Anyone seen the movie "The Enemy of the State"?????
Check this out then:

>From The Australian, at:
http://www.theaustralian.com.au/index.asp?URL=/national/4301119.htm

  Secret plan for spies to bug PCs
  By DAN TEBBUTT

  13jan99

PERSONAL computers would become police spy stations under secret 
proposals put to the Federal Government by a former deputy director 
of    ASIO.  

The Australian Federal Police, ASIO and the National Crime Authority 
would be empowered to alter software to turn PCs into covert 
listening    devices, according to the 1996 report by one-time spy 
chief Gerald Walsh.  

The report also recommends changes to the Commonwealth Crimes Act to 
allow police and government investigators to hack into computer 
systems for evidence.  

While Mr Walsh called for public discussion of his proposals, the 
report was withdrawn by the Attorney-General's Department. But a copy 
of the 96-page document was obtained last week by Internet privacy 
campaigners Electronic Frontiers Australia and released to The 
Australian.  

A spokesman for Attorney-General Daryl Williams confirmed last night 
that Mr Walsh's recommendations were under discussion but the report 
was "just one element" of policy being considered.  

He would not say whether the controversial recommendations would be 
acted on through legislation.  

Mr Walsh warns that widespread use of PC-based data scrambling is a 
big concern for law enforcement.  

Criminals were already using computer encryption – programs that 
encode data so it cannot be intercepted – to prevent police from 
monitoring phone calls and e-mail.  

Widespread encryption to scramble sensitive data would make crimes 
harder to prove in court, Mr Walsh warns.  

"The principle of non self-incrimination may well represent the 
polite end of the possible range of responses," the report says.  

Mr Walsh's plan would clear the way for police to eavesdrop on 
computer conversations at the source.  

A "target computer may be converted into a listening device" that 
could seek out passwords and other private communications without the 
PC owner's knowledge.  

EFA spokesman Greg Taylor said authorities might set up Trojan horse 
software that would record all PC activity, including passwords and e-
mail, before encryption.  

"If you have access to someone's PC and you change their software you 
can do anything you want," said Mr Taylor.  

"If it's connected to a network such as the Internet the PC could 
transmit data to another site."  

Australian Council for Civil Liberties president Terry O'Gorman said 
the proposals would be a worrying extension to police wiretap powers 
which  were already over-used.  

"We are concerned about the low level of protection in relation to 
current judicial warrants for telephone eavesdropping," Mr O'Gorman 
said.  

Labor information technology spokeswoman Senator Kate Lundy said "the 
whole issue of encryption is being used as a lever to justify further 
invasions of privacy".  


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