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ID Theft & Information Security News

Edited by Rob Douglas

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Friday, December 28, 2007

AT&T Is Far From Alone On Data Breaches - In less than a week's time, San Antonio-based phone giant AT&T Inc. has sued data brokers for fraudulently accessing customers' private phone records and announced that hackers broke into one of its e-commerce sites to steal customer credit card data. Between the brokers and the hacking incident, the company said outsiders have accessed the private data of as many as 21,500 customers. Computer-security experts said data breaches — whether by hackers, internal thieves or employee carelessness — are on the rise, and AT&T isn't alone in grappling with them…Even though AT&T isn't alone, at least one expert said the breaches should be a wake-up call to the company. "AT&T's security measures have been defeated in the two major ways that they can be defeated," said Rob Douglas, a Colorado-based information security consultant. "First, they've been hacked, meaning there's a technological way to defeat their security system. And with the data brokers, they've also been defeated by people just calling up and pretending to be a customer."

AT&T Sues, Alleging Fraudulent Access to Customer Accounts - AT&T, headquartered in San Antonio, where the suit was filed, hopes to learn the defendants' identities through their Internet protocol addresses. AT&T has "most if not all" of the defendants' IP addresses and will ask the court to subpoena the Internet providers to disclose the identities linked to those addresses, spokesman Walt Sharp said…Sharp said that of AT&T's total 48 million land lines, 2,500 defrauded accounts is a relatively small amount. "It's very, very, very tiny," he said. "But we consider any too many." Information security consultant Rob Douglas said 2,500 accounts is "the low end of what's stolen every day." Thieves are after more than phone records, he said. "They steal your cable TV records, your satellite TV records, your gas and electric records and all the rest," said Douglas, who edits Privacytoday.com, an information security Web site. "Every interaction we have is being recorded somewhere, and every minute thieves are working trying to figure out how to gain access to that information and use it for profit. That's what this demonstrates."

AT&T Takes Data Brokers To Court - In a lawsuit filed Wednesday in federal court in San Antonio, the company says the defendants used false identities to set up online billing accounts and illegally obtain up to 2,500 customers' calling records…Phone companies such as AT&T are taking legal action because the federal government hasn't acted decisively to stop the practice, said Robert Douglas, a Colorado-based information security consultant who has testified before Congress on the issue. Current federal laws don't specifically prohibit the sale of private phone records.

AT&T sues brokers over customer data - While there are thousands of places to buy records, most can be tracked back to a fairly small number of data brokers who actually extract customer information, said Rob Douglas, CEO of PrivacyToday.com and an information security consultant who has testified before Congress on the issue. “The people who are actually doing this is a relatively finite number ... at most a couple dozen across the country,” Douglas said from Steamboat Springs, Colo. Douglas said those seeking information like phone records could include soon-to-be ex-spouses in the midst of a divorce proceeding, competing businesses and corporations, stalkers and law enforcement. Douglas said “pretexting” — where a data broker poses as the customer to get information — is most commonly done by phone in calls to customer service centers or the victims themselves.

AT&T unleashes lawyers -- phone-record 'roaches' scurry - AT&T filed a lawsuit in San Antonio today designed to unmask the identities of 25 so-called data brokers who the carrier says have ripped off phone-calling records from 2,500 of its customers -- a legal countermeasure one expert says may already be paying small dividends…Security expert Rob Douglas, who has testified before Congress about phone-records theft, says legal volleys such as the one launched by AT&T today -- as well as those of other carriers -- hold significant promise for driving data brokers out of business, perhaps more so than the spate of state and federal legislation filed in recent months…"The civil remedies that the carriers can avail themselves of can bring a pain that many of the brokers will find intolerable.  Ideally what I'd like to see are the carriers banding together in a concerted effort to go after the brokers." However, any such benefit will require persistent pressure, adds Douglas. "That is why this needs to be an ongoing effort because if this is a one-shot deal on the part of the carriers that have brought suit to date, the roaches will scurry back in when they think the lights have dimmed."

Rob Douglas of PrivacyToday.com Talks About Privacy Issues With Ron Reagan on KIRO Radio – Rob & Ron Reagan discussed NSA phone surveillance; monitoring of international banking transaction; the theft and sale of Americans’ phone and banking records by private investigators and illicit information brokers; and, how to protect yourself from identity theft.

