watching and paying attention to what we are doing.”
  • When compared to surveillance rules in place in the U.S., GCHQ notes in one document that the U.K. has “a light oversight regime.” The more lax British spying regulations are reflected in secret internal rules that highlight greater restrictions on how NSA databases can be accessed. The NSA’s troves can be searched for data on British citizens, one document states, but they cannot be mined for information about Americans or other citizens from countries in the Five Eyes alliance. No such constraints are placed on GCHQ’s own databases, which can be sifted for records on the phone calls, emails, and Internet usage of Brits, Americans, and citizens from any other country. The scope of GCHQ’s surveillance powers explain in part why Snowden told The Guardian in June 2013 that U.K. surveillance is “worse than the U.S.” In an interview with Der Spiegel in July 2013, Snowden added that British Internet cables were “radioactive” and joked: “Even the Queen’s selfies to the pool boy get logged.”
  • In recent years, the biggest barrier to GCHQ’s mass collection of data does not appear to have come in the form of legal or policy restrictions. Rather, it is the increased use of encryption technology that protects the privacy of communications that has posed the biggest potential hindrance to the agency’s activities. “The spread of encryption … threatens our ability to do effective target discovery/development,” says a top-secret report co-authored by an official from the British agency and an NSA employee in 2011. “Pertinent metadata events will be locked within the encrypted channels and difficult, if not impossible, to prise out,” the report says, adding that the agencies were working on a plan that would “(hopefully) allow our Internet Exploitation strategy to prevail.”
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Paul Merrell

Meta reaches $37.5 mln settlement of Facebook location tracking lawsuit | Reuters - 1 views

  • Meta Platforms Inc (META.O) reached a $37.5 million settlement of a lawsuit accusing the parent of Facebook of violating users' privacy by tracking their movements through their smartphones without permission.A preliminary settlement of the proposed class action was filed on Monday in San Francisco federal court, and requires a judge's approval.It resolved claims that Facebook violated California law and its own privacy policy by gathering data from users who turned off Location Services on their mobile devices.Register now for FREE unlimited access to Reuters.comRegisterAdvertisement · Scroll to continueThe users said that while they did not want to share their locations with Facebook, the company nevertheless inferred where they were from their IP (internet protocol) addresses, and used that information to send them targeted advertising.Monday's settlement covers people in the United States who used Facebook after Jan. 30, 2015.Meta denied wrongdoing in agreeing to settle. It did not immediately respond on Tuesday to requests for comment.Advertisement · Scroll to continueIn June 2018, Facebook and Chief Executive Mark Zuckerberg told the U.S. Congress that the Menlo Park, California-based company uses location data "to help advertisers reach people in particular areas."As an example, it said users who dined at particular restaurants might receive posts from friends who also ate there, or ads from businesses that wanted to provide services nearby.The lawsuit began in November 2018. Lawyers for the plaintiffs may seek up to 30% of Monday's settlement for legal fees, settlement papers show.Advertisement · Scroll to continueThe cases is Lundy et al v Facebook Inc, U.S. District Court, Northern District of California, No. 18-06793.
Paul Merrell

The punk rock internet - how DIY ​​rebels ​are working to ​replace the tech g... - 0 views

