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Software created by the controversial UK-based Gamma Group International was used to spy on computers that appear to be located in the United States, the UK, Germany, Russia, Iran, and Bahrain, according to a leaked trove of documents analyzed by ProPublica. It's not clear whether the surveillance was conducted by governments or private entities. Customer e-mail addresses in the collection appeared to belong to a German surveillance company, an independent consultant in Dubai, the Bosnian and Hungarian Intelligence services, a Dutch law enforcement officer, and the Qatari government.

The leaked files—which were posted online by hackers—are the latest in a series of revelations about how state actors including repressive regimes have used Gamma's software to spy on dissidents, journalists, and activist groups. The documents, leaked last Saturday, could not be readily verified, but experts told ProPublica they believed them to be genuine. "I think it's highly unlikely that it's a fake," said Morgan Marquis-Bore, a security researcher who while at The Citizen Lab at the University of Toronto had analyzed Gamma Group's software and who authored an article about the leak on Thursday. The documents confirm many details that have already been reported about Gamma, such as that its tools were used to spy on Bahraini activists. Some documents in the trove contain metadata tied to e-mail addresses of several Gamma employees. Bill Marczak, another Gamma Group expert at the Citizen Lab, said that several dates in the documents correspond to publicly known events—such as the day that a particular Bahraini activist was hacked.

The leaked files contain more than 40 gigabytes of confidential technical material, including software code, internal memos, strategy reports, and user guides on how to use Gamma Group software suite called FinFisher. FinFisher enables customers to monitor secure Web traffic, Skype calls, webcams, and personal files. It is installed as malware on targets' computers and cell phones. A price list included in the trove lists a license of the software at almost $4 million. The documents reveal that Gamma uses technology from a French company called Vupen Security that sells so-called computer "exploits." Exploits include techniques called "zero days" for "popular software like Microsoft Office, Internet Explorer, Adobe Acrobat Reader, and many more." Zero days are exploits that have not yet been detected by the software maker and therefore are not blocked.

The US intelligence community has delivered a limited list of tweaks to how long it can hold information on ordinary citizens and hide secret trawls for data, responding to Barack Obama’s call for reform of its surveillance practices in the wake of revelations about NSA practices. Published by the office of the director of national intelligence, James Clapper, just six days before a recently announced visit to Washington by the German chancellor, Angela Merkel, the report is the culmination of a year-long effort to respond to revelations by whistleblower Edward Snowden.

But the report does not appear to address the role of telecommunications companies in collecting metadata and the use of encryption to prevent hacking, and privacy critics were quick to pounce on a year of promises with little reform to show. “It’s hard to see much ‘there’ there,” Senator Ron Wyden said in a statement. “When it comes to reforming intelligence programs and protecting Americans’ privacy, there is much, much more work to be done.” The outline from the intelligence community also appears to fall short of the legislative changes attempted by campaigners in Congress, focusing instead on measures to tighten internal guidelines and provide foreigners with some of the protections allowed for US citizens. These measures include:

Other measures outlined in the new report include steps to clarify the protection given to whistleblowers if they follow internal rules and a requirement that “any significant compliance incident involving personal information, regardless of the person’s nationality” be reported to Clapper.

European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”

“If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.

According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.

Canada’s electronic surveillance agency is covertly monitoring vast amounts of Canadians’ emails as part of a sweeping domestic cybersecurity operation, according to top-secret documents. The surveillance initiative, revealed Wednesday by CBC News in collaboration with The Intercept, is sifting through millions of emails sent to Canadian government agencies and departments, archiving details about them on a database for months or even years. The data mining operation is carried out by the Communications Security Establishment, or CSE, Canada’s equivalent of the National Security Agency. Its existence is disclosed in documents obtained by The Intercept from NSA whistleblower Edward Snowden. The emails are vacuumed up by the Canadian agency as part of its mandate to defend against hacking attacks and malware targeting government computers. It relies on a system codenamed PONY EXPRESS to analyze the messages in a bid to detect potential cyber threats.

Last year, CSE acknowledged it collected some private communications as part of cybersecurity efforts. But it refused to divulge the number of communications being stored or to explain for how long any intercepted messages would be retained. Now, the Snowden documents shine a light for the first time on the huge scope of the operation — exposing the controversial details the government withheld from the public. Under Canada’s criminal code, CSE is not allowed to eavesdrop on Canadians’ communications. But the agency can be granted special ministerial exemptions if its efforts are linked to protecting government infrastructure — a loophole that the Snowden documents show is being used to monitor the emails. The latest revelations will trigger concerns about how Canadians’ private correspondence with government employees are being archived by the spy agency and potentially shared with police or allied surveillance agencies overseas, such as the NSA. Members of the public routinely communicate with government employees when, for instance, filing tax returns, writing a letter to a member of parliament, applying for employment insurance benefits or submitting a passport application.