Rob Douglas of PrivacyToday.com Delivers Keynote Address at AAFCS 97th Annual Conference & Expo - Identity Theft: It Can Cost You Your Life!
Ten million Americans will fall prey this year to identity thieves. Social security numbers, bank transactions, phone call records, and yes—even your medical history—are for sale on the Internet. This multi-media presentation will demonstrate why identity theft is not just a severe threat to your financial security, but can be a threat to your life. With vivid and sometimes frightening examples, you'll learn why identity theft is the nation's fastest growing crime and what steps educators, corporate executives, and consumers can take to combat this growing epidemic. Most importantly, through real life examples combined with insights from Robert Douglas, a leading authority on identity crimes, you'll learn what skills you and your family need to protect yourselves.

Information Brokers Grilled At Congressional Hearing - State Rep. Jim Welker invoked his Fifth Amendment right against self-incrimination at a congressional hearing today probing the use of deception to obtain and sell phone records and other private information. Another Colorado information broker, John Strange of Frederick, also invoked the Fifth, while James Rapp of Parker and David Gandal of Loveland described the ease at getting private information by impersonating customers and others. Rapp says he’s now out of the business…Welker, a Loveland Republican who owns Universal Communications Co., has been under investigation by the House committee for selling private information including phone records. In a previous interview, he acknowledged his firm sold cell-phone records but denied the company did anything illegal and maintained the records weren’t sold to the general public…Colorado security consultant Rob Douglas said he was "amazed that Representative Welker — after all his comments from the capitol of his home state about how he’d done nothing wrong — went to the nation’s capitol and meekly took the Fifth Amendment." Douglas also said he felt the committee overall did a "poor job" in demonstrating the harm that can be done to Americans when private information is sold — "from identity theft to stalking to murder. Overall, they barely scratched the surface of the underground market for stolen records of Americans’ most personal information."

First Data Tied To Post-9/11 Terror Sweep - In the days after the Sept. 11 terrorist attacks, First Data Corp. and its Western Union unit volunteered itself for the U.S. government's war on terror. FBI agents happily turned the Greenwood Village-based company into a "deadly weapon" to fight terrorism, according to a new book by Pulitzer Prize winner Ron Suskind. At the same time, however, the Bush administration used First Data to create a "vast search-and-seizure machine" that sifted through millions of Americans' credit-card purchases and wire transfers, unbeknownst to congressional overseers or the secret court designed to rule on matters of domestic surveillance, Suskind reported…On the two-year anniversary of the creation of the Treasury Department's Office of Terrorism and Financial Intelligence in April, then-Treasury Secretary John Snow said his department had "been at the forefront of a concerted effort with our allies around the world - public and private sector alike - to collect, share and analyze all available information to track and disrupt the activities of terrorists…Financial intelligence is among our most valuable sources of data for waging this fight."… Rob Douglas, a Steamboat Springs-based privacy consultant, was working with the American Bankers' Association in 2001. "It was common knowledge in those circles that in the aftermath of Sept. 11, and for a substantial period of time after, that many institutions were giving carte blanche access to federal investigators," he said. "A lot of people were willing to look the other way and allow those domestic activities to take place."

Welker Called To Testify On Phone Files - State Rep. Jim Welker has been subpoenaed to testify at a congressional hearing today about the sale of private phone records but is expected to invoke his Fifth Amendment right against self-incrimination. At least three other current and former Colorado information data brokers - James Rapp, David Gandal and John Strange - are expected to testify at the two-day House Energy and Commerce subcommittee hearing…Colorado security consultant Rob Douglas said the hearing also is a "welcome development" to explore more deeply the relationship between data brokers and law enforcement agencies. Douglas was working as a consultant to the congressional committee but quit after evidence surfaced that federal law enforcement agencies also were buying the phone records - instead of getting proper court orders. "It should be an eye opener for the American public," Douglas said of the hearing. "I'll be quite curious to see how these federal agencies justify this."

Is the NSA spying on U.S. Internet traffic? - In a pivotal network operations center in metropolitan St. Louis, AT&T has maintained a secret, highly secured room since 2002 where government work is being conducted, according to two former AT&T workers once employed at the center. In interviews with Salon, the former AT&T workers said that only government officials or AT&T employees with top-secret security clearance are admitted to the room, located inside AT&T's facility in Bridgeton. The room's tight security includes a biometric "mantrap" or highly sophisticated double door, secured with retinal and fingerprint scanners. The former workers say company supervisors told them that employees working inside the room were "monitoring network traffic" and that the room was being used by "a government agency." The details provided by the two former workers about the Bridgeton room bear the distinctive earmarks of an operation run by the National Security Agency, according to two intelligence experts with extensive knowledge of the NSA and its operations. In addition to the room's high-tech security, those intelligence experts told Salon, the exhaustive vetting process AT&T workers were put through before being granted top-secret security clearance points to the NSA, an agency known as much for its intense secrecy as its technological sophistication.

