Excerpt from the L.A.

TIMES "DEMANDING THE ABILITY TO SNOOP" By ROBERT LEE HOTZ, TIMES SCIENCE WRITER Someone Is Listening... When Charles and Diana discovered millions o !eo!le "ere revelin# in $heir mos$ in$ima$e $ele!hone calls, $he "orld%s mos$ !&'lic co&!le had $o ace $he ac$s o !riva$e li e in $he elec$ronic a#e( In a "orld o cell&lar !hones, com!&$er ne$"or)s, elec$ronic mail and in$erac$ive T*, $he "alls mi#h$ as "ell have ears( Wi$h $he e+!losion o s&ch devices, more !eo!le and com!anies ,, rom 'an)s $o de!ar$men$ s$ores ,, seem $o have more access $o more in orma$ion $ha$ someone "an$s $o )ee! !riva$e( In res!onse, com!&$er &sers are devisin# $heir o"n elec$ronic codes $o !ro$ec$ s&ch secre$s as cor!ora$e records, !ersonal mail or a&$oma$ed $eller $ransac$ions( His$orically, $he 'i##es$ ears have 'elon#ed $o $he ederal #overnmen$, "hich has &sed s&rveillance $echni-&es desi#ned $o $rac) do"n criminals and sec&ri$y ris)s $o )ee! elec$ronic $a's on s&'.ec$s ran#in# rom civil ri#h$s leaders $o ci$i/ens ma)in# overseas calls( B&$, $oday, ederal o icials are a raid $ha$ advanced $echnolo#y, "hich or almos$ 01 years has allo"ed $hem $o cond&c$ s&rveillance on a #lo'al scale, is a'o&$ $o ma)e s&ch moni$orin# im!ossi'le( No", ederal in$elli#ence and la" en orcemen$ a#encies are insis$in# on $heir ri#h$ $o eavesdro!( The #overnmen$ is !ro!osin# a s$andardi/ed codin#, or encry!$ion, sys$em $ha$ "o&ld elimina$e eavesdro!!in# 'y anyone e+ce!$ $he one holder o $he code%s )ey ,, $he #overnmen$ i$sel ( To ens&re $ha$ ederal a#en$s and !olice can con$in&e $o "ire$a! comm&nica$ions, $he Na$ional Ins$i$&$e o S$andards and Technolo#y 2NIST3 is in$rod&cin# a na$ional elec$ronic code( I$ "ill cover all $ele!hone sys$ems and com!&$er $ransmissions, "i$h a '&il$,in 'ac) door $ha$ !olice can &nloc) "i$h a co&r$ order and an elec$ronic )ey( Whi$e Ho&se and 4BI o icials insis$ $hey have no "ay $o orce any com!any $o ado!$ $he ne" $echnolo#y( They "ill no$ o&$la" o$her orms o codin#, $hey said( B&$ e+!er$s say a series o re#&la$ory ac$ions involvin# Con#ress, $he S$a$e De!ar$men$, $he 5(S( a$$orney #eneral, e+!or$ licensin# res$ric$ions and $he !&rchasin# !o"er o $he ederal #overnmen$ "ill e ec$ively orce !eo!le $o &se $he code( The #overnmen$%s !lan has $ri##ered an o&$cry amon# com!&$er &sers, civil ri#h$s #ro&!s

and o$hers( The 6merican Civil Li'er$ies 5nion and #ro&!s o com!&$er !ro essionals say $he !lan raises ma.or cons$i$&$ional -&es$ions( 4ederal la"s are desi#ned $o limi$ $he #overnmen$%s a'ili$y $o "ire$a!, no$ #&aran$ee i$, $hey say( 7Where does $he 5(S( #overnmen$ #e$ $he ri#h$ $o &nders$and every$hin# $ha$ is $ransmi$$ed87 as)ed Michel 9a'ay, direc$or o ed&ca$ion or $he Na$ional Com!&$er Sec&ri$y 6ssn( in Carlisle, :a( No$ so many years a#o, !o"er &l encry!$ion $echni-&es "ere $he mono!oly o mili$ary and in$elli#ence a#encies( Over $ime, com!&$er e+!er$s and cor!ora$e cry!