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Stephen Moore: A Tax-Ban No Brainer

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
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The National Review
 November 19, 2004, 11:21 a.m.
A Tax-Ban No Brainer
Congress should keep the Internet-tax ban in place.



Today the House of Representatives will vote to extend the ban on Internet
taxation through November of 2007. Keeping cyberspace tax free has long
been a goal of anti-big-government and pro-technology forces in Washington.
This bill, led by Chris Cox in the House and John McCain and George Allen
in the Senate has significant opposition from tax-eater lobbying groups on
Capitol Hill, especially state and local governments who hope that the
World Wide Web will be their next great cash cow. The Senate enacted the
bill earlier this week; the House should follow suit, and keep the
Internet-tax ban in place.

 President Bush strongly supports this legislation. So, if the House does
its job, next week this pro-taxpayer legislation will be the law of the
land.

The new law will mean no taxes on Internet access, unless you use dial up
and pay the telephone tax (which should be eliminated as well). It also
means no tax on Internet sales. In other words, the Internet will be a
genuine tax-, regulation-, and tariff-free zone.

 A tax on the Internet would do real damage to the U.S. economy. Economic
growth in recent years has been propelled by the technology sector, which
has made a big-time rally after the implosion of 2000-01, when the NASDAQ
fell from 5,000 to 1,500.

The argument against the ban on the Internet tax is that states and
localities need the money and that Internet purchases are eroding the tax
base of city hall and state governments. This is preposterous. The states
and localities are now awash in cash. For example, my home state of
Virginia has a $1 billion state-tax surplus. The same rosy fiscal picture
is true in local governments across the nation. A new Cato Institute study
finds that states and localities have already doubled their tax collections
over the past twelve years, even without tapping into the new frontier of
the digital economy. Governors and mayors should now be aggressively
cutting taxes, not finding sneaky new ways to add to their coffers.

The policy that Congress is about to adopt is simply a continuation of the
federal law that has been in place for the past six years. Since 1998
Congress has wisely declared the Internet a tax-free zone by establishing a
moratorium on Internet-access charges. An "access charge" is essentially a
toll on using the Internet. The idea was to prevent the government from
causing infant crib death of this new consumer technology. After all, as
Justice John Marshall once observed, "the power to tax is the power to
destroy." By all accounts, the Internet-tax moratorium has been a
resounding success. In 1985, about one in six American families and
businesses had access to the web; now, three in four do.

 Moreover, e-commerce is the new frontier of business enterprise.
International Data Corporation recently estimated that the Internet economy
in 2003 reached $2.8 trillion. In the U.S. alone, e-commerce accounted for
$500 billion in business activity and employed 2.3 million Americans. The
Internet sector of the economy is growing at 12 percent per year
compounded. E-commerce, in short, is to the early 21st century what the
steam engine was to early-20th-century economic development. Meanwhile, the
telecommunications sector of the economy now stands ready to invest
billions to upgrade the nation's communications networks and make
high-speed (or broadband) Internet access available to all American homes
and small businesses, as it is for large corporations today.

 All of this is to say, if ever a public policy has worked precisely as
hoped, it is the Internet-tax moratorium.

 Moreover, if the Republicans in Congress really wants to keep tax relief a
centerpiece of their domestic agenda, keeping the IRS and state tax
collectors away from the Internet is critical. By some estimates, a tax on
Internet access could cost families up to $150 a year. If purchases on the
Internet were also taxed, these costs could double or triple.

 There is only one problem with the bill that Congress will vote on today.
It does not make the Internet a tax-free zone permanently. Also, it seems
that if we want a regime of "tax fairness" and a level playing field, all
forms of Internet access, whether dial-up or wireless, should be immunized
from state, local, and federal taxation. While Sen. McCain's compromise
does not meet all of these criteria, it brings us a lot closer to the
ultimate goal.

 Congress today has a chance to ring the bell for liberty. The opportunity
now exists to create, through the growth of the Internet economy, a massive
global free-trade zone. Opponents of the Internet-tax ban argue that this
bill will only put added pressure on all levels of government to lower
taxes on "bricks and mortar" busine

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[Nut Buster]

Title: Just What You Ordered





   
  

  
JOKE OF THE DAY

Dubya Quotes
(Actual Quotes From George W. Bush)  
"If we don't succeed, we run 
  the risk of failure."
  ...George W. Bush 
  "Republicans understand the importance of bondage between a mother 
  and child." 
  ...Governor George W. Bush 
"Welcome to Mrs. Bush, and 
  my fellow astronauts." 
  ...Governor George W. Bush 
"Mars is essentially in the 
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  is very important. We have seen pictures where there are canals, we 
  believe, and water. If there is water, that means there is oxygen. If 
  oxygen, that means we can breathe."
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"The Holocaust was an obscene 
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  we all lived in this century. I didn't live in this century."
  ...Governor George W. Bush, 9/15/95 
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  ...Governor George W. Bush, 12/6/93 
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  ...Governor George W. Bush, 11/30/96 
"I have made good judgments 
  in the past. I have made good judgments in the future." 
  ...Governor George W. Bush 
"The future will be better 
  tomorrow." 
  ...Governor George W. Bush 
"We're going to have the best 
  educated American people in the world." 
  ...Governor George W. Bush 9/21/97 
"People that are really very 
  weird can get into sensitive positions and have a tremendous impact 
  on history."
  ...Governor George W. Bush 
"I stand by all the misstatements 
  that I've made."
  ...Governor George W. Bush to Sam Donaldson, 8/17/93 
"We have a firm commitment 
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  We are a part of Europe."
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"Public speaking is very easy." 
  
