http://www.smh.com.au/news/0002/03/bizcom/bizcom07.html
[also on NYT with cypherpunks29753/writecode I guess. Several
systems reviewed in cryptogram a little while ago get mainstream
attention.]

Hush is now hot in the mail game

E-COMMERCE by BOB TEDESCHI

Microsoft would not be proud to admit it but the software behemoth has done 
more to
spur the growth of the e-mail security industry in the past two years than 
perhaps any
other company.

Businessmen blanched at the notion that Bill Gates, of all people, could be 
forced to
answer questions in court about e-mail messages that he had sent years 
before,
supposedly in confidence.

Meanwhile, consumers took note last summer when hackers broke into 
Microsoft's
Hotmail site and made public some highly embarrassing personal 
correspondence of its
users.

Of course, Microsoft was not the first to encounter e-mail security issues 
but its
experiences pointed out the extreme vulnerability of this type of 
communication. The
common analogy among industry executives and analysts is that e-mail is as 
secure as a
postcard but even that may be giving e-mail too much credit.

When a message is sent, it can make a dozen or more stops along the Internet 
as it
travels to the recipient's desktop. At each of those stops it is typically 
copied, with the
duplicate message stored on a server, the technological engine that runs any 
Internet
operation.

Once a duplicate e-mail message is stored, it is subject to security 
breaches or
mishandling by the employees of the company or organisation that operates 
the server.

Furthermore, the courts can force Internet service providers to retrieve 
messages if they
are deemed relevant to a case.

More menacing than the courts, many employees have found, are the system
administrators hired by corporations to screen offensive or sensitive e-mail 
in the
workplace.

The creativity of hackers and corporate sleuths in their e-mail 
surveillance, however, has
been matched in recent months by services meant to make e-mail as private as 
a
confessional booth.

"This is becoming a very big category," said Steven Robins, an analyst with 
the Yankee
Group, a technology consulting firm. "As more and more business goes on to 
the Internet,
people want the same safeguards as they get in any other medium."

According to Forrester Research, the number of e-mail messages sent per day 
in the
United States will grow to 1.5 billion by 2002.

Among the first to see opportunity in this category was Tumbleweed 
Communications,
which was founded in 1993 and went public last year. Tumbleweed's technology 
allows a
user to send e-mail and inform recipients that they have received a document 
or a
message that has been encrypted and stored on the sender's server computer. 
When a
recipient clicks on a link inside the e-mail message, they are sent to that 
server site,
where the encrypted document can be viewed or retrieved from a secure Web 
page to
which the recipient alone has access.

Tumbleweed "is the leader right now", says Alan Weintraub, research director 
of
GartnerGroup, a consulting firm. "But they won't be alone for long. There's 
a lot of
activity in this space."

Some of that activity focuses on other ways to secure and control e-mail. 
For instance,
the e-mail security company QVtech has developed Interosa, a service whose
technology enables a user to send an e-mail message and control several 
aspects of how
it is used, including to whom it can be forwarded and whether or not it can 
be printed,
edited or copied.

Notably, the message can be erased from the Interosa server after a certain 
date, the
digital equivalent of paper shredding.

After a user types the e-mail message, they can set the rules for how it can 
be used. The
message is then encrypted before it is sent. When the recipient clicks on 
the e-mail
message to open it, a message travels from the user's desktop to a Web site 
using
Interosa's technology, which then verifies the recipient's identity and 
decrypts the
message.

According to a company spokesman, QVtech is trying to sell Interosa to 
companies such
as Mail.com and MessageMedia, which handle e-mail direct marketing on behalf 
of
Yahoo and Etrade, among others, companies that want to be able to track 
whether and
how their mailings are handled by the intended recipients.

QVtech had not completed agreements with such companies, the spokesman said, 
but
the it intended to charge about a penny for each e-mail message sent using 
its
technology.

Authentica, which sells document security software, said it would release an 
e-mail
security product in April that would compete with Interosa and others. Lance 
Urbas,
Authentica's chief executive, said the service could be particularly 
valuable for
companies that wanted to send valuable or sensitive documents via e-mail 
without
worrying that customers might forward them to colleagues.

"We have a consulting firm that issued a report on a Friday and by midday 
Monday the
author of the report had gotten a dozen calls about statements in the report 
from people
who hadn't purchased it," Urbas said.

"Reports like that cost a lot. That's the kind of thing we'll prevent."

Businesses are not the only target of so-called secure e-mail companies, of 
course.

According to Jon Gilliam, president of Hush Communications USA, consumers 
have
already begun to migrate toward secure e-mail services, with nearly 150,000 
users
having signed up for Hushmail since May.

As is the case with Hotmail, Hushmail requires the user to visit the site to 
read and send
mail. The difference, Gilliam says, is that even Hushmail employees cannot 
open the
e-mail messages stored on its server - not only because they are encrypted 
on the server
but because the key that unscrambles the messages is tied to a pass phrase 
that only the
user knows.

"We don't even know the pass phrase. If someone forgets their pass phrase, 
we can't
help them," Gilliam said. Likewise, he said, "if we get a subpoena like we 
did today for
e-mail records, we have to give the courts an encrypted message. There's 
nothing we
can do about it."

The New York Times

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