  • What they are doing could be seen as the online world’s equivalent of punk rock: a scattered revolt against an industry that many now think has grown greedy, intrusive and arrogant – as well as governments whose surveillance programmes have fuelled the same anxieties. As concerns grow about an online realm dominated by a few huge corporations, everyone involved shares one common goal: a comprehensively decentralised internet.
  • In the last few months, they have started working with people in the Belgian city of Ghent – or, in Flemish, Gent – where the authorities own their own internet domain, complete with .gent web addresses. Using the blueprint of Heartbeat, they want to create a new kind of internet they call the indienet – in which people control their data, are not tracked and each own an equal space online. This would be a radical alternative to what we have now: giant “supernodes” that have made a few men in northern California unimaginable amounts of money thanks to the ocean of lucrative personal information billions of people hand over in exchange for their services.
  • His alternative is what he calls the Safe network: the acronym stands for “Safe Access for Everyone”. In this model, rather than being stored on distant servers, people’s data – files, documents, social-media interactions – will be broken into fragments, encrypted and scattered around other people’s computers and smartphones, meaning that hacking and data theft will become impossible. Thanks to a system of self-authentication in which a Safe user’s encrypted information would only be put back together and unlocked on their own devices, there will be no centrally held passwords. No one will leave data trails, so there will be nothing for big online companies to harvest. The financial lubricant, Irvine says, will be a cryptocurrency called Safecoin: users will pay to store data on the network, and also be rewarded for storing other people’s (encrypted) information on their devices. Software developers, meanwhile, will be rewarded with Safecoin according to the popularity of their apps. There is a community of around 7,000 interested people already working on services that will work on the Safe network, including alternatives to platforms such as Facebook and YouTube.
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  • Once MaidSafe is up and running, there will be very little any government or authority can do about it: “We can’t stop the network if we start it. If anyone turned round and said: ‘You need to stop that,’ we couldn’t. We’d have to go round to people’s houses and switch off their computers. That’s part of the whole thing. The network is like a cyber-brain; almost a lifeform in itself. And once you start it, that’s it.” Before my trip to Scotland, I tell him, I spent whole futile days signing up to some of the decentralised social networks that already exist – Steemit, Diaspora, Mastadon – and trying to approximate the kind of experience I can easily get on, say, Twitter or Facebook.
  • And herein lie two potential breakthroughs. One, according to some cryptocurrency enthusiasts, is a means of securing and protecting people’s identities that doesn’t rely on remotely stored passwords. The other is a hope that we can leave behind intermediaries such as Uber and eBay, and allow buyers and sellers to deal directly with each other. Blockstack, a startup based in New York, aims to bring blockchain technology to the masses. Like MaidSafe, its creators aim to build a new internet, and a 13,000-strong crowd of developers are already working on apps that either run on the platform Blockstack has created, or use its features. OpenBazaar is an eBay-esque service, up and running since November last year, which promises “the world’s most private, secure, and liberating online marketplace”. Casa aims to be an decentralised alternative to Airbnb; Guild is a would-be blogging service that bigs up its libertarian ethos and boasts that its founders will have “no power to remove blogs they don’t approve of or agree with”.
  • An initial version of Blockstack is already up and running. Even if data is stored on conventional drives, servers and clouds, thanks to its blockchain-based “private key” system each Blockstack user controls the kind of personal information we currently blithely hand over to Big Tech, and has the unique power to unlock it. “That’s something that’s extremely powerful – and not just because you know your data is more secure because you’re not giving it to a company,” he says. “A hacker would have to hack a million people if they wanted access to their data.”
Paul Merrell

Time to 'Break Facebook Up,' Sanders Says After Leaked Docs Show Social Media Giant 'Tr... - 0 views

  • After NBC News on Wednesday published a trove of leaked documents that show how Facebook "treated user data as a bargaining chip with external app developers," White House hopeful Sen. Bernie Sanders declared that it is time "to break Facebook up."
  • When British investigative journalist Duncan Campbell first shared the trove of documents with a handful of media outlets including NBC News in April, journalists Olivia Solon and Cyrus Farivar reported that "Facebook CEO Mark Zuckerberg oversaw plans to consolidate the social network's power and control competitors by treating its users' data as a bargaining chip, while publicly proclaiming to be protecting that data." With the publication Wednesday of nearly 7,000 pages of records—which include internal Facebook emails, web chats, notes, presentations, and spreadsheets—journalists and the public can now have a closer look at exactly how the company was using the vast amount of data it collects when it came to bargaining with third parties.
  • The document dump comes as Facebook and Zuckerberg are facing widespread criticism over the company's political advertising policy, which allows candidates for elected office to lie in the ads they pay to circulate on the platform. It also comes as 47 state attorneys general, led by Letitia James of New York, are investigating the social media giant for antitrust violations.
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  • According to Solon and Farivar of NBC: Taken together, they show how Zuckerberg, along with his board and management team, found ways to tap Facebook users' data—including information about friends, relationships, and photos—as leverage over the companies it partnered with. In some cases, Facebook would reward partners by giving them preferential access to certain types of user data while denying the same access to rival companies. For example, Facebook gave Amazon special access to user data because it was spending money on Facebook advertising. In another case the messaging app MessageMe was cut off from access to data because it had grown too popular and could compete with Facebook.
  • The call from Sanders (I-Vt.) Wednesday to break up Facebook follows similar but less definitive statements from the senator. One of Sanders' rivals in the 2020 Democratic presidential primary race, Sen. Elizabeth Warren (D-Mass.), released her plan to "Break Up Big Tech" in March. Zuckerberg is among the opponents of Warren's proposal, which also targets other major technology companies like Amazon and Google.
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Paul Merrell

