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All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.

The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.

To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”

Germany announced Thursday it is canceling its contract with Verizon Communications over concerns about the role of U.S. telecom corporations in National Security Agency spying. “The links revealed between foreign intelligence agencies and firms after the N.S.A. affair show that the German government needs a high level of security for its essential networks,” declared Germany’s Interior Ministry in a statement released Thursday. The Ministry said it is engaging in a communications overhaul to strengthen privacy protections as part of the process of severing ties with Verizon. The announcement follows revelations, made possible by NSA whistleblower Edward Snowden, that Germany is a prime target of NSA spying. This includes surveillance of German Chancellor Angela Merkel’s mobile phone communications, as well as a vast network of centers that secretly collect information across the country. Yet, many have accused Germany of being complicit in NSA spying, in addition to being targeted by it. The German government has refused to grant Snowden political asylum, despite his contribution to the public record about U.S. spying on Germany.

Google will begin using website encryption, or HTTPS, as a ranking signal – a move which should prompt website developers who have dragged their heels on increased security measures, or who debated whether their website was “important” enough to require encryption, to make a change. Initially, HTTPS will only be a lightweight signal, affecting fewer than 1% of global queries, says Google. That means that the new signal won’t carry as much weight as other factors, including the quality of the content, the search giant noted, as Google means to give webmasters time to make the switch to HTTPS. Over time, however, encryption’s effect on search ranking make strengthen, as the company places more importance on website security. Google also promises to publish a series of best practices around TLS (HTTPS, is also known as HTTP over TLS, or Transport Layer Security) so website developers can better understand what they need to do in order to implement the technology and what mistakes they should avoid. These tips will include things like what certificate type is needed, how to use relative URLs for resources on the same secure domain, best practices around allowing for site indexing, and more.

In addition, website developers can test their current HTTPS-enabled website using the Qualys Lab tool, says Google, and can direct further questions to Google’s Webmaster Help Forums where the company is already in active discussions with the broader community. The announcement has drawn a lot of feedback from website developers and those in the SEO industry – for instance, Google’s own blog post on the matter, shared in the early morning hours on Thursday, is already nearing 1,000 comments. For the most part, the community seems to support the change, or at least acknowledge that they felt that something like this was in the works and are not surprised. Google itself has been making moves to better securing its own traffic in recent months, which have included encrypting traffic between its own servers. Gmail now always uses an encrypted HTTPS connection which keeps mail from being snooped on as it moves from a consumer’s machine to Google’s data centers.

While HTTPS and site encryption have been a best practice in the security community for years, the revelation that the NSA has been tapping the cables, so to speak, to mine user information directly has prompted many technology companies to consider increasing their own security measures, too. Yahoo, for example, also announced in November its plans to encrypt its data center traffic. Now Google is helping to push the rest of the web to do the same.

Makes email “scary” in order to disrupt NSA surveillance Install Visit the Install ScareMail page to setup ScareMail on your preferred browser. Introduction ScareMail is a web browser extension that makes email “scary” in order to disrupt NSA surveillance. Extending Google’s Gmail, the work adds to every new email’s signature an algorithmically generated narrative containing a collection of probable NSA search terms. This “story” acts as a trap for NSA programs like PRISM and XKeyscore, forcing them to look at nonsense. Each email’s story is unique in an attempt to avoid automated filtering by NSA search systems. Demonstration Video

Want to grab some ScareMail text without using the browser extension? Use the ScareMail Generator to get all the scary text you want.

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.

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.

U.S. technology companies are in danger of losing more business to foreign competitors if the National Security Agency’s power to spy on customers isn’t curbed, researchers with the New America Foundation said in a report today. The report, by the foundation’s Open Technology Institute, called for prohibiting the NSA from collecting data in bulk, while letting companies report more details about what information they give the government. Senate legislation introduced today would fulfill some recommendations by the institute, a Washington-based advocacy group that has been critical of NSA programs.

The Day We Fought Back: by the numbers Thanks to everyone who participated on Tuesday. Together we demonstrated that activists, organizations, and companies can work in unison to fight mass surveillance, and laid a foundation for escalation over months to come. Below are some numbers that quantify how we did* on Tuesday.

A new study says that the U.S. tech industry is likely to lose more than $35 billion from foreign customers by 2016 because of concerns over government surveillance.“In short, foreign customers are shunning U.S. companies,” the authors of a new study from the Information Technology and Innovation Foundation write.ADVERTISEMENT“The U.S. government’s failure to reform many of the NSA’s surveillance programs has damaged the competitiveness of the U.S. tech sector and cost it a portion of the global market share,” they said.The think tank’s report found that the cost to the tech sector associated with ongoing concerns over surveillance programs run out of the U.S. was likely to “far exceed” $35 billion by 2016, an earlier estimate set by the group.

The group said that lawmakers must enact additional reforms to surveillance policy if they wish to help the tech sector regain the trust of foreign customers. That includes opposing “backdoors,” which allow law enforcement to access otherwise encrypted data, and signing off on trade agreements, including the controversial Trans-Pacific Partnership, that “ban digital protectionism.”The study’s authors found that the revelations about broad U.S. surveillance programs acted as a justification for foreign policymakers to enact protectionist policies aimed at aiding their own domestic technology sectors.Foreign companies have also used the information about U.S. surveillance programs to their advantage.“Some European companies have begun to highlight where their digital services are hosted as an alternative to U.S. companies,” the authors write.

