TSA Work Sloppy, but Not Illegal
By Ryan Singel

Story location: http://www.wired.com/news/privacy/0,1848,67031,00.html

02:00 AM Mar. 26, 2005 PT

Homeland Security officials failed to keep millions of airline passenger
records secure and repeatedly made false denials of their involvement in
data transfers to the media and Congress, but they did not violate federal
law, according to a report released Friday.

The report (.pdf) by acting Department of Homeland Security Inspector
General Richard Skinner found that the Transportation Security
Administration was involved in 14 different data transfers totaling more
than 20 million records in 2002 and 2003.

The report describes an array of data dumps from airlines to TSA contractors
and paints a picture of an agency unable to keep track of its own
operations, leading to false denials of data transfers to the media and
inaccurate sworn testimony to the Senate.

However, the department did not violate the Privacy Act, which prohibits
secret databases on Americans, since the agency used the records in bulk and
did not look up individuals by name, according to the report.

Delta Air Lines, JetBlue Airways and American, Frontier, Continental and
America West airlines -- along with three airline record processing firms,
all secretly turned over data directly to the TSA and government
contractors.

The data included names, addresses, dates of birth, itineraries and credit
card numbers.

The data dumps first came to light after Wired News reported in September
2003 that JetBlue had violated its privacy policy by turning over 5 million
records to an Army subcontractor.

Those records were augmented with personal records from Acxiom, one of the
country's largest data-aggregation companies.

That information included incomes, occupations, vehicle ownership
information and Social Security numbers.

Friday's report shows that JetBlue and Acxiom's participation did not stop
there.

Acxiom provided, in violation of JetBlue's privacy policy, 2.75 million
JetBlue records directly to HNC Software, a company hired by the TSA to
build a prototype of an airline passenger-screening system.

Acxiom also separately provided HNC with sensitive personal information from
its databases on more than 1 million American Airlines passengers.

The goal of almost all the data transfers was to test a system called CAPPS
II, which intended to use computer algorithms to detect terrorist threats to
airplanes by comparing itineraries to government watch lists and commercial
data.

That system was eventually scrapped in July 2004.

The TSA is now testing a similar system, dubbed Secure Flight, using
reservations it publicly demanded from the airlines in November and
commercial data records from Acxiom.

But civil libertarians, including Electronic Frontier Foundation attorney
Lee Tien, argue this report shows that the TSA cannot be trusted with such
personal information.

"This is worse than ChoicePoint," Tien said. "It reflects an attitude toward
the privacy of Americans that falls well below what people are up in arms
about in the commercial data industry.

"Obvious bad security and data-privacy practices were allowed to fester
because there is no public scrutiny," Tien said. "They never had to tell
anyone that they were asking for or getting passenger data. Combine that
with the secretiveness of the Homeland Security Department, and you have a
recipe for a privacy disaster."

Ari Schwartz, associate director of the Center for Democracy and Technology
-- a group known for working closely with government officials -- says it is
clear that the TSA did break the law.

"If these were not Privacy Act systems of records, then why were they
merging commercial and airline data at all?" Schwartz asked. "What is the
purpose if you are not going to pull people out by name and find potential
terrorists?"

Sen. Joe Lieberman, the top Democrat on the Senate Homeland Security and
Governmental Affairs Committee, echoed those concerns.

"The Inspector General's report demonstrates that TSA should have enforced
better privacy practices," Lieberman said in a written statement. "I also
question whether several of the risk-assessment programs developed at TSA's
request using passenger data violated the Privacy Act.

"Finally, TSA took months to disclose to Congress and the public its role in
the transfers of passenger data, and some of its disclosures were
inaccurate. TSA will need to do better -- the American public must know
their personal information is well-protected, or they will distrust the new
systems we need to keep our nation safe."

TSA spokeswoman Amy Von Walter defended the agency, pointing out that the
report found no evidence of harm to any individual's privacy and that the
TSA is working on official interagency procedures for handling passenger
data.

"Our actions corroborated our dedication to balancing privacy and security,"
she said. Von Walter also indicated the agency is working to make sure that
the public and Congress are better informed about the agency's actions.

"Throughout the development of the Secure Flight program, we have worked
very closely with ... the industry and with the privacy community. So it's a
much more open and transparent process," Von Walter said.

This will not likely be the end of this issue for the TSA, however, as Nuala
O'Connor Kelly, the chief privacy officer for Homeland Security, is still
working on a report on whether the transfers violated the Privacy Act.

End of story



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