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But in a provision likely to raise concerns from privacy advocates, the administration wants to require DHS to share that information “in as near real time as possible” with other government agencies that have a cybersecurity mission, the official said. Those include the National Security Agency, the Pentagon’s ­Cyber Command, the FBI and the Secret Service. “DHS needs to take an active lead role in ensuring that unnecessary personal information is not shared with intelligence authorities,” Jaycox said. The debates over government surveillance prompted by disclosures from former NSA contractor Edward Snowden have shown that “the agencies already have a tremendous amount of unnecessary information,” he said.

It would reaffirm that federal racketeering law applies to cybercrimes and amends the Computer Fraud and Abuse Act by ensuring that “insignificant conduct” does not fall within the scope of the statute. A third element of the package is legislation Obama proposed Monday to help protect consumers and students against cyberattacks. The theft of personal financial information “is a direct threat to the economic security of American families, and we’ve got to stop it,” Obama said. The plan, unveiled in a speech at the Federal Trade Commission, would require companies to notify customers within 30 days after the theft of personal information is discovered. Right now, data breaches are handled under a patchwork of state laws that the president said are confusing and costly to enforce. Obama’s plan would streamline those into one clear federal standard and bolster requirements for companies to notify customers. Obama is proposing closing loopholes to make it easier to track down cybercriminals overseas who steal and sell identities. “The more we do to protect consumer information and privacy, the harder it is for hackers to damage our businesses and hurt our economy,” he said.

Efforts to pass information-sharing legislation have stalled in the past five years, blocked primarily by privacy concerns. The package also contains provisions that would allow prosecution for the sale of botnets or access to armies of compromised computers that can be used to spread malware, would criminalize the overseas sale of stolen U.S. credit card and bank account numbers, would expand federal law enforcement authority to deter the sale of spyware used to stalk people or commit identity theft, and would give courts the authority to shut down botnets being used for criminal activity, such as denial-of-service attacks.

The administration official stressed that the legislation will require companies to remove unnecessary personal information before furnishing it to the government in order to qualify for liability protection. It also will impose limits on the use of the data for cybersecurity crimes and instances in which there is a threat of death or bodily harm, such as kidnapping, the official said. And it will require DHS and the attorney general to develop guidelines for the federal government’s use and retention of the data. It will not authorize a company to take offensive cyber-measures to defend itself, such as “hacking back” into a server or computer outside its own network to track a breach. The bill also will provide liability protection to companies that share data with private-sector-developed organizations set up specifically for that purpose. Called information sharing and analysis organizations, these groups often are set up by particular industries, such as banking, to facilitate the exchange of data and best practices.

In October, Obama signed an order to protect consumers from identity theft by strengthening security features in credit cards and the terminals that process them. Marc Rotenberg, executive director of the Electronic Privacy Information Center, said there is concern that a federal standard would “preempt stronger state laws” about how and when companies have to notify consumers. The Student Digital Privacy Act would ensure that data entered would be used only for educational purposes. It would prohibit companies from selling student data to third-party companies for purposes other than education. Obama also plans to introduce a Consumer Privacy Bill of Rights. And the White House will host a summit on cybersecurity and consumer protection on Feb. 13 at Stanford University.

While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”

For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.

AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”

Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”

That the New Zealand government engages in precisely the mass surveillance activities Key vehemently denied is now barely in dispute. Indeed, a former director of GCSB under Key, Sir Bruce Ferguson, while denying any abuse of New Zealander’s communications, now admits that the agency engages in mass surveillance.

Meanwhile, Russel Norman, the head of the country’s Green Party, said in response to these stories that New Zealand is “committing crimes” against its neighbors in the Pacific by subjecting them to mass surveillance, and insists that the Key government broke the law because that dragnet necessarily includes the communications of New Zealand citizens when they travel in the region.

