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This language is broad, circular, and technically incoherent, so it takes some effort to parse appropriately. When the minimization procedures were disclosed in 2013, this language was interpreted by outside commentators to mean that NSA may keep all encrypted data that has been incidentally collected under Section 702 for at least as long as is necessary to decrypt that data. Is this the correct interpretation? I think so. It is important to realize that the language above isn’t just broad. It seems purposefully broad. The part regarding relevance seems to mirror the rationale NSA has used to justify its bulk phone records collection program. Under that program, all phone records were relevant because some of those records could be valuable to terrorism investigations and (allegedly) it isn’t possible to collect only those valuable records. This is the “to find a needle a haystack, you first have to have the haystack” argument. The same argument could be applied to encrypted data and might be at play here.

This exception doesn’t just apply to encrypted data that might be relevant to a current foreign intelligence investigation. It also applies to cases in which the encrypted data is likely to become relevant to a future intelligence requirement. This is some remarkably generous language. It seems one could justify keeping any type of encrypted data under this exception. Upon close reading, it is difficult to avoid the conclusion that these procedures were written carefully to allow NSA to collect and keep a broad category of encrypted data under the rationale that this data might contain the communications of NSA targets and that it might be decrypted in the future. If NSA isn’t doing this today, then whoever wrote these minimization procedures wanted to at least ensure that NSA has the authority to do this tomorrow.

There are a few additional observations that are worth making regarding these nominally new retention guidelines and Section 702 collection. First, the concept of incidental collection as it has typically been used makes very little sense when applied to encrypted data. The way that NSA’s Section 702 upstream “about” collection is understood to work is that technology installed on the network does some sort of pattern match on Internet traffic; say that an NSA target uses example@gmail.com to communicate. NSA would then search content of emails for references to example@gmail.com. This could notionally result in a lot of incidental collection of U.S. persons’ communications whenever the email that references example@gmail.com is somehow mixed together with emails that have nothing to do with the target. This type of incidental collection isn’t possible when the data is encrypted because it won’t be possible to search and find example@gmail.com in the body of an email. Instead, example@gmail.com will have been turned into some alternative, indecipherable string of bits on the network. Incidental collection shouldn’t occur because the pattern match can’t occur in the first place. This demonstrates that, when communications are encrypted, it will be much harder for NSA to search Internet traffic for a unique ID associated with a specific target.

This lends further credence to the conclusion above: rather than doing targeted collection against specific individuals, NSA is collecting, or plans to collect, a broad class of data that is encrypted. For example, NSA might collect all PGP encrypted emails or all Tor traffic. In those cases, NSA could search Internet traffic for patterns associated with specific types of communications, rather than specific individuals’ communications. This would technically meet the definition of incidental collection because such activity would result in the collection of communications of U.S. persons who aren’t the actual targets of surveillance. Collection of all Tor traffic would entail a lot of this “incidental” collection because the communications of NSA targets would be mixed with the communications of a large number of non-target U.S. persons. However, this “incidental” collection is inconsistent with how the term is typically used, which is to refer to over-collection resulting from targeted surveillance programs. If NSA were collecting all Tor traffic, that activity wouldn’t actually be targeted, and so any resulting over-collection wouldn’t actually be incidental. Moreover, greater use of encryption by the general public would result in an ever-growing amount of this type of incidental collection.

This type of collection would also be inconsistent with representations of Section 702 upstream collection that have been made to the public and to Congress. Intelligence officials have repeatedly suggested that search terms used as part of this program have a high degree of specificity. They have also argued that the program is an example of targeted rather than bulk collection. ODNI General Counsel Robert Litt, in a March 2014 meeting before the Privacy and Civil Liberties Oversight Board, stated that “there is either a misconception or a mischaracterization commonly repeated that Section 702 is a form of bulk collection. It is not bulk collection. It is targeted collection based on selectors such as telephone numbers or email addresses where there’s reason to believe that the selector is relevant to a foreign intelligence purpose.” The collection of Internet traffic based on patterns associated with types of communications would be bulk collection; more akin to NSA’s collection of phone records en mass than it is to targeted collection focused on specific individuals. Moreover, this type of collection would certainly fall within the definition of bulk collection provided just last week by the National Academy of Sciences: “collection in which a significant portion of the retained data pertains to identifiers that are not targets at the time of collection.”

The Section 702 minimization procedures, which will serve as a template for any new retention guidelines established for E.O. 12333 collection, create a large loophole for encrypted communications. With everything from email to Internet browsing to real-time communications moving to encrypted formats, an ever-growing amount of Internet traffic will fall within this loophole.

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."

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.

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.