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"I am not part of the problem. 
  I am a Republican."
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  indication of fewer people going to the polls."
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  simple: Who is to blame for the riots? The rioters are to blame. Who 
  is to blame for the killings? The killers are to blame."
  ...George W. Bush 
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  high priority."
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"Quite frankly, teachers are 
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"The American people would 
  not want to know of any misquotes that George Bush may or may not make."
  ...Governor George W. Bush 
"We're all capable of mistakes, 
  but I do not care to enlighten you on the mistakes we may or may not 
  have made." 
  ...Governor George W. Bush 
"It isn't pollution that's 
  harming the environment. It's the impurities in our air and water that 
  are doing it."
  ...Governor George W. Bush 
"[It's] time for the human 
  race to enter the solar system."
  ...Governor George W. Bush
  

  

  

Home Office stalls on weapons scanner health risks

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1



The Register


 Biting the hand that feeds IT

The Register  Internet and Law  Digital Rights/Digital Wrongs Â

 Original URL: http://www.theregister.co.uk/2004/11/18/blunkett_xray_blank/

Home Office stalls on weapons scanner health risks
By John Lettice (john.lettice at theregister.co.uk)
Published Thursday 18th November 2004 18:00 GMT

Are your children being irradiated? Are you being irradiated? The UK Home
Office seems unconcerned by the question, despite being responsible for at
least one of the government organisations wielding the devices that might
be doing the irradiating. Weapons scanners that use x-rays are now being
tested by the Metropolitan Police and at Heathrow airport, and while the
effect of a single scan will probably be negligible, the actual health risk
will depend on the nature of the particular deployments, and on the
individuals being scanned. So they should therefore not be deployed
casually, without careful prior consideration, on the basis that they're
'harmless'.

Earlier this week Norman Baker MP asked the Home Office the following
parliamentary question: "To ask the Secretary of State for the Home
Department what air kerma rate has been used to assess radiation doses
associated with the use of the Rapiscan Secure 1000 apparatus." David
Blunkett's (yes, him again, sorry about that) response was: "The
information sought is not in the public domain."
Which is not much of a response from a department deploying at least two
Rapiscan 1000s, and with a unit offering them to police forces throughout
the country.
(http://www.homeoffice.gov.uk/crimpol/police/scidev/news/items/xray2907.html)
Nor is the answer true. (Air kerma, by the way, refers to the amount of
radiation produced by a device.)

Rapiscan 1000s are indeed mostly harmless, probably, depending. Technology
of this sort has been used for baggage scanning for some time now, but more
recently people-sized versions have been undergoing testing in the US and
elsewhere in the world, and x-ray scanning is also being used in other,
mobile and less controlled environments (e.g. scanning containers and
trucks for stowaways). You can find some more about that here.
(http://www.theregister.co.uk/2004/11/08/heathrow_scanner_pilot/) One of
the public domain sources of information about the effects of x-ray
scanners, including the Rapiscan 1000, that David Blunkett says don't exist
can be found here.
(http://www.fda.gov/ohrms/dockets/ac/03/briefing/3987b1_pres-report.pdf) A
presidential report by the US National Council on Radiation Protection and
Measurements carried out for the Food and Drug Administration - very
obscure, not.

The document's very existence provides us with a small case study of how
things work in government on either side of the pond. Both the US and the
UK are proposing and using x-ray scanners on people, but in the US this
involves a diligent process of measurement for potential hazards, while in
the UK they just get haphazardly deployed. Both governments still repress
us, but the US one is somehow more professional about how it starts off,
while the UK one regularly gives the appearance of not being able to find
its arse with both hands.

Back, however, to the document, the measurements and the risks. The dose of
radiation delivered by a scan, which the NCRP team measured in the range
0.04 ÂSv - 0.05 ÂSv, is not terrifying by the radiation standards the US
uses. Negligible Individual Dose (NID) over a year is defined as 10 ÂSv,
which is the effective dose deemed acceptable for a single source, while
ANSI approved a standard in 2002 defining an acceptable dose per scan as
being 0.1 ÂSv or less. This would mean that a security scanner would have
to deliver 2,500 scans of an individual annually at 0.1 ÂSv per scan in
order to reach the US administrative control level of 0.25 mSv. For an
airport security scanner, even operating at a rather higher level, you'd
probably have to be living in it to achieve that kind of level.

But it's not necessarily going to be the only source of radiation you're
exposed to, nor will all of these sources necessarily operate at such low
levels. Cumulative dosage will be higher from scanners you have to pass
several times every day (say, a weapons scanner at a school), and you'll be
exposed at the hospital, at the dentist, and maybe there will be high
exposures you don't know about. The NCRP speaks of proposals for concealed
scanners, and mobile scannners that could check vehicles (which we covered
in our earlier piece), while just today UK Secretary of State for Education
Charles Clarke was proposing to give schools powers to search pupils for
weapons, and to "have arrangements with their local police forces to
undertake snap searches if they thought knives were on school premises".
What kind of equipment did you have in mind they bring with them when they
do that, Cha

Re: E-Mail Authentication Will Not End Spam, Panelists Say

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
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At 11:19 AM -0500 11/19/04, Russell Nelson wrote:
>Anybody can pay to send email right now.

