>From: Adam Shostack <[EMAIL PROTECTED]>
>Sent: Jan 30, 2005 1:09 PM
>Subject: Re: Simson Garfinkel analyses Skype - Open Society Institute

>   That's a very interesting point.  There are clearly times when it's
>the case.  I suspect, with no data to back me up, that a form of
>hyperbolic discounting occurs here:  The family member who is clearly
>present ends up dominating consideration, and the less
>likely/understood eavesdropping threat disappears.  (As does the 'yell
>for attention, pick up another extension attack,' but that's another
>story.)

I think there are two parts to this.  First of all, this may be a case of 
simply not understanding the implications of the loss of privacy to 
sophisticated eavesdroppers.  I tend to think this is the case with a lot of 
privacy issues (like grocery store bonus cards), but not here.  Second, this 
may be a correct evaluation of the relative risks.  Until the set of 
eavesdroppers who listen in on digital cellphone traffic becomes pretty large, 
most people aren't very interesting targets for eavesdropping, at least not in 
terms of making any profit from it.  Most people don't have a lot of money or 
power to reward blackmailers, aren't in a position to leak confidential, 
high-value data, aren't likely to end up in some powerful elective or appointed 
office, and aren't discussing information that would let an eavesdropper make a 
profit from it directly.  On the other hand, keeping secrets from your parents 
about who you're dating and what you're doing with them is really common among 
teenagers.  Embarassing personal revelations that you would be humiliated to 
disclose to your coworkers or roommates are a lot less embarassing if they're 
heard by some FBI agent who listens in all day--that guy is going to be as hard 
to shock as a priest or a doctor, and he'll presumably never show up at work 
and start a rumor about you.  High tech criminals trolling for blackmail 
material might be interested in your affair with your best friend's wife, but 
not if you don't have any substantial assets lying around waiting to be sold 
off for hush money.  Probably most people haven't thought through this at great 
depth, but I think most people who think of the FBI listening in on their calls 
aren't all that concerned about the consequences to themselves, and I think 
they're correct.

This isn't an endoresment for cordless/cell/VOIP phones without crypto, just a 
comment about why it's hard to get people to pay extra for adding crypto to 
those phones.

>Adam

--John

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