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To Amie Stepanovich, the U.S. policy manager for Access, one of the groups signing the petition, the status quo isn’t good enough. “It’s really crucial that even if the government is not pursuing legislation, it’s also not pursuing policies that will weaken security through other methods,” she said. The FBI and Justice Department have been talking with tech companies for months. On Thursday, Comey said the conversations have been “increasingly productive.” He added: “People have stripped out a lot of the venom.” He said the tech executives “are all people who care about the safety of America and also care about privacy and civil liberties.” Comey said the issue afflicts not just federal law enforcement but also state and local agencies investigating child kidnappings and car crashes — “cops and sheriffs . . . [who are] increasingly encountering devices they can’t open with a search warrant.”

One senior administration official said the administration thinks it’s making enough progress with companies that seeking legislation now is unnecessary. “We feel optimistic,” said the official, who spoke on the condition of anonymity to describe internal discussions. “We don’t think it’s a lost cause at this point.” Legislation, said Rep. Adam Schiff (D-Calif.), is not a realistic option given the current political climate. He said he made a recent trip to Silicon Valley to talk to Twitter, Facebook and Google. “They quite uniformly are opposed to any mandate or pressure — and more than that, they don’t want to be asked to come up with a solution,” Schiff said. Law enforcement officials know that legislation is a tough sell now. But, one senior official stressed, “it’s still going to be in the mix.” On the other side of the debate, technology, diplomatic and commerce agencies were pressing for an outright statement by Obama to disavow a legislative mandate on companies. But their position did not prevail.

Daniel Castro, vice president of the Information Technology & Innovation Foundation, said absent any new laws, either in the United States or abroad, “companies are in the driver’s seat.” He said that if another country tried to require companies to retain an ability to decrypt communications, “I suspect many tech companies would try to pull out.”

The NSA, like GCHQ, has studied Kaspersky Lab’s software for weaknesses. In 2008, an NSA research team discovered that Kaspersky software was transmitting sensitive user information back to the company’s servers, which could easily be intercepted and employed to track users, according to a draft of a top-secret report. The information was embedded in “User-Agent” strings included in the headers of Hypertext Transfer Protocol, or HTTP, requests. Such headers are typically sent at the beginning of a web request to identify the type of software and computer issuing the request.

According to the draft report, NSA researchers found that the strings could be used to uniquely identify the computing devices belonging to Kaspersky customers. They determined that “Kaspersky User-Agent strings contain encoded versions of the Kaspersky serial numbers and that part of the User-Agent string can be used as a machine identifier.” They also noted that the “User-Agent” strings may contain “information about services contracted for or configurations.” Such data could be used to passively track a computer to determine if a target is running Kaspersky software and thus potentially susceptible to a particular attack without risking detection.

Another way the NSA targets foreign anti-virus companies appears to be to monitor their email traffic for reports of new vulnerabilities and malware. A 2010 presentation on “Project CAMBERDADA” shows the content of an email flagging a malware file, which was sent to various anti-virus companies by François Picard of the Montréal-based consulting and web hosting company NewRoma. The presentation of the email suggests that the NSA is reading such messages to discover new flaws in anti-virus software. Picard, contacted by The Intercept, was unaware his email had fallen into the hands of the NSA. He said that he regularly sends out notification of new viruses and malware to anti-virus companies, and that he likely sent the email in question to at least two dozen such outfits. He also said he never sends such notifications to government agencies. “It is strange the NSA would show an email like mine in a presentation,” he added.

The NSA presentation goes on to state that its signals intelligence yields about 10 new “potentially malicious files per day for malware triage.” This is a tiny fraction of the hostile software that is processed. Kaspersky says it detects 325,000 new malicious files every day, and an internal GCHQ document indicates that its own system “collect[s] around 100,000,000 malware events per day.” After obtaining the files, the NSA analysts “[c]heck Kaspersky AV to see if they continue to let any of these virus files through their Anti-Virus product.” The NSA’s Tailored Access Operations unit “can repurpose the malware,” presumably before the anti-virus software has been updated to defend against the threat.

The Project CAMBERDADA presentation lists 23 additional AV companies from all over the world under “More Targets!” Those companies include Check Point software, a pioneering maker of corporate firewalls based Israel, whose government is a U.S. ally. Notably omitted are the American anti-virus brands McAfee and Symantec and the British company Sophos.

As government spies have sought to evade anti-virus software, the anti-virus firms themselves have exposed malware created by government spies. Among them, Kaspersky appears to be the sharpest thorn in the side of government hackers. In the past few years, the company has proven to be a prolific hunter of state-sponsored malware, playing a role in the discovery and/or analysis of various pieces of malware reportedly linked to government hackers, including the superviruses Flame, which Kaspersky flagged in 2012; Gauss, also detected in 2012; Stuxnet, discovered by another company in 2010; and Regin, revealed by Symantec. In February, the Russian firm announced its biggest find yet: the “Equation Group,” an organization that has deployed espionage tools widely believed to have been created by the NSA and hidden on hard drives from leading brands, according to Kaspersky. In a report, the company called it “the most advanced threat actor we have seen” and “probably one of the most sophisticated cyber attack groups in the world.”

