-Caveat Lector-

Small Start-Up Helps CIA Mask Its Moves on Web

http://dowjones.work.com/index.asp?layout=story_news_wsj&doc_id=34680


Monday, February 12, 2001 7:11AM EST
By Neil King Jr.
Staff Reporter
The Wall Street Journal


How's this for a curious pairing? Stephen Hsu and his partners at
SafeWeb Inc. launch a Web site offering the utmost in Internet
privacy -- and then hook up with the notoriously intrusive
Central Intelligence Agency.

The new alliance between the Oakland, Calif., entrepreneurs and
the spooks from Langley, Va., shows how serious the CIA is about
improving its spycraft. The agency two years ago set up its own
venture-capital firm, known as In-Q-Tel, to search out just the
sort of innovations that SafeWeb offers.

The CIA, in this case, wants to use a SafeWeb program to mask its
own movements on the Internet, so it can gather information
incognito. SafeWeb suggests that the CIA also might use its
technology to allow its far-flung agents and informants to
communicate home, without the countries they are spying on ever
knowing.

What's puzzling is why a tiny, year-old start-up would want to
link up with an agency that is the nemesis of privacy buffs
everywhere.

'I'm sure we'll take a hit from the 5% of our most paranoid
customers,' says Mr. Hsu, SafeWeb's 34-year-old co-founder and a
theoretical physicist by training. But the CIA connection, he
says, is deliberately distant. SafeWeb will provide the agency
with customized software, but the CIA will have no access to the
company's Web computers or to the workings of its core software,
he insists.

And who better to test the power of its privacy software than the
world's top spies? 'If our technology can satisfy them,' Mr. Hsu
says, 'it can satisfy just about anyone.'

The technology is a clever piece of software called Triangle Boy
that SafeWeb plans to post free this month on the Web. The CIA,
through In-Q-Tel, is investing in a revved-up version of the
software, which can bounce digital traffic around the Web
anonymously, as well as rights to an equity stake in SafeWeb
should the company go public. Neither side will disclose
financial details.

The CIA has been slow to mine the riches of the Internet for fear
of exposing its own vast computer network to viruses or hacker
attacks. It also worries that others will monitor its activities
if it roams the Web without proper disguise.

What SafeWeb offers is a chance to move about the Internet
without leaving any trace. Users simply go to the company's Web
site (www.safeweb.com) and type in the address of the actual site
they are seeking. SafeWeb's site acts as an intermediary; anyone
monitoring the activity would see only the traffic between the
user's computer and SafeWeb -- and not the user's ultimate
destination. The site recorded more than one million unique
visits last month.

But what really caught the CIA's fancy was Triangle Boy, a
software package that can turn any personal computer into a
surrogate Web server. The system allows users to navigate to any
number of innocuous PC addresses, and then go to the actual Web
site they are seeking -- without leaving a trace. Triangle Boy
works by forwarding the request for the desired Web site on to
SafeWeb's site, which then makes the connection. SafeWeb
developed Triangle Boy to deter companies or countries from
blocking access to its site, as Saudi Arabia did last November.

CIA specialists say their core interest in Triangle Boy is
anonymous Internet browsing. 'We want to operate anywhere on the
Internet in a way that no one knows the CIA is looking at them,'
says a senior CIA official with connections to the In-Q-Tel team.

But the possible uses go way beyond that. SafeWeb says the agency
also could use the technology as a secure way for its 'assets,'
or contacts, to communicate with CIA headquarters. The CIA also
suggests that it may one day build a global network made up of
Triangle Boys and servers equipped with SafeWeb-style software to
communicate with employees and informants. CIA Director George
Tenet told the Senate last week that one of his chief ambitions
is 'to take modern Web-based technology and apply it to our
business relentlessly.'

The SafeWeb technology could prove just as handy in getting
information covertly into other countries. It was this
application that originally inspired Mr. Hsu to reach out to the
CIA last summer. 'I imagined them wanting to use Triangle Boy to
get Voice of America or something like that into countries where
it was blocked,' he said.

Others suggest more devious possibilities. An application like
Triangle Boy, if scattered among hundreds of PCs, could be a way
to cloak a multipronged ' cyber attack' on someone else's
computer system. The CIA, along with the Pentagon, has worked for
years to perfect ways to electronically meddle with other
countries' banking systems or electricity grids, and Triangle Boy
could allow them to do it without the target ever knowing who was
behind the attack. ' It would be the functional equivalent of an
electronic silencer,' says one technology expert with wide
experience in the intelligence community. 'You could shoot
electronic bullets right down the pipe without anyone knowing
where they came from.' Intelligence officials deny they have any
interest in using Triangle Boy for offensive attacks.

The CIA wants the strengthened version of Triangle Boy
reconfigured so it can handle the CIA's own much higher-powered
encryption. It also wants to ensure that only its own employees
and contacts can communicate via Triangle Boy. SafeWeb is
expected to deliver the customized version by April.

Some observers suggest that the CIA's real interest is figuring
out how to crack Triangle Boy and to thwart its use among the
public. Encryption and the spread of Internet-based
communications have made life miserable for the National Security
Agency, the CIA's sister organization responsible for electronic
eavesdropping around the world. Software such as Triangle Boy
will render the challenge that much tougher.

But the CIA denies the allegation. 'We're looking to use new
technology, not to break it,' said the CIA official, who added
that the NSA was informed of the Triangle Boy investment and will
later get to inspect the software. But with or without CIA
involvement, the official said, technology is moving too fast for
the NSA to keep up.

For Mr. Hsu, the key is to manage the relationship with the CIA
without damaging his company's reputation. His customers, after
all, are people who take privacy very seriously, so trust is a
critical part of its business model. There are already glimmers
of suspicion in some Internet chat rooms. 'This could be the
greatest NSA trap ever,' wrote one skeptic of the SafeWeb site.
'This actually makes it easier for people to spy on you,' wrote
another.

Mr. Hsu, though, insists that the CIA relationship is 'completely
separate from our core business.' The agency will have no access
to SafeWeb's operations or insider knowledge of its proprietary
software. But on the other hand, he says, if the CIA is pleased
with its customized version of Triangle Boy and puts it to use,
'that will be a big seal of approval from the government.'


Copyright (C) 2001 Dow Jones & Company, Inc. All Rights Reserved.
Dow Jones


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