Chris Parsons, an internet security expert with the Toronto-based internet think tank Citizen Lab, told CBC News that “you should be able to communicate with your government without the fear that what you say … could come back to haunt you in unexpected ways.” Parsons said that there are legitimate cybersecurity purposes for the agency to keep tabs on communications with the government, but he added: “When we collect huge volumes, it’s not just used to track bad guys. It goes into data stores for years or months at a time and then it can be used at any point in the future.” In a top-secret CSE document on the security operation, dated from 2010, the agency says it “processes 400,000 emails per day” and admits that it is suffering from “information overload” because it is scooping up “too much data.” The document outlines how CSE built a system to handle a massive 400 terabytes of data from Internet networks each month — including Canadians’ emails — as part of the cyber operation. (A single terabyte of data can hold about a billion pages of text, or about 250,000 average-sized mp3 files.)

The UK National Crime Agency arrested 56 suspected hackers, including one 23-year-old male who allegedly attempted to hack his way into the U.S.’ Department of Defense in 2014. Not attempting to minimize the potential risks of hacking but how much does cyber-crime actually cost, what are the risks and what about those who hack the data of billions of internet users per day to, allegedly, “keep all of us safe?”

Besides the 23-year-old who allegedly attempted to hack his way into the a U.S. Department of Defense site, the other detainees allegedly were members of the hacking collectives Lizard Squad and D33DS which are being accused of fraud, money laundering and Denial of Service and Distributed Denial of Service (DOS & DDOS) attacks.  D33DS stands accused of having stolen data of some 450,000 Yahoo users. The arrests followed the recent announcement about the so-called FREAK security vulnerability that was leaving thousands of SSL sites unprotected. The arrest of the 56 hackers in the UK was reported as the National Crime Agency’s way of “sending a clear message” to the hacker community.

The U.S. DoD’s cyber-security functioned, obviously. A recent article by Benjamin Dean entitled “Hard Evidence: How much is cybercrime really costing us” suggests that the money spent on cyber-security per year is disproportional to the harm that is being caused by cyber-crime. Dean, who is a Fellow for Internet Governance and Cyber-security at the School of International and Public Affairs at Columbia University would conclude that: There are numerous competing budgetary priorities at any one time and limited funds to spend on meeting all these needs. How much money does it make sense to invest in bolstering cybersecurity, relative to the losses? …In the hysteria created in the wake of the hacks of 2014, we risk making the wrong choice simply because we don’t know what the current sums of money are being spent on.

The NSA and Britain's GCHQ hacked the world's biggest SIM card maker to harvest the encryption keys needed to silently and effortlessly eavesdrop on potentially millions of people. That's according to documents obtained by surveillance whistleblower Edward Snowden and leaked to the web on Thursday. "Wow. This is huge – it's one of the most significant findings of the Snowden files so far," computer security guru Bruce Schneier told The Register this afternoon. "We always knew that they would occasionally steal SIM keys. But all of them? The odds that they just attacked this one firm are extraordinarily low and we know the NSA does like to steal keys where it can." The damning slides, published by Snowden's chums at The Intercept, detail the activities of the as-yet unheard-of Mobile Handset Exploitation Team (MHET), run by the US and UK. The group targeted Gemalto, which churns out about two billion SIM cards each year for use around the world, and targeted it in an operation dubbed DAPINO GAMMA.

Gemalto's hacking may also bring into question some of its other security products as well. The company supplies chips for electronic passports issued by the US, Singapore, India, and many European states, and is also involved in the NFC and mobile banking sector. It's important to note that this is useful for tracking the phone activity of a target, but the mobile user can still use encryption on the handset itself to ensure that some communications remain private. "Ironically one of your best defenses against a hijacked SIM is to use software encryption," Jon Callas, CTO of encrypted chat biz Silent Circle told The Register. "In our case there's a TCP/IP cloud between Alice and Bob and that can deal with compromised routers along the path as well as SIM issues, and the same applies to similar mobile software."