$o#ra!hers crea$ed codes $o !ro$ec$ $heir !riva$e comm&nica$ions( Some o $hese scram'le elec$ronic si#nals so $horo&#hly $ha$ even $he s&!ercom!&$ers o $he Na$ional Sec&ri$y 6#ency canno$ deci!her $hem( One o $he 'es$ codes, called :re$$y ;ood :rivacy, is ree and can 'e do"nloaded rom com!&$er ne$"or) li'raries aro&nd $he "orld ,, ye$ i$ s$ill con$ains sa e#&ards $ha$ !ro$ec$ i$s secre$s rom !ryin# eyes( Com'ined "i$h advances in i'er o!$ics and di#i$al comm&nica$ions, $hese codes ena'le !eo!le $o send elec$ronic mail, com!&$er iles and a+es $he #overnmen$ canno$ read, and $o ma)e !hone calls even $he mos$ so!his$ica$ed "ire$a!!er canno$ &nders$and( 6s ne" $echnolo#ies conver#e $o orm $he road'ed o a na$ional in orma$ion s&!erhi#h"ay, $he #overnmen$ aces $he !ros!ec$ o millions o !eo!le aro&nd $he "orld comm&nica$in# in $he a'sol&$e !rivacy o $he mos$ sec&re codes science can devise( 6$ $he same $ime, h&ndreds o !hone com!anies channel calls $hro&#h ne" di#i$al s"i$ches in$o lon#,dis$ance i'er,o!$ic ca'les "here, $ransla$ed in$o li#h$,s!eed laser !&lses, $hey may el&de in$erce!$ion more easily( Do/ens o o$her com!anies are or#ani/in# #lo'al "ireless di#i$al ne$"or)s $o send !hone calls, a+es and com!&$er iles over $he air"aves $o !eo!le no ma$$er "here $hey are or ho" o $en $hey move( ;iven all $his, NIST o icials say $he ne" code, called S)i!.ac), is $he #overnmen$%s a$$em!$ $o s$ri)e a 'alance 'e$"een !ersonal !rivacy and !&'lic sa e$y( They say i$ "ill !ro$ec$ !eo!le rom illici$ eavesdro!!in#, "hile allo"in# an a&$hori/ed #overnmen$ a#en$ $o &nloc) any scram'led call or encry!$ed com!&$er messa#e( I$ co&ld 'e incor!ora$ed in$o vir$&ally every com!&$er modem, cell&lar !hone and $elecomm&nica$ions sys$em man& ac$&red in $he 5ni$ed S$a$es( Desi#ned 'y $he Na$ional Sec&ri$y 6#ency, "hich cond&c$s mos$ o $he co&n$ry%s comm&nica$ions s&rveillance, $he code is one ace$ o an am'i$io&s #overnmen$ 'l&e!rin$ or $he ne" in orma$ion a#e( B&$ cri$ics say $he code is .&s$ one o several s$e!s 'y ederal la" en orcemen$ #ro&!s and in$elli#ence a#encies $o vas$ly e+!and $heir a'ili$y $o moni$or all $elecomm&nica$ions and $o access com!&$er da$a'ases(

4ederal o icials ac)no"led#e $ha$ $hey are even considerin# $he idea $ha$ orei#n #overnmen$s sho&ld 'e #iven $he )eys $o &nloc) lon#,dis$ance calls, a+es and com!&$er $ransmissions rom $he 5ni$ed S$a$es( 6n in$erna$ional a#ency, s&!ervised 'y $he 5ni$ed Na$ions or In$er!ol, mi#h$ 'e as)ed $o hold in $r&s$ $he )eys $o elec$ronic codes, said Clin$ Broo)s, a senior NS6 $echnical adviser( The S)i!.ac) &ror !i$s $he Whi$e Ho&se, $he 4BI and some o $he #overnmen$%s mos$ secre$ a#encies a#ains$ !rivacy advoca$es, ci!her e+!er$s, '&siness e+ec&$ives and ra#$a# com!&$er,/oids "ho say codes $he #overnmen$ canno$ 'rea) are $he only "ay $o !ro$ec$ $he !&'lic rom $he e+!andin# reach o elec$ronic s&rveillance( On $he com!&$er ne$"or)s $ha$ lin) millions o &sers and sel ,s$yled Cy!her!&n)s ,, a #ro&! o encry!