Re: Coffee, Tea, or Should We Feel Your Pregnant Wife's Breasts Before Throwing You in a Cell at the Airport and Then Lying About Why We Put You There?

[Shawn K. Quinn]

On Mon, 2004-12-20 at 11:56 -0500, Tyler Durden wrote:
> Well, there's a TINY little hole in your logic here...

  [J.A. Terranson wrote:]
> >Scale of distance is the only difference.  Either you support the system
> >or you don't.  I don't: I either drive to jobs (charging for mileage) or I
> >pass on them, rather than take part in the police state that is todays air
> >system.  You have the very same choices.  The argument eveyone is making
> >here is that it is too much of an inconvenience (financial or otherwise),
> >*not* to fly.  Sorry, but that's just pure self-serving BS.
> 
> For one, Flying can easily be a requirement, not an option. But that's 
> besides the point here.
> 
> The real point is that some Super-JAT could (5 years from now when there are 
> ubiquitous highway checkpoints) argue that "walking from NYC to Boston may 
> be difficult but it IS possible". Or of course (after Tenent's vision for 
> the internet is realized) "You could simply Fedex those files, you don't 
> need to use the internet"

Agreed, if you want or need to get between cities faster than land-based
travel will allow, flying is in fact a requirement. That was, in fact,
my point. (Would anyone actually resort to walking between NYC and
Boston?)

As an aside, I often jokingly used the phrase "the only broadband
connections we would have would be UPS and FedEx" back in the days when
DSL and cable modem connections were not as ubitiquous (yes I know
satellite is also an option but it's $DEITY-awful slow and only usable
for the most basic of needs). However, regulation of the Internet such
that couriers would be the only feasible way to move large amounts of
data around (burned to CD or DVD as the case may be) is not a joking
matter in the least.

-- 
Shawn K. Quinn <[EMAIL PROTECTED]>

Rice University Computer Scientists Find a Flaw in Google's New Desktop Search Program

[R.A. Hettinga]

The New York Times

December 20, 2004

Rice University Computer Scientists Find a Flaw in Google's New Desktop
Search Program
 By JOHN MARKOFF


AN FRANCISCO, Dec. 19 - A Rice University computer scientist and two of his
students have discovered a potentially serious security flaw in the desktop
search tool for personal computers that was recently distributed by  Google.

The glitch, which could permit an attacker to secretly search the contents
of a personal computer via the Internet, is what computer scientists call a
composition flaw - a security weakness that emerges when separate
components interact. "When you put them together, out jumps a security
flaw," said Dan Wallach, an assistant professor of computer science at Rice
in Houston, who, with two graduate students, Seth Fogarty and Seth Nielson,
discovered the flaw last month. "These are subtle problems, and it takes a
lot of experience to ferret out this kind of flaw," Professor Wallach said.

Google introduced a test version of the desktop search tool on Oct. 14, and
it can be downloaded at no cost. The program indexes material on a user's
local hard disk and then blends Web search results with local user
information like electronic mail, text documents and other files. The flaw
would permit a search to reveal only small portions of the files.

The way the software tool is designed, a user's queries, but no locally
stored information, is distributed via the Internet. But by reading user
queries sent to its search service, Google is able to place its AdWords
text advertisements next to the search results displayed in a user's
browser window.

In a statement over the weekend, the company said that it had been notified
of the flaw by the computer researchers in late November and had begun
distributing a new version of the desktop search engine that repairs the
potential security hole. Google's introduction of a desktop search tool has
touched off a competition with its closest Web search service competitors,
Microsoft and  Yahoo.

 Microsoft made a test version of its desktop search tool available last
Monday as part of its MSN toolbar suite, and Yahoo has said that it will
begin testing a similar search tool in January.

The Rice University researchers said that they had not yet examined
Microsoft's desktop search program, but noted that the service did not
appear to integrate Web and local search results in the same manner as the
Google tool.

The researchers said that the Google security weakness lay in the way that
Google Desktop was designed to intercept outgoing network connections from
the user's computer.

The program looks for traffic that appears to be going to Google.com and
then inserts results from a user's hard disk for a particular search. They
found that it was possible to trick the Google desktop search program into
inserting those results into other Web pages where an attacker could read
them.

 An attack would require a user to visit the attacker's Web site first, and
any type of Web browser could make a user vulnerable. Google said there was
no evidence that any such attacks had occurred.

 The Rice group was able to create a Java program that makes network
connections back to the computer from where it was downloaded and then make
it appear as if it were asking for a search at Google.com. That was enough
to fool the Google desktop software into providing the user's search
information. The program was able to do anything with the results,
including transmitting them back to the attacking site.