AP Exclusive: Data Brokers Get by Subpoenas - Federal and local police across the country - as well as some of the nation's best-known companies - have been gathering Americans' phone records from private data brokers without subpoenas or warrants. These brokers, many of whom market aggressively on the Internet, have broken into customer accounts online, tricked phone companies into revealing information and sometimes acknowledged that their practices violate laws, according to documents obtained by The Associated Press…Those using data brokers include agencies of the Homeland Security and Justice departments - including the FBI and U.S. Marshals Service - and municipal police departments in California, Florida, Georgia and Utah. Experts believe hundreds of other departments frequently use such services.

'I Just Bought Your Hard Drive' – Bob Sullivan’s Red Tape Chronicle.

VA official steps down after theft - A Veteran Affairs deputy assistant secretary who didn't immediately notify top officials about a theft of 26.5 million veterans' personal information is stepping down, citing missteps that led to the security breach.

College Door Ajar for Online Criminals - Computer systems at universities across the nation are becoming favorite targets of hackers, and rising numbers of security breaches have exposed the personal information of thousands of students, alumni, employees and even college applicants. Since January, at least 845,000 people have had sensitive information jeopardized in 29 security failures at colleges nationwide. In these incidents, compiled by identity theft experts who monitor media reports, hackers have gained access to Social Security numbers and, in some cases, medical records.

Senate Panel Split Over Questioning Phone Company Executives - Members of a Senate committee are divided over proposals to question executives of four telephone companies about whether they gave the government records of millions of calls in the United States to aid anti-terrorist surveillance. After objections from both Republicans and Democrats, Judiciary Committee Chairman Arlen Specter (R-Pa.) yesterday postponed a vote on issuing subpoenas for the chief executives of Verizon Communications Inc., AT&T Inc., BellSouth Corp. and Qwest Communications International Inc. He scheduled more debate for June 6 after Congress returns from a one-week recess…Joseph Nacchio, former chief executive of Qwest, has said through his attorney that he refused the government's request for such records after concluding it would violate federal privacy law. AT&T spokesman Walt Sharp said today in an e-mail that the company "is happy to appear before the committee as the members desire." Verizon spokesman Bob Varettoni declined to comment. F. Duane Ackerman, BellSouth's chairman and chief executive, "has nothing to hide" and is willing to say under oath that the company has "never provided any information at all to the NSA," said spokesman Jeff Battcher. "We can't find anybody in this company who has ever been approached by the NSA," Battcher said.

Eavesdropping to Go On, Cheney Tells Midshipmen - Vice President Cheney highlighted America's intelligence efforts yesterday as critical tools in the fight against terrorists at home and abroad and vowed the administration would continue a controversial eavesdropping program that he said has been wrongly dubbed "domestic surveillance."… Cheney said Bush authorized the National Security Agency after the Sept. 11, 2001, attacks to intercept a certain category of terrorist-linked international communications. "If people in the United States are communicating with al-Qaeda, they are talking to the enemy -- and we need to know about it," he said. The administration has been under fire since the New York Times revealed in December the existence of warrantless NSA wiretaps of Americans' international calls. USA Today recently reported that the NSA also collected millions of phone records from U.S. businesses and homes. The highly classified program was "improperly revealed to the news media, some of which now describe it as domestic surveillance," Cheney said. "That is not the case. We are talking about international communications, one end of which we have reason to believe is related to al-Qaeda or to terrorist networks. It's hard to think of any category of information that could be more important to the safety of the United States."

VA Knew Early About Data Theft - Senior officials at the Department of Veterans Affairs knew that sensitive personal information about veterans had been stolen from a VA employee's home within hours of the crime but did not tell Secretary Jim Nicholson until 13 days later, according to a VA briefing document…Among items stolen from the Aspen Hill home was an external computer hard drive that VA officials say contained the unencrypted names, birthdates and Social Security numbers of 19.6 million to 26.5 million veterans. The 12-page timeline provides the first detailed accounting of how VA officials reacted to one of the nation's largest information security breaches, an institutional failure that ignited anxiety and anger among millions of veterans concerned about identity theft. It also reveals new details about the 60-year-old man at the heart of the scandal. He is a senior-level career employee working as an information technology specialist in the Office of Policy. As a GS-14 level employee, he earns between $91,407 and $118,828 a year.

Hayden Confirmed as CIA Chief - Air Force Gen. Michael V. Hayden, a career intelligence officer who has overseen some of the government's most secret and controversial surveillance programs, was confirmed by the Senate yesterday to head the CIA as it tries to regain some of its lost luster…Hayden's nomination drew fire from some Democrats and civil liberties groups because he headed the National Security Agency when it began conducting warrantless wiretaps of Americans' international phone calls in a bid to find possible terrorists. Hayden and Bush, who acknowledged the program only after press reports outlined it, have said the effort is narrowly targeted at terrorism suspects. But thousands of phone calls reportedly have been monitored without producing promising leads, and many lawmakers say Hayden and other officials have yet to explain adequately why they should not have to obtain court warrants for the wiretaps.

