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**************************************************
October 1998 Privacy Battle Newsletter by e-mail only
**************************************************
Editors Comments
For most of this year, the financial markets globally have been on one
hell
of a rollercoaster, and in the short to medium term there seems very
little
light at the end of the tunnel.
This turmoil is also at a time when one of the worlds biggest changes to
the currency markets is about to take place. the EURO For those of you
with cash sitting around simply earning interest the main concern
through a
period in such erratic market behaviour is to find a stable currency
haven
with a reasonable gross interest return. Our own strategy is to ride out
the storm with a mix of Sterling and Swiss Francs. In times of such
financial turmoil offshore Sterling deposits (Building Societies) have
always provided a good return with rock solid security of your capital.
The
Swiss Franc has and will always position itself as a stable neutral, not
a
particularly good return on interest but a good stash-away. The action
by
the British government to hold Sterling back for a further two years,
before committing to the Euro, will provide a very valuable mechanism
for
those citizens of the euro locations to stash away in Sterling, accepted
that Sterling is currently a high value currency, but with a 2%+ higher
yield than the Euro and a pre-history of growth when the chips are down,
Sterling looks set to attract a strong following from the secret cash
holders.
*************************************************
PRIVACY in PERSPECTIVE. PART 2.
The following article is from Mr. Lee Adams web site
<http://www.spycounterspy.com>,
Uncrackable Email Part II.
***Begin Part II***
In Part 1 of this two-part tutorial, you learned about the
methods that FBI surveillance teams use to crack your
PGP-encrypted email messages. Many of those methods involved breaking
into
your home or office without your knowledge. Some methods involved
electronic devices in a communications van located a short distance from
your home or office, across the street perhaps. (If you havent read Part
1, you might want to go back and do so now before reading further.
Return
to our home page and click on Uncrackable Email 1.)
Uncrackable Email Part 2 describes ways to protect your
email privacy and the secrecy of your messages. These methods work
against
the FBI, BATF, DEA, and other government agencies, including state and
local police.
You'll learn step-by-step protocols and countermeasures that
you can implement. In some cases, these methods will stop an FBI
investigation cold. In other cases, they will only delay it. Much
depends
on the circumstances of the case. A lot depends on your
countersurveillance
and antisurveillance skills.
Each solution described in this tutorial is a protocol. You
can think of a protocol as a method, a set of guidelines, or an
operating procedure.
Flexibility. If your goal is to absolutely prevent the FBI
from cracking your PGP-encrypted email, the key to success is
flexibility.
The content of your email is what counts. The more incriminating the
message, the more precautions you should take.
When used properly, the firewall method can completely frustrate an FBI
surveillance team.
Protocol 1:
The firewall method...
The firewall method is centered on the way you use your
computer. This includes where, when, and how you use your
computer. Described here is a step-by-step method for obstructing the
FBI.
This is a very rigorous protocol. You likely won't need to go to this
much
trouble very often.
Step 1: Get cleaned up. Scrub your hard disk. The FBI can
read deleted files using an undelete utility. The FBI can read
file slack, RAM slack written to disk, free space, garbage areas, and
the
Windows swap file using a sector viewer or hex editor.
Return to our main page and click on Security Software for more on this.
Although other packages are available, we use Shredder.
Then we use Expert Witness and HEdit to check the hard disk
afterwards. (From now on we'll refer to your hard disk drive as HDD.)
If you have previously used your computer to work with
incriminating data, you should wipe the entire HDD and reinstall the
operating system, application software, and user files. If surveillance
poses a risk to your liberty, you must install a new hard disk drive.
Then
disassemble, mutilate, and incinerate the old drive.
Once youve got your computer sterilized, youl want to
keep it clean. Tidy up after each work session. Thereafter, dont leave
your computer unattended.