"This began as a student project to study how Google Desktop worked and to
see if there were any security flaws," said Professor Wallach. "We started
by wondering how Google did the local search integration. Once we figured
out how it worked, it wasn't too much extra work to break it."

The researchers said that Google had responded quickly to their alert last
month and had begun releasing a corrected version of the program on Dec. 10.

 The Google desktop program includes an update feature that permits the
company to automatically install new versions of the program on users'
computers without user intervention or knowledge.

The Rice researchers said that it was possible for users to tell if their
version of the Google program had been patched by examining the "about"
page from the Google Desktop icon in the browser task bar. Version numbers
above 121,004 indicate a newer edition of the program.

-- 
-
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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Digipass Starts to Make a Mark

[R.A. Hettinga]

The Wall Street Journal

  December 20, 2004

Digipass Starts to Make a Mark
Vasco Enhances Online Security
 As Web Banks Gain Popularity

By STEVE DE BONVOISIN
DOW JONES NEWSWIRES
December 20, 2004


BRUSSELS -- Life-insurance salesman Renaud Bruneels, 34 years old, says he
doesn't have time to take care of "life's little administrative issues" by
visiting a bank during regular business hours.

The Belgian has solved the problem by becoming one of 12 million users
world-wide of Vasco Data Security International Inc.'s Digipass. The
pocket-size gadget, which looks like a calculator, lets him use a single
password to pay everything from garbage fees to phone bills over the
Internet.

INSIDE TECH

1
See complete coverage2 of Europe's technology sector, from cellphones to
software.

"It gives me the level of security I need to ... do all my banking
transactions," Mr. Bruneels says.

Vasco, which is based in Brussels and Chicago, is riding an uptick in
online banking -- particularly in Europe, which has moved ahead of the
U.S.; the company believes that the U.S. market will take off within the
next two years, as banks roll out the service to retail customers.

Digipass can be used to access anything online, from bank accounts to
secure servers to a corporate intranet. Given a username and password, it
issues a one-time code to be used for purchases or transactions on the Web.
Because the code only works once, hackers who infiltrate a computer can't
use it again. The added level of security sets the Digipass system apart
from other online transactions via mobile handsets or laptop computers.

Vasco was founded in 1997 by Digipass inventor Jan Valcke, a Belgian, and
Ken Hunt, an American who ran an online-authentication software company.
But after the Internet bubble burst in 2000, customers hesitated to invest
in Internet banking security.

Digipass "came out a little too early ... when the big focus was on viruses
and not on identity theft," said Edward Ching, technology analyst at Rodman
& Renshaw in New York.

The stock fell from a high of $25 (¤18.81) in February 2000 to under $1 in
early 2003, forcing Vasco to delist from Nasdaq's National Market and move
on to the SmallCap Market.

In 2002, Mr. Hunt took over as chief executive. Vasco switched to "just in
time" production, and spent hundreds of thousands of dollars training
resellers to tackle the corporate-access market.

In November, the company posted its third consecutive quarterly sales
increase. Vasco forecasts 2004 sales will rise between 23% and 25% from
$22.87 million in 2003, and on Thursday Vasco said it expects 2005 sales to
grow 35% to 45% with gross margins in the range of 60% to 65%.

On Friday, Vasco shares fell eight cents to $6.40 in 4 p.m. Nasdaq Stock
Market trading.

Vasco still faces stiff competition. It has only about $10 million in cash,
putting it at a disadvantage against U.S. rival RSA Security Inc., when
chasing big contracts. In September, RSA signed a landmark deal with Time
Warner Inc.'s America Online service to provide authentication for users
signing into their online e-mail accounts.

"We don't have the brand recognition we deserve," says Mr. Hunt, who admits
Vasco wasn't even invited to bid on the Time Warner contract. As a result,
the company has increased its presence in trade shows together with
partners such as Novell Inc. and Lucent Technologies Inc., and is bringing
prospective and current clients together in workshops to help them solve
operational problems.

More than 100 million households world-wide now bank online, and that
number is expected to triple to 300 million or more households by the end
of the decade. Europe has taken the lead. About 37% of all Internet users
on the Continent bank online, as opposed to 17% in the U.S., according to
reports from research firms Gartner and Forrester Research. The number of
Europeans carrying out financial transactions on the Net is expected to
rise to 130 million by 2007, compared with 67 million Americans.