:-).

Of course, I'm talking about something like postage, at the $MTP level.

Again, forget it.

Cheers,
RAH

- -- 
- -
R. A. Hettinga 
The Internet Bearer Underwriting Corporation 
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

-BEGIN PGP SIGNATURE-
Version: 1308

iQA/AwUBQZ5zz8PxH8jf3ohaEQK4MQCfd7YBxFvOj47uNi+9t5pWTA7jY5gAn1fa
krefkKpnmULmZCGENB2F6dnZ
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A Less-Visible Role For the Fed Chief: Freeing Up Markets

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1

This is a really good article, with a lot of useful financial history.

Also note the following:

>"It is in the self-interest of every businessman to have a reputation for
>honest dealings and a quality product," he wrote in Ms. Rand's
>"Objectivist" newsletter in 1963. Regulation, he said, undermines this
>"superlatively moral system" by replacing competition for reputation with
>force. "At the bottom of the endless pile of paper work which
>characterizes all regulation lies a gun."

Cheers,
RAH
- ---



The Wall Street Journal


 November 19, 2004

 PAGE ONE


The Deregulator
 A Less-Visible Role
 For the Fed Chief:
 Freeing Up Markets
Greenspan Blessed Mergers
 And Blocked Regulation;
 Using the 1800s as a Model
Is Modern Finance Too Risky?

By GREG IP
Staff Reporter of THE WALL STREET JOURNAL
November 19, 2004; Page A1


WASHINGTON -- As Alan Greenspan approaches his last year as chairman of the
Federal Reserve Board, he continues to draw praise for his most visible
job: steering the economy by raising and lowering interest rates. But
behind the scenes, the 78-year-old economist has had a big impact on
American life in an entirely different role: pushing the government to stay
out of financial markets.

Consider what happened in 2002, when Democratic Sen. Dianne Feinstein
proposed new rules to govern how traders buy and sell contracts to deliver
energy through financial instruments known as derivatives. Her move came
after Enron Corp. and others helped send electricity prices soaring in
California by manipulating that market. When she telephoned Mr. Greenspan
for support, he declined, telling her the proposal threatened the
multitrillion dollar derivatives industry, which he considers an important
stabilizing force that diffuses financial risk.

Mr. Greenspan persuaded other Bush-appointed regulators to join him in a
critical letter that Sen. Feinstein's opponents wielded as a weapon on the
Senate floor. The bill was narrowly defeated on a procedural motion. Sen.
Feinstein reintroduced the proposal a number of times and at least twice
Mr. Greenspan rallied fellow regulators to oppose it. "I believe it would
have passed without his opposition," Sen. Feinstein says.


In addition to thwarting the post-Enron impulse to regulate derivatives,
Mr. Greenspan has helped remove Depression-era barriers between the banking
and securities industries and has blessed mergers creating banking
behemoths. He has implored regulators to keep their hands off hedge funds
and other markets that are replacing banks as financiers of American
business. Although the Fed is a major bank regulator, it has become a less
intrusive one under Mr. Greenspan.

Behind this advocacy is a passionate belief that freely functioning
financial markets are better than government regulators -- and even central
bankers -- at protecting the economy from booms and busts. Mr. Greenspan
once read that a B-2 "stealth" bomber would crash without a computer that
continuously adjusted its wing flaps. In conversations, he compares markets
to the B-2's computer: They continuously redistribute risk so the economy
can absorb shocks.

The result is a paradoxical position for one of the world's most
influential civil servants: He would prefer that the state play virtually
no role in the economy. His ideal is the pre-Civil War period when the
federal government was so invisible it didn't even issue a national
currency.

In reality, Mr. Greenspan sometimes tailors that radical position to suit
the demands of his job -- such as dealing with the near-collapse of hedge
fund Long Term Capital Management -- as well as the political requirements
of surviving in Washington. But, on balance, his views have been powerfully
influential in deregulating markets at a crucial time in their history when
they are increasing in size, complexity, and the number of ways in which
they interact with everyday people. With Mr. Greenspan's term set to end in
January 2006, an important question is whether his successor will carry on
this less visible role.

Critics say his hands-off regulatory philosophy has made the Fed a less
effective watchdog, citing complicity by Fed-regulated banks in recent
corporate scandals. His intellectual opponents also argue that some
regulation is necessary to moderate the risks inherent in modern finance.

Mr. Greenspan first articulated many of his views in the 1960s when he was
part of the intellectual circle surrounding libertarian philosopher Ayn
Rand. If businesses were solely responsible for their own reputation, he
said at the time, they would do whatever necessary to maintain it or
ultimately fail.

"It is in the self-interest of every businessman to have a reputation for
honest dealings and a quality product," he wrote in Ms. Rand's
"Objectivist" newsletter in 1963. Regulation, he said, undermines this
"superlatively moral sys

Re: China's wealthy bypass the banks

[ken]

James A. Donald wrote:
--
ken wrote:
And when was this stagnation?

R.A. Hettinga wrote:
Two words: Ming Navy

For those who need more words, the Qing Dynasty forbade 
ownership or building of ocean going vessels, on pain of death 
- the early equivalent of the iron curtain. 
Which was a couple of millenia *after* the distinctive Confucian 
philosophy became the official code of most  Chinese governments.
So that can't be the reason for Chinese stagnation.  QED.