American companies, they found, have lost contracts to foreign competitors over fears about mass surveillance.Earlier this month, President Obama signed the USA Freedom Act, a bill that reformed the three Patriot Act provisions that authorized the bulk, warrantless collection of Americans’ phone records. The bill was widely supported by technology companies, including giants like Apple and Google.

Yahoo Chief Information Security Officer Alex Stamos announced today at Black Hat 2014 that starting in the fall of this year, the purple-hued company will begin giving users the option of seamlessly wrapping their e-mails in PGP encryption. According to Kashmir Hill at Forbes, the encryption capability will be offered through a modified version of the same End-to-End browser plug-in that Google uses for PGP in Gmail. The announcement was tweeted by Yan Zhu, who has reportedly been hired by Yahoo to adapt End-to-End for use with Yahoo Mail. Zhu formerly worked as an engineer at the Electronic Frontier Foundation, an organization that has consistently been outspoken in its call for the widespread use of encryption throughout the Web and the Internet in general.

"When NSA whistleblower Edward Snowden came forth last year with U.S. government spying secrets, it didn't take long to realize that some of the information revealed could bring on serious repercussions — not just for the U.S. government, but also for U.S.-based companies. The latest to feel the hit? None other than Apple, and in a region the company has been working hard to increase market share: China. China, via state media, has today declared that Apple's iPhone is a threat to national security — all because of its thorough tracking capabilities. It has the ability to keep track of user locations, and to the country, this could potentially reveal "state secrets" somehow. It's being noted that the iPhone will continue to track the user to some extent even if the overall feature is disabled. China's iPhone ousting comes hot on the heels of Russia's industry and trade deeming AMD and Intel processors to be untrustworthy. The nation will instead be building its own ARM-based "Baikal" processor.

(Reuters) - Public concerns about the U.S. government's secretive surveillance programs exposed by Edward Snowden have spawned a slew of encryption products and privacy services that aim to make electronic spying more difficult.

(Reuters) - German Chancellor Angela Merkel said on Saturday she would talk to French President Francois Hollande about building up a European communication network to avoid emails and other data passing through the United States.

Anti-virus software pioneer John McAfee, who buried himself in the sand to hide from police in Belize, faked a heart attack in a Guatemalan detention center and admits playing the "crazy card," says he's now ready for his next adventure: a return to Silicon Valley. At age 67, McAfee is promising to launch a new cybersecurity company that will make the Internet safer for everyone. "My new technology is going to provide a new type of Internet, a decentralized, floating and moving Internet that is impossible to hack, impossible to penetrate and vastly superior in terms of its facility and neutrality. It solves all of our security concerns," McAfee said in an interview with the San Jose Mercury News.

All of the major internet organisations have pledged, at a summit in Uruguay, to free themselves of the influence of the US government. The directors of ICANN, the Internet Engineering Task Force, the Internet Architecture Board, the World Wide Web Consortium, the Internet Society and all five of the regional Internet address registries have vowed to break their associations with the US government. In a statement, the group called for “accelerating the globalization of ICANN and IANA functions, towards an environment in which all stakeholders, including all governments, participate on an equal footing”. That’s a distinct change from the current situation, where the US department of commerce has oversight of ICANN. In another part of the statement, the group “expressed strong concern over the undermining of the trust and confidence of Internet users globally due to recent revelations of pervasive monitoring and surveillance”. Meanwhile, it was announced that the next Internet Governance Summit would be held in Brazil, whose president has been extremely critical of the US over web surveillance. In a statement announcing the location of the summit, Brazilian president Dilma Rousseff said: “The United States and its allies must urgently end their spying activities once and for all.”

Internet service providers from around the world are lodging formal complaints against the UK government's monitoring service, GCHQ, alleging that it uses "malicious software" to break into their networks.The claims from seven organisations based in six countries – the UK, Netherlands, US, South Korea, Germany and Zimbabwe – will add to international pressure on the British government following Edward Snowden's revelations about mass surveillance of the internet by UK and US intelligence agencies.The claims are being filed with the investigatory powers tribunal (IPT), the court in London that assesses complaints about the agencies' activities and misuse of surveillance by government organisations. Most of its hearings are held at least partially in secret.

The IPT is already considering a number of related submissions. Later this month it will investigate complaints by human rights groups about the way social media sites have been targeted by GCHQ.The government has defended the security services, pointing out that online searches are often routed overseas and those deemed "external communications" can be monitored without the need for an individual warrant. Critics say that such a legal interpretation sidesteps the need for traditional intercept safeguards.The latest claim is against both GCHQ, located near Cheltenham, and the Foreign Office. It is based on articles published earlier this year in the German magazine Der Spiegel. That report alleged that GCHQ had carried out an attack, codenamed Operation Socialist, on the Belgian telecoms group, Belgacom, targeting individual employees with "malware (malicious software)".One of the techniques was a "man in the middle" attack, which, according to the documents filed at the IPT, bypasses modern encryption software and "operates by interposing the attacker [GCHQ] between two computers that believe that they are securely communicating with each other. In fact, each is communicating with GCHQ, who collect the communications, as well as relaying them in the hope that the interference will be undetected."The complaint alleges that the attacks were a breach of the Computer Misuse Act 1990 and an interference with the privacy rights of the employees under the European convention of human rights.

The organisations targeted, the submission states, were all "responsible and professional internet service providers". The claimants are: GreenNet Ltd, based in the UK, Riseup Networks in Seattle, Mango Email Service in Zimbabwe, Jinbonet in South Korea, Greenhost in the Netherlands, May First/People Link in New York and the Chaos Computer Club in Hamburg.