US Internet titans undercut by NSA actions

By Charles Gray (Global Times) 08:14, September 23, 2013

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The revelations regarding the US National Security Agency's (NSA) large-scalecompromising of Internet privacy and security standards are not simply troubling from thepoint of individual rights, but also due to the potential damage done to the economic utilityof the Internet itself. These revelations may spark an increased drive by foreign companiesand governments alike to abandon the use of US software products.

Essentially, the NSA has developed a variety of ways to break commonly used forms ofencryption in order to render e-mails and data files vulnerable to interception andexamination.

However, the truly frightening and potentially damaging part of these revelations is thatthe NSA has worked in cooperation with an unknown number of tech companies to insertbackdoors into their software in order to allow the NSA to easily monitor those using theseproducts.

There are two equally damaging factors at work here. It is impossible to know if thesoftware a company is using has been compromised by the NSA. And US softwarecompanies and Internet service providers may be cooperating, willingly or unwillingly, withthe NSA. In such a case, they would be unlikely to admit to their role, due to the obviouspotential for damage to their public reputation.

Additionally, although the NSA has long claimed that it only monitors foreign parties, theinformation that has been made available to the public by Edward Snowden has made itplain that the NSA does monitor US citizens and has even covertly provided information tothe FBI, Drug Enforcement Agency and Internal Revenue Service in defiance of federallaw.

Many Americans also have cause to regularly communicate with foreign business partnersor clients, which would make their communications liable to "legal" NSA surveillance.

We also only have the NSA's assurances that it does not engage in economic espionage,which by now should carry little weight. Even foreign companies engaged in completelylegitimate commerce must now face the risk that the US government may monitor theirtrade secrets and policies to the detriment of their business interests.

The second danger comes because the NSA was unable to prevent Snowden from makinghis revelations. Because of this, any company making use of US privacy or securitysoftware must face the risk that the vulnerabilities installed by the NSA could fall into thecriminal hands. Both current and past communications could be deciphered by criminalsand used to damage the companies' operations or to blackmail the owners by threateningto reveal proprietary information.

It is increasingly obvious that depending on US security software can be a very dangerouschoice. In addition to the potential financial losses from a data breach, foreign companiesmay find themselves facing legal action from their clients, under the theory that theyshould have assumed that any security or encryption software created by a US companywas compromised.

US Internet businesses, from data storage centers to antivirus and security softwarecompanies are thus likely to find their products and services increasingly unwanted ininternational markets.

In addition, foreign firms may doubt whether or not their US partners will be able to keepproprietary information secure. This is especially true given the NSA's habit of usingwarrants that forbid the recipient from disclosing the warrant's existence and target toother organizations or individuals.

The NSA has struck a deadly blow against the reputation of US software providers.Businesses that have spent their entire existence building up a reputation for ensuring thesecurity of their clients' information have seen that reputation destroyed overnight. Worstof all, even uncompromised US software will exist under a cloud of suspicion, making itlikely that foreign companies and individuals will seek out more secure alternatives.

Ultimately, while the NSA claims that its goals are merely to secure the safety of UScitizens, its overreach in this area may have dealt a critical blow to one of the country'sfastest growing and dynamic industries.

Recovering from this self-inflicted blow will require far more transparency and regulatorycontrols than the NSA appears willing to accept. It remains to be seen if Congress is willingto accept security at "any price," if that includes the long-term health of a major domesticindustry.

The author is a freelance writer based in Corona, California. charlesgray109@gmail.com

（Editor：LiangJun、Zhang Qian）