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Cyphernomicon 11.4

Surveillance, Privacy, And Intelligence Agencies:
U.S. Intelligence Agencies: NSA, FinCEN, CIA, DIA, NRO, FBI


   11.4.1. The focus here is on U.S. agencies, for various reasons. Most
            Cypherpunks are currently Americans, the NSA has a dominant
            role in surveillance technology, and the U.S. is the focus of
            most current crypto debate. (Britain has the GCHQ, Canada has
            its own SIGINT group, the Dutch have...., France has DGSE and
            so forth, and...)
   11.4.2. Technically, not all are equal. And some may quibble with my
            calling the FBI an "intelligence agency." All have
            surveillance and monitoring functions, albeit of different
            flavors.
   11.4.3. "Is the NSA involved in domestic surveillance?"
           + Not completely confirmed, but much evidence that the answer
              is "yes":
             - previous domestic surveillance (Operation Shamrock,
                telegraphs, ITT, collusion with FBI, etc.)
             - reciprocal arrangements with GCHQ (U.K.)
             - arrangements on Indian reservations for microwave
                intercepts
             - the general technology allows it (SIGINT, phone lines)
             - the National Security Act of 1947, and later
                clarifications and Executive Orders, makes it likely
           - And the push for Digital Telephony.
   11.4.4. "What will be the effects of widespread crypto use on
            intelligence collection?"
           - Read Bamford for some stuff on how the NSA intercepts
              overseas communications, how they sold deliberately-
              crippled crypto machines to Third World nations, and how
              much they fear the spread of strong, essentially
              unbreakable crypto. "The Puzzle Palace" was published in
              1982...things have only gotten worse in this regard since.
           - Statements from senior intelligence officials reflect this
              concern.
           - Digital dead drops will change the whole espionage game.
              Information markets, data havens, untraceable e-mail...all
              of these things will have a profound effect on national
              security issues.
           - I expect folks like Tom Clancy to be writing novels about
              how U.S. national security interests are being threatened
              by "unbreakable crypto." (I like some Clancy novels, but
              there's no denying he is a right-winger who's openly
              critical of social trends, and that he believes druggies
              should be killed, the government is necessary to ward off
              evil, and ordinary citizens ought not to have tools the
              government can't overcome.)
   11.4.5. "What will the effects of crypto on conventional espionage?"
           - Massive effects; watch out for this to be cited as a reason
              to ban or restrict crypto--however pointless that may be.
           + Effects:
             - information markets, a la BlackNet
             - digital dead drops -- why use Coke cans near oak trees
                when you can put messages into files and post them
                worldwide, with untraceably? (but, importantly, with a
                digital signature!)
             - transparency of borders
             - arms trade, arms deals
             - virus, weaponry
   11.4.6. NSA budget
           - $27 billion over 6 years, give or take
           - may actually increase, despite end of Cold War
           - new threats, smaller states, spread of nukes, concerns
              about trade, money-laundering, etc.
           - first rule of bureaucracies: they always get bigger
           + NSA-Cray Computer supercomputer
             + press release, 1994-08-17, gives some clues about the
                capabilities sought by the surveillance state
               - "The Cray-3/SSS will be a hybrid system capable of
                  vector parallel processing, scalable parallel
                  processing and a combination of both. The system will
                  consist of a dual processor 256 million word Cray-3 and
                  a 512,000 processor 128 million byte single instruction
                  multiple data (SIMD) array......SIMD arrays of one
                  million processors are expected to be possible using
                  the current version of the Processor-In-Memory (PIM)
                  chips developed by the Supercomputing Research Center
                  once the development project is completed. The PIM chip
                  contains 64 single-bit processors and 128 kilobyte bits
                  of memory. Cray Computer will package PIM chips
                  utilizing its advanced multiple chip module packaging
                  technology. The chips are manufactured by National
                  Semiconductor Corporation."
             - This is probably the supercomputer described in the
                Gunter Ahrendt report
   11.4.7. FINCEN, IRS, and Other Economic Surveillance
           - Financial Crimes Enforcement Network, a consortium or task
              force made up of DEA, DOJ, FBI, CIA, DIA, NSA, IRS, etc.
           - set up in Arlington as a group to monitor the flows of
              money and information
           - eventually these groups will see the need to hack into
              computer systems used by various groups that are under
              investigation
           - Cf. "Wired," either November or December, 1993
   11.4.8. "Why are so many computer service, telecom, and credit agency
            companies located near U.S. intelligence agency sites?"
           + For example, the cluster of telecom and credit reporting
              agencies (TRW Credit, Transunion, etc.) in and around the
              McLean/Langley area of Northern Virginia (including
              Herndon, Vienna, Tyson's Corner, Chantilly, etc.)
             - same thing for, as I recall, various computer network
                providers, such as UUCP (or whatever), America Online,
                etc.
           - The least conspiratorial view: because all are located near
              Washington, D.C., for various regulatory, lobbying, etc.
              reasons
           + The most conspiratorial view: to ensure that the
              intelligence agencies have easy access to communications,
              direct landlines, etc.
             - credit reporting agencies need to clear identities that
                are fabricated for the intelligence agencies, WitSec,
                etc. (the three major credit agencies have to be
                complicit in these creations, as the "ghosts" show up
                immediately when past records are cross-correlated)
             - As Paul Ferguson, Cypherpunk and manager at US Sprint,
                puts it: "We're located in Herndon, Virginia, right
                across the street from Dulles Airport and a hop, skip &
                jump down the street from the new NRO office.   ,-)"
                [P.F., 1994-08-18]
   11.4.9. Task Force 157, ONI, Kissinger, Castle Bank, Nugan Hand Bank,
            CIA
  11.4.10. NRO building controversy
           - and an agency I hadn't seen listed until August, 1994: "The
              Central Imagery Office"
  11.4.11. SIGINT listening posts
           + possible monkeywrenching?
             - probably too hard, even for an EMP bomb (non-nuclear,
                that is)
  11.4.12. "What steps is the NSA taking?"
           - besides death threats against Jim Bidzos, that is
           - Clipper a plan to drive competitors out (pricing, export
              laws, harassment)
           - cooperation with other intelligence agencies, other nations
             - New World Order
           - death threats were likely just a case of bullying...but
              could conceivably be part of a campaign of terror--to shut
              up critics or at least cause them to hesitate
 

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