American Surveillance Now Threatens American Business - The Atlantic - 0 views

  • What does it look like when a society loses its sense of privacy? <div><a href="http://pubads.g.doubleclick.net/gampad/jump?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" title=""><img style="border:none;" src="http://pubads.g.doubleclick.net/gampad/ad?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" alt="" /></a></div>In the almost 18 months since the Snowden files first received coverage, writers and critics have had to guess at the answer. Does a certain trend, consumer complaint, or popular product epitomize some larger shift? Is trust in tech companies eroding—or is a subset just especially vocal about it? Polling would make those answers clear, but polling so far has been… confused. A new study, conducted by the Pew Internet Project last January and released last week, helps make the average American’s view of his or her privacy a little clearer. And their confidence in their own privacy is ... low. The study's findings—and the statistics it reports—stagger. Vast majorities of Americans are uncomfortable with how the government uses their data, how private companies use and distribute their data, and what the government does to regulate those companies. No summary can equal a recounting of the findings. Americans are displeased with government surveillance en masse:   
  • A new study finds that a vast majority of Americans trust neither the government nor tech companies with their personal data.
  • According to the study, 70 percent of Americans are “at least somewhat concerned” with the government secretly obtaining information they post to social networking sites. Eighty percent of respondents agreed that “Americans should be concerned” with government surveillance of telephones and the web. They are also uncomfortable with how private corporations use their data: Ninety-one percent of Americans believe that “consumers have lost control over how personal information is collected and used by companies,” according to the study. Eighty percent of Americans who use social networks “say they are concerned about third parties like advertisers or businesses accessing the data they share on these sites.” And even though they’re squeamish about the government’s use of data, they want it to regulate tech companies and data brokers more strictly: 64 percent wanted the government to do more to regulate private data collection. Since June 2013, American politicians and corporate leaders have fretted over how much the leaks would cost U.S. businesses abroad.
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  • What does it look like when a society loses its sense of privacy? <div><a href="http://pubads.g.doubleclick.net/gampad/jump?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" title=""><img style="border:none;" src="http://pubads.g.doubleclick.net/gampad/ad?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" alt="" /></a></div>In the almost 18 months since the Snowden files first received coverage, writers and critics have had to guess at the answer. Does a certain trend, consumer complaint, or popular product epitomize some larger shift? Is trust in tech companies eroding—or is a subset just especially vocal about it? Polling would make those answers clear, but polling so far has been… confused. A new study, conducted by the Pew Internet Project last January and released last week, helps make the average American’s view of his or her privacy a little clearer. And their confidence in their own privacy is ... low. The study's findings—and the statistics it reports—stagger. Vast majorities of Americans are uncomfortable with how the government uses their data, how private companies use and distribute their data, and what the government does to regulate those companies. No summary can equal a recounting of the findings. Americans are displeased with government surveillance en masse:   
  • “It’s clear the global community of Internet users doesn’t like to be caught up in the American surveillance dragnet,” Senator Ron Wyden said last month. At the same event, Google chairman Eric Schmidt agreed with him. “What occurred was a loss of trust between America and other countries,” he said, according to the Los Angeles Times. “It's making it very difficult for American firms to do business.” But never mind the world. Americans don’t trust American social networks. More than half of the poll’s respondents said that social networks were “not at all secure. Only 40 percent of Americans believe email or texting is at least “somewhat” secure. Indeed, Americans trusted most of all communication technologies where some protections has been enshrined into the law (though the report didn’t ask about snail mail). That is: Talking on the telephone, whether on a landline or cell phone, is the only kind of communication that a majority of adults believe to be “very secure” or “somewhat secure.”
  • (That may seem a bit incongruous, because making a telephone call is one area where you can be almost sure you are being surveilled: The government has requisitioned mass call records from phone companies since 2001. But Americans appear, when discussing security, to differentiate between the contents of the call and data about it.) Last month, Ramsey Homsany, the general counsel of Dropbox, said that one big thing could take down the California tech scene. “We have built this incredible economic engine in this region of the country,” said Homsany in the Los Angeles Times, “and [mistrust] is the one thing that starts to rot it from the inside out.” According to this poll, the mistrust has already begun corroding—and is already, in fact, well advanced. We’ve always assumed that the great hurt to American business will come globally—that citizens of other nations will stop using tech companies’s services. But the new Pew data shows that Americans suspect American businesses just as much. And while, unlike citizens of other nations, they may not have other places to turn, they may stop putting sensitive or delicate information online.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Paul Merrell

ISPs say the "massive cost" of Snooper's Charter will push up UK broadband bills | Ars ... - 0 views