Banks are Digipass's main customers. "Digipass is the most secure system
available and the one which offers the greatest mobility," said Liliane
Tackaert, spokeswoman for Belgo-Dutch banking giant Fortis NV. About
775,000 of the bank's clients in Belgium and Luxembourg use the service.

Rabobank, of the Netherlands, Europe's biggest online bank in terms of
online customers, has more than two million Digipasses in use.

Vasco hopes it will become a lead supplier for the new European EMV payment
card next year. Developed jointly by Europay International, MasterCard Inc.
and Visa International, the card requires a PIN number in addition to a
usual signature when buying goods in a shop, as well as a one-time code --
such as the one generated by Digipass -- to buy goods online or over the
phone. In addition to Vasco, Xiring, of Suresnes, France, and U.S.-based
ActivCard Corp., Fremont, Californ

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Re: Coffee, Tea, or Should We Feel Your Pregnant Wife's Breasts Before Throwing You in a Cell at the Airport and Then Lying About Why We Put You There?

[John Kelsey]

>From: Tyler Durden <[EMAIL PROTECTED]>
>Sent: Dec 19, 2004 4:23 PM
>Subject: Re: Coffee, Tea, or Should We Feel Your Pregnant Wife's Breasts 
>Before Throwing You in a Cell at the >Airport and Then Lying About Why We Put 
>You There?

...
>Funny how most Americans only wake up after it happens to them.

Why would this be a surprise?  This is surely the way it is with most people, 
hence the famous old quote about "...and when they came for me, there was no 
one left to complain."  

I wonder how long it will take 'till TSA adops some kind of internal policing 
policies with some teeth, to deal with the claims about women being felt up, 
people being turned away from planes for reading the wrong book, or whatever.  
Probably sometime after a successful lawsuit costs them a few million dollars, 
alas.  

...
>-TD

--John

Grateful Dead's former lyricist finds tough fight against searches

[R.A. Hettinga]

Posted on Sun, Dec. 19, 2004

Grateful Dead's former lyricist finds tough fight against searches

By Mary Anne Ostrom


John Perry Barlow, former Grateful Dead lyricist and current cyber-rights
activist, had hoped to use his arrest on drug charges to shed light on how
the Transportation Security Administration conducts its baggage searches.

While most defendants caught by airport security with small amounts of
contraband typically plead guilty to misdemeanor charges, Barlow decided to
fight. He was arrested after a baggage screener at San Francisco
International Airport in 2003 found small amounts of marijuana and
hallucinogens in an Advil bottle in his checked luggage. He was immediately
pulled off a Delta flight and handcuffed. He spent all day in San Mateo
County Jail.

But Judge Harry Papadakis, a retired Fresno judge, ruled Wednesday that the
search of Barlow's checked luggage was reasonable under the U.S.
Constitution, and now he must face trial next spring on the charges in San
Mateo Superior Court.

"I'm distressed," Barlow said after the ruling, calling it a blow to civil
rights. "What the judge is saying is that when you are going to travel, you
make yourself subject to any search no matter how thorough; the search can
be as wide as possible."

Barlow had claimed he was the subject of an unlawful search and seizure
under the Fourth Amendment; the screener can look in checked baggage for
explosives and incendiary devices that might be used to blow up an
airplane, his attorney argued, but not drugs.

It was a pair of laser gloves Barlow used at the Burning Man festival that
initially caught the baggage screener's attention when an X-ray machine
showed wires, electrodes and batteries in checked luggage.

Barlow's attorney had tried to convince the judge that his client's case
would expose the federal agency's baggage check policies as nothing but "a
stalking horse" for much broader criminal investigations. The defense did
elicit testimony from airport police that they work closely with the
Transportation Security Administration, Drug Enforcement Agency and baggage
screening contractors to act on drug tips, but that's not what led to
Barlow's arrest.

The screener, Sandra Ramos, testified Wednesday that when she opened up
Barlow's hanging bag, she unzipped one of two compartments. Instead of
finding the gloves, she found a large bottle of Advil. She told prosecutors
she opened the bottle and dumped out the pills because it seemed much
heavier than a normal bottle should be and possibly could have contained
explosive material. And that's when she found the marijuana -- less than a
quarter of an ounce -- and some fungus-like material that turned out to be
hallucinogenic mushrooms. She then unzipped the other side and found the
gloves.

Law enforcement officials also identified the club drug ketamine and
hypodermic needles in the luggage and later found Ecstasy in Barlow's
wallet.

Barlow is facing five misdemeanor counts. He has said the marijuana was for
medicinal purposes and that the needles were used to inject hay fever
medication.

But from the start of Wednesday's hearing, the key issue was not drugs: It
was how much testimony on Transportation Security Administration procedures
would be allowed.