Time Ordered to Give Internal Documents to Libby - Time magazine must turn over some internal documents to former vice presidential aide I. Lewis "Scooter" Libby's attorneys because the evidence could help his defense against perjury and obstruction-of-justice charges in the CIA leak case, a federal judge ruled yesterday. U.S. District Judge Reggie B. Walton said Libby is entitled to drafts of an article by Time reporter Matthew Cooper and accompanying intraoffice correspondence because they may help Libby challenge Cooper's testimony when he is called as a witness by Special Counsel Patrick J. Fitzgerald. In granting Libby's request for the Time documents, Walton delivered the latest in a string of court defeats for media efforts to shield news-gathering activities from the legal process. Just as previous courts had ruled that reporters must testify to a grand jury about their confidential sources, Walton rejected claims by Time and other news organizations that the First Amendment or other federal law protects their internal documents from a defendant's pretrial subpoenas. Walton's 40-page opinion noted that, in the CIA leak case, reporters "were not simply reporting on criminal activity; rather their conversations with the defendant form the predicate for several charges in the indictment."

Are the Police Digging into Your Phone Records? - The National Security Agency may not be the only one looking at your phone records. As the agency’s controversial program of collecting Americans’ calling data continues to draw heat, new questions have emerged about whether federal and local law enforcement officials are possibly skirting privacy laws by obtaining phone records from companies that get the information in a questionable manner and then hawk it over the Internet. Since February, Congress has been investigating such so-called data brokers for the ways in which they gather their information. Some of them use people inside the phone company who are willing to divulge the data. But more commonly, these businesses obtain phone records through an illegal practice known as "pretexting," in which someone calls up the phone company and impersonates a subscriber to con the service representative into releasing copies of the records. The possible connection with law enforcement came to light when the data brokers were asked as part of the Congressional inquiry to submit letters revealing their client lists. One data broker listed as clients the FBI and unspecified "foreign governments," while another claimed to have done work for the Department of Homeland Security…In its letter to the House committee, made public earlier this month, Advanced Research, Inc. (ARI), the operator of ADVSearch.com, said the company has "done work for municipalities, banks, mortgage and insurance companies, private companies, foreign governments, law enforcement, even the FBI."… Patrick Baird, vice president of PDJ investigations, says that in its six years the company has supplied information for between 200 and 300 law enforcement cases. He said the FBI and the Department of Homeland Security were among the company's past clients.

Data theft not reported for two weeks - Under intense bipartisan fire from Capitol Hill, Veterans Affairs Secretary Jim Nicholson said Wednesday he was outraged by his agency’s decision to keep the theft of veterans’ personal data quiet for two weeks…Nicholson’s remarks came amid growing outrage from lawmakers over the May 3 theft, which involved the birthdates and Social Security numbers of 26.5 million veterans. The VA employee had taken the information home without authorization…The Senate Homeland Security Committee and the Committee on Veterans Affairs said they would hold a joint emergency hearing Thursday and call Nicholson to testify. “Twenty-six million people deserve answers,” said Sen. Larry Craig, R-Idaho, chair of the VA panel.

Veterans Angered by File Scandal - Veterans brimmed with shock and anger yesterday at the loss of their personal data by the Department of Veterans Affairs, but in many ways the information security breach should not have come as a surprise. The department has consistently ranked near the bottom among federal agencies in an annual congressional scorecard of computer security. For five years, the VA inspector general has identified information security as a material weakness and faulted officials for slow progress in tackling the problem.

Gonzales Defends Phone-Data Collection - Attorney General Alberto R. Gonzales said yesterday that the government can obtain domestic telephone records without court approval under a 1979 Supreme Court ruling that authorized the collection of business records…Gonzales has previously defended the government acquisition of phone company records on the grounds that privacy protections do not apply to them. But his reference to the 1979 Supreme Court case may hint that a technologically updated version of the pen register has been used on a much wider scale in the NSA operation.

FCC won't investigate NSA call program - The U.S. Federal Communications Commission will not pursue complaints about a spy agency's access to millions of telephone records because it cannot obtain classified material, the FCC's chairman said in a letter released on Tuesday…”We can't have a situation where the FCC, charged with enforcing the law, won't even begin an investigation of apparent violations of the law because it predicts the administration will roadblock any investigations citing national security," Markey said in response to Martin.