  • How much extra will you have to pay for the privilege of being spied on?
  • UK ISPs have warned MPs that the costs of implementing the Investigatory Powers Bill (aka the Snooper's Charter) will be much greater than the £175 million the UK government has allotted for the task, and that broadband bills will need to rise as a result. Representatives from ISPs and software companies told the House of Commons Science and Technology Committee that the legislation greatly underestimates the "sheer quantity" of data generated by Internet users these days. They also pointed out that distinguishing content from metadata is a far harder task than the government seems to assume. Matthew Hare, the chief executive of ISP Gigaclear, said with "a typical 1 gigabit connection to someone's home, over 50 terabytes of data per year [are] passing over it. If you say that a proportion of that is going to be the communications data—the record of who you communicate with, when you communicate or what you communicate—there would be the most massive and enormous amount of data that in future an access provider would be expected to keep. The indiscriminate collection of mass data across effectively every user of the Internet in this country is going to have a massive cost."
  • Moreover, the larger the cache of stored data, the more worthwhile it will be for criminals and state-backed actors to gain access and download that highly-revealing personal information for fraud and blackmail. John Shaw, the vice president of product management at British security firm Sophos, told the MPs: "There would be a huge amount of very sensitive personal data that could be used by bad guys.
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  • The ISPs also challenged the government's breezy assumption that separating the data from the (equally revealing) metadata would be simple, not least because an Internet connection is typically being used for multiple services simultaneously, with data packets mixed together in a completely contingent way. Hare described a typical usage scenario for a teenager on their computer at home, where they are playing a game communicating with their friends using Steam; they are broadcasting the game using Twitch; and they may also be making a voice call at the same time too. "All those applications are running simultaneously," Hare said. "They are different applications using different servers with different services and different protocols. They are all running concurrently on that one machine." Even accessing a Web page is much more complicated than the government seems to believe, Hare pointed out. "As a webpage is loading, you will see that that webpage is made up of tens, or many tens, of individual sessions that have been created across the Internet just to load a single webpage. Bluntly, if you want to find out what someone is doing you need to be tracking all of that data all the time."
  • Hare raised another major issue. "If I was a software business ... I would be very worried that my customers would not buy my software any more if it had anything to do with security at all. I would be worried that a backdoor was built into the software by the [Investigatory Powers] Bill that would allow the UK government to find out what information was on that system at any point they wanted in the future." As Ars reported last week, the ability to demand that backdoors are added to systems, and a legal requirement not to reveal that fact under any circumstances, are two of the most contentious aspects of the new Investigatory Powers Bill. The latest comments from industry experts add to concerns that the latest version of the Snooper's Charter would inflict great harm on civil liberties in the UK, and also make security research well-nigh impossible here. To those fears can now be added undermining the UK software industry, as well as forcing the UK public to pay for the privilege of having their ISP carry out suspicionless surveillance.
Paul Merrell

Profiled From Radio to Porn, British Spies Track Web Users' Online Identities | Global ... - 0 views

  • One system builds profiles showing people’s web browsing histories. Another analyzes instant messenger communications, emails, Skype calls, text messages, cell phone locations, and social media interactions. Separate programs were built to keep tabs on “suspicious” Google searches and usage of Google Maps. The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens  all without a court order or judicial warrant.
  • The power of KARMA POLICE was illustrated in 2009, when GCHQ launched a top-secret operation to collect intelligence about people using the Internet to listen to radio shows. The agency used a sample of nearly 7 million metadata records, gathered over a period of three months, to observe the listening habits of more than 200,000 people across 185 countries, including the U.S., the U.K., Ireland, Canada, Mexico, Spain, the Netherlands, France, and Germany.
  • GCHQ’s documents indicate that the plans for KARMA POLICE were drawn up between 2007 and 2008. The system was designed to provide the agency with “either (a) a web browsing profile for every visible user on the Internet, or (b) a user profile for every visible website on the Internet.” The origin of the surveillance system’s name is not discussed in the documents. But KARMA POLICE is also the name of a popular song released in 1997 by the Grammy Award-winning British band Radiohead, suggesting the spies may have been fans. A verse repeated throughout the hit song includes the lyric, “This is what you’ll get, when you mess with us.”
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  • GCHQ vacuums up the website browsing histories using “probes” that tap into the international fiber-optic cables that transport Internet traffic across the world. A huge volume of the Internet data GCHQ collects flows directly into a massive repository named Black Hole, which is at the core of the agency’s online spying operations, storing raw logs of intercepted material before it has been subject to analysis. Black Hole contains data collected by GCHQ as part of bulk “unselected” surveillance, meaning it is not focused on particular “selected” targets and instead includes troves of data indiscriminately swept up about ordinary people’s online activities. Between August 2007 and March 2009, GCHQ documents say that Black Hole was used to store more than 1.1 trillion “events”  a term the agency uses to refer to metadata records  with about 10 billion new entries added every day. As of March 2009, the largest slice of data Black Hole held  41 percent  was about people’s Internet browsing histories. The rest included a combination of email and instant messenger records, details about search engine queries, information about social media activity, logs related to hacking operations, and data on people’s use of tools to browse the Internet anonymously.
  • Throughout this period, as smartphone sales started to boom, the frequency of people’s Internet use was steadily increasing. In tandem, British spies were working frantically to bolster their spying capabilities, with plans afoot to expand the size of Black Hole and other repositories to handle an avalanche of new data. By 2010, according to the documents, GCHQ was logging 30 billion metadata records per day. By 2012, collection had increased to 50 billion per day, and work was underway to double capacity to 100 billion. The agency was developing “unprecedented” techniques to perform what it called “population-scale” data mining, monitoring all communications across entire countries in an effort to detect patterns or behaviors deemed suspicious. It was creating what it saidwould be, by 2013, “the world’s biggest” surveillance engine “to run cyber operations and to access better, more valued data for customers to make a real world difference.” HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs.
  • The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.
Paul Merrell