Step 2 : Get unplugged. During sessions when youre working on secret
messages, you should take measures to frustrate FBI surveillance. This
means physically disconnecting your computer from the AC power supply
and
from the telephone jack. You'll need a battery-powered computer : a
laptop,
notebook, or subnotebook.
Remaining connected to the AC power supply is risky. Using
equipment attached to your power line outside your home or
office, the FBI can detect subtle changes in the current as you
type on your computer's keyboard.
Likewise, remaining connected to the telephone line is
risky. If the FBI has broken in without your knowledge, they may have
installed counterfeit programs on your computer. Your computer could be
secretly sending data to the surveillance team over your dial-up
connection. Just imagine the damage if you were unknowingly using a
doctored copy of your favorite word processing program.
Step 3 : Go somewhere else. In order to frustrate the FBI's
electronic surveillance capabilities, you must relocate away from your
usual working area. If you fail to take this step, an FBI video camera
can
watch your keystrokes. An FBI audio bug can listen to your keystrokes.
An
FBI communications van parked in the neighborhood can detect both your
keystrokes and your display.
Suitable locations for ensuring a surveillance-free
environment are park benches, crowded coffee shops, busy fast food
outlets,
on a hiking trail, at a friend's place, in a
borrowed office, at a bus depot waiting area, in an airport
lounge, at the beach, and so on. Be creative and unpredictable.
The trick is to select a location difficult for FBI agents to
watch without you becoming aware.
You may be surprised at what happens the first time you
relocate. If you suddenly find people loitering nearby, you may already
be
under surveillance. (More about this later in the tutorial.)
During your first relocated work session, use PGP to create
your secret key ring. Your passphrase should contain random
characters. Do not write down your passphrase. If you must, jot down
just
enough hints to help you remember.
Save copies of the following files from the PGP directory to
a diskette : Secring.skr, Secring.bak, Pubring.pkr, Pubring.bak, and
randseed.bin. For safety, use two diskettes and make two backups. Keep
the
diskettes on your person. Delete the files from your HDD.
Step 4 : Get serious. From now on, youve got a new standard operating
procedure. Whenever you need to compose and encrypt a secret message,
you
must first relocate to a safe area. (Youll soon begin to appear like a
busy person who checks in often with your contact software or scheduling
software.)
Save the encrypted document to diskette. Delete all working
files. Return to your home or office. Then use a different
computer to email the encrypted messages.
Using a different computer is vital. It acts like a firewall. It keeps
your
relocatable computer sterile. Do not connect your relocatable computer
to
the telephone line. Ever. Do not leave your relocatable computer
unattended. Ever. If this means carrying your relocatable computer with
you
all the time,
then so be it.
For ordinary working sessions, its usually okay to connect
your relocatable computer to AC power. However, dont do any sensitive
work
in this mode. Always disconnect and relocate first. But if absolutely
watertight security is your goal, the only time youll turn on your
relocatable computer is when youve relocated. The only time youll plug
it
in is to recharge the battery.
When you receive incoming encrypted email on your firewall
computer, save it as a text file to diskette. Relocate. Check the
diskette
with an antivirus program. Load the file into your
sterile computer. Decrypt the ciphertext and read the plaintext.
Delete the plaintext. Return to your regular work location.
Summary. The firewall method involves nit-picking attention
to detail. It is a methodical system for protecting the privacy
of your PGP-encrypted email messages. It takes perseverance and patience
to
beat the FBI at this game. But it's preferable to the alternative. The
firewall method will keep you out of the internment camps.
Youll read about other protocols later in this tutorial.
But if you choose to use the firewall method, you must follow it
rigorously
in order for it to be effective. Slip up once and the goons will nail
you.
Theyll snatch your passphrase. They'll learn where you keep your key
rings. Then its interrogation, arrest, indictment, conviction. Or maybe
they'll just kick in the door an hour before dawn and ship you off to
the
camps.
The firewall method is watertight, but it only works if you
use it.
Protocol 2:
The deception method...
