-Caveat Lector-

forwarded

Dave Hartley
http://www.Asheville-Computer.com
http://www.ioa.com/~davehart


-----Original Message-----
From: Landes [mailto:[EMAIL PROTECTED]]
Sent: Tuesday, September 07, 1999 5:40 PM


From: "Landes" <[EMAIL PROTECTED]>

Smile for the US Secret Service
                     by Declan McCullagh

                     3:00 a.m.  7.Sep.99.PDT
                     WASHINGTON -- A New Hampshire
                     company began planning in 1997 to
                     create a national identity database for
                     the federal government, newly disclosed
                     documents show.

                     Image Data's US$1.5 million contract with
                     the US Secret Service to begin digitizing
                     existing driver's license and other
                     personal data was widely reported early
                     this year. But documents unearthed by
                     the Electronic Privacy Information Center
                     reveal the details and scope of the
                     project.


                       See also: DNA Databases Go Too Far


                     An Image Data presentation to the
                     government -- marked confidential --
                     stressed that pilot projects in three
                     states would "ensure the viability of
                     deploying such service throughout the
                     United States," according to about 300
                     pages of files EPIC obtained under the
                     Freedom of Information Act.

                     In a February 1999 report, Image Data
                     CEO Robert Houvener ridiculed the idea
                     that there were any legitimate privacy
                     issues at stake, including those raised by
                     civil libertarians when the project was
                     first disclosed.

                     "Many other newspapers, television
                     programs, magazines also did news
                     stories on Image Data LLC and its system
                     [that] in some cases... focused on the
                     'Privacy' concerns and presented an
                     inaccurate presentation," Houvener
                     wrote.

                     But privacy groups aren't wavering.

                     "We think that their proposal for a
                     national database of photographs runs
                     directly contrary to the types of privacy
                     safeguards that should be developed,"
                     says EPIC director Marc Rotenberg, who
                     met with Houvener last week. "This is not
                     a database that people can easily opt out
                     of. You have to give up your photograph
                     when you get a driver's license."

                     Houvener, who says he has been a
                     "victim of identity fraud," says his
                     national photo file will be targeted at
                     "identity criminals" that he estimates cost
                    US legislators who funded the project
                     believed the database would be used to
                     stop illegal immigrants and terrorists.

                     "The TrueID technology has widespread
                     potential to reduce crime in the credit
                     and checking fields, in airports to reduce
                     the chances of terrorism, and in
                     immigration and naturalization to verify
                     proper identity," said a September 1997
                     letter from eight members of Congress to
                     Image Data.

                     Image Data's "True ID" technology
                     currently feeds photos into its database
                     in one of two ways. The company has
                     contracts with state motor vehicle
                     departments that supply the analog
                     negatives or the digital images on
                     magnetic tape. It also persuades
                     shoppers to scan their IDs into the
                     database by inserting them into devices
                     at specially equipped stores.

                     After news reports appeared focusing on
                     the project, the governors of Colorado
                     and Florida halted the transfer of images
                     to Image Data, and South Carolina filed
                     suit asking for the return of millions of
                     images already in the company's
                     possession.

                     How did Image Data feel about South
                     Carolina's actions? "The PR, legal, and
                     legislative situation in the pilot State will
                     continue to be evaluated and dealt with,"
                     a January 1999 company report says.

                     Image Data has publicly downplayed the
                     Secret Service's involvement, but the
                     documents show that the agency decided
                     which states would be part of the initial
                     pilot project and directed the timing of
                     the effort.

                     According to one of Image Data's monthly
                     reports sent to Special Agent Cary Rosoff
                     of the Secret Service's financial crimes
                     division, company representatives were
                     negotiating a contract with Missouri
                     officials, too. "Missouri [is] in the final
                     stages of implementing a digital driver
                     license system. Most issues are resolved,
                     and we expect closure within 4-6 weeks,"
                     the document says.

                     The Secret Service deleted some
                     information from the documents before
                     releasing them, and only a few pages
                     prepared by the government are included.
                     But it seems that discussions of the
                     project began in early 1997. The
                     government signed an agreement with
                     Image Data in late 1997 and the contract
                     took effect on 15 December of that year.

                     Soon after, the company began to work
                     closely with Telecheck, a subsidiary of
                     First Data Corporation. By mid-June 1998,
                     the computer interface between Image
                     Data and Telecheck was complete and
                     images could readily be exchanged.

                     One frequent problem: Scanning millions
                     of existing 35 mm photos into the
                     database. "The digitizing machine is
                     behind schedule.... There has also been
                     some slippage due to the custom
                     machining of the components for the
                     scanner itself," the documents reported
                     about Colorado DMV photos.

                     Another headache for Image Data
                     executives was Florida's policy of allowing
                     drivers to renew their licenses twice by
                     mail. That means people are less likely to
                     come in and be photographed by digital
                     cameras, which can automatically forward
                     the photo to Image Data.

                     "For a state like Florida, [up] to 45 million
                     negatives would have to be digitized to
                     get an online image of all current
                     licenses," a November 1998 report says.

                     The documents show how Image Data
                     planned to sell the idea not just to the
                     federal government, but also to state
                     officials.

                     "This program will demonstrate a highly
                     effective way of ... increasing tax
                     revenue. The positive impact of this
                     demonstration cannot be ignored. Once
                     government agencies and businesses see
                     the effectiveness of this technology and
                     implement it for their own programs, the
                     positive impact to state and federal
                     budgets will be in the billions of dollars
                     per year," says one Image Data proposal
                     that is marked "proprietary."

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