Hacks deployed by the Equation Group operated undetected for as long as 14 to 19 years, burrowing into the hard drive firmware of sensitive computer systems around the world, according to Kaspersky. Governments, militaries, technology companies, nuclear research centers, media outlets and financial institutions in 30 countries were among those reportedly infected. Kaspersky estimates that the Equation Group could have implants in tens of thousands of computers, but documents published last year by The Intercept suggest the NSA was scaling up their implant capabilities to potentially infect millions of computers with malware. Kaspersky’s adversarial relationship with Western intelligence services is sometimes framed in more sinister terms; the firm has been accused of working too closely with the Russian intelligence service FSB. That accusation is partly due to the company’s apparent success in uncovering NSA malware, and partly due to the fact that its founder, Eugene Kaspersky, was educated by a KGB-backed school in the 1980s before working for the Russian military.

Kaspersky has repeatedly denied the insinuations and accusations. In a recent blog post, responding to a Bloomberg article, he complained that his company was being subjected to “sensationalist … conspiracy theories,” sarcastically noting that “for some reason they forgot our reports” on an array of malware that trace back to Russian developers. He continued, “It’s very hard for a company with Russian roots to become successful in the U.S., European and other markets. Nobody trusts us — by default.”

Documents published with this article: Kaspersky User-Agent Strings — NSA Project CAMBERDADA — NSA NDIST — GCHQ’s Developing Cyber Defence Mission GCHQ Application for Renewal of Warrant GPW/1160 Software Reverse Engineering — GCHQ Reverse Engineering — GCHQ Wiki Malware Analysis & Reverse Engineering — ACNO Skill Levels — GCHQ

Deepface is the name of the new technology researchers at Facebook created in order to identify people in pictures; mimicking the way humans recognize the differences in each other’s faces. Facebook has already implemented facial recognition software (FRS) to suggest names for tagging photos; however Deepface can “identify faces from a side view” as well as when the person is directly facing the camera in the picture. In 2013, Erin Egan, chief privacy officer for Facebook, said that this upgrade “would give users better control over their personal information, by making it easier to identify posted photos in which they appear.” Egan explained: “Our goal is to facilitate tagging so that people know when there are photos of them on our service.” Facebook has stated that they retain information from their users that is syphoned from all across the web. This data is used to increase Facebook’s profits with the information being sold for marketing purposes. This is the impressive feature of Deepface; as previous FRS can only decipher faces in images that are frontal views of people. Shockingly, Deepface displays 97.25% accuracy in identifying faces in photos. That is quite a feat considering humans have a 97.53% accuracy rate. In order to ensure accuracy, Deepface “conducts its analysis based on more than 120 million different parameters.”

Peter Micek, policy counsel at the campaign group Access, said: "In a sector that has historically been quiet about how it facilitates government access to user data, Vodafone has for the first time shone a bright light on the challenges of a global telecom giant, giving users a greater understanding of the demands governments make of telcos. Vodafone's report also highlights how few governments issue any transparency reports, with little to no information about the number of wiretaps, cell site tower dumps, and other invasive surveillance practices."

Snowden, the National Security Agency whistleblower, joined Google, Reddit, Mozilla and other tech firms and privacy groups on Thursday to call for a strengthening of privacy rights online in a "Reset the net" campaign.Twelve months after revelations about the scale of the US government's surveillance programs were first published in the Guardian and the Washington Post, Snowden said: "One year ago, we learned that the internet is under surveillance, and our activities are being monitored to create permanent records of our private lives – no matter how innocent or ordinary those lives might be. Today, we can begin the work of effectively shutting down the collection of our online communications, even if the US Congress fails to do the same."

By locating in Switzerland, ProtonMail hopes to avoid the legal woes of services like Lavabit widely believed to be used by Snowden which shut down rather than hand over data to the US government, and which now faces a contempt of court order.Even if a Swiss court ordered data to be turned over, Stockman said, "we would hand over piles of encrypted data. We don't have a key. We never see the password."

Lavabit founder Ladar Levison meanwhile hopes to launch a new service with other developers in a coalition known as the "Dark Mail Alliance."Levison told AFP he hopes to have a new encrypted email system in testing within a few months and widely available later this year."The goal is to make it ubiquitous, so people don't have to turn it on," he said.But he added that the technical hurdles are formidable, because the more user-friendly the system becomes, "the more susceptible it is to a sophisticated attacker with fake or spoofed key information."Levison said he hopes Dark Mail will become a new open standard that can be adopted by other email services.

on Callas, a cryptographer who developed the PGP standard and later co-founded the secure communications firm Silent Circle, cited challenges in making a system that is both secure and ubiquitous."If you are a bank you have to have an email system that complies with banking regulations," Callas told AFP, which could allow, for example, certain emails to be subject to regulatory or court review."Many of the services on the Internet started with zero security. We want to start with a system that is totally secure and let people dial it down."The new email system would complement Silent Circle's existing secure messaging system and encrypted mobile phone, which was launched earlier this year."If we start competing for customers on the basis of maximum privacy, that's good for everybody," Callas said.