On Wednesday the UK government admitted that its intelligence agencies had in fact broken the ECHR when spying on communications between lawyers and those suing the British state, so GCHQ might want to reconsider that statement.

Nearly 20 years after Congress passed the Electronic Freedom of Information Act Amendments (E-FOIA), only 40 percent of agencies have followed the law's instruction for systematic posting of records released through FOIA in their electronic reading rooms, according to a new FOIA Audit released today by the National Security Archive at www.nsarchive.org to mark Sunshine Week. The Archive team audited all federal agencies with Chief FOIA Officers as well as agency components that handle more than 500 FOIA requests a year — 165 federal offices in all — and found only 67 with online libraries populated with significant numbers of released FOIA documents and regularly updated.

Congress called on agencies to embrace disclosure and the digital era nearly two decades ago, with the passage of the 1996 "E-FOIA" amendments. The law mandated that agencies post key sets of records online, provide citizens with detailed guidance on making FOIA requests, and use new information technology to post online proactively records of significant public interest, including those already processed in response to FOIA requests and "likely to become the subject of subsequent requests." Congress believed then, and openness advocates know now, that this kind of proactive disclosure, publishing online the results of FOIA requests as well as agency records that might be requested in the future, is the only tenable solution to FOIA backlogs and delays. Thus the National Security Archive chose to focus on the e-reading rooms of agencies in its latest audit. Even though the majority of federal agencies have not yet embraced proactive disclosure of their FOIA releases, the Archive E-FOIA Audit did find that some real "E-Stars" exist within the federal government, serving as examples to lagging agencies that technology can be harnessed to create state-of-the art FOIA platforms. Unfortunately, our audit also found "E-Delinquents" whose abysmal web performance recalls the teletype era.

E-Delinquents include the Office of Science and Technology Policy at the White House, which, despite being mandated to advise the President on technology policy, does not embrace 21st century practices by posting any frequently requested records online. Another E-Delinquent, the Drug Enforcement Administration, insults its website's viewers by claiming that it "does not maintain records appropriate for FOIA Library at this time."

(Reuters) - Russia's parliament passed a law on Friday to force Internet sites that store the personal data of Russian citizens to do so inside the country, a move the Kremlin says is for data protection but which critics see an attack on social networks. The law will mean that from 2016, all Internet companies will have to move Russian data onto servers based in Russia or face being blocked from the web. That would likely affect U.S.-based social networks such as Facebook, analysts say.

Putin, an ex-KGB officer who has called the Internet a "CIA project", denied he was restricting web freedoms, saying his main concern was protecting children from indecent content.

Facebook has been ordered by a Belgian court to stop tracking non-Facebook users when they visit the Facebook site. Facebook has been given 48 hours to stop the tracking or face possible fines of up to 250,000 Euro a day.

Facebook has said that it will appeal the ruling, claiming that since their european headquarters are situated in Ireland, they should only be bound by the Irish Data Protection Regulator. Facebook’s chief of security Alex Stamos has posted an explanation about why non-Facebook users are tracked when they visit the site. The tracking issue centres around the creation of a “cookie” called “datr” whenever anyone visits a Facebook page. This cookie contains an identification number that identifies the same browser returning each time to different Facebook pages. Once created, the cookie will last 2 years unless the user explicitly deletes it. The cookie is created for all visitors to Facebook, irrespective of whether they are a Facebook user or even whether they are logged into Facebook at the time. According to Stamos, the measure is needed to: Prevent the creation of fake and spammy accounts Reduce the risk of someone’s account being taken over by someone else Protect people’s content from being stolen Stopping denial of service attacks against Facebook

The principle behind this is that if you can identify requests that arrive at the site for whatever reason, abnormal patterns may unmask people creating fake accounts, hijacking a real account or just issuing so many requests that it overwhelms the site. Stamos’ defence of tracking users is that they have been using it for the past 5 years and nobody had complained until now, that it was common practice and that there was little harm because the data was not collected for any purpose other than security. The dilemma raised by Facebook’s actions is a common one in the conflicting spheres of maintaining privacy and maintaining security. It is obvious that if you can identify all visitors to a site, then it is possible to determine more information about what they are doing than if they were anonymous. The problem with this from a moral perspective is that everyone is being tagged, irrespective of whether their intent was going to be malicious or not. It is essentially compromising the privacy of the vast majority for the sake of a much smaller likelihood of bad behaviour.