Protocol 2 is based on liveware, not software. Liveware
refers to you, the human element in the countersurveillance
scheme. Protocol 2 takes a human approach. It uses deception.
Most people don't realize that FBI surveillance teams are
vulnerable to deception. Its possible to mislead and confuse
them. Thats because most FBI targets are ordinary Americans with no
countersurveillance training. In relative terms, only a few elite units
within the FBI encounter hard targets. (A hard target is a trained
operative who is actively maintaining secrecy and who will not reveal
that
he has detected the surveillance team.)
So most FBI agents have never confronted a hard target. They
never get any practice. Theyre accustomed to playing tennis with the net
down.
Deception provides four ways for you to protect the privacy
of your PGP email.
Deception method 1 : Decoy. This method involves duping the surveillance
team into believing they have cracked your PGP email, when in fact they
have uncovered merely a decoy. Your real protocol continues to run
undetected in the background. This is called layered security.
The best underground activists worldwide operate in this
manner, including guerrilla movements, freedom fighters, and
resistance groups. Inside the USA this method is mostly used by criminal
groups (so far).
The key to success is carefully and deliberately providing
some mildly incriminating evidence for the FBI to find. This
decoy data will often dissuade them from investigating further.
The FBI will eventually downgrade the 24-hour surveillance to perimeter
surveillance, then picket surveillance, and finally
intermittent surveillance. Theyll keep you on their watch-list
and check up on you two or three times a year. They may drop you
entirely.
Here's how to implement this method.
Step 1 : Set up Protocol 1 and then forget about it.
Step 2 : Use your firewall computer as your primary
computer. Create another set of secret keys. Leave the key ring files
and
randseed.bin on your HDD. This increases the chances the FBI will
recover
them during a surreptitious entry. Create and encrypt low-grade messages
at
your firewall computer. This increases the odds that the FBI will snatch
your passphrase.
Step 3 : Use this second configuration of PGP as a decoy.
Use it to send only low-grade messages. In effect, you are now running
two
layers of PGP. From time to time you will use Protocol 1 and temporarily
relocate in order to encrypt or
decrypt high-risk secret messages.
Step 4 : If you suspect or detect FBI surveillance, keep up
the deception. Perhaps temporarily stop using your relocatable
computer. If you use the technique of plausible denial, you
increase your chances of completely concealing the fact that
youve got a second PGP system.
The principle of plausible denial is well-known in
intelligence agencies, urban guerrilla movements, and resistance groups.
Plausible denial means cover. Cover is spy-talk for innocent
explanation.
You must take the precaution of having a plausible, innocent explanation
for everything you do. Absolutely everything. Dont ever do anything
until
you think up a believable excuse for doing it.
Even if the FBI surveillance team discovers the second
protocol, you will have purchased yourself some extra time. Use the time
to
encrypt, conceal, or destroy incriminating data. Use the time to warn
other
members in your group. Use the time to feed misinformation to the
surveillance team.
When systematically applied, the decoy method provides a
good first line of defense against an FBI surveillance team.
Deception method 2 : Thwarting cryptanalysis. When using
Protocol 1, you can utilize deceptive techniques to reduce the
chances of your message being cracked by NSA. If the case is
serious enough, the FBI will provide NSA with a full set of your
encrypted
messages.
The cryptanalysis experts at NSA will use Statistical
Probability Analysis to begin detecting commonly used phrases, words,
punctuation, and layout. The more footholds you give them, the sooner
theyll crack your email. Here are three ways to use deception to impede
their progress.
Step 1 : Disguise the format of your message. Your goal is
to camouflage the layout. Insert a random-length paragraph of
nonsense at the beginning of each message. You do not want the
salutation
or other material to appear at always the same
location. Your recipients should be alerted to ignore the first
paragraph. You can also use a text editor to manually strip off
the header and footer from PGP ciphertext. The recipient can
likewise use a text editor to manually restore the header and
footer so PGP will recognize the text as code to be decrypted.