San Mateo County Deputy District Attorney Aaron Fitzgerald argued that
Barlow "was on a fishing expedition" in his attempt to open up the
government's policies and procedures. Two government attorneys representing
the federal agency sat directly behind Fitzgerald, arguing several times
that witnesses could not answer defense questions because information such
as how X-ray equipment is used and how workers are trained could "make it
easier for terrorists." The judge sided with the prosecution at nearly
every turn.

As co-founder of the Electronic Frontier Foundation, Barlow has never been
shy about condemning the government for what he sees as restricting
freedoms. Wednesday's hearing drew more than half a dozen cyber activists.

During a hearing recess, before the ruling, Barlow told reporters, "If you
are going to have a free country, you certainly have to understand the
circumstances under which you can be searched and detained."

As for the laser gloves, Barlow showed up in court with them Wednesday. In
fact, Barlow packed them in the same suitcase that had been the subject of
the search.

"The gloves made it through court security today," he said. "Nobody said a
thing."

-- 
-
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'

Re: Israeli Airport Security Questioning Re: CRYPTO-GRAM, December 15, 2004

[John Kelsey]

>The difference here is that Bad_Guy is visiting the
>country for the first time. Now, there are fewer
>questions to ask.

But that's a common enough situation that the questioners are going to be ready 
for it.  And I bet a lot of the point of their questioning is just to see if 
they detect signs of stress where they expect to.  If you are a smart person 
who does something like this 20 times a day, you'll soon get a really good feel 
for when something odd is going on.  Also, any kind of in-depth questioning is 
likely to uncover a lot of fraudulent claims.  If I say I'm a chemical 
engineer, it's not going to take much depth of knowledge for the questioner to 
find out I don't know things any chemical engineer would know, for example.  
(It wouldn't be hard to come up with some computerized system for pulling up 
lists of questions like this.  Like, someone says he's Catholic, and you ask 
him who was born without sin as a direct result of the immaculate conception, 
or ask him to say a Hail Mary.)  So this might force you to tell more of the 
truth, which makes it easier to profile you.  

And this is all physical / procedural security.  You're not building an 
unclimbable wall, you're building lots of challenging speedbumps.  No doubt a 
real intelligence agent would be good at getting through this kind of 
screening, but that doesn't mean most of the people who want to blow up planes 
would be any good at it!  

>Sarad.

--John

Re: Flaw with lava lamp entropy source

[John Kelsey]

>From: "James A. Donald" <[EMAIL PROTECTED]>
>Sent: Dec 18, 2004 2:51 PM
>To: "[EMAIL PROTECTED]" <[EMAIL PROTECTED]>
>Subject: Re: Flaw with lava lamp entropy source

...
>These days the video entropy source is not a lava lamp, but a
>lens cap - in the dark, the ccds generate significant thermal
>noise, which (unlike chaotic noise) cannot fail, unless someone
>immerses the camera in liquid helium. 

Do you (does anyone) know of any papers that have formally analyzed this 
entropy source?  

>--digsig
> James A. Donald

--John

International meet on cryptology in Chennai

[R.A. Hettinga]

Chennai Online News Service - View News

 Dec 20, 2004 Mon
 Dharana
  
International meet on cryptology in Chennai
Search for More News

 Chennai, Dec 19: A three-day international conference on cryptology will
get underway here tomorrow with the aim of providing secure communication
to the business and military sectors.

Over 140 researchers in the field, including some from abroad, would
participate in the conference, Dr M S Vijyaraghavan, executive director,
Society for Electronics Transactions and Security (SETS), told reporters
here today.

Cryptography is the art of providing secure information over insecure
channels. It encodes texts and provides a method of decoding. Cryptanalysis
is the art of breaking into cryptographic information.

The new science - cryptology - was a study of both, he said.

India had not made any headway in cryptology, he said and added that the
conference would help develop this in a big way.

President A P J Abdul Kalam would address the participants through video
conferencing. Dr R Chidambaram, principal scientific adviser, Government of
India, would inaugurate the conference. (Our Correspondent)


  
Published: Sunday, December 19, 2004


-- 
-
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'

Best-Kept Secrets

[R.A. Hettinga]

Scientific American:
  
December 20, 2004

Best-Kept Secrets

Quantum cryptography has marched from theory to laboratory to real products

By Gary Stix

 At the IBM Thomas J. Watson Research Laboratory, Charles Bennett is known
as a brilliant theoretician--one of the fathers of the emerging field of
quantum computing. Like many theorists, he has not logged much experience
in the laboratory. His absentmindedness in relation to the physical world
once transformed the color of a teapot from green to red when he left it on
a double boiler too long. But in 1989 Bennett and colleagues John A. Smolin
and Gilles Brassard cast caution aside and undertook a groundbreaking
experiment that would demonstrate a new cryptography based on the
principles of quantum mechanics.

