-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

from:\
http://www.wired.com/news/politics/0,1283,34388-2,00.html
Click Here: <A
HREF="http://www.wired.com/news/politics/0,1283,34388-2,00.html">Everything
Hacked but the Budget</A>
-----


Everything Hacked but the Budget
by Declan McCullagh
1:15 p.m. 16.Feb.2000 PST
Justice Department and FBI officials Wednesday told a Senate panel that last
week's denial of service attacks provide ample reason to give law enforcement
bigger budgets and additional powers.

Attorney General Janet Reno testified that the Clinton administration's
fiscal year 2001 budget request would give agents the "capacity to trace and
detect cyber criminals around the world."

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Neither Reno nor FBI Director Louis Freeh divulged details about suspects in
last week's assault against prominent Web sites, except to say agents are
interviewing people and reviewing records kept by the companies that were
attacked.

"There are fast developing leads.... We are very pleased with the progress of
this investigation," Freeh told the Senate Commerce, Justice, and State
appropriations subcommittee.

They urged Congress to approve the administration's request for $37 million
in extra funding in addition to the roughly $100 million now being spent on
federal computer crime-fighting. The budget also includes $240 million to
rewire telephone networks to ensure police can wiretap communications.

The members of the panel, headed by Senator Judd Gregg (R-New Hampshire),
appeared inclined to give the FBI what it wanted. Republican leaders hastily
arranged Tuesday's event -- usually appropriation hearings take place in the
spring -- after the attacks that temporarily crippled the Web sites of
companies including Yahoo, eBay, and Amazon.com.

Freeh used the opportunity to condemn malicious hackers, "hactivism," and
virus writers such as the author of Melissa, which he termed "a particularly
dangerous type of threat."

Repeating a long-standing theme, he said data-scrambling encryption products
posed a real danger to police, who needed access to descrambled documents or
communications.

During previous appearances on Capitol Hill, Freeh has warned of drug
smugglers, child pornographers, spies, and terrorists cloaking their
communications with impunity.

Now he said hackers, such as the ones responsible for the denial of service
attacks, could encrypt their files and make the evidence "all but worthless
to us."

"Without the ability of law enforcement to get court-ordered access to
plaintext, we're going to be out of business," Freeh said. "If it is
unaddressed, we're not going to [be able to] work in many of these areas."

He said that the FBI is finding more and more cases -- including 53 last year
-- in which suspects are using encryption products like PGP to shield their
files. Declassified FBI documents show the agency used similar arguments in
1994 when asking Congress to enact the Communications Assistance to Law
Enforcement Act.

What the FBI wants is clear: Access to non-scrambled communications. But
Freeh didn't say how he would achieve that, since it doesn't appear likely
that Congress will ban encryption software without backdoors for the Feds.

One possibility is a controversial plan that says if a suspect was using
data-scrambling encryption products, the FBI's G-men would enter the
suspect's home and install software to tap into and decipher scrambled
communications.

During a hearing in February 1999 before the same Senate subcommittee, Gregg
asked Freeh, "Have you given up on encryption?"

Replied the FBI director: " I have not given up on encryption."



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