The All Writs Act, Software Licenses, and Why Judges Should Ask More Questions | Just S... - 0 views

  • Pending before federal magistrate judge James Orenstein is the government’s request for an order obligating Apple, Inc. to unlock an iPhone and thereby assist prosecutors in decrypting data the government has seized and is authorized to search pursuant to a warrant. In an order questioning the government’s purported legal basis for this request, the All Writs Act of 1789 (AWA), Judge Orenstein asked Apple for a brief informing the court whether the request would be technically feasible and/or burdensome. After Apple filed, the court asked it to file a brief discussing whether the government had legal grounds under the AWA to compel Apple’s assistance. Apple filed that brief and the government filed a reply brief last week in the lead-up to a hearing this morning.
  • We’ve long been concerned about whether end users own software under the law. Software owners have rights of adaptation and first sale enshrined in copyright law. But software publishers have claimed that end users are merely licensees, and our rights under copyright law can be waived by mass-market end user license agreements, or EULAs. Over the years, Granick has argued that users should retain their rights even if mass-market licenses purport to take them away. The government’s brief takes advantage of Apple’s EULA for iOS to argue that Apple, the software publisher, is responsible for iPhones around the world. Apple’s EULA states that when you buy an iPhone, you’re not buying the iOS software it runs, you’re just licensing it from Apple. The government argues that having designed a passcode feature into a copy of software which it owns and licenses rather than sells, Apple can be compelled under the All Writs Act to bypass the passcode on a defendant’s iPhone pursuant to a search warrant and thereby access the software owned by Apple. Apple’s supplemental brief argues that in defining its users’ contractual rights vis-à-vis Apple with regard to Apple’s intellectual property, Apple in no way waived its own due process rights vis-à-vis the government with regard to users’ devices. Apple’s brief compares this argument to forcing a car manufacturer to “provide law enforcement with access to the vehicle or to alter its functionality at the government’s request” merely because the car contains licensed software. 
  • This is an interesting twist on the decades-long EULA versus users’ rights fight. As far as we know, this is the first time that the government has piggybacked on EULAs to try to compel software companies to provide assistance to law enforcement. Under the government’s interpretation of the All Writs Act, anyone who makes software could be dragooned into assisting the government in investigating users of the software. If the court adopts this view, it would give investigators immense power. The quotidian aspects of our lives increasingly involve software (from our cars to our TVs to our health to our home appliances), and most of that software is arguably licensed, not bought. Conscripting software makers to collect information on us would afford the government access to the most intimate information about us, on the strength of some words in some license agreements that people never read. (And no wonder: The iPhone’s EULA came to over 300 pages when the government filed it as an exhibit to its brief.)
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  • The government’s brief does not acknowledge the sweeping implications of its arguments. It tries to portray its requested unlocking order as narrow and modest, because it “would not require Apple to make any changes to its software or hardware, … [or] to introduce any new ability to access data on its phones. It would simply require Apple to use its existing capability to bypass the passcode on a passcode-locked iOS 7 phone[.]” But that undersells the implications of the legal argument the government is making: that anything a company already can do, it could be compelled to do under the All Writs Act in order to assist law enforcement. Were that the law, the blow to users’ trust in their encrypted devices, services, and products would be little different than if Apple and other companies were legally required to design backdoors into their encryption mechanisms (an idea the government just can’t seem to drop, its assurances in this brief notwithstanding). Entities around the world won’t buy security software if its makers cannot be trusted not to hand over their users’ secrets to the US government. That’s what makes the encryption in iOS 8 and later versions, which Apple has told the court it “would not have the technical ability” to bypass, so powerful — and so despised by the government: Because no matter how broadly the All Writs Act extends, no court can compel Apple to do the impossible.
Paul Merrell

US websites should inform EU citizens about NSA surveillance, says report - 0 views