$ion s!ecialis$s ,, $he ederal !ro!osal has s$irred ears o an elec$ronic Bi# Bro$her and $he !o$en$ial a'&se o !o"er( 7I$ really is Or"ellian "hen a scheme or s&rveillance is descri'ed as a !ro!osal or !rivacy,7 said Marc Ro$en'er#, Washin#$on direc$or o Com!&$er :ro essionals or Social Res!onsi'ili$y( Encry!$ion is $he ar$ o concealin# in orma$ion in $he o!en 'y hidin# i$ in a code( I$ is older $han $he al!ha'e$, "hich is i$sel a code $ha$ almos$ everyone )no"s ho" $o read( Today, elec$ronic codes conceal $rade secre$s, !ro$ec$ sensi$ive '&siness calls and shel$er !ersonal com!&$er mail( They also scram'le !ay,!er,vie" ca'le $elevision !ro#rams and !ro$ec$ elec$ronic credi$ card $ransac$ions( Everyone "ho &ses an a&$oma$ed $eller machine is en$r&s$in# inancial secre$s $o an elec$ronic code $ha$ scram'les $ransmissions 'e$"een $he a&$oma$ed $eller and $he 'an)%s main com!&$er miles a"ay( One in$er,'an) ne$"or) moves <= $rillion and = million messa#es aro&nd $he "orld every day, s"addled in $he !ro$ec$ive cocoon o i$s code( No"here has $he demand or !rivacy #ro"n so &r#en$ as on $he in$erna$ional con edera$ion o com!&$er sys$ems )no"n as $he In$erne$( There, in a !rovin# #ro&nd or $he e$i-&e$$e o elec$ronic comm&nica$ion, millions o !eo!le in do/ens o co&n$ries are ado!$in# codes $o !ro$ec$ $heir o icial '&siness, s"a! #ossi! and e+chan#e !ersonal no$es el'o",$o,el'o" in $he same cro"ded elec$ronic 'a/aar( 7:eo!le have 'een de endin# $heir o"n !rivacy or cen$&ries "i$h "his!ers, dar)ness, envelo!es, closed doors, secre$ handsha)es and co&riers,7 said Eric H&#hes, modera$or o $he Cy!her!&n)s, an In$erne$ #ro&! $ha$ s!eciali/es in encry!$ion( 7We are de endin# !rivacy "i$h cry!$o#ra!hy, "i$h anonymo&s mail, or"ardin# sys$ems, "i$h di#i$al si#na$&res and "i$h elec$ronic money(7 6nd i$%s "or)in#( The $echnolo#y is leavin# la" en orcemen$ 'ehind( 4ederal o icials "ho de end $he S)i!.ac) !lan say $hey are "orried a'o&$ $oo m&ch

!rivacy in $he "ron# hands( 76re "e #oin# $o le$ $echnolo#y re!eal $his co&n$ry%s "ire$a! la"s87 as)ed >ames 9( 9alls$rom, 4BI chie o inves$i#a$ive $echnolo#y( 5nder 5(S( la", any "ire$a! no$ sanc$ioned 'y a co&r$ order is a elony( 4ederal la" en orcemen$ a#encies and in$elli#ence #ro&!s "ere #alvani/ed las$ all "hen 6T?T in$rod&ced $he irs$ ine+!ensive mass,mar)e$ device $o scram'le !hone calls( The scram'ler con$ains a com!&$er chi! $ha$ #enera$es an elec$ronic code &ni-&e $o each conversa$ion( 4BI o icials !aled a$ "ha$ $hey said "as $he !ros!ec$ o rac)e$eers, dr&# dealers or $erroris$s 'ein# a'le $o ind so!his$ica$ed !hone scram'lers $o code and decode calls a$ $he neares$ !hone s$ore( Na$ional sec&ri$y analys$s and De ense De!ar$men$ o icials say 5(S( in$elli#ence a#encies ind $he ne" #enera$ion o com!&$er encry!$ion $echni-&es es!ecially &nse$$lin#( I$ !romises $o ma)e o'sole$e a m&l$i'illion,dollar inves$men$ in secre$ s&rveillance acili$ies and s!y sa$elli$es( 7We "o&ld have $he same concerns in$erna$ionally $ha$ la" en orcemen$ "o&ld have domes$ically a'o&$ &ncon$rolled encry!