(Which as TD pointed out better than I could have was short-lived 
and nowhere near as general as we used to paint it)

And it was the later Ming period - not Qing

Re: [osint] Group to launch terrorist database

[Chris Kuethe]

On Thu, 18 Nov 2004 23:45:33 -0500 (EST), Steve Thompson
<[EMAIL PROTECTED]> wrote:
> 
> They should set up a snitch line, so to speak, so that the general public
> can report, possibly even by email, incidents of small-scale terrorism and
> potential terrorism that they might witness as they go about their daily
> lives.  It couldn't hurt.  In fact, such a move would easily eliminate any
> question of institutional bias in reference to the selection criterion used
> to evaluate whether any given incident qualifies as terrorism or not. 

Quoting from http://bofh.ntk.net/Bastard3.html
==
I make a mental note of his license plate.  In fact, I did that 60
times a minute for 15 and a half minutes.  Oh dear.. oh dear 
Looks like another call to the DMV Database to register a vehicle as
stolen by out of town arms
dealers...
==

So when some jackhole cuts you off in traffic, now you don't report
him as a possible drunk driver, now you can turn him into DHS as a
highway terrorist. Unless he's preemtively called you in. Everyone
remember the rules of the prisoner's game?

Anyway, you already have snitch lines.
http://www.fbi.gov/page2/oct04/seekinfo103004.htm says you can use the
online tip form, or contact your local FBI office or US embassy. Or
your police department.

> I'm not usually one to come out in favour of government database
> systems, but for something like the terrorism database (which has
> the potential to greatly enhance the security of democracy and law),
> what's there not to like about it? 

Howzabout the difficulty of sorting the useful tips out of the chaff
when you just know that some new spam network will be set up to flood
the system with bogus yet somewhat plausible tips.

Howzabout the difficulty that you - the meat blob - will have trying
to get your name out of the database after you unfortunately happened
to be within a 10 mile radius of "the real terrorists".

Howzabout the fact that in this day and age of the internet and
telephone, no one seems to have successfully managed to hack up some
little Law-Enforcement-Only forum where "They" go to talk about how to
catch terrorists. That's a people problem, really.

Howzabout the fact that all LE organizations seem to have a real hard
time working together, squealing about jurisdiction, etc. If they were
actually serious about getting the job done, they'd either put the
"juris-my-dick-tion bullshit" or there would be some presidental
directive simply ordering everyone to play nice together. I don't
think either of those are happening, based on the number of security
czars who seem to be retiring suddenly.

-- 
GDB has a 'break' feature; why doesn't it have 'fix' too?

Re: E-Mail Authentication Will Not End Spam, Panelists Say

[Russell Nelson]

R.A. Hettinga writes:
 > >mail, followed by email from strangers (which is where all the spam
 > >is).
 > 
 > A whitelist for my friends, all others pay...
 > 
 > oh, forget it.

Anybody can pay to send email right now.  You just go to paypal, type
in the person's email, enter the amount of money you think is
necessary to persuade them to read the email, and put the text of your
message in the comment box.  My email is [EMAIL PROTECTED];
feel free to send me as much email as you want, ca-ching!

But anyway, that's not what I propose.  I suggest that email from
strangers needs to come with an introducer of some sort to convince
you to read it.  There's a dozen different kind of introducers which
could be used, some of them using cryptography, only one or two of
which involve payment.  The days when all email was treated equally by
an email client are long past, or at least, should be if you're
running a decent email client.  Maybe the level of spam complaints is
caused by the low quality of email clients?

-- 
--My blog is at angry-economist.russnelson.com  | Violence never solves
Crynwr sells support for free software  | PGPok | problems, it just changes
521 Pleasant Valley Rd. | +1 212-202-2318 voice | them into more subtle
Potsdam, NY 13676-3213  | FWD# 404529 via VOIP  | problems.

[no subject]

[no subject]

[Ben]

Do you want a cheap Watch?
http://rdp.afeet.com

Re: Gov't Orders Air Passenger Data for Test

[John Kelsey]

News story quoted by RAH:

>WASHINGTON -  The government on Friday ordered airlines to turn over
>personal information about passengers who flew within the United States in
>June in order to test a new system for identifying potential terrorists.

The interesting thing here is that they can't really test how effective the 
system is until they have another terrorist event on an airline.  Otherwise, 
they can assess the false positive rate of their list (people who were on the 
no-fly-list, shouldn't have flown according to the rules, but did without 
trying to hijack the plane), and the false positive and false negative rate of 
their search for names in the list (e.g., when it becomes obvious that Benjamin 
Ladon from Peoria, IL would have matched, but wasn't the guy they were hoping 
to nab, or when it becomes obvious that a suspected terrorist was in the data, 
did fly, but wasn't caught by the software).  

> The system, dubbed "Secure Flight," will compare passenger data with names
>on two government watch lists, a "no fly" list comprised of people who are
>known or suspected to be terrorists, and a list of people who require more
>scrutiny before boarding planes.

Presumably a lot of the goal here is to stop hassling everyone with a last name 
that starts with al or bin, stop hassling Teddy Kennedy getting on a plane, 
etc., while still catching most of the people on their watchlists who fly under 
their real name.  

...
> Currently, the federal government shares parts of the list with airlines,
>which are responsible for making sure suspected terrorists don't get on
>planes. People within the commercial aviation industry say the lists have
>the names of more than 100,000 people on them.

