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About 89,000 foreigners or organizations were targeted for spying under a U.S. surveillance order last year, according to a new transparency report. The report was released for the first time Friday by the Office of the Director of Intelligence, upon order of the president, in the wake of surveillance leaks by NSA whistleblower Edward Snowden. But the report, which covers only surveillance orders issued in 2013, doesn’t tell the whole story about how many individuals the spying targeted or how many Americans were caught in the surveillance that targeted foreigners. Civil liberties groups say the real number is likely “orders of magnitude” larger than this. “Even if it was an honest definition of ‘target’—that is, an individual instead of a group—that also is not encompassing those who are ancillary to a target and are caught up in the dragnet,” says Kurt Opsahl, deputy general counsel of the Electronic Frontier Foundation.

The report, remarkably, shows that the government obtained just one order last year under Section 702 of FISA—which allows for bulk collection of data on foreigners—and that this one order covered 89,138 targets. But, as the report notes, “target” can refer to “an individual person, a group, an organization composed of multiple individuals or a foreign power that possesses or is likely to communicate foreign intelligence information.” Furthermore, Section 702 orders are actually certificates issued by the FISA Court that can cover surveillance of an entire facility. And since, as the government points out in its report, the government cannot know how many people use a facility, the figure only “reflects an estimate of the number of known users of particular facilities (sometimes referred to as selectors) subject to intelligence collection under those Certifications,” the report notes.

“If you’re actually trying to get a sense of the number of human beings affected or the number of Americans affected, the number of people affected is vastly, vastly larger,” says Julian Sanchez, senior fellow at the Cato Institute. “And how many of those are Americans is impossible to say. But [although] you may not think you are routinely communicating with foreign persons, [this] is not any kind of assurance that your communications are not part of the traffic subject to interception.” Sanchez points out that each individual targeted is likely communicating with dozens or hundred of others, whose communications will be picked up in the surveillance. “And probably a lot of these targets are not individuals but entire web sites or companies. While [a company like the Chinese firm] Huawei might be a target, thousands of emails used by thousands of employees will be swept up.” How many of those employees might be American or communicating with Americans is unknown.

Security experts call it a “drive-by download”: a hacker infiltrates a high-traffic website and then subverts it to deliver malware to every single visitor. It’s one of the most powerful tools in the black hat arsenal, capable of delivering thousands of fresh victims into a hackers’ clutches within minutes. Now the technique is being adopted by a different kind of a hacker—the kind with a badge. For the last two years, the FBI has been quietly experimenting with drive-by hacks as a solution to one of law enforcement’s knottiest Internet problems: how to identify and prosecute users of criminal websites hiding behind the powerful Tor anonymity system. The approach has borne fruit—over a dozen alleged users of Tor-based child porn sites are now headed for trial as a result. But it’s also engendering controversy, with charges that the Justice Department has glossed over the bulk-hacking technique when describing it to judges, while concealing its use from defendants. Critics also worry about mission creep, the weakening of a technology relied on by human rights workers and activists, and the potential for innocent parties to wind up infected with government malware because they visited the wrong website. “This is such a big leap, there should have been congressional hearings about this,” says ACLU technologist Chris Soghoian, an expert on law enforcement’s use of hacking tools. “If Congress decides this is a technique that’s perfectly appropriate, maybe that’s OK. But let’s have an informed debate about it.”

The FBI’s use of malware is not new. The bureau calls the method an NIT, for “network investigative technique,” and the FBI has been using it since at least 2002 in cases ranging from computer hacking to bomb threats, child porn to extortion. Depending on the deployment, an NIT can be a bulky full-featured backdoor program that gives the government access to your files, location, web history and webcam for a month at a time, or a slim, fleeting wisp of code that sends the FBI your computer’s name and address, and then evaporates. What’s changed is the way the FBI uses its malware capability, deploying it as a driftnet instead of a fishing line. And the shift is a direct response to Tor, the powerful anonymity system endorsed by Edward Snowden and the State Department alike.

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.

For most of the past six weeks, the biggest story out of Silicon Valley was Apple’s battle with the FBI over a federal order to unlock the iPhone of a mass shooter. The company’s refusal touched off a searing debate over privacy and security in the digital age. But this morning, at a small office in Mountain View, California, three guys made the scope of that enormous debate look kinda small. Mountain View is home to WhatsApp, an online messaging service now owned by tech giant Facebook, that has grown into one of the world’s most important applications. More than a billion people trade messages, make phone calls, send photos, and swap videos using the service. This means that only Facebook itself runs a larger self-contained communications network. And today, the enigmatic founders of WhatsApp, Brian Acton and Jan Koum, together with a high-minded coder and cryptographer who goes by the pseudonym Moxie Marlinspike, revealed that the company has added end-to-end encryption to every form of communication on its service.