Step 2 : Make your content resistant to heuristic analysis.
Heuristic analysis involves informed guessing and
trial-and-error. Deliberately run some words together,
eliminating the space. Intentionally add or delete punctuation.
Occasionally insert a carriage return in the middle of a
paragraph. Deliberately introduce spelling errors into your text.
Step 3 : Write your message in a "foreign" language. You can
do this by using homonyms such as "wood" instead of "would", or "urn"
instead of "earn". Write numbers and dates out in full, such as
"nineteen
ninety eight" instead of 1998. Use code words such as competition
instead
of surveillance, competitor instead of FBI, market survey instead of
countersurveillance, and so on.
Use noms de guerre instead of real names.
When properly used, these and other anti-cryptanalysis
techniques can greatly increase the amount of time it takes the
NSA to crack your PGP-encrypted email.
Deception method #3: Diagnostics. You can use PGP to detect the presence
of
a surveillance team. Countersurveillance experts refer to this as
running
diagnostics. When performed against pavement artists, it is called
dry-cleaning. Here's how it works.
Deliberately encrypt a provocative, bogus series of
messages. Your goal is to use content that will elicit an
aggressive response from the FBI. If surveillance intensifies,
your email may have been cracked , or the FBI may simply be
reacting to your increased traffic. That's spy-talk for the
frequency, volume, and timing of your messages.
On the other hand, you may notice that the surveillance team
seems to know where you're going and who you're going to meet with. They
arrive before you do. They break into your associate's home or office
looking for items you've mentioned in your email.
They're conspicuously nearby as you slip a written note to your contact,
after mentioning the brushpass in your email.
All these are warning signs that the FBI is reading your
PGP-encrypted email. If you're using a decoy setup, switch to
Protocol 1 to send secure email. If you're already using Protocol 1, you
and your correspondents should create new passphrases. If further
diagnostics suggest the FBI is still reading your email, you and your
correspondents should reinstall PGP and create a fresh set of key rings
and
passphrases. Exchange the key rings by face-to-face contact, through
live
intermediaries, or by human courier.
Tip : Anonymous email addresses activated through a cyber cafe can be
used, but only if you set them up before the FBI puts you under
surveillance. Go out and do it tomorrow.
When properly applied, diagnostics can keep you one step
ahead of an aggressive FBI surveillance team.
Deception method #4: Spoofing. You should routinely send
out bogus encrypted messages. Your goal is to mislead and confuse the
surveillance team. If the FBI is reading your email, you have an
opportunity to confuse and mislead them with misinformation.
If the FBI hasnt cracked your email yet, the traffic in bogus
messages will provide cover for your authentic messages. If a
mission requires an increased number of secret messages,
simultaneously reduce your bogus messages, and the FBI wont detect any
increased communication activity.
When used systematically, spoofing can level the playing
field between you and the FBI surveillance team.
You can boost your chances of stopping an FBI surveillance team from
learning anything at all.
Summary...
Using deception, you can confuse, mislead, obstruct, and
frustrate the surveillance activities of your adversary.
Deception can be very effective against an FBI, BATF, or DEA
surveillance
unit. It is particularly effective against standard police surveillance.
If the deception techniques of Protocol 2 are used in
combination with the firewall methods of Protocol 1, you boost your
chances
of stopping an FBI surveillance team from learning anything at all.
Copyright Lee Adams. All rights reserved except as noted
herein. Spy & CounterSpy is published by Here's-how, Right-now!
Seminars
Inc. How to contact us: Send mail to PO Box 8026, Victoria BC, CANADA
V8W
3R7. Email us at [EMAIL PROTECTED]
- ---------------------------------------------------------------
OFFSHORE WORLD.
A great many people, especially those with funds that they wish to keep
secret, have fixed in their minds that secret accounts must be with
offshore banks. This thinking is then compounded by the belief that if
the
funds are offshore, they should be in US$dollars.