 The team put together an experiment in which photons moved down a
30-centimeter channel in a light-tight box called "Aunt Martha's coffin."
The direction in which the photons oscillated, their polarization,
represented the 0s or 1s of a series of quantum bits, or qubits. The qubits
constituted a cryptographic "key" that could be used to encrypt or decipher
a message. What kept the key from prying eavesdroppers was Heisenberg's
uncertainty principle--a foundation of quantum physics that dictates that
the measurement of one property in a quantum state will perturb another. In
a quantum cryptographic system, any interloper tapping into the stream of
photons will alter them in a way that is detectable to the sender and the
receiver. In principle, the technique provides the makings of an
unbreakable cryptographic key.

 Today quantum cryptography has come a long way from the jury-rigged
project assembled on a table in Bennett's office. The National Security
Agency or one of the Federal Reserve banks can now buy a
quantum-cryptographic system from two small companies--and more products
are on the way. This new method of encryption represents the first major
commercial implementation for what has become known as quantum information
science, which blends quantum mechanics and information theory. The
ultimate technology to emerge from the field may be a quantum computer so
powerful that the only way to protect against its prodigious code-breaking
capability may be to deploy quantum-cryptographic techniques.

 The arrival of the quantum computer may portend the eventual demise of
ciphers based on factorization.

The challenge modern cryptographers face is for sender and receiver to
share a key while ensuring that no one has filched a copy. A method called
public-key cryptography is often used to distribute the secret keys for
encryption and decoding of a full-length message. The security of
public-key cryptography depends on factorization or other difficult
mathematical problems. It is easy to compute the product of two large
numbers but extremely hard to factor it back into the primes. The popular
RSA cipher algorithm, widely deployed in public-key cryptography, relies on
factorization. The secret key being transferred between sender and receiver
is encrypted with a publicly available key, say, a large number such as
408,508,091 (in practice, the number would be much larger). It can be
decrypted only with a private key owned by the recipient of the data, made
up of two factors, in this case 18,313 and 22,307.

 The difficulty of overcoming a public-key cipher may hold secret keys
secure for a decade or more. But the advent of the quantum information
era--and, in particular, the capability of quantum computers to rapidly
perform monstrously challenging factorizations--may portend the eventual
demise of RSA and other cryptographic schemes. "If quantum computers become
a reality, the whole game changes," says John Rarity, a professor in the
department of electrical and electronics engineering at the University of
Bristol in England.

 Unlike public-key cryptography, quantum cryptography should remain secure
when quantum computers arrive on the scene. One way of sending a
quantum-cryptographic key between sender and receiver requires that a laser
transmit single photons that are polarized in one of two modes. In the
first, photons are positioned vertically or horizontally (rectilinear
mode); in the second, they are oriented 45 degrees to the left or right of
vertical (diagonal mode). In either mode, the opposing positions of the
photons represent either a digital 0 or a 1. The sender, whom
cryptographers by convention call Alice, sends a string of bits, choosing
randomly to send photons in either the rectilinear or the diagonal modes.
The receiver, known as Bob in crypto-speak, makes a similarly random
decision about which mode to measure the incoming bits. The Heisenberg
uncertainty principle dictates that he can measure the bits in only one
mode, not both. Only the bits that Bob measured in the same mode as sent by
Alice are guaranteed to be in the correct orientation, thu

Trouble On The Cards

[R.A. Hettinga]

TROUBLE ON THE CARDS



 By Bob Roberts Deputy Political Editor

  

PLANS to bring in compulsory ID cards are to be hit by a double rebellion
in the Commons today.

Up to 30 Labour MPs are expected to oppose controversial Government moves
to introduce the cards by 2008.

And Tory leader Michael Howard - who has given his backing to the cards -
is also facing a revolt by his own MPs as up to 40 "go missing" in the vote.

Senior Tory Damian Green yesterday branded the cards "authoritarian" and
said: "They will make us less free without making us safer."

And Mr Howard's own head of policy David Cameron says the cards are a
"waste of money". Earlier he said: "Is it time for national identity cards
to deal with the problems of illegal immigration, crime and foreign
visitors abusing our NHS? My answer is 'No'."

Campaign group No2ID called the plan "pointless, expensive and an abuse of
human rights".