Micah Lee: What are some operational security practices you think everyone should adopt? Just useful stuff for average people. Edward Snowden: [Opsec] is important even if you’re not worried about the NSA. Because when you think about who the victims of surveillance are, on a day-to-day basis, you’re thinking about people who are in abusive spousal relationships, you’re thinking about people who are concerned about stalkers, you’re thinking about children who are concerned about their parents overhearing things. It’s to reclaim a level of privacy. The first step that anyone could take is to encrypt their phone calls and their text messages. You can do that through the smartphone app Signal, by Open Whisper Systems. It’s free, and you can just download it immediately. And anybody you’re talking to now, their communications, if it’s intercepted, can’t be read by adversaries. [Signal is available for iOS and Android, and, unlike a lot of security tools, is very easy to use.] You should encrypt your hard disk, so that if your computer is stolen the information isn’t obtainable to an adversary — pictures, where you live, where you work, where your kids are, where you go to school. [I’ve written a guide to encrypting your disk on Windows, Mac, and Linux.] Use a password manager. One of the main things that gets people’s private information exposed, not necessarily to the most powerful adversaries, but to the most common ones, are data dumps. Your credentials may be revealed because some service you stopped using in 2007 gets hacked, and your password that you were using for that one site also works for your Gmail account. A password manager allows you to create unique passwords for every site that are unbreakable, but you don’t have the burden of memorizing them. [The password manager KeePassX is free, open source, cross-platform, and never stores anything in the cloud.]

The other thing there is two-factor authentication. The value of this is if someone does steal your password, or it’s left or exposed somewhere … [two-factor authentication] allows the provider to send you a secondary means of authentication — a text message or something like that. [If you enable two-factor authentication, an attacker needs both your password as the first factor and a physical device, like your phone, as your second factor, to login to your account. Gmail, Facebook, Twitter, Dropbox, GitHub, Battle.net, and tons of other services all support two-factor authentication.]

We should armor ourselves using systems we can rely on every day. This doesn’t need to be an extraordinary lifestyle change. It doesn’t have to be something that is disruptive. It should be invisible, it should be atmospheric, it should be something that happens painlessly, effortlessly. This is why I like apps like Signal, because they’re low friction. It doesn’t require you to re-order your life. It doesn’t require you to change your method of communications. You can use it right now to talk to your friends.

In a secret meeting convened by the White House around Thanksgiving, senior national security officials ordered agencies across the U.S. government to find ways to counter encryption software and gain access to the most heavily protected user data on the most secure consumer devices, including Apple Inc.’s iPhone, the marquee product of one of America’s most valuable companies, according to two people familiar with the decision.The approach was formalized in a confidential National Security Council “decision memo,” tasking government agencies with developing encryption workarounds, estimating additional budgets and identifying laws that may need to be changed to counter what FBI Director James Comey calls the “going dark” problem: investigators being unable to access the contents of encrypted data stored on mobile devices or traveling across the Internet. Details of the memo reveal that, in private, the government was honing a sharper edge to its relationship with Silicon Valley alongside more public signs of rapprochement.

On Tuesday, the public got its first glimpse of what those efforts may look like when a federal judge ordered Apple to create a special tool for the FBI to bypass security protections on an iPhone 5c belonging to one of the shooters in the Dec. 2 terrorist attack in San Bernardino, California that killed 14 people. Apple Chief Executive Officer Tim Cook has vowed to fight the order, calling it a “chilling” demand that Apple “hack our own users and undermine decades of security advancements that protect our customers.” The order was not a direct outcome of the memo but is in line with the broader government strategy.White House spokesman Josh Earnest said Wednesday that the Federal Bureau of Investigation and Department of Justice have the Obama administration’s “full” support in the matter. The government is “not asking Apple to redesign its product or to create a new backdoor to their products,” but rather are seeking entry “to this one device,” he said.

Now that the United States government has cracked open an iPhone that belonged to a gunman in the San Bernardino, Calif., mass shooting without Apple’s help, the tech company is under pressure to find and fix the flaw.But unlike other cases where security vulnerabilities have cropped up, Apple may face a higher set of hurdles in ferreting out and repairing the particular iPhone hole that the government hacked.The challenges start with the lack of information about the method that the law enforcement authorities, with the aid of a third party, used to break into the iPhone of Syed Rizwan Farook, an attacker in the San Bernardino rampage last year. Federal officials have refused to identify the person, or organization, who helped crack the device, and have declined to specify the procedure used to open the iPhone. Apple also cannot obtain the device to reverse-engineer the problem, the way it would in other hacking situations.