This is a goofy number.  If there were 100,000 likely terrorists walking the 
streets, we'd have buildings and planes and bus stops and restaurants blowing 
up every day of the week.  I'll bet you're risking your career if you ever take 
someone off the watchlist who isn't a congressman or a member of the Saudi 
royal family, but that it costs you nothing to add someone to the list.  In 
fact, I'll bet there are people whose performance evaluations note how many 
people they added to the watchlist.  This is what often seems to make 
watchlists useless--eventually, your list of threats has expanded to include 
Elvis Presley and John Lennon, and at that point, you're spending almost all 
your time keeping an eye on (or harassing) random harmless bozos.  

>R. A. Hettinga 

--John

Re: Terror Net

[Pete Capelli]

This'll be sweet.  Think of the DoS, false positive fun you could have
with these ...

On Fri, 19 Nov 2004 09:41:32 -0500, R.A. Hettinga <[EMAIL PROTECTED]> wrote:

> 
> Technology Review
> 
> Terror Net
> 
>  By Lakshmi Sandhana
>  Innovation News
> December 2004
> 
> Ever since the September 11 terrorist attacks, federal agencies have been
> wishing for a system capable of issuing a nationwide alert at the first
> sign of a chemical, biological, or radiological attack. Now such a system
> is undergoing trials in Tennessee.
> 
-- 

Pete Capelli  [EMAIL PROTECTED]
http://www.capelli.org PGP Key ID:0x829263B6
"Those who would give up essential liberty for temporary safety deserve neither 
liberty nor safety" - Benjamin Franklin, 1759

Terror Net

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1



Technology Review


Terror Net




 By Lakshmi Sandhana
 Innovation News
December 2004


Ever since the September 11 terrorist attacks, federal agencies have been
wishing for a system capable of issuing a nationwide alert at the first
sign of a chemical, biological, or radiological attack. Now such a system
is undergoing trials in Tennessee.


Developed by the U.S. Department of Energy's Oak Ridge National Laboratory
in Tennessee, the new system consists of sensor packages attached to
structures such as cell-phone towers. The packages will include detectors
for airborne chemicals and radioisotopes, and for weather changes. The
intent of the system-which is being tested in Knoxville, Nashville, and
other locations-is to detect plumes of contaminants, predict their spread,
and quickly alert command centers. In a 2002 test, prototype sensors
successfully detected discharges of simulated sarin gas in three cities 140
to 270 kilometers apart and dispatched pertinent data in less than two
minutes. The current trial will test the system on an even larger scale.

The Department of Defense, the Department of Homeland Security, and other
organizations are sharing the cost of developing the system; at least $12
million has been assigned to it for the coming year. "At this point, we are
not deployed nationwide, but we've demonstrated the scalability of the
technology," says Jim Kulesz, special-projects manager at Oak Ridge.
Observers say the technology, while promising, is not a panacea. If fully
deployed, says Paul Sereiko, president of Needham, MA-based wireless-sensor
maker Sensicast Systems, it "will provide an excellent early-warning system
for wide-area contaminant monitoring." But, he adds, additional local
monitoring will still be needed.


- -- 
- -
R. A. Hettinga 
The Internet Bearer Underwriting Corporation 
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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Version: 1308

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[ISN] Under Phishing Attack, British Bank Shuts Down Some Services

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1


- --- begin forwarded text


Date: Fri, 19 Nov 2004 05:03:00 -0600 (CST)
From: InfoSec News <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
Subject: [ISN] Under Phishing Attack, British Bank Shuts Down Some Services
Reply-To: [EMAIL PROTECTED]
List-Id: InfoSec News 
List-Archive: 
List-Post: 
List-Help: 
List-Subscribe: ,

Sender: [EMAIL PROTECTED]

http://www.informationweek.com/story/showArticle.jhtml;jsessionid=CIGVP13WT43RMQSNDBGCKHSCJUMEKJVN?articleID=53700579

By Gregg Keizer
TechWeb News
Nov. 18, 2004

One of the four biggest banks in the United Kingdom has taken the
unusual step of suspending some features of its online service
following a phishing attack.

On Wednesday, NatWest, which is part of the Royal Bank of Scotland
Group and one of Britain's big four banks, shut off features to its
million-plus online customers. When users logged on to the NatWest
site, they saw a message that read, "We have temporarily suspended the
ability to create or amend Third Party Payment mandates and create
Standing Order mandates."

Third-party-payment mandates, said Caroline Harris, a NatWest
spokesperson, are ad-hoc electronic-payment requests outside the
normal bill payments already established. They're typically used to
pay individuals electronically. Standing-order mandates are the U.K.
equivalent of a scheduled bill payment.

"We've not shut down the entire site, as some press reports would have
you believe," said Harris, "but we've only restricted one small part."

The phishing e-mail received by NatWest customers claimed to be part
of a software update to the online banking service.

"This is only temporary," said Harris, "and is a preventative measure
to protect our customers. Because we've [blocked third-party-payment
and standing orders] the phishers haven't been able to take money out
of customer accounts."

She reiterated that no NatWest customer had lost money to the scam.

NatWest urged customers who may have given up personal information to
contact the bank, and said that alternate ways to make payments, such
as by telephone, remained an option.

Although Harris said such action was "nothing new" and that the bank
had done similar things before when faced with determined phishers, a
U.S.-based banking analyst said it was news to her.