National group co-ordinator Mark Littlewood warned demonstrations would
follow. He said: "With the level of opposition we're experiencing, a
backlash on the scale of the anti-war demonstrations looks likely."

Yesterday Liberal Democrat leader Charles Kennedy urged the government to
delay the plan, to give time to "pause and reflect". He added: "That is the
sensible way to go about it but I think this Government has got itself so
much into tram lines now that it is not behaving sensibly at all."

If a large number of Tories fail to vote on the Bill it could plunge Mr
Howard into a new leadership crisis.

But incoming Home Secretary Charles Clarke is expected to sweep aside calls
for a delay when he faces the Commons for the first time in his new role.
He insisted: "I certainly shall not pause. I will go ahead with the
legislation.

"Identity cards are a means of trying to create a secure society. I have
always been a supporter."

Despite the rebels, the Bill introducing the cards is expected to be voted
through by a combination of loyal Tories and Labour MPs.

Mr Clarke is expected to announce that the poor and pensioners will get
cut-price ID cards to ease the cost, predicted to be around £85.

The former Education Secretary will also promise tough punishments for
anybody caught abusing the sensitive personal information which will be
held on a massive computerised database.

And he will insist cards will help the fight against terrorism, organised
crime and illegal immigration.

The credit card-sized documents will be issued from 2008 to anyone who
applies for or renews a passport.

The proposals were first introduced by David Blunkett.

The ID cards will carry "biometric" details about each bearer, such as
fingerprints or an electronic scan of the iris of the eye.

These details - along with a photograph, signature, date of birth, address
and nationality - will also be stored on the central register.

Officials will be able to compare data on the card with the register,
theoretically making them impossible to fake.

 

 
 Top



 

-- 
-
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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Re: Coffee, Tea, or Should We Feel Your Pregnant Wife's Breasts Before Throwing You in a Cell at the Airport and Then Lying About Why We Put You There?

[Tyler Durden]

Well, there's a TINY little hole in your logic here...
Scale of distance is the only difference.  Either you support the system
or you don't.  I don't: I either drive to jobs (charging for mileage) or I
pass on them, rather than take part in the police state that is todays air
system.  You have the very same choices.  The argument eveyone is making
here is that it is too much of an inconvenience (financial or otherwise),
*not* to fly.  Sorry, but that's just pure self-serving BS.
For one, Flying can easily be a requirement, not an option. But that's 
besides the point here.

The real point is that some Super-JAT could (5 years from now when there are 
ubiquitous highway checkpoints) argue that "walking from NYC to Boston may 
be difficult but it IS possible". Or of course (after Tenent's vision for 
the internet is realized) "You could simply Fedex those files, you don't 
need to use the internet"

...and so on...it get silly after this though.
-TD

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Paging Black Unicorn, Part 2: Money Laundering in the Geodesic Economy

[R.A. Hettinga]

Here's the article in question...

Cheers,
RAH
---


JIBC

Hettinga's Best of the Month

Money Laundering in the Geodesic Economy
 From Robert Hettinga
 Email:[EMAIL PROTECTED]
 URL: http://www.shipwright.com
 Robert Hettinga is a financial cryptography strategy and policy consultant
in Boston. He is founder of the First International Conference on Financial
Cryptography (FC97), the International Financial Cryptography Association,
the Digital Commerce Society of Boston, and the e$ and e$pam mail lists. He
is also financial cryptography editor of JIBC.
From: Black Unicorn <[EMAIL PROTECTED]>
To: Multiple recipients of <[EMAIL PROTECTED]>

On Fri, 13 Jun 1997 [EMAIL PROTECTED] wrote:

>   Hi all,
>
>   I suspect that one of the principal things that the Feds are
>   worried about is the potential for money-laundering.


 This is a loaded statement. Money laundering is only a concern in so far
as it means government control over the economy is diminished. (And to the
extent that it allows one to seize the funds a their title converts the to
United States at the instant of commission).

 Money laundering is a "tack on" offense. (Much like, say, mail fraud). The
number of original cases which derive from actual money laundering
investigation is vanishingly small. Instead it is usually added on to an
indictment when the defendant is or has been under investigation for
something else.

 Because money laundering statutes are generally phrased something like
"knowingly concealing the proceeds of a criminal act," usually you find the
criminal act first and then look to see if attempts were made to conceal
the funds. Professional money launderers are rarely caught.
>   At the moment, conversion of money from illegal sources  (drug
>   sales, extortion by terrorists, major theft etc) into the legal
>   economy (equities, bonds, property  etc) is difficult because
>   any financial institution is obliged, in most parts of the
>   world, to obtain proof of identity of its  clients and toreport
>   suspicions of wrongdoing.