  • All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.
  • The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.
  • To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”
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  • Other recommendations include the EU offering protection and rewards for whistleblowers, including “strong guarantees of immunity and asylum”. Such a move would be seen as a direct response to the plight of Edward Snowden, the former NSA analyst who leaked documents that revealed the extent of the NSA’s global internet surveillance programmes. The report also says that, “Encryption is futile to defend against NSA accessing data processed by US clouds,” and that there is “no technical solution to the problem”. It calls for the EU to press for changes to US law.
  • “It seems that the only solution which can be trusted to resolve the Prism affair must involve changes to the law of the US, and this should be the strategic objective of the EU,” it said. The report was produced for the European Parliament committee on civil liberties, justice and home affairs, and comes before the latest hearing of an inquiry into electronic mass surveillance of EU citizens, due to take place in Brussels on 24 September.
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    Yee-haw! E.U. sanctuary and rewards for NSA whistle-blowers. Mandatory warnings for customers of U.S. cloud services that their data may be turned over to the NSA. Pouring more gasoline on the NSA diplomatic fire. 
Paul Merrell

Nearly Everyone In The U.S. And Canada Just Had Their Private Cell Phone Location Data ... - 0 views

  • A company by the name of LocationSmart isn't having a particularly good month. The company recently received all the wrong kind of attention when it was caught up in a privacy scandal involving the nation's wireless carriers and our biggest prison phone monopoly. Like countless other companies and governments, LocationSmart buys your wireless location data from cell carriers. It then sells access to that data via a portal that can provide real-time access to a user's location via a tailored graphical interface using just the target's phone number.
  • Theoretically, this functionality is sold under the pretense that the tool can be used to track things like drug offenders who have skipped out of rehab. And ideally, all the companies involved were supposed to ensure that data lookup requests were accompanied by something vaguely resembling official documentation. But a recent deep dive by the New York Times noted how the system was open to routine abuse by law enforcement, after a Missouri Sherrif used the system to routinely spy on Judges and fellow law enforcement officers without much legitimate justification (or pesky warrants): "The service can find the whereabouts of almost any cellphone in the country within seconds. It does this by going through a system typically used by marketers and other companies to get location data from major cellphone carriers, including AT&T, Sprint, T-Mobile and Verizon, documents show. Between 2014 and 2017, the sheriff, Cory Hutcheson, used the service at least 11 times, prosecutors said. His alleged targets included a judge and members of the State Highway Patrol. Mr. Hutcheson, who was dismissed last year in an unrelated matter, has pleaded not guilty in the surveillance cases." It was yet another example of the way nonexistent to lax consumer privacy laws in the States (especially for wireless carriers) routinely come back to bite us. But then things got worse.
  • Driven by curiousity in the wake of the Times report, a PhD student at Carnegie Mellon University by the name of Robert Xiao discovered that the "try before you buy" system used by LocationSmart to advertise the cell location tracking system contained a bug, A bug so bad that it exposed the data of roughly 200 million wireless subscribers across the United States and Canada (read: nearly everybody). As we see all too often, the researcher highlighted how the security standards in place to safeguard this data were virtually nonexistent: "Due to a very elementary bug in the website, you can just skip that consent part and go straight to the location," said Robert Xiao, a PhD student at the Human-Computer Interaction Institute at Carnegie Mellon University, in a phone call. "The implication of this is that LocationSmart never required consent in the first place," he said. "There seems to be no security oversight here."
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  • Meanwhile, none of the four major wireless carriers have been willing to confirm any business relationship with LocationSmart, but all claim to be investigating the problem after the week of bad press. That this actually results in substantive changes to the nation's cavalier treatment of private user data is a wager few would be likely to make.
Paul Merrell

Common Crawl Founder Gil Elbaz Speaks About New Relationship With Amazon, Semantic Web ... - 0 views

  • The Common Crawl Foundation’s repository of openly and freely accessible web crawl data is about to go live as a Public Data Set on Amazon Web Services.
  • Elbaz’ goal in developing the repository: “You can’t access, let alone download, the Google or the Bing crawl data. So certainly we’re differentiated in being very open and transparent about what we’re crawling and actually making it available to developers,” he says. “You might ask why is it going to be revolutionary to allow many more engineers and researchers and developers and students access to this data, whereas historically you have to work for one of the big search engines…. The question is, the world has the largest-ever corpus of knowledge out there on the web, and is there more that one can do with it than Google and Microsoft and a handful of other search engines are already doing? And the answer is unquestionably yes. ”
  • Common Crawl’s data already is stored on Amazon’s S3 service, but now Amazon will be providing the storage space for free through the Public Data Set program. Not only does that remove from Common Crawl the storage burden and costs for hosting its crawl of 5 billion web pages – some 50 or 60 terabytes large – but it should make it easier for users to access the data, and remove the bandwidth-related costs they might incur for downloads. Users won’t have to deal with setting up accounts, being responsible for bandwidth bills incurred, and more complex authentication processes.
Paul Merrell

For sale: Systems that can secretly track where cellphone users go around the globe - T... - 0 views