FCC Refuses to Investigate NSA Program, Predicting Likely Administration Road Blocks – [Press release from Congressman Ed Markey] Last week Representative Edward J. Markey (D-MA), Ranking Democrat on the House Subcommittee on Telecommunications and the Internet, sent a letter to the Chairman of the Federal Communications Committee (FCC) regarding reports of the disclosure by the nation’s largest telecommunications carriers, AT&T, Verizon, and BellSouth, of private consumer information from millions of Americans to the National Security Agency (NSA).  Specifically, Rep. Markey requested that the FCC investigate these apparent violations of the Communications Act or explain why the agency thought the NSA program did not violate the law.  Today the FCC refused to commence an investigation or respond to Rep. Markey’s questions, citing the Bush Administration’s likely claim of “states secrets privilege.”… “Today the watchdog agency that oversees the country’s telecommunications industry refused to investigate the nation’s largest phone companies’ reported disclosure of phone records to the NSA.  The FCC, which oversees the protection of consumer privacy under the Communications Act of 1934, has taken a pass at investigating what is estimated to be the nation’s largest violation of consumer privacy ever to occur.  If the oversight body that monitors our nation’s communications is stepping aside then Congress must step in.” …On May 11, 2006, Representative Edward J. Markey, the ranking Democrat on the House Telecommunications and Internet Subcommittee along with all other Democrats serving on the House Energy and Commerce Committee sent a letter to Energy and Commerce Chairman Joe Barton (R-TX) requesting committee hearings on the subject.  To date there has been no response from the Committee Chairman.

Schakowsky demands answers from AT&T - Rep. Jan Schakowsky asked AT&T Tuesday to disclose whether it shared consumers' phone records and Internet messages with the National Security Agency…Schakowsky, who represents Chicago's North Side and north suburbs, also wanted to know if AT&T had played a role in sidetracking legislation she sponsored to ban the sale of consumers' phone records.

Vets deserve better treatment after data theft - On Monday, the Veterans Administration announced that an employee had taken home data on 26.5 million veterans, and that data was stolen. It's a staggering amount, dwarfing other recent high-profile incidents at major U.S. firms like Citibank, ChoicePoint, and Bank of America. And yet, the support offered to victims by the VA is dwarfed by the support corporate America has offered in similar situations. It's become standard practice for data leakers to offer free credit monitoring to victims, so they are able to watch their credit reports daily for signs of misuse. The services are available from the credit bureaus, and cost about $10 a month. Corporations that leak data and foot the bill usually get big discounts. So far, the vets haven't been offered credit monitoring. Instead, the VA is reminding victims that they are entitled to a free copy of their credit report every year, and then basically wishing them good luck.

Data about millions of veterans stolen - A computer disk with the personal information of about 26.5 million U.S. veterans was stolen from the home of a senior Veterans Affairs official, the federal department said Monday. Veterans Affairs Secretary James Nicholson said the stolen data included names, Social Security numbers, dates of birth and numerical disability ratings. However, he said that no medical records or financial information had been compromised.

Whistle-Blower's Evidence, Uncut - Former AT&T technician Mark Klein is the key witness in the Electronic Frontier Foundation's class-action lawsuit against the telecommunications company, which alleges that AT&T cooperated in an illegal National Security Agency domestic surveillance program.

Protection from prying NSA eyes - From the U.S. Fourth Amendment, the Stored Communications Act and U.S. wiretap laws to the Pen-register statute, Mark Rasch looks at legal protections available to the telecommunication companies and individual Americans in the wake of the NSA's massive spying program.

The Eternal Value of Privacy - The most common retort against privacy advocates -- by those in favor of ID checks, cameras, databases, data mining and other wholesale surveillance measures -- is this line: "If you aren't doing anything wrong, what do you have to hide?" Some clever answers: "If I'm not doing anything wrong, then you have no cause to watch me." "Because the government gets to define what's wrong, and they keep changing the definition." "Because you might do something wrong with my information." My problem with quips like these -- as right as they are -- is that they accept the premise that privacy is about hiding a wrong. It's not. Privacy is an inherent human right, and a requirement for maintaining the human condition with dignity and respect.

Supreme Court Backs Police in Emergencies - The Supreme Court reaffirmed Monday that police can enter homes in emergencies without knocking or announcing their presence. Justices said four Brigham City, Utah, police officers were justified in going inside a home in 2000 after peering through a window and seeing a fight between a teenager and adults.

Prosecution of Journalists Is Possible in NSA Leaks - Attorney General Alberto R. Gonzales raised the possibility yesterday that New York Times journalists could be prosecuted for publishing classified information based on the outcome of the criminal investigation underway into leaks to the Times of data about the National Security Agency's surveillance of terrorist-related calls between the United States and abroad.

