The article that sparked the fuss, by Jack Kelly of USA Today:

http://www.usatoday.com/life/cyber/tech/2001-02-05-binladen.htm
>WASHINGTON — Hidden in the X-rated pictures on several pornographic Web 
>sites and the posted comments on sports chat rooms may lie the encrypted 
>blueprints of the next terrorist attack against the United States or its 
>allies. It sounds farfetched, but U.S. officials and experts say it's the 
>latest method of communication being used by Osama bin Laden and his 
>associates to outfox law enforcement.

That seems to be a reference to steganography applications.

More:
http://www.cluebot.com/article.pl?sid=01/02/06/196253&mode=thread
http://www.wired.com/news/politics/0,1283,41658,00.html
http://www.theregister.co.uk/content/6/16684.html

Some history:
http://www.politechbot.com/p-00232.html
http://www.politechbot.com/cgi-bin/politech.cgi?name=terrorists

-Declan

**********

Date: Tue, 06 Feb 2001 14:39:11 -0600
To: [EMAIL PROTECTED]
From: GriffJon <[EMAIL PROTECTED]>
Subject: fnords rampant in coverage of bin Laden's crypto usage
In-Reply-To: <[EMAIL PROTECTED]>
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http://www.usatoday.com/life/cyber/tech/2001-02-05-binladen.htm
"Uncrackable encryption is allowing terrorists — Hamas, Hezbollah, al-Qaida
                  and others — to communicate about their criminal 
intentions without fear of
                  outside intrusion," FBI Director Louis Freeh said last 
March during
                  closed-door testimony on terrorism before a Senate panel. 
"They're thwarting
                  the efforts of law enforcement to detect, prevent and 
investigate illegal
                  activities."

http://www.nytimes.com/aponline/technology/AP-Terrorists-Internet.html ,
``To a greater and greater degree, terrorist groups, including Hezbollah,
           Hamas and bin Laden's al Qaida group, are using computerized files,
           e-mail and encryption to support their operations,'' CIA 
Director George
           Tenet wrote last March to the Senate Foreign Relations Committee.

Reuters via wired http://www.wired.com/news/politics/0,1283,41650,00.html
"We will use whatever tools we can -- e-mails, the Internet -- to
                          facilitate jihad against the (Israeli) occupiers 
and their supporters,"
                          the paper quoted Sheik Ahmed Yassin, the founder 
of the militant
                          Muslim group Hamas, as saying in a recent 
interview in the Gaza
                          Strip. "We have the best minds working with us."





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