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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

Exclusive: U.S. tech industry appeals to Obama to keep hands off encryption | Reuters - 0 views

  • As Washington weighs new cybersecurity steps amid a public backlash over mass surveillance, U.S. tech companies warned President Barack Obama not to weaken increasingly sophisticated encryption systems designed to protect consumers' privacy.In a strongly worded letter to Obama on Monday, two industry associations for major software and hardware companies said, "We are opposed to any policy actions or measures that would undermine encryption as an available and effective tool."The Information Technology Industry Council and the Software and Information Industry Association, representing tech giants, including Apple Inc, Google Inc, Facebook Inc, IBM and Microsoft Corp, fired the latest salvo in what is shaping up to be a long fight over government access into smart phones and other digital devices.
Paul Merrell

Surveillance scandal rips through hacker community | Security & Privacy - CNET News - 0 views

  • One security start-up that had an encounter with the FBI was Wickr, a privacy-forward text messaging app for the iPhone with an Android version in private beta. Wickr's co-founder Nico Sell told CNET at Defcon, "Wickr has been approached by the FBI and asked for a backdoor. We said, 'No.'" The mistrust runs deep. "Even if [the NSA] stood up tomorrow and said that [they] have eliminated these programs," said Marlinspike, "How could we believe them? How can we believe that anything they say is true?" Where does security innovation go next? The immediate future of information security innovation most likely lies in software that provides an existing service but with heightened privacy protections, such as webmail that doesn't mine you for personal data.
  • Wickr's Sell thinks that her company has hit upon a privacy innovation that a few others are also doing, but many will soon follow: the company itself doesn't store user data. "[The FBI] would have to force us to build a new app. With the current app there's no way," she said, that they could incorporate backdoor access to Wickr users' texts or metadata. "Even if you trust the NSA 100 percent that they're going to use [your data] correctly," Sell said, "Do you trust that they're going to be able to keep it safe from hackers? What if somebody gets that database and posts it online?" To that end, she said, people will start seeing privacy innovation for services that don't currently provide it. Calling it "social networks 2.0," she said that social network competitors will arise that do a better job of protecting their customer's privacy and predicted that some that succeed will do so because of their emphasis on privacy. Abine's recent MaskMe browser add-on and mobile app for creating disposable e-mail addresses, phone numbers, and credit cards is another example of a service that doesn't have access to its own users' data.
  • The issue with balancing privacy and surveillance is that the wireless carriers are not interested in privacy, he said. "They've been providing wiretapping for 100 years. Apple may in the next year protect voice calls," he said, and said that the best hope for ending widespread government surveillance will be the makers of mobile operating systems like Apple and Google. Not all upcoming security innovation will be focused on that kind of privacy protection. Security researcher Brandon Wiley showed off at Defcon a protocol he calls Dust that can obfuscate different kinds of network traffic, with the end goal of preventing censorship. "I only make products about letting you say what you want to say anywhere in the world," such as content critical of governments, he said. Encryption can hide the specifics of the traffic, but some governments have figured out that they can simply block all encrypted traffic, he said. The Dust protocol would change that, he said, making it hard to tell the difference between encrypted and unencrypted traffic. It's hard to build encryption into pre-existing products, Wiley said. "I think people are going to make easy-to-use, encrypted apps, and that's going to be the future."
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  • Stamos predicted changes in services that companies with cloud storage offer, including offering customers the ability to store their data outside of the U.S. "If they want to stay competitive, they're going to have to," he said. But, he cautioned, "It's impossible to do a cloud-based ad supported service." Soghoian added, "The only way to keep a service running is to pay them money." This, he said, is going to give rise to a new wave of ad-free, privacy protective subscription services.
  • Companies could face severe consequences from their security experts, said Stamos, if the in-house experts find out that they've been lied to about providing government access to customer data. You could see "lots of resignations and maybe publicly," he said. "It wouldn't hurt their reputations to go out in a blaze of glory." Perhaps not surprisingly, Marlinspike sounded a hopeful call for non-destructive activism on Defcon's 21st anniversary. "As hackers, we don't have a lot of influence on policy. I hope that's something that we can focus our energy on," he said.
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    NSA as the cause of the next major disruption in the social networking service industry?  Grief ahead for Google? Note the point made that: "It's impossible to do a cloud-based ad supported service" where the encryption/decryption takes place on the client side. 
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