 I disagree rather strongly. Currently the favorate method is to hand the
cash, in bulk, to the professional money launderer who, on the spot, cuts a
clean bank check (perhaps from a reputable import/export or realestate
company) for the cash amount minus fee (5-20% usually). The launderer takes
all the risk in the process, including smuggling the funds out, hashing
them through iterations and (usually) returning them right back into the
United States as legitimate overseas investment. It's like the separation
of capital and management skill. The money launderer is free to concentrate
100% of his time to managing his extensive laundering empire, the hundreds
or thousands of shells and webs of accounts and maintains the liquidity to
drop 5 million on the notice of a phone call.
>   Hence, I suspect, the $750 limit.
>   The reason for this check is that it is otherwise very easy to
>   shuffle funds back and forth between financial instruments to
>   confuse the  trail and defeat the cops.


 The $750 limit is going to do about nothing for the problem of money money
laundering. It will inconvenience the casual launderer, and that is about
all. What it will do is put a significant cost on the head of the consumer.
A CTR costs a bank between $5 and $15 to file today (according to the ABA).
$17 if you listen to the Report of the Financial Action Task Force on Money
Laundering.

 In 1993 the 368 largest banks (assets over $1 billion) filed 4.5 million
CTRs. The cost was estimated at $72 million dollars. (John Byrne, General
Counsel, American Bankers Association). 10,765,000 CTRs were filed in 1994.
About .5% are marked "suspicious."

 Now the $750 limit? The number of reports to be filed is staggering and
.5% is beyond government to police properly without 5,000 new hires. No,
clearly the $750 limit is not to catch money launderers, but to create and
perpetuate detailed transactions record keeping.

 FinCEN is much more useful to link transactions to defendents in non-money
laundering cases. "What do you mean you weren't in California in May? Our
records show you accepted two wire transfers there on the 15th and the
16th."

 And consider this. If I build a machine which has a 95% accuracy rate in
detecting money laundering, that is to say that it will identify a given
transaction as money laundering or legitimate with 95% accuracy, I still
have a serious problem. Given 10,000 transactions, with .2% (20)
representing money laundering we find the following figures: 19 (95% of 20)
money laundering transactions will be flagged as illegal 1 (5% of 20)
laundering transaction will be incorrectly flagged as legal. 500 (5% of
10,000) legitimate transactions will be incorrectly flagged as illegal.

 For every one money laundering transaction flagged there will be 26
legitimate transactions flagged and only about 3.6% of all the flagged
transactions will actual

Paging Black Unicorn (was RE: Costs of Money Laundering Enforcement)

[R.A. Hettinga]

Contact him directly, please...

Cheers,
RAH


--- begin forwarded text


From: "Astengo, F. (Fabrizio)" <[EMAIL PROTECTED]>
To: "'R.A. Hettinga'" <[EMAIL PROTECTED]>
Subject: RE: Costs of Money Laundering Enforcement
Date: Mon, 20 Dec 2004 15:15:42 +0200

Hi Robert,

Have the link here, but after further reading of the section, it would seem
that it was not really your article, just a quote of it. I simply read the
top section and assumed it was yourself replying to the comments, but after
further analysis it would seem not.

Heres the link anyways:

http://www.arraydev.com/commerce/JIBC/9703-12.htm

Im still trying to source this doc, and quote from that page:
"
From: Black Unicorn <[EMAIL PROTECTED]>
To: Multiple recipients of <[EMAIL PROTECTED]>

On Fri, 13 Jun 1997 [EMAIL PROTECTED] wrote:
"

(This is of course the section I missed :-) )

If you are aware, would I contact Black Unicorn or MFarncombe in this
regard? Im still not too clear who is replying to whom on the article.

Thanking you
Fabrizio Astengo



-Original Message-
From: R.A. Hettinga [mailto:[EMAIL PROTECTED]
Sent: 20 December 2004 14:54
To: Astengo, F. (Fabrizio)
Subject: Re: Costs of Money Laundering Enforcement


At 10:56 AM +0200 12/20/04, Astengo, F. (Fabrizio) wrote:
>Was reading an article on the web where you made reference to:

Send me the link, it might help.