Part of the thinking behind this belief, is the notion that the US$ is
the
only truly international currency - easily exchanged wherever you go.
In times past, this may have been the case, but now the reality is
something quiet different.
For most uses today, the international currency, is not actually any one
particular country currency, it is the status of the piece of plastic
that
millions of us, now take for granted.
When you travel about, visit restraunts, make purchases etc., etc. you
dont get asked what currency is your plastic, its either VISA,
MasterCard, Amex and a few others.
Naturally the base currency comes into the equation, (until the days
when a
system of international credits is introduced ) but the decision as to
what
base currency you should have, should be based on the strict mathematics
of
the currency and should have absolutly nothing to do with your
citizenship.
If you intend to spend most of your secret funds in say the USA, then
yes, that is a good argument for you to have your accounts based in the
US$. But if you are one of those individuals that as flown the US nest
so
to speak, and now for example, are living a new life in Europe. While
you
hold accounts in the US$dollar, there will always exist computer or
even
paper records that both link you to the USA and their tax regime, and
provide a recorded trail of your travel and fortunes.
Now those of you that are citizens of the USA and either have already or
are planning a future outside of the US living off their assets - will,
I
am sure, argue that this is not the case. They will swear that their
offshore bank does not disclose any details about their US$ account,
but
that is quite frankly very nieve thinking. ANY bank, anywhere in the
world
that is a solid reliable player, in the US$dollar - Must be linked to a
US$ clearing bank, just in exactly the same way that a US bank offering
a
Sterling account is linked to a UK clearing bank.
The system is refered to as correspondent banks.
When a none US bank provides a US$ account facility to its clients, it
does
not actually personally hold the US$dollars on its own books, the moment
the US$ funds are received they are placed on the account of the banks
correspondent bank for that currency. A kind of interbank parallel cash
book system.
An example would be something like a Channel Islands (offshore ) bank,
offering say accounts in Sterling, US$, D.Mark, and the Swiss Franc.
Now
if the bank in this example is say a branch of a Canadian bank. This
Canadian bank will have correspondent links with a UK Sterling Clearing
bank (Lloyds), a US $dollar Clearing bank (Citibank NY.), a German DM
Clearing bank ( D Bank ), a Swiss Sfr Clearing bank ( Union Bank of
Switzerland ).
Now the major difference between the US$ correspondent relationship and
the
other currencies is the amount of subversive background pressure being
applied by the US authorities on all banks to disclose the ownership of
all
US$ funds being received. ( in this case by the Canadian bank. )
The way this pressure is applied is that the US clearer will receive
pressure not to clear any unknown funds. The parent Canadian bank will
be
pressured to have similar sanctions applied if the required information
is
not provided.
Now with this level of pressure being applied internationally on all
banks
offering US$ account facilities, the concept imagined or otherwise that
a
person can have and maintain a secret US$Dollar account outside of the
US
is simply a pipedream.
Strong opinions, you might think, but the intention is purely functional
and not negative - about the situation with the US$.
NOW for all you PTers, please let me have your arguments for and
against.
- ---------------------------------------------------------------
EUROPEAN UNION:
EU. Day One 1999.
All EU currency accounts on the 1st day of January 1999 will be
automatically converted to the new EURO currency. So all those accounts
that you might have, with your Dutch, German, French, Italian, Spanish,
Portugese, etc., etc., stash away currency in will all become merged
into
one single melting pot of the Euro currency --- with an interest rate
around the 5% level. This includes those accounts held offshore in
places
like Gibraltar.
NL.
The Netherlands is now the fastest growing economy in Europe, thanks to
a
healthy rise in sales of Dutch products, notably software, bank loans
and
cannabis.
It is expected that this year the growth will reach 3.4%. This growth is
mainly achieved from sales within Europe, so it is going to be
interesting
to see how this growth is effected by the switch to Euro pricing in
January 1999.