$ion,7 said S$e"ar$ 6( Ba)er, NS6 #eneral co&nsel( NS6 o icials are rel&c$an$ $o disc&ss $heir s&rveillance o!era$ions, '&$ $hey said $hey "o&ld no$ "an$ $erroris$s or anyone else 7$ar#e$in# $he 5ni$ed S$a$es7 $o 'e a'le $o comm&nica$e in $he secrecy !rovided 'y &n'rea)a'le modern codes( The Clin$on 6dminis$ra$ion is e+!ec$ed $o advise $elecomm&nica$ions and com!&$er com!anies $his all $o ado!$ $he S)i!.ac) code as a ne" na$ional encry!$ion s$andard &sed 'y $he #overnmen$, $he "orld%s lar#es$ com!&$er &ser, and anyone "ho does '&siness "i$h i$( The #overnmen$ also "ill 'e s!endin# 'illions in $he ne+$ =1 years $o !romo$e a !&'lic ne$"or) o $elecomm&nica$ions sys$ems and com!&$er ne$"or)s called $he Na$ional In orma$ion In ras$r&c$&re( 6ny irm $ha$ "an$s $o .oin "ill have $o ado!$ $he S)i!.ac) code( S)i!.ac) is 'ein# o ered $o $he !&'lic em'edded in a $am!er,!roo , <@A com!&$er circ&i$ called $he Cli!!er Chi!( I$ is !rod&ced 'y My)o$ron+ Inc(, a com!&$er com!any in Torrance( To ma)e i$ easier or a#en$s $o sin#le o&$ $he !ro!er conversa$ion in a s$ream o si#nals, every Cli!!er Chi! has i$s o"n elec$ronic iden$i$y and 'roadcas$s i$ in every messa#e i$ scram'les( 4ederal a#en$s cond&c$in# a co&r$,a&$hori/ed "ire$a! can iden$i y $he code elec$ronically and $hen ormally re-&es$ $he s!ecial )eys $ha$ allo" an o&$sider $o deci!her "ha$ $he

chi! has scram'led( 4ederal o icials say $hey e+!ec$ com!anies $o incor!ora$e $he chi! in$o cons&mer !hone scram'lers, cell&lar !hones and 7sec&re7 com!&$er modems( Wi$hin a e" years, 4BI o icials say, $hey e+!ec$ $he S)i!.ac) code $o 'e !ar$ o almos$ every encry!$ion device availa'le $o $he avera#e cons&mer( Many com!anies say $hey are leery o ado!$in# $he so!his$ica$ed elec$ronic code, even $ho&#h i$ co&ld !ro$ec$ $hem rom orei#n in$elli#ence a#encies and com!e$i$ors see)in# $heir $rade secre$s( B&$ 6T?T, "hich has a lon# his$ory o coo!era$in# "i$h $he #overnmen$ on comm&nica$ions s&rveillance, has already a#reed $o recall $he com!any%s cons&mer scram'lers and re i$ $hem $his all "i$h $he ne" chi!( Even "i$ho&$ S)i!.ac) and $he Cli!!er Chi!, advanced com!&$ers and elec$ronic da$a'ases already have e+!anded #overnmen$%s a'ili$y $o $rac) and moni$or ci$i/ens( Searches o !hone records, com!&$er credi$ iles and o$her da$a'ases are a$ an all,$ime hi#h, and co&r$,a&$hori/ed "ire$a!s ,, "hich lis$ened in on =(B million !hone conversa$ions las$ year ,, moni$or $"ice as many conversa$ions as a decade a#o, ederal records sho"( The ;eneral 6cco&n$in# O ice says $ha$ ederal a#encies main$ain more $han C11 da$a'an)s con$ainin# 'illions o !ersonal records a'o&$ 5(S( ci$i/ens( This $y!e o easy access $o elec$ronic in orma$ion is addic$ive, cri$ics con$end( Since $he 4BI se$ &! i$s com!&$eri/ed Na$ional Criminal In orma$ion Cen$er in =CAB, or e+am!le, in orma$ion re-&es$s have #ro"n rom @ million a year $o a'o&$ DEF million las$ year, and $he criminal .