The Wiretapping Tango - By the mid-1970s illegal phone company cooperation with surveillance had become a scandal nationwide. Though no city's taps topped New Haven's, in cities like New York and Chicago, local police red squads routinely relied on friendly telecommunications executives for access to records. Under J. Edgar Hoover, the FBI did the same. In 1975 the Senate committee investigating government surveillance activities, headed by Frank Church, revealed that phone companies had for years allowed warrantless surveillance by the National Security Agency under the code name Operation Shamrock: computerized monitoring of all telegraphic data into and out of the United States. As Jason Vest of the Project on Government Oversight notes on POGO's blog, in 1976 Representative Bella Abzug did exactly what Senator Arlen Specter is threatening to do today--she subpoenaed top officials of Western Union, ITT and RCA Global. Indeed, today's NSA scandal and the Administration's response to the revelations track directly back to that era. When Abzug issued her subpoenas, Dick Cheney and Donald Rumsfeld--President Ford's Chief of Staff and Defense Secretary, respectively--persuaded the Justice Department to assert unprecedented claims of executive privilege not only over FBI and NSA testimony but also over that of Western Union and RCA. The companies, perhaps fearful of contempt citations from a Democratic Congress, refused to comply and provided Abzug with her documents…With the NSA scandal, the Administration smells opportunity. If Specter subpoenas telecom CEOs, look for this White House to reassert the executive privilege claims that failed in 1975--and this time, without fear of an opposition Congress, those CEOs may feel inclined to cooperate, establishing a new and dangerous zone of presidential power…The question is not data-mining but whether the Senate Judiciary Committee--and perhaps the court system--will have the political will and legal fortitude to stand up for the rule of law, or whether the clock will be turned back and it will be as if the reforms of the 1970s had never happened.

Legal loophole emerges in NSA spy program - An AT&T attorney indicated in federal court on Wednesday that the Bush administration may have provided legal authorization for the telecommunications company to open its network to the National Security Agency…AT&T may be referring to an obscure section of federal law, 18 U.S.C. 2511, which permits a telecommunications company to provide "information" and "facilities" to the federal government as long as the attorney general authorizes it. The authorization must come in the form of "certification in writing by...the Attorney General of the United States that no warrant or court order is required by law”… "If the certification exists, AT&T is in pretty good shape," said Marc Rotenberg, executive director of the Electronic Privacy Information Center and co-author of a book on information privacy law.

Privacy Case May Rest on Alito Vote - The Supreme Court heard a rare mid-May oral argument yesterday, on the authority of police to search private homes without knocking first -- in a major privacy-rights case likely to be decided by the vote of the court's newest member, Justice Samuel A. Alito Jr. At issue in Hudson v. Michigan , No. 04-1360, is the "knock and announce" rule rooted both in the Fourth Amendment to the Constitution and Anglo-American common law. The rule says that, in normal cases, police with a search warrant must knock and state their purpose, then wait a reasonable period for an answer, before forcing their way in.

ISP snooping plans take backseat - A prominent Republican in the U.S. Congress has backed away from plans to rewrite Internet privacy rules by requiring that logs of Americans' online activities be stored.

Online gamblers targeted by scams - Gamblers playing in online casinos are being warned that they may increasingly be targeted by hackers looking to steal.

Punting the Interesting Answers to the Secret Session - The dictionary tells us that "oversight" can mean either watchful supervision or an omission caused by inattention. As it held a confirmation hearing for CIA nominee Michael Hayden yesterday, the Senate intelligence committee seemed to be operating under the latter definition.

Hayden: Spying program is legal - President Bush's nominee to head the CIA defended the administration's warrantless surveillance program Thursday and said media reports about it have had a "corrosive effect" on the nation's intelligence gatherers.

BellSouth Wants Story Retractions - BellSouth Corp., the nation's third-largest telephone company, yesterday took a further step to distance itself from reports that it gave domestic calling records to the National Security Agency, demanding that USA Today retract parts of a story that disclosed the program.

Oversight? What oversight? Congress briefed, then gagged - When anti-terror programs of questionable legality are revealed — such as the National Security Agency's snooping on phone calls and records — President Bush hastens to point out that members of Congress from both parties have been "briefed." That's as it should be. Congress is supposed to oversee the executive branch's intelligence operations. From all indications, however, that oversight is badly broken.

