-Caveat Lector-

Secret plan for spies to bug PCs
By DAN TEBBUTT
13jan99

PERSONAL computers would become police spy stations under secret
proposals put to the Federal Government by a former deputy director of
ASIO.

The Australian Federal Police, ASIO and the National Crime Authority
would be empowered to alter software to turn PCs into covert listening
devices, according to the 1996 report by one-time spy chief Gerald
Walsh.

The report also recommends changes to the Commonwealth Crimes Act to
allow police and government investigators to hack into computer
systems for evidence.

While Mr Walsh called for public discussion of his proposals, the
report was withdrawn by the Attorney-General's Department. But a copy
of the 96-page document was obtained last week by Internet privacy
campaigners Electronic Frontiers Australia and released to The
Australian.

A spokesman for Attorney-General Daryl Williams confirmed last night
that Mr Walsh's recommendations were under discussion but the report
was "just one element" of policy being considered.

He would not say whether the controversial recommendations would be
acted on through legislation.

Mr Walsh warns that widespread use of PC-based data scrambling is a
big concern for law enforcement.

Criminals were already using computer encryption – programs that
encode data so it cannot be intercepted – to prevent police from
monitoring phone calls and e-mail.

Widespread encryption to scramble sensitive data would make crimes
harder to prove in court, Mr Walsh warns.

"The principle of non self-incrimination may well represent the polite
end of the possible range of responses," the report says.

Mr Walsh's plan would clear the way for police to eavesdrop on
computer conversations at the source.

A "target computer may be converted into a listening device" that
could seek out passwords and other private communications without the
PC owner's knowledge.

EFA spokesman Greg Taylor said authorities might set up Trojan horse
software that would record all PC activity, including passwords and
e-mail, before encryption.

"If you have access to someone's PC and you change their software you
can do anything you want," said Mr Taylor.

"If it's connected to a network such as the Internet the PC could
transmit data to another site."

Australian Council for Civil Liberties president Terry O'Gorman said
the proposals would be a worrying extension to police wiretap powers
which were already over-used.

"We are concerned about the low level of protection in relation to
current judicial warrants for telephone eavesdropping," Mr O'Gorman
said.

Labor information technology spokeswoman Senator Kate Lundy said "the
whole issue of encryption is being used as a lever to justify further
invasions of privacy".
-------------
"Soon it will be possible to assert almost continuous surveillance
over every citizen and maintain up-to-date complete files containing
even the most personal information about the citizen. These files will
be subject to instantaneous retrieval by the authorities"
-Zbigniew Brezinsky, Advisor to Jimmy Carter
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