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Data Expert Is Cautious About Misuse of Information

March 25, 2003
By STEVE LOHR






SCOTTSDALE, Ariz., March 24 - As the government gears up
its domestic security program, the chief executive of a
venture capital firm founded by the Central Intelligence
Agency warned today of the danger of amassing a large,
unified database that would be available to government
investigators - as some technology executives have
advocated.

"I think it's very dangerous to give the government total
access," said Gilman Louie, chief executive of In-Q-Tel, a
venture fund established by the C.I.A. in 1999.

Besides, the real lesson learned from the Sept. 11
terrorist attacks, Mr. Louie said, was that the
intelligence failure was not so much that the government
had too little information but that the information held by
different government agencies was not linked, shared and
analyzed.

It is already clear that a part of the vast amounts of
personal and commercial data housed in government and
corporation will increasingly be used in terrorist-related
government investigations. But there is a vigorous debate
over what data should be collected and how it should be
used to balance the interests of national security with
personal privacy and individual freedom.

Speaking at the PC Forum, an annual gathering of corporate
technology executives, entrepreneurs and venture
capitalists, Mr. Louie said there were two different paths
being pursued toward data surveillance by the government.

First, there is what he termed the "data mining or
profiling" approach. This involves collecting large amounts
of data - like credit card and air travel information - and
then sorting the data by names, buying habits or travel
plans looking for patterns.

The data mining approach, Mr. Louie said, results in the
"watch lists" used by law enforcement authorities. If used
as the main tool of surveillance, the data mining approach
is too blunt an instrument, in Mr. Louie's view, and one
likely to needlessly undermine individual freedom. "The
policy has not been defined for how you get on or off these
watch lists," he said.

Mr. Louie said that he had friends who after the terrorists
attacks have been interrogated at length and sometimes
missed flights because they matched certain characteristics
that put them on a watch list. "They have Arabic names," he
said, "they are naturalized citizens and because they are
investment bankers they buy one-way tickets."

The second way to use database technology to detect threats
is what he called the data analysis approach. The
alternative, which Mr. Louie supports, starts with some
kind of investigative lead and then uses software tools to
scan for links between a person under investigation and
known terrorists, in terms of where they live, recent
travel and other behavior.

Las Vegas casinos, for example, use data analysis software
called NORA, for Non-Obvious Relationship Awareness, for
tracking threats to their business - links between some
patrons and sometimes employees with money launderers,
known card counters and individuals with criminal records.
The company that developed the NORA software, Systems
Research and Development, is one of the companies in which
In-Q-Tel has invested.

Data mining, Mr. Louie said, can play a useful role. But he
argues that relying on data mining as the principal way to
use database technology in fighting terrorism would be a
mistake. "This is an ongoing argument," Mr. Louie said, "a
big debate right now in government."

In-Q-Tel was established by the C.I.A., in an effort to
inject new thinking and technology into the agency. The
agency's handling of information had been shaped by the
cold war concerns of big power confrontations where the
weapons were tanks and missiles, and the security risks
tended to be spies and moles.

Information, noted Mr. Louie, a former computer game
designer and software executive, was kept in separate
database silos so it would not leak or any leak could be
quickly contained. Speed of information flow across
databases was not a priority.

Yet in a world of quickly shifting terrorist threats, Mr.
Louie said, "the agency realized that this stove-piping of
information was a security model that was really
vulnerable."

Today, In-Q-Tel has invested in 25 companies. At the same
time, the Defense Department's advanced research projects
agency, or Darpa, and the government's National Imagery and
Mapping Agency, or Nima, have also supplied financing to
In-Q-Tel for specific programs.

Before Sept. 11, Mr. Louie said, In-Q-Tel was seen within
government as an intriguing experiment. "Now, this isn't an
experiment," he said. "This is a necessity."

http://www.nytimes.com/2003/03/25/technology/25DATA.html?ex=1049608608&ei=1&en=e06cac9de31e47bd



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