So now that it’s proven that New Zealand does exactly that which Prime Minister Key vowed would cause him to resign if it were proven, is he preparing his resignation speech? No: that’s something a political official with a minimal amount of integrity would do. Instead — even as he now refuses to say what he has repeatedly said before: that GCSB does not engage in mass surveillance — he’s simply retracting his pledge as though it were a minor irritant, something to be casually tossed aside:

When asked late last week whether New Zealanders have a right to know what their government is doing in the realm of digital surveillance, the Prime Minister said: “as a general rule, no.” And he expressly refuses to say whether New Zealand is doing that which he swore repeatedly it was not doing, as this excellent interview from Radio New Zealand sets forth: Interviewer: “Nicky Hager’s revelations late last week . . . have stoked fears that New Zealanders’ communications are being indiscriminately caught in that net. . . . The Prime Minister, John Key, has in the past promised to resign if it were found to be mass surveillance of New Zealanders . . . Earlier, Mr. Key was unable to give me an assurance that mass collection of communications from New Zealanders in the Pacific was not taking place.” PM Key: “No, I can’t. I read the transcript [of former GCSB Director Bruce Ferguson’s interview] – I didn’t hear the interview – but I read the transcript, and you know, look, there’s a variety of interpretations – I’m not going to critique–”

Interviewer: “OK, I’m not asking for a critique. Let’s listen to what Bruce Ferguson did tell us on Friday:” Ferguson: “The whole method of surveillance these days, is sort of a mass collection situation – individualized: that is mission impossible.” Interviewer: “And he repeated that several times, using the analogy of a net which scoops up all the information. . . . I’m not asking for a critique with respect to him. Can you confirm whether he is right or wrong?” Key: “Uh, well I’m not going to go and critique the guy. And I’m not going to give a view of whether he’s right or wrong” . . . . Interviewer: “So is there mass collection of personal data of New Zealand citizens in the Pacific or not?” Key: “I’m just not going to comment on where we have particular targets, except to say that where we go and collect particular information, there is always a good reason for that.”

From “I will resign if it’s shown we engage in mass surveillance of New Zealanders” to “I won’t say if we’re doing it” and “I won’t quit either way despite my prior pledges.” Listen to the whole interview: both to see the type of adversarial questioning to which U.S. political leaders are so rarely subjected, but also to see just how obfuscating Key’s answers are. The history of reporting from the Snowden archive has been one of serial dishonesty from numerous governments: such as the way European officials at first pretended to be outraged victims of NSA only for it to be revealed that, in many ways, they are active collaborators in the very system they were denouncing. But, outside of the U.S. and U.K. itself, the Key government has easily been the most dishonest over the last 20 months: one of the most shocking stories I’ve seen during this time was how the Prime Minister simultaneously plotted in secret to exploit the 2013 proposed law to implement mass surveillance at exactly the same time that he persuaded the public to support it by explicitly insisting that it would not allow mass surveillance. But overtly reneging on a public pledge to resign is a new level of political scandal. Key was just re-elected for his third term, and like any political official who stays in power too long, he has the despot’s mentality that he’s beyond all ethical norms and constraints. But by the admission of his own former GCSB chief, he has now been caught red-handed doing exactly that which he swore to the public would cause him to resign if it were proven. If nothing else, the New Zealand media ought to treat that public deception from its highest political official with the level of seriousness it deserves.

ANY OF THE DEVICES in the catalogue, including the Stingrays and dirt boxes, are cell-site simulators, which operate by mimicking the towers of major telecom companies like Verizon, AT&T, and T-Mobile. When someone’s phone connects to the spoofed network, it transmits a unique identification code and, through the characteristics of its radio signals when they reach the receiver, information about the phone’s location. There are also indications that cell-site simulators may be able to monitor calls and text messages. In the catalogue, each device is listed with guidelines about how its use must be approved; the answer is usually via the “Ground Force Commander” or under one of two titles in the U.S. code governing military and intelligence operations, including covert action.

But domestically the devices have been used in a way that violates the constitutional rights of citizens, including the Fourth Amendment prohibition on illegal search and seizure, critics like Lynch say. They have regularly been used without warrants, or with warrants that critics call overly broad. Judges and civil liberties groups alike have complained that the devices are used without full disclosure of how they work, even within court proceedings.

The law is unlike any in the nation, as it requires an ISP to obtain consent from a consumer before sharing any data. Only California has a similar law on the books, but it requires consumers to “opt out”  by asking their ISP to protect their data. Maine’s new law does not allow an ISP to offer a discounted rate to customers who agree to share or sell their data.