  • Makers of surveillance systems are offering governments across the world the ability to track the movements of almost anybody who carries a cellphone, whether they are blocks away or on another continent. The technology works by exploiting an essential fact of all cellular networks: They must keep detailed, up-to-the-minute records on the locations of their customers to deliver calls and other services to them. Surveillance systems are secretly collecting these records to map people’s travels over days, weeks or longer, according to company marketing documents and experts in surveillance technology.
  • The world’s most powerful intelligence services, such as the National Security Agency and Britain’s GCHQ, long have used cellphone data to track targets around the globe. But experts say these new systems allow less technically advanced governments to track people in any nation — including the United States — with relative ease and precision.
  • It is unclear which governments have acquired these tracking systems, but one industry official, speaking on the condition of anonymity to share sensitive trade information, said that dozens of countries have bought or leased such technology in recent years. This rapid spread underscores how the burgeoning, multibillion-dollar surveillance industry makes advanced spying technology available worldwide. “Any tin-pot dictator with enough money to buy the system could spy on people anywhere in the world,” said Eric King, deputy director of Privacy International, a London-based activist group that warns about the abuse of surveillance technology. “This is a huge problem.”
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  • Security experts say hackers, sophisticated criminal gangs and nations under sanctions also could use this tracking technology, which operates in a legal gray area. It is illegal in many countries to track people without their consent or a court order, but there is no clear international legal standard for secretly tracking people in other countries, nor is there a global entity with the authority to police potential abuses.
  • tracking systems that access carrier location databases are unusual in their ability to allow virtually any government to track people across borders, with any type of cellular phone, across a wide range of carriers — without the carriers even knowing. These systems also can be used in tandem with other technologies that, when the general location of a person is already known, can intercept calls and Internet traffic, activate microphones, and access contact lists, photos and other documents. Companies that make and sell surveillance technology seek to limit public information about their systems’ capabilities and client lists, typically marketing their technology directly to law enforcement and intelligence services through international conferences that are closed to journalists and other members of the public.
  • Yet marketing documents obtained by The Washington Post show that companies are offering powerful systems that are designed to evade detection while plotting movements of surveillance targets on computerized maps. The documents claim system success rates of more than 70 percent. A 24-page marketing brochure for SkyLock, a cellular tracking system sold by Verint, a maker of analytics systems based in Melville, N.Y., carries the subtitle “Locate. Track. Manipulate.” The document, dated January 2013 and labeled “Commercially Confidential,” says the system offers government agencies “a cost-effective, new approach to obtaining global location information concerning known targets.”
  • (Privacy International has collected several marketing brochures on cellular surveillance systems, including one that refers briefly to SkyLock, and posted them on its Web site. The 24-page SkyLock brochure and other material was independently provided to The Post by people concerned that such systems are being abused.)
  • Verint, which also has substantial operations in Israel, declined to comment for this story. It says in the marketing brochure that it does not use SkyLock against U.S. or Israeli phones, which could violate national laws. But several similar systems, marketed in recent years by companies based in Switzerland, Ukraine and elsewhere, likely are free of such limitations.
  • The tracking technology takes advantage of the lax security of SS7, a global network that cellular carriers use to communicate with one another when directing calls, texts and Internet data. The system was built decades ago, when only a few large carriers controlled the bulk of global phone traffic. Now thousands of companies use SS7 to provide services to billions of phones and other mobile devices, security experts say. All of these companies have access to the network and can send queries to other companies on the SS7 system, making the entire network more vulnerable to exploitation. Any one of these companies could share its access with others, including makers of surveillance systems.
  • Companies that market SS7 tracking systems recommend using them in tandem with “IMSI catchers,” increasingly common surveillance devices that use cellular signals collected directly from the air to intercept calls and Internet traffic, send fake texts, install spyware on a phone, and determine precise locations. IMSI catchers — also known by one popular trade name, StingRay — can home in on somebody a mile or two away but are useless if a target’s general location is not known. SS7 tracking systems solve that problem by locating the general area of a target so that IMSI catchers can be deployed effectively. (The term “IMSI” refers to a unique identifying code on a cellular phone.)
  • Verint can install SkyLock on the networks of cellular carriers if they are cooperative — something that telecommunications experts say is common in countries where carriers have close relationships with their national governments. Verint also has its own “worldwide SS7 hubs” that “are spread in various locations around the world,” says the brochure. It does not list prices for the services, though it says that Verint charges more for the ability to track targets in many far-flung countries, as opposed to only a few nearby ones. Among the most appealing features of the system, the brochure says, is its ability to sidestep the cellular operators that sometimes protect their users’ personal information by refusing government requests or insisting on formal court orders before releasing information.
  • Another company, Defentek, markets a similar system called Infiltrator Global Real-Time Tracking System on its Web site, claiming to “locate and track any phone number in the world.” The site adds: “It is a strategic solution that infiltrates and is undetected and unknown by the network, carrier, or the target.”
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    The Verint company has very close ties to the Iraeli government. Its former parent company Comverse, was heavily subsidized by Israel and the bulk of its manufacturing and code development was done in Israel. See https://en.wikipedia.org/wiki/Comverse_Technology "In December 2001, a Fox News report raised the concern that wiretapping equipment provided by Comverse Infosys to the U.S. government for electronic eavesdropping may have been vulnerable, as these systems allegedly had a back door through which the wiretaps could be intercepted by unauthorized parties.[55] Fox News reporter Carl Cameron said there was no reason to believe the Israeli government was implicated, but that "a classified top-secret investigation is underway".[55] A March 2002 story by Le Monde recapped the Fox report and concluded: "Comverse is suspected of having introduced into its systems of the 'catch gates' in order to 'intercept, record and store' these wire-taps. This hardware would render the 'listener' himself 'listened to'."[56] Fox News did not pursue the allegations, and in the years since, there have been no legal or commercial actions of any type taken against Comverse by the FBI or any other branch of the US Government related to data access and security issues. While no real evidence has been presented against Comverse or Verint, the allegations have become a favorite topic of conspiracy theorists.[57] By 2005, the company had $959 million in sales and employed over 5,000 people, of whom about half were located in Israel.[16]" Verint is also the company that got the Dept. of Homeland Security contract to provide and install an electronic and video surveillance system across the entire U.S. border with Mexico.  One need not be much of a conspiracy theorist to have concerns about Verint's likely interactions and data sharing with the NSA and its Israeli equivalent, Unit 8200. 
Paul Merrell