&s$ice da$a'ase i$sel no" encom!asses @D million iles( The 4BI records sys$em, li)e com!&$er iles a$ $he In$ernal Reven&e Service, is 7ro&$inely7 &sed or &na&$hori/ed !&r!oses 'y some ederal, s$a$e and local la" en orcemen$ a#encies, $he ;eneral 6cco&n$in# O ice said( ;6O a&di$ors o&nd $ha$ some !olice a#encies have &sed $he 4BI sys$em $o inves$i#a$e !oli$ical o!!onen$s( O$hers have sold 4BI in orma$ion $o com!anies and !riva$e inves$i#a$ors( In 6ri/ona, a ormer la" en orcemen$ o icial &sed i$ $o $rac) do"n his es$ran#ed #irl riend and )ill her, $he a&di$ors re!or$ed( Wha$ $he #overnmen$ can%$ ind in i$s o"n iles, i$ can o'$ain rom any one o h&ndreds o mar)e$in# irms $ha$ s!eciali/e in com!ilin# elec$ronic dossiers on ci$i/ens( The 4BI is see)in# a&$hori$y rom Con#ress $o o'$ain $hose records "i$ho&$ cons&l$in# a .&d#e or no$i yin# $he individ&al involved, "hich is re-&ired no"( In orma$ion 6merica, or e+am!le, o ers da$a on $he loca$ion and !ro iles o more $han === million 6mericans, F1 million ho&seholds and A= million $ele!hone n&m'ers(

6no$her irm s!eciali/es in #ay men and les'ians( 6 $hird, a service or doc$ors called :a$ien$ Selec$, sin#les o&$ millions o !eo!le "i$h nervo&s s$omachs( Com!&$er e+!er$s say encry!$ion can dra" a c&r$ain across s&ch elec$ronic "indo"s in$o !riva$e li e( In ac$, $he 4BI is !lannin# $o encry!$ i$s criminal .&s$ice com!&$er iles( 7Recen$ years have seen $echnolo#ical develo!men$s $ha$ diminish $he !rivacy availa'le $o $he individ&al,7 said Whi$ ield Di ie, a !ioneerin# com!&$er scien$is$ "ho hel!ed inven$ modern cry!$o#ra!hy( 7Cameras "a$ch &s in $he s$ores, G,ray machines search &s a$ $he air!or$, ma#ne$ome$ers loo) $o see $ha$ "e are no$ s$ealin# rom $he merchan$s, and da$a'ases record o&r ac$ions and $ransac$ions( 7Cry!$o#ra!hy,7 he said, 7is !erha!s alone in i$s !romise $o #ive &s more !rivacy ra$her $han less(7 NEGTH Inside $he com!any $ha$ ma)es $he secre$ chi!( Scrambling or Pri!ac" 6s more !eo!le and com!anies ado!$ codes $o !ro$ec$ $heir $ele!hone calls, a+es and com!&$er iles, $he ederal #overnmen$ has !ro!osed a na$ional encry!$ion s$andard $ha$ "ill allo" !eo!le $o !ro$ec$ $heir !rivacy "hile ens&rin# $ha$ la" en orcemen$ a#en$s can s$ill "ire$a! $elecomm&nica$ions( Here is ho" i$ "o&ld "or)H =( When someone &sin# a S)i!.ac),e-&i!!ed sec&re !hone calls ano$her sec&re !hone, chi!s inside $he !hone #enera$e a &ni-&e elec$ronic code $o scram'le $he conserva$ion( @( The chi! also 'roadcas$s a &ni-&e iden$i yin# serial n&m'er( E( I a la" en orcemen$ a#en$ "an$s $o lis$en in, he irs$ m&s$ o'$ain a co&r$ order and $he #e$ $he chi!%s serial n&m'er rom $he si#nal( D( The a#en$ o'$ains $a)es $ha$ n&m'er $o $he Treas&ry De!ar$men$ and $he Na$ional Ins$i$&$e o S$andards and Technolo#y, "hich )ee! $he #overnmen$%s di#i$al )eys $o $he chi!( The )eys are com'ined $o &nscram'le $he conversa$ion( When le#al a&$hori/a$ion or $he "ire$a! e+!ires, $he )eys are des$royed(