Judge Rejects Call to Release AT&T Papers - The documents at issue in the case came from Mark Klein, a retired AT&T technician, who said in April that cables and equipment installed at an AT&T office in San Francisco in 2003 for the NSA "were tapping into" circuits carrying customers' dial-in services. He supplied documents to EFF to support his assertions, which were filed under seal…EFF legal director Cindy Cohn said in an interview that the case concerns customers' Internet and phone records, and, according to the information provided by Klein, AT&T's "real-time diversion of customer Internet data." The Justice Department has asked Walker to dismiss the case because it could compromise national security. Such requests are rarely rejected, said William Weaver, a law professor at the University of Texas at El Paso, and author of a book about law and presidential secrecy. "The case is going away. Courts almost never challenge the government on this," Weaver said. "It is the most deferred-to principle in law and a judge will not touch it."

Judge denies AT&T request for closed hearing - A federal judge rejected a request from AT&T on Wednesday to kick the public out of a hearing in a lawsuit alleging the telecommunications company illegally cooperated with the National Security Agency…Both sides have been quarreling over what to do with the documents provided by former AT&T technician Mark Klein and filed under seal with the court, with EFF saying they should be made entirely public and AT&T arguing they should be returned because they contain confidential information. Walker on Wednesday effectively split the difference, saying that he would maintain the current state of affairs for now. He also ordered EFF's attorneys not to "disclose these documents to any party," and rejected AT&T's request that Klein be muzzled, saying the company could sue him directly if it chose. Based on the information that's been made public so far, the 100 pages or so of information in Klein's documents appear to describe a secret room established in AT&T's main switching centers through which a tremendous amount of Internet and voice traffic flows. Those secret rooms, according to Klein's attorney, give the NSA full access to the company's networks and can be found in switching centers in San Francisco, Los Angeles, Seattle and San Jose, Calif.

Down to the Fourth Estate - This month, Congress is faced with a most inconvenient crime. With the recent disclosure of a massive secret database program run by the National Security Agency involving tens of millions of innocent Americans, members are confronted with a second intelligence operation that not only lacks congressional authorization but also appears patently unlawful. In December, the public learned that the NSA was engaging in warrantless domestic surveillance of overseas communications — an operation many experts believe is a clear federal crime ordered by the president more than 30 times. What is most striking about these programs is that they were revealed not by members of Congress but by members of the Fourth Estate: Journalists who confronted Congress with evidence of potentially illegal conduct by this president that was known to various congressional leaders…The plain fact is that neither party wants to acknowledge that the president might have ordered the commission of federal crimes in the name of national security. Thus, while there have been calls for another feeble hearing (possibly with telecom executives), Congress would prefer to investigate steroids in baseball and the selling of horses to France for gourmet dinners.

The NSA is on the line -- all of them - When intelligence historian Matthew Aid read the USA Today story last Thursday about how the National Security Agency was collecting millions of phone call records from AT&T, Bell South and Verizon for a widespread domestic surveillance program designed to root out possible terrorist activity in the United States, he had to wonder whether the date on the newspaper wasn't 1976 instead of 2006. Aid, a visiting fellow at George Washington University's National Security Archive, who has just completed the first book of a three-volume history of the NSA, knew the nation's bicentennial marked the year when secrets surrounding another NSA domestic surveillance program, code-named Project Shamrock, were exposed. As fireworks showered New York Harbor that year, the country was debating a three-decades-long agreement between Western Union and other telecommunications companies to surreptitiously supply the NSA, on a daily basis, with all telegrams sent to and from the United States. The similarity between that earlier program and the most recent one is remarkable, with one exception -- the NSA now owns vastly improved technology to sift through and mine massive amounts of data it has collected in what is being described as the world's single largest database of personal information. And, according to Aid, the mining goes far beyond our phone lines.

NSA report renews data mining concerns - The NSA declined to comment. But several experts said it seemed likely the agency would want to assemble a picture from more than just landline phone records. Other forms of communication, including cell phone calls, e-mails and instant messages, likely are trackable targets as well, at least on international networks if not inside the U.S.

GOP skepticism over NSA program widens - Speaking at a privacy seminar here at the Woodrow Wilson International Center for Scholars, Sen. John Sununu of New Hampshire said the latest revelations that the nation's three biggest phone companies have delivered call records on potentially millions of Americans to the NSA raise concerns about the government's encroachment into private citizens' lives, even if the actions were legal.

FCC Chief Calls for Probe of Phone Cos. - The Federal Communications Commission, which regulates the telephone industry, should open an investigation into whether the nation's phone companies broke the law by turning over millions of calling records to the government, an FCC commissioner says…"There is no doubt that protecting the security of the American people is our government's No. 1 responsibility," Commissioner Michael J. Copps, a Democrat, said in a statement Monday. "But in a digital age where collecting, distributing and manipulating consumers' personal information is as easy as a click of a button, the privacy of our citizens must still matter."… An FCC investigation, if undertaken, would be the second attempt this year by the government to explore an aspect of an NSA program. The Justice Department sought to investigate the role of its lawyers in the warrantless eavesdropping program, but it ended the inquiry last week because its lawyers were denied security clearances.

