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The Netly News


Date: Tue Jan 14, 1997 8:16 pm CST

From: David J. Loundy

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Subject: LACC: Foreign spies snoop the Net, from The Netly News

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>Subject: LACC: Foreign spies snoop the Net, from The Netly News

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>

>---------- Forwarded message ----------

>Date: Mon, 6 Jan 1997 20:14:17 -0800 (PST)

>From: Declan McCullagh <declan@well.com>

>To: fight-censorship@vorlon.mit.edu

>Subject: Foreign spies snoop the Net, from The Netly News

>

>

> The Netly News

> http://netlynews.com/

>

> SPY VS. SPY

> January 6, 1997

> By Declan McCullagh (declan@well.com)

>

> Move over, James Bond. Take your last bow, Maxwell Smart. Modern

> spies are jacked into the Net, a recent report from the multiagency

> National Counterintelligence Center says. It claims the Internet is

> now the "fastest growing" means for foreign governments and firms to

> gather information about U.S. businesses.

>

> The eight-page quarterly report says that malevolent "foreign

> entities" are sorting through web sites, pounding on search engines

> and firing off e-mail queries to U.S. defense contractors in hopes of

> winnowing out sensitive data.

>

> "Use of the Internet offers a variety of advantages to a foreign

> collector. It is simple, low cost, non-threatening and relatively

> 'risk free' for the foreign entity attempting to collect classified,

> proprietary, or sensitive information... We also know foreign

> intelligence and security services monitor the Internet," says the

> report, which is distributed to government agencies and contractors.

>

> Search engines apparently serve spies well. Want a copy of

> something you shouldn't be able to get? Perhaps it was left in an

> unprotected directory; try Altavista. "Foreign intelligence services

> are known to use computers to conduct rudimentary on-line searches for

> information, including visits to governments and defense contractors'

> on-line bulletin boards or web sites on the Internet. Access to

> Internet advanced search software programs could possibly assist them

> in meeting their collection requirements," the NACIC briefing paper

> says.

>

> Beware of spam from spies, it warns: "These foreign entities can

> remain safe within their borders while sending hundreds of pleas and

> requests for assistance to targeted US companies and their employees."

> Of course! This is any e-mail spammer's modus operandi: Flood an

> astronomical number of addresses at an infinitesimal cost. Then hope

> that at least some recipients will respond with the information you

> want.

>

> This isn't the first time that the Clinton administration has

> painted economic espionage as a dire threat. Last February, FBI

> director Louis Freeh warned the Senate Select Committee on

> Intelligence of the possible harm. He said foreign governments are

> especially interested in "economic information, especially

> pre-publication data" including "U.S. tax and monetary policies;

> foreign aid programs and export credits; technology transfer and

> munitions control regulations... and proposed legislation affecting

> the profitability of foreign firms acting in the United States."

>

> Note to Freeh: That information already is online. For proposed

> legislation, try Thomas -- or for munition regulations, the White

> House web site is a good bet.

>

> But forget Freeh's rhetoric. The White House isn't serious about

> halting the overseas flow of American secrets over the Net. If it

> were, President Clinton would lift the crypto export embargo. Strong

> encryption is the most effective way for companies to fend off

> foreign data-pirates, but current regulations allow U.S.

> multinational firms to use only the cipher-equivalent of a toy cap

> gun. Worse yet, last week the Commerce Department moved further in

> the wrong direction by releasing its new encryption export

> regulations that continue to keep American businesses at a

> competitive disadvantage compared to their foreign competitors, which

> generally are less hampered by crypto export rules. "The new

> regulations are worse" than the old, says Dave Banisar, a policy

> analyst at the Electronic Privacy Information Center.

>

> Sure, France and Britain spy on us for economic purposes. But

> we're just as guilty. We snooped on the French -- and got several

> U.S. "diplomats" kicked out of France two years ago. We peeked at

> Japanese secrets during automobile trade negotiations -- and got

> caught then, too. Especially under President Clinton, economic

> intelligence has become part of the mission of our spy agencies. Yet

> if we complain about other countries while doing it ourselves, we

> become hypocrites.

>

> Stanley Kober, a research fellow at the Cato Institute, argues in

> a recent paper that it's "folly" for the U.S. to continue such spying

> and risk alienating political allies: "The world is still a dangerous

> place, and it would be folly for the democracies to engage in nasty

> intramural squabbles. Yet that is the danger that economic espionage

> against other free societies poses."

>

> "Washington ought to consider that it may need the cooperation of

> Paris (or other Western capitals) to help deal with a mutual security

> threat" from terrorism, Kober writes.

>

> I asked Kober what he thought of the NACIC report. "It strikes me

> as a normal security reminder," he says. "The specifics are fairly

> slim. It's not the sort of thing that's sent to everyone. It's sent

> to their clients, the people who have government contracts. Since the

> Internet is new, they're telling people to be careful."

>

> Indeed, netizens must be careful. It's common sense, really, and

> defensive driving for the Net. Encrypt that e-mail. Use the

> anonymizer at least once a day. Let paranoia be your watchword. That

> e-mail from your mother may come from the KGB. When you're not

> watching it, your monitor may be watching you.

>

> Be afraid, Maxwell Smart. Your shoe phone may be listening back.

>

>###

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