This means that if any group of people uses the latest version of WhatsApp—whether that group spans two people or ten—the service will encrypt all messages, phone calls, photos, and videos moving among them. And that’s true on any phone that runs the app, from iPhones to Android phones to Windows phones to old school Nokia flip phones. With end-to-end encryption in place, not even WhatsApp’s employees can read the data that’s sent across its network. In other words, WhatsApp has no way of complying with a court order demanding access to the content of any message, phone call, photo, or video traveling through its service. Like Apple, WhatsApp is, in practice, stonewalling the federal government, but it’s doing so on a larger front—one that spans roughly a billion devices.

The FBI and the Justice Department declined to comment for this story. But many inside the government and out are sure to take issue with the company’s move. In late 2014, WhatsApp encrypted a portion of its network. In the months since, its service has apparently been used to facilitate criminal acts, including the terrorist attacks on Paris last year. According to The New York Times, as recently as this month, the Justice Department was considering a court case against the company after a wiretap order (still under seal) ran into WhatsApp’s end-to-end encryption. “The government doesn’t want to stop encryption,” says Joseph DeMarco, a former federal prosecutor who specializes in cybercrime and has represented various law enforcement agencies backing the Justice Department and the FBI in their battle with Apple. “But the question is: what do you do when a company creates an encryption system that makes it impossible for court-authorized search warrants to be executed? What is the reasonable level of assistance you should ask from that company?”

Researchers at Yale Privacy Lab and French nonprofit Exodus Privacy have documented the proliferation of tracking software on smartphones, finding that weather, flashlight, rideshare, and dating apps, among others, are infested with dozens of different types of trackers collecting vast amounts of information to better target advertising. Exodus security researchers identified 44 trackers in more than 300 apps for Google’s Android smartphone operating system. The apps, collectively, have been downloaded billions of times. Yale Privacy Lab, within the university’s law school, is working to replicate the Exodus findings and has already released reports on 25 of the trackers. Yale Privacy Lab researchers have only been able to analyze Android apps, but believe many of the trackers also exist on iOS, since companies often distribute for both platforms. To find trackers, the Exodus researchers built a custom auditing platform for Android apps, which searched through the apps for digital “signatures” distilled from known trackers. A signature might be a tell-tale set of keywords or string of bytes found in an app file, or a mathematically-derived “hash” summary of the file itself. The findings underscore the pervasiveness of tracking despite a permissions system on Android that supposedly puts users in control of their own data. They also highlight how a large and varied set of firms are working to enable tracking.

Two Facebook users are seeking damages on behalf of hundreds of thousands of Canadians whose personal data may have been improperly used for political purposes. The proposed class-action lawsuit filed by Calgary residents Saul Benary and Karma Holoboff asks the Federal Court to order the social-media giant to bolster its security practices to better protect sensitive information and comply with federal privacy law. It also seeks $1,000 for each of the approximately 622,000 Canadians whose information was shared with others through a digital app.

At the request of CEO Mark Zuckerberg, Facebook officials developed a program called In-App Action Panel (IAAP) that they deployed in 2016 and which was in use through mid-2019, according to the documents, which include internal emails.The program utilized cyberattacks to intercept information from Snapchat, YouTube, and Amazon. The program then decrypted the information.“Facebook’s IAAP Program used nation-state-level hacking technology developed by the company’s Onavo team, in which Facebook paid contractors (including teens) to designate Facebook a trusted ‘root’ certificate authority on their mobile devices, then generated fake digital certificates to redirect secure Snapchat analytics traffic (and later, analytics from YouTube and Amazon) from Snapchat’s servers to Onavo’s; decrypted these analytics and used them for competitive gain, including to inform Facebook’s product strategy; reencrypted them; and sent them up to Snapchat’s servers as though it came straight from Snapchat’s app, with Facebook’s Social Advertising competitor none the wiser,” lawyers said in one of the documents.The lawyers, representing plaintiffs in a lawsuit that accuses Facebook of anti-competitive behavior, were describing emails they obtained through discovery.

A once-robust alliance of federal agencies, tech companies, election officials and researchers that worked together to thwart foreign propaganda and disinformation has fragmented after years of sustained Republican attacks.The GOP offensive started during the 2020 election as public critiques and has since escalated into lawsuits, governmental inquiries and public relations campaigns that have succeeded in stopping almost all coordination between the government and social media platforms.The most recent setback came when the FBI put an indefinite hold on most briefings to social media companies about Russian, Iranian and Chinese influence campaigns. Employees at two U.S. tech companies who used to receive regular briefings from the FBI’s Foreign Influence Task Force told NBC News that it has been months since the bureau reached out. In a testimony last week to the Senate Homeland Security Committee, FBI Director Christopher Wray signaled a significant pullback in communications with tech companies and tied the move to rulings by a conservative federal judge and appeals court that said some government agencies and officials should be restricted from communicating and meeting with social media companies to moderate content. The case is now on hold pending Supreme Court review.“We’re having some interaction with social media companies,” Wray said. “But all of those interactions have changed fundamentally in the wake of the court rulings.”