BellSouth Says It Gave NSA No Call Records - BellSouth said Monday its "thorough review" found no indication it gave telephone records to the National Security Agency as part of a federal anti-terrorism surveillance program.

From the Land of the Free to a Nation of Suspects - The Bush administration has managed to cross George Orwell with Sting. Every step you take, every move you make, Big Brother will be watching you…President Bush insisted, "We're not mining or trolling through the personal lives of millions of innocent Americans." In fact, that's exactly what his administration is doing -- 24 hours a day, 365 days a year…It's not just the NSA that will know whom you call. According to USA Today, the NSA told Qwest that "other government agencies, including the FBI, CIA and DEA, also might have access to the database." What's next? The IRS? The Office of Child Support Enforcement? Your local police? But privacy is valuable even if you have nothing to hide. Each of us benefits from having a zone in which we can do as we please without fear of exposure. Thanks to this program, there is no longer an impermeable barrier around your personal zone. It's more like a screen door on a submarine…Even if you don't care about the privacy of your phone records, you might care that we have a president who feels no obligation to obey the law. You might care that if the government was secretly doing this, it may be doing other things that are even more worrisome. And you might care that one day, we may find that the free society we claim to cherish has become a police state.

A Pattern of Excess – The routine has become distressingly familiar: A news organization reveals a secret operation by the Bush administration that employs new means to fight the war on terrorism but also raises serious issues of civil liberties or human rights. The president responds with a curt assertion that the actions are legal, even as his administration moves to head off any intervention by Congress. Resisting further requests for information, the White House countenances a public debate only to the extent it can be put to partisan use, as a means of casting Democratic critics as weak on national security…almost all of the exceptional steps President Bush approved have been compromised and discredited by the administration's behavior: its insistence on secrecy and imperious readings of the law; its contempt for meaningful congressional oversight and disregard of international opinion and U.S. alliances; its stubborn resistance to good-faith efforts by Congress to bring the operations under statute. The consequence is that much of the administration's counterterrorism strategy lacks the democratic legitimacy that would be conferred by open debate and congressional votes.

Cheney Pushed U.S. to Widen Eavesdropping - For the first time since 1978, when the Foreign Intelligence Surveillance Act was passed and began requiring court approval for all eavesdropping on United States soil, the N.S.A. is intentionally listening in on Americans' calls without warrants.

Phone Calls Are Just the Start - Telephone records are just a sliver of the data on individuals that the government could assemble. Through our movements, transactions and activities, residents of industrialized societies throw off megabytes of data each day. Gathering this data is technically straightforward, and the potential for authorities to build much larger databases -- relying on sources we may not have contemplated before -- is quite real. Such databases would require extensive protections to prevent abuse from low-level insiders and senior government officials.

U.S. Asks for Suit Against AT& T to Be Dismissed - The government filed a motion yesterday to intervene and seek dismissal of a lawsuit by a civil liberties group against AT&T Inc. over a federal program to monitor U.S. communications. The suit filed in the U.S. District Court for the Northern District of California accuses AT&T of unlawful collaboration with the National Security Agency in its surveillance program to intercept telephone and e-mail communications between people in the United States and people linked to al-Qaeda and affiliated organizations…In its motion seeking intervention, posted on the court's Web site, the government said the interests of the parties in the lawsuit "may well be in the disclosure of state secrets" in their effort to present their claims or defenses. "Only the United States is in a position to protect against the disclosure of information over which it has asserted the state secrets privilege, and the United States is the only entity properly positioned to explain why continued litigation of the matter threatens the national security," said the motion, dated May 12.

Qwest Defies NSA - Rob Douglas, a security consultant in Colorado who has testified before Congress numerous times about privacy issues, said it was the possible record-sharing among agencies that struck him the most. "It demonstrates the slippery slope," Douglas said. "What relevance would a DEA operation be to thwarting a catastrophic terrorist event? I don't see the connect. This is always the concern with data mining, that the government will broaden its authority . . . the Big Brother argument." Douglas said the NSA program might represent the largest database ever collected about Americans and poses "huge constitutional issues."

NSA has massive database of Americans' phone calls - The National Security Agency has been secretly collecting the phone call records of tens of millions of Americans, using data provided by AT&T, Verizon and BellSouth, people with direct knowledge of the arrangement told USA TODAY. The NSA program reaches into homes and businesses across the nation by amassing information about the calls of ordinary Americans — most of whom aren't suspected of any crime. This program does not involve the NSA listening to or recording conversations. But the spy agency is using the data to analyze calling patterns in an effort to detect terrorist activity, sources said in separate interviews.