-Caveat Lector-

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From: International Justice Watch Discussion List
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On Behalf Of Miroslav Visic
Sent: Thursday, August 01, 2002 3:08 AM
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Subject: Bush calls for background checks of IT professionals (2 articles)

Welcome to the United States of Homeland Security...


IT Pros May Face Background Checks

  ------------------------------------------------------------------------

By DAN VERTON
JULY 29, 2002

Washington

The Bush administration plans to convene a panel of government and
private-sector labor and legal experts to develop guidelines for
subjecting tens of thousands of corporate IT and other employees to
background investigations.

The panel, as described in the president's "National Strategy for Homeland
Security" report, released July 16, would be convened jointly by the
secretary of Homeland Security and the attorney general following the
establishment of a cabinet-level Department of Homeland Security. It would
examine whether current employer liability statutes and privacy concerns
would hinder "necessary background checks for personnel with access to
critical infrastructure facilities or systems."

That means employees in industries that include banking, chemicals,
energy, transportation, telecommunications, shipping and public health
would be subject to background investigations as a condition of
employment.

"Personnel with privileged access to critical infrastructure, particularly
[IT-based] control systems, may serve as terrorist surrogates by providing
information on vulnerabilities, operating characteristics and protective
measures," the Bush report states.

Some IT professionals see the plan as both an infringement on civil
liberties and a recipe for destroying innovation and economic prosperity.

Jonathan Blitt, president of ITT Industries Inc.'s Network Systems &
Services division in New York, said expanding background investigations
would do more harm than good.

"I [have] great concern with any effort to expand the size of government
intervention in commercial operations. The people you most want on your
side are the people that may seem least desirable to a panel of so-called
experts," Blitt said, referring to the community of programmers and
ethical hackers who often live on what he referred to as the "fringe" of
society.

"This pandering to the masses should stop, and professional reason should
start. This plan could put shackles on an industry that is critical to the
growth of our country."

Others see no problem with the requirement for background investigations.
Eric Johansen, a systems analyst at ReliaStar Life Insurance Co. in
Minneapolis, is one of those.

"Yes, there is added cost, but companies should be doing this anyway as
part of standard hiring procedures," Johansen said. "A position like
systems analyst [or] network administrator requires access to extremely
sensitive data and control of many business-critical tasks. It would be
ridiculous not to screen employees. Companies should not need President
Bush's push in order for this to happen."

Indeed, background investigations are already conducted by many companies
that have sensitive or critical positions that are vulnerable to terrorist
infiltration, such as airport baggage screeners and air marshals, said Ed
Badolato, president of Washington-based Contingency Management Services
Inc. Investigations are necessary because they "provide a baseline for
preventing known criminals and potential terrorists from working in
vulnerable areas," said Badolato, who oversaw some of the government's
most stringent and expensive background investigations when he served as
deputy assistant secretary for energy emergencies at the Department of
Energy.

The main challenges facing companies that don't currently conduct detailed
background investigations on employees include determining how much of the
workforce needs to obtain a security clearance, who will pay for the
government-level security investigation and how those clearances will be
administered and maintained, said Badolato.

Vinton Cerf, senior vice president for Internet architecture and
technology at WorldCom Inc., said that while there are benefits to such
background checks, they are not a panacea for homeland security.

"Given the technical nature of much of the critical infrastructure it
seems likely that these investigations will uncover some number of risks
that employers were not aware of," said Cerf. However, "I am ambivalent
about the ultimate utility of these measures, since compromise of trusted
individuals is not something an investigation can prevent."

The administration's desire to ensure that employees at critical
facilities don't pose a threat could also provide incentive for Bush to
establish a chief privacy officer post at the proposed Homeland Security
Department. "I think that we are very open to having that discussion,"
said Steven Cooper, Bush's CIO for homeland security. "I suspect the
American public is also interested."

Meanwhile, Bush has threatened to veto current legislation that would
create the cabinet-level post if Congress doesn't grant him the ability to
limit the workplace rights of the 177,000 federal employees who would make
up the new department. Bush has argued that current labor laws would limit
his ability to manage the department. Critics fear that the administration
is seeking a way to deny employees collective bargaining and civil service
protections.

Source: Computerworld


Bush security plan calls for background checks
  ------------------------------------------------------------------------

By DAN VERTON
JULY 22, 2002


WASHINGTON -- Once a cabinet-level Department of Homeland Security is
established, the Bush administration plans to convene a panel of
government and private-sector experts to determine the legal guidelines
for subjecting tens of thousands of private-sector employees to background
investigations.

The panel -- outlined in the president's National Strategy for Homeland
Security released last week (see story) -- would be convened jointly by
the secretary of Homeland Security and the U.S. attorney general. It would
examine whether current employer liability statutes and privacy concerns
would hinder "necessary background checks for personnel with access to
critical infrastructure facilities or systems."

That means tens of thousands of private-sector employees working in
industries such as banking, chemicals, energy, transportation,
telecommunications, shipping and public health would be subject to
background checks as a condition of employment.

Tom Ridge, the current director of the Office of Homeland Security and the
leading contender to become Bush's nominee for the cabinet post, said on
July 21 that the nation remains at risk from an unknown number of
terrorist cells operating within the U.S. And according to the national
strategy, that situation could be further complicated by malicious
insiders with authorized access to critical facilities.

"Personnel with privileged access to critical infrastructure, particularly
[IT-based] control systems, may serve as terrorist surrogates by providing
information on vulnerabilities, operating characteristics and protective
measures," the Bush strategy states.

The administration's desire to ensure that employees working at critical
infrastructure facilities -- 90% of which are owned and operated by
private companies -- could also provide additional incentive for the Bush
administration to establish the post of chief privacy officer within the
proposed Homeland Security cabinet-level office.

"I certainly think that we are very open to having that discussion," Steve
Cooper, president Bush's CIO for homeland security, said today. "I suspect
that the American public is also interested. I think the dialogue is
welcome."

But the challenge of conducting background investigations on such a
massive scale may be far greater than anybody has acknowledged so far,
said Bill Malik, a security analyst at KPMG LLC.

"The biggest problem with background checks for folks working on critical
infrastructure is the broad use of third parties and contractors involved
in the work," said Malik. "The worry at a nuclear power plant is not so
much the regular staff but the cleaning crew, the groundskeepers, the
caterers and the painters.

"And from a law enforcement perspective, it is actually easier to covertly
identify a suspicious person and place them under surveillance than it
would be to scare such folks off, drive them further underground and then
have to wonder what they might be up to from a distance," said Malik.

Gary Gardner, CIO at the Washington-based American Gas Association, which
represents 187 local companies that deliver natural gas to more than 52
million homes, businesses and industries, said the Bush plan focuses on
critical-infrastructure personnel programs and proposes national standards
for screening and background checks.

"As you can imagine, creating national standards and possibly regulation
is not something any industry would like to see," Gardner said. "However,
assistance in strengthening programs and the government strengthening
their own background checking ability -- with industry being able to take
advantage of a national system -- would be welcomed."

During a news briefing last week at the White House, Cooper said privacy
issues will be one of the five guiding principles used to develop the
administration's cybersecurity and critical infrastructure protection
plan.

"Getting the balance right will be a pendulum," he said, referring to the
balance between privacy, civil liberties and the need for greater
security. "We're not going to get the balance right right out of the box."

Source: Computerworld

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