Shocking Leak Reveals Facebook Leveraged User Data To Reward Friends, Punish Enemies | ... - 0 views

  • As traders focused on bank earnings and the outlook for global growth, NBC News wrested the market's attention back toward Facebook by publishing a report on what appears to be the largest leak of internal documents since the data privacy scandal that has dogged the company for more than a year erupted with the first reports about Cambridge Analytica's 'improper' leveraging of Facebook user data to influence elections.
  • Some 4,000 pages of documents shared with the network news organization by a journalist affiliated with the ICIJ, the same organization that helped bring us the Panama Papers leaks, revealed that Facebook had employed sensitive user data as a bargaining chip to attract major advertisers and close other deals between 2011 and 2015, when the company was struggling to cement its business model following its botched 2012 IPO.
  • Facebook essentially offered companies like Amazon unfettered access to its data in exchange for agreeing to advertise on Facebook's platform, according to the documents, only a small fraction of which have been previously reported on. All of this was happening at a time when the company publicly professed to bee safeguarding user data.
Paul Merrell

Facebook's Marketplace Faces Antitrust Probes in EU, U.K. - WSJ - 1 views

  • The European Union and the U.K. opened formal antitrust investigations into Facebook Inc.’s FB -0.86% classified-ads service Marketplace, ramping up regulatory scrutiny for the company in Europe. Both the European Commission—the EU’s top antitrust enforcer—and the U.K.’s Competition and Markets Authority said Friday they are investigating whether Facebook repurposes data it gathers from advertisers who buy ads in order to give illegal advantages to its own services, including its Marketplace online flea market. The U.K. added that it is also investigating whether Facebook uses advertiser data to give similar advantages to its online-dating service. The two competition watchdogs said they would coordinate their investigations.
  • Separately on Friday, Germany’s competition regulator announced that it is opening an investigation into Google’s News Showcase, in which the tech company pays to license certain content from news publishers. That probe, which is based on new powers Germany had granted the regulator, will look among other things at whether Google is imposing unfair conditions on publishers and how it selects participants, the Federal Cartel Office said.
  • The three newly opened cases are part of a new wave of antitrust enforcement in Europe. The European Commission filed formal charges last month against Apple Inc. for allegedly abusing its control over the distribution of music-streaming apps, including Spotify Technology SA . In November, it filed formal charges against Amazon.com Inc. for allegedly using nonpublic data it gathers from third-party sellers to unfairly compete against them. Both companies denied wrongdoing. At the same time, the U.K.’s CMA has opened investigations into Google’s announcement that it will retire third-party cookies, a technology advertisers use to track web users, and whether Apple imposes anticompetitive conditions on some app developers, including the use of Apple’s in-app payment system, which is also the subject of a lawsuit in the U.S. In the EU, the European Commission has been investigating Facebook for more than a year on multiple fronts. Facebook and the Commission have squabbled over access to internal documents as part of those investigations.
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  • New York State Attorney General Letitia James outlined in December a sweeping antitrust suit against Facebook by the Federal Trade Commission and a bipartisan group of 46 state attorneys general, targeting the company’s tactics against competitors. Photo: Saul Loeb/AFP via Getty Images (Video from 12/9/20)
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