"I've never heard of that tactic before," said Avivah Litan, a
research director and vice president with Gartner who specializes in
bank fraud and phishing issues. "Not that it's a bad action, but it
sounds to me that NatWest didn't have a way to contain the damage.

"It's an extreme measure. It probably means that they don't have other
risk-control mechanisms in place, or the attack was getting out of
hand," she added.

And while NatWest reacted quickly, there's a real chance a temporary
measure like this won't stop phishers from exploiting stolen
information. Increasingly, she said, it seems phishers are a lot more
patient than anyone thought.

"When you look at the big picture, there's more and more evidence that
phishers are sitting on the information [they steal], and that the
real damage may not show up for a year or two."

Phishers, Litan went on, "are very clever, and have a lot of time and
patience." Rather than use their ill-gotten information immediately --
which is what NatWest assumes by temporarily limiting on-the-fly
payments -- there's growing concern that cyber-criminals wait a long
time before pouncing.

One tactic phishers are using, said Litan, is to apply for new credit
cards using stolen identity information, use and pay those cards, and
over a period of months, even as long as two years, build up the
cards' credit limits.

"Then they'll do 'bust-outs,'" said Litan. "That's when they run
through the credit limit, say $50,000, before the first bill comes
due, with no intention of paying."

The worst news, about NatWest's move, concluded Litan, is that it may
only be the beginning of a new wave of banking business disruptions.

"Once I thought that maybe phishing was a fad, and after a while it
would be replaced by some other scam, like keyloggers. But it's not a
fad. It's going to get worse, and it's not going to slow down."



_
Open Source Vulnerability Database (OSVDB) Everything is Vulnerable -
http://www.osvdb.org/

- --- end forwarded text


- -- 
- -
R. A. Hettinga 
The Internet Bearer Underwriting Corporation 
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

-BEGIN PGP SIGNATURE-
Version: 1308

iQA/AwUBQZ4H88PxH8jf3ohaEQJ4GwCfQ0s+fQlkneSb6Tqq3l1sfMV

On the Move

[Kenton Lay]

Please review this entire email about:
Motion DNA

Pink Sheets Stock Symbol MTDN
http://www.otcbb.com/asp/quote_module.asp?symbol=MTDN

Big year expected in 2005 for Motion DNA
  
Trading Symbol MTDN
Current Price (est.) $0.025
Valued Price (est.) $1.00

First time investors please read this:
http://www.pinksheets.com/otcguide/investors_howtobuy.jsp

Company officials expect to make the move to become a reporting company, due to their high expectations Motion DNA may surpass revenue projections for 2005. Currently with almost $500,000 in assets, zero debt, and increasing interest in its franchise program, company officials term the financial viability of Motion DNA as "solid". "All of the road blocks appear to be removed and Motion DNA expects to increase its market presence in the sports medicine industry and improve company revenues substantially," said Zig Ziegler, President of Motion DNA. "We can now focus on increasing customer awareness and sales of our products and services."

In a move expected to provide future franchisees with access to a solid customer base, Motion DNA officials have agreed to terms with one of the nation's leading health club chains with over 430 locations in the US and Europe. Motion DNA is expected to launch its first analysis center in one of the club?s Arizona locations. Franchisees will be awarded locations as part of their territories. A formal announcement is expected within the coming weeks.

Motion DNA is scheduled to demonstrate its newest pitching and overhead analysis at the upcoming Minor League Baseball Tradeshow. The tradeshow, scheduled for December 10, 11, and 12, coincides with the annual Winter Meetings for Major League Baseball. Representatives from more than 200 Major League and Minor League Baseball clubs, leagues and organizations typically attend the Baseball Trade Show during their annual meetings. In addition, baseball representatives, coaches, and organizers from Independent League, College, High School and Little League, as well as other baseball affiliated organizations are invited to attend the Baseball Trade Show. Current Major League Player Ramon Hernandez of the San Diego Padres and an endorser of Motion DNA is expected to attend the event and assist in promoting the company to his big league peers. Canadian Olympian Fastpitch Softball Player Lauren Bay, is also expected to attend the tradeshow along with other company officials

More about Motion DNA 
Motion DNA Corporation provides diagnostic testing for medical professionals and sports organizations. Motion DNA's biomechanical analyses and detailed reports provide its licensees and consumers with solutions for preventing injuries, identifying physical limitations, diagnosing pre-existing injuries related to biomechanics, and improving physical performance levels.

Tax inspector's quest in 'The Cryptographer'

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1


 

The Star Online: Lifestyle


Friday November 19, 2004

Tax inspector's quest in 'The Cryptographer'
Review by JOANN KOH

The Cryptographer
 Author: Tobias Hill
Publisher: Faber and Faber 

 If cryptography is the science of concealing something, such as "the
blueprint of a gun in a conversation about snow", then Tobias Hill himself
must be an expert cryptographer.  

 If he had meant to be so, that is. 

 This book is full of brilliant insights - but I had to dig for each
nugget, because he is not always clear. Or direct. But perhaps it is
because Hill is good at getting under his characters' skin (he won the 1998
PEN/MacMillan Award for Fiction for his debut novel, Skin).  

 Then again, perhaps he is too good. 