Euro - offshore.
The Irish banks have been quick off the mark to provide to clients
offshore
euro currency deposit accounts. The accounts are presently as ECU
accounts, but on the 1st January 1999, the ECUs will swop for EUROs on
a
one for one basis. ( clearly just a cosmetic change of name.)
- ---------------------------------------------------------------
PRIVACY: Beware the CCTV.
POLICE are about to embark on the first trial of automatic
face-recognition
software linked to CCTV cameras. The systems can scan crowds of people
and
match faces against a database of wa
nted criminals.
The trials, in an unnamed inner London borough this autumn, will use the
British-designed Mandrake system, which can even discover the identity
of a
suspect from an e-fit image.
However, privacy campaigners have raised concerns about the trials and
have
called on the Government to issue strict guidelines.
Using software developed in America, Software & Systems has also taken
the
process a stage further to allow the use of the system for large-scale
search-and-compare operations.
"A simple example might be the use of a CCTV camera at an airport
filming
people passing a particlar point," said Patricia Oldcorn, marketing
director of Software & Systems. "As people approached, the software
would
compare the image of their faces against its own database and
immediately
identify known suspects."
Based on advances in neural intelligence, the software has been
programmed
to match key facial features and to learn from its past mistakes.
Unaffected by facial hair, spectacles, hat and so on, the software
concentrates on the area of the face between the top of the eyebrows and
the bottom of the chin and from one side of the temple to the other.
Ben Turner of Software & Systems International said: "We found that the
search engine was even capable of making a comparison between an e-fit
image of a person and a photograph held on the database."
In police investigative terms, the news is of vital interest. E-fit
images
have traditionally provided the means to ask for the public's help in
identifying a suspect. But it is a slow process requiring a manual
search
of police records - Mandrake now offers the opportuntiy of identifying
suspects in seconds.
The problem of a suitable database remains. The availabilty of digital
images of criminals is at best patchy - most images are still hard-copy
photographs. The new driving licence and passports will soon have
digital
photographs.
A spokesman for the pressure group Privacy International said: "We asked
the Government to prohibit the sale of this technology, and urged that
strict guidelines be issued to the police."
� Copyright Telegraph Group Limited 1998.
- ---------------------------------------------------------------
INTERNET:
For those interested in the performance of the UK Investment Trusts,
there
is now available a free access website, that provides 24 hour access to
the
latest info.
WEB: www.trustnet.co.uk
For those of you interested in whats available on the non-ISP type
e-mail
arena, here are a few sites to checkout.
BIGFOOT: www.bigfoot.com
The service is free to e-address users, site funded by advertising which
appears on the Bigfoot Web site.
ROLLING STONES: www.stones.com
The service is free, this site is a Bigfoot alternative service.
INTERNET MAILBOX COMPANY: www.imailbox.com
You can try this site for 30 days, after that charges start from $6 a
month
for basic e-mail forwarding.
POBOX: www.pobox.com
Another e-mail forwarding service, charges start from $15 per year. They
provide a 30 day free trial period.
HOTMAIL: www.hotmail.com
Property of the Microsoft Corp, the service is a web based e-mail
facility.
Free to all takers.
YAHOO: www.yahoo.com
Independent site for the free spirits of the world. Another web based
e-mail service.
WHOWHERE: www.whowhere.com
Described as a site for tech heads and robots.
ALTAVISTA: www.altavista.com
A web based e-mail service. Take a look and decide for yourself if its
the
service for you.
NETSCAPE: webmail.netscape.com
Another web based e-mail provider.
If you feel that your e-mails require an additional layer of security
from
prying eyes ( or rather snoop-computers) then why not get yourself a
copy
of the leading encryption software PGP. ( Pretty Good Privacy )
WEB: www.pgpinternational.com
**************************************************
If you like the information contained in this Newsletter, please spread
the word by forwarding a copy to a friend.
**************************************************
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