Cheers,
RAH
--
-
R. A. Hettinga 
The Internet Bearer Underwriting Corporation
<http://www.ibuc.com/>
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'


Nedbank Limited Reg No 1951/09/06
Directors: WAM Clewlow (Chairman)  Prof MM Katz (Vice-chairman)  ML Ndlovu
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This email and any accompanying attachments may contain confidential and
proprietary information.  This information is private and protected by law
and, accordingly, if you are not the intended recipient, you are requested
to delete this entire communication immediately and are notified that any
disclosure, copying or distribution of or taking any action based on this
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Emails cannot be guaranteed to be secure or free of errors or viruses.  The
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--- 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'

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All Horsemen, All the Time: On the Open Internet, a Web of Dark Alleys

[R.A. Hettinga]

Horsemen of the Infocalypse, that is...

Cheers,
RAH
---



The New York Times

December 20, 2004

On the Open Internet, a Web of Dark Alleys
 By TOM ZELLER Jr.


The indictment early this month of Mark Robert Walker by a federal grand
jury in Texas might have seemed a coup for the government in its efforts to
police terrorist communications online. Mr. Walker, a 19-year-old student,
is accused, among other things, of using his roommate's computer to
communicate with - and offer aid to - a federally designated terrorist
group in Somalia and with helping to run a jihadist Web site.

 "I hate the U.S. government," is among the statements Mr. Walker is said
to have posted online. "I wish I could have been flying one of the planes
on Sept. 11."

By international terror standards, it was an extremely low-level bust. But
the case, which was supposedly broken only after Mr. Walker's roommate
tipped off the police, highlights the near impossibility of tracking
terrorist communications online.

 Even George J. Tenet, the former director of central intelligence,
speaking on the vulnerabilities of the nation's computer networks at a
technology security conference on Dec. 1, noted the ability of terrorists
to "work anonymously and remotely to inflict enormous damage at little cost
or risk to themselves." He called for a wholesale taming of cyberspace.

 "I know that these actions would be controversial in this age where we
still think the Internet is a free and open society with no control or
accountability," Mr. Tenet said, "But, ultimately, the Wild West must give
way to governance and control."

Even if the government is able to shore up its networks against attack -
one of many goals set forth by the intelligence reform bill passed last
week - the ability of terrorists and other dark elements to engage in
covert communications online remains a daunting security problem, and one
that may prove impossible to solve.

 Late last month, an Internet privacy watchdog group revealed that the
Central Intelligence Agency had contributed money for a counterterrorism
project that promised, among other things, an automated surveillance system
to monitor conversations on Internet chat rooms. Developed by two computer
scientists at Rensselaer Polytechnic Institute in Troy, N.Y., as part of a
National Science Foundation program called Approaches to Combat Terrorism,
the chat room project takes aim at the possibility that terrorists could
communicate through crowded public chat channels, where the flurry of
disconnected, scrolling messages makes it difficult to know who is talking
to whom. The automated software would monitor both the content and timing
of messages to help isolate and identify conversations.

 Putting privacy concerns aside, some Internet specialists wonder whether
such projects, even if successful, fail to acknowledge the myriad other
ways terrorists can plot and communicate online. From free e-mail accounts
and unsecured wireless networks to online programs that can shield Internet
addresses and hide data, the opportunities to communicate covertly are
utterly available and seemingly endless.

Even after the Sept. 11 attacks, "the mass media, policy makers, and even
security agencies have tended to focus on the exaggerated threat of
cyberterrorism and paid insufficient attention to the more routine uses
made of the Internet," Gabriel Weimann, a professor of communication at
Haifa University in Israel, wrote in a report for the United States
Institute of Peace this year. "Those uses are numerous and, from the
terrorists' perspective, invaluable."

 Todd M. Hinnen, a trial attorney with the United States Justice
Department's computer crime division, wrote an article on terrorists' use
of the Internet for Columbia Science and Technology Law Review earlier this
year. "There's no panacea," Mr. Hinnen said in an interview. "There has
always been the possibility of meeting in dark alleys, and that was hard
for law enforcement to detect."

 Now, every computer terminal with an Internet connection has the potential
to become a dark alley.

 Shortly after Sept. 11, questions swirled around steganography, the
age-old technique of hiding one piece of information within another. A
digital image of a sailboat, for instance, might also invisibly hold a
communiqué, a map or some other hidden data. A digital song file might
contain blueprints for a desired target.

 But the troubling truth is that terrorists rarely have to be technically
savvy to cloak their conversations. Even simple, prearranged code words can
do the job when the authorities do not know whose e-mail to monitor or
which Web sites to watch. Interviews conducted by Al Jazeera, the Arab
television network, with the terror suspects Khalid Shaikh Mohammed and
Ramzi bin al-Shibh two years ago (both have since been arrested), suggested
that the Sept. 11 attackers communicated

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