 In the book, the protagonist Anna Moore, tax inspector A2 grade of Her
Majesty's Inland Revenue Service, is paid to doubt what her "client" says
(client being a euphemism for those we must investigate), and Anna Moore
doubts plenty. In trying to show us how the mind trips up when doubting,
Hill may have caused us to stumble, too. It is quite an exercise of
tenacity, by page 20, to reread what Anna says or doesn't say - to make
sure what Anna says, or doesn't say, is what Anna means exactly. But then
again, this is stream-of-consciousness writing, and novels with ambiguity
of this level do not sit well with me.  

 That said, however, if you enjoy ideas and feel up to a challenge, this
novel could be for you.  

 It is the year 2021, when Soft Gold, an unbreakable form of electric money
has replaced paper money. Anna is assigned to investigate John Law,
cybergenius, cryptographer and inventor of Soft Gold, for an undeclared sum
of four million dollars in an account in his son's name - a surprising sum
to be secret about for a quadrillionaire. For Anna - who believes that
after a certain point, we begin chasing money not for money's own sake, but
for the love of someone we have, someone we want or hope to be - this is
the beginning of an obsession. Anna wants to know whom John Law thinks of,
when he thinks of money.  

 In this invented world, the future belongs to John Law. But the world of
the future fears him as much as they respect him. For a man who knows how
to embed "encrypted information in the genetic code of plants and flowers",
(the patent of which, at age 17, he sold to the US government for seven and
a half million dollars) may also embed a deadly virus in our bodies should
he wish to quietly exterminate us. A man with so much wealth can vacuum his
gut ever so frequently and outlive us - a demigod amongst mortals.  

 And so on and so forth.  

 Law creates the downloadable Soft Gold freeware, which he guarantees is
totally secure because no computer has yet been invented that can break the
code. But he also knows it is human nature to want to break an unbreakable
code, for by breaking it, not only does one discover its defects, one also
exceeds its inventor. So, it is just a matter of time when Soft Gold gets
broken into and John Law becomes a hunted man. This time, Anna is assigned
to hunt him down.  

 Concealed within are two love stories, involving old loves Anna and
Lawrence and new loves Anna and John. Lawrence waits patiently to re-ignite
a stalled relationship, but Anna feels she no longer loves him; she has
betrayed his trust, once; she feels she trusts him though. But she doesn't
know if she can trust John Law, although she wants to; the second pursuit,
on a personal level, is for her to find out if she can. Because without
trust, she knows, love will not be possible.  

 Read The Cryptographer for the thinker in you, and not the "feeler". And
welcome to the invented world of Tobias Hill.

- -- 
- -
R. A. Hettinga 
The Internet Bearer Underwriting Corporation 
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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[no subject]

[Cristina]

Want a Watch?
http://mnx.afeet.com

Pioneer of Sham Tax Havens Sits Down for Pre-Jail Chat

[R.A. Hettinga]

-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1



The New York Times

November 18, 2004

Pioneer of Sham Tax Havens Sits Down for Pre-Jail Chat
By DAVID CAY JOHNSTON

EATTLE, Nov. 17 - Jerome Schneider, the nation's best-known seller of
fraudulent offshore banks, said in an interview today that he had helped
hundreds of rich Americans evade taxes, including actors, celebrities and
business owners.

 Mr. Schneider, who pleaded guilty in February to conspiring to help his
clients evade the tax laws, said that he expected "every single one" of his
clients to be prosecuted or sued for the taxes they evaded. He said clients
sought to evade taxes on incomes ranging from $100,000 to $40 million,
though most were from a third to half a million dollars.

 Mr. Schneider, 53, spoke in a cramped hotel room here under the watchful
eye of three Internal Revenue Service criminal investigators, who said
nothing but smiled broadly at times as he answered questions and named
clients and associates. The I.R.S. set up the interview with Mr. Schneider
but did not interfere with it. The agency, by law, cannot comment on
individual taxpayers.

 Under the terms of his agreement with the government to plead guilty, Mr.
Schneider may not make any public comments about his former clients
"without prior consent of the government." He is to be sentenced on Monday
in Federal District Court in Los Angeles. In return for his cooperation, he
is expected to serve no more than 24 months in prison. He has already paid
$100,000 in restitution.

Mr. Schneider said he always reported his full income to the I.R.S. and
never personally used an offshore bank to hide income.

Since 1976, Mr. Schneider has set up sham banks for clients in the Cayman
Islands, Grenada, Montserratt, Vanuatu, the Cook Islands and, recently, in
Nauru, a Pacific island.

Clients paid as much as $60,000 to "acquire" an offshore bank, which
consisted of nothing more than pieces of paper to create the appearance of
legitimate business activity, he said, confirming the accusations in the
government indictment. He said that while most clients wanted to hide money
from the I.R.S., some also wanted to conceal money from estranged spouses
or creditors.

"Every one of my clients knew full well what they were getting into,
including the potential to be prosecuted," he said, detailing how they
signed contracts, were advised by lawyers and were told that if tax
authorities ever caught onto them they could go to prison. "They understood
that," he contended.

 He said that all his clients had two things in common - they were rich and
they wanted to escape taxes.

Most of the nation's major accounting firms worked with one or another of
his clients, he said, and he named two law firms that he said were central
to his business.

 He said one prominent actress sent money to the United International Bank
in Nauru, which he said he created. He said the actress paid $50,000 for a
legal opinion asserting that the arrangement was legal.

 Mr. Schneider also said that in 1988 he arranged for a prominent
motivation coach to place $250,000 in an offshore bank without reporting
the money to the I.R.S.

 In addition, Mr. Schneider said that a billionaire media businessman, one
of several clients who he said were on the Forbes 400 list of the
wealthiest Americans, sent $40 million to a sham bank in Nauru to pay for a
nut-processing company in 1994. The owner of the company has died, but his
estate is challenging in Tax Court an I.R.S. demand that taxes be paid on
profits from the sale.

 For 28 years, Mr. Schneider promoted offshore tax schemes. He sold, he
said, more than a million copies of his book, "The Complete Guide to
Offshore Money Havens," which he advertised in The Wall Street Journal and
SkyMall, a magazine found in the seat-back pocket on many airlines. The
2000 edition book carried an endorsement by Representative Billy Tauzin,
the Louisiana Republican, who also spoke at one of Mr. Schneider's tax
evasion conferences. Mr. Tauzin's spokesman, Ken Johnson, said the
endorsement was "a stupid mistake."

 Mr. Schneider, 53, who lives in Vancouver, British Columbia, was the
picture of a successful businessman, dressed in a knit shirt, gray wool
slacks and black loafers, his graying hair clipped short, his face framed
by horn-rimmed glasses.

 He began the interview by describing his conduct in terms of helping
people, but when pressed he said, "Yes, I am a criminal."

 Mr. Schneider said his undoing began the day more than a decade ago when
he asked Jack Blum, a former United States Senate investigator, to speak at
one of his offshore seminars. Mr. Blum, who specializes in exposing
international financial crimes, wrote a letter to the Justice Department
that prompted the investigation that led to Mr. Schneider's guilty plea.

 Mr. Blum said, "That Schneider could operate openly for years, buying ad

On the Move

[Charlie Goldsmith]

Please review this entire email about:
Motion DNA

Pink Sheets Stock Symbol MTDN
http://www.otcbb.com/asp/quote_module.asp?symbol=MTDN

Big year expected in 2005 for Motion DNA
  
Trading Symbol MTDN
Current Price (est.) $0.025
Valued Price (est.) $1.00

First time investors please read this:
http://www.pinksheets.com/otcguide/investors_howtobuy.jsp

Company officials expect to make the move to become a reporting company, due to their high expectations Motion DNA may surpass revenue projections for 2005. Currently with almost $500,000 in assets, zero debt, and increasing interest in its franchise program, company officials term the financial viability of Motion DNA as "solid". "All of the road blocks appear to be removed and Motion DNA expects to increase its market presence in the sports medicine industry and improve company revenues substantially," said Zig Ziegler, President of Motion DNA. "We can now focus on increasing customer awareness and sales of our products and services."

In a move expected to provide future franchisees with access to a solid customer base, Motion DNA officials have agreed to terms with one of the nation's leading health club chains with over 430 locations in the US and Europe. Motion DNA is expected to launch its first analysis center in one of the club?s Arizona locations. Franchisees will be awarded locations as part of their territories. A formal announcement is expected within the coming weeks.

Motion DNA is scheduled to demonstrate its newest pitching and overhead analysis at the upcoming Minor League Baseball Tradeshow. The tradeshow, scheduled for December 10, 11, and 12, coincides with the annual Winter Meetings for Major League Baseball. Representatives from more than 200 Major League and Minor League Baseball clubs, leagues and organizations typically attend the Baseball Trade Show during their annual meetings. In addition, baseball representatives, coaches, and organizers from Independent League, College, High School and Little League, as well as other baseball affiliated organizations are invited to attend the Baseball Trade Show. Current Major League Player Ramon Hernandez of the San Diego Padres and an endorser of Motion DNA is expected to attend the event and assist in promoting the company to his big league peers. Canadian Olympian Fastpitch Softball Player Lauren Bay, is also expected to attend the tradeshow along with other company officials

More about Motion DNA 
Motion DNA Corporation provides diagnostic testing for medical professionals and sports organizations. Motion DNA's biomechanical analyses and detailed reports provide its licensees and consumers with solutions for preventing injuries, identifying physical limitations, diagnosing pre-existing injuries related to biomechanics, and improving physical performance levels.

Re: Why Americans Hate Dissenters

[Nomen Nescio]

John Young:

> On CJ (Carl Johnson) and Jim Bell:

Hi John

Thanks for the info! Several times in the past I've seen concrete
relevant questions asked on the list without anyone taking their time
to answer them. The stories of these cypherpunks are indeed
interesting and relevant for the list.

I guess the story of Jim and CJ is the reason why one of the
cypherpunks nodes used to have this text on the page:

"It is known this list is under surveillence by US and foreign law
enforcement and intelligence agencies, consider using anonymous
remailers and cryptography"

Regards

Undeliverable: KCO SPAM? Hi Tolbert

[System Administrator]

Your message

  To:  Tolbert
  Subject: KCO SPAM? Hi Tolbert
  Sent:Thu, 18 Nov 2004 10:48:42 -0500

did not reach the following recipient(s):

Tolbert on Fri, 19 Nov 2004 03:38:37 -0500
The recipient name is not recognized
The MTS-ID of the original message is: c=US;a= ;p=Kellen
Compay;l=ATLEX0411190838WQQ01PH4
MSEXCH:IMS:Kellen Compay:KCO:ATLEX 0 (000C05A6) Unknown Recipient


--- Begin Message ---
Hi Tolbert
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