November 2008 - cypherpunks-legacy

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US rolls out 'Vicinity RFID' to check IDs in moving vehicles
by Eugen Leitl 24 Nov '08

24 Nov '08

http://www.theregister.co.uk/2008/11/24/dhs_vicinity_rfid/ US rolls out 'Vicinity RFID' to check IDs in moving vehicles ...From 20-30 feet. But your data is safe, honest... By John Lettice b" Get more from this author Posted in Government, 24th November 2008 12:50 GMT RFID technology that allows the remote identification of travellers in moving vehicles is being rolled out at US land border crossings this month. Crossing points with Canada at Blaine, and with Mexico at Nogales, came online last week, with Buffalo, Detroit and San Ysidro to follow, and a total of 39 planned. The system uses the US PASSport (People, Access Security Service) card, which is intended to operate within the Western Hemisphere Travel Initiative (WHTI) for US citizens entering the US via land and sea ports. Using "Vicinity RFID" it can read the cards from a healthy skimming distance of 20-30 feet, but according to the Department of Homeland Security this isn't a problem. The RFID chip on the card doesn't contain any personal information, only a unique identification number, and skimmers wouldn't have access to the data the number matches up with. The system is intended to work like this. As a vehicle approaches the border post, the numbers of the cards inside it are read, and pictures and data on the holders are called up from a database. Then, presumably, the immigration officers check the faces of the passengers to make sure they match, and bust any who happen to be flagged as terrorists or loose criminals. In addition to the PASSport card, some US states are beginning to issue Enhanced Driver's Licence/ID cards (EDL/ID), which have the PASSport RFID functionality added to a standard driver's license. These can also be used for land or sea entry to the US, but neither variety of card is valid elsewhere, or for WHTI air travel into the US. Obviously, they'd only be of any use at anybody else's border post if there were compatible readers there, and if the US had kindly shared its ID database with the relevant country. So it's an internal passport system, one that's entirely incompatible with the biometric ID system that the US has gone to such pains to get the world to adopt. Were they only kidding, then?

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e-gold directors avoid jail
by R.A.Hettinga 24 Nov '08

24 Nov '08

<http://www.theregister.co.uk/2008/11/21/e_gold_sentencing/print.html> The Register e-gold directors avoid jail Controversial money transfer service given second chance By John Leyden Posted in Crime, 21st November 2008 17:19 GMT Three directors of digital currency firm e-gold avoided a spell behind bars on Thursday after earlier pleading guilty to offences for money laundering and running an unlicensed money transfer business. The three directors, along with the e-gold company itself and parent firm Gold & Silver Reserve, were charged in April 2007 with becoming a clearing house for child pornography payments and investment scams. Prosecutors charged that slack-shod verification meant the service had become a banker to cybercrooks. After initially disputing the charges the defendants pleaded guilty in July 2008. At a sentencing hearing on Thursday, US District Judge Rosemary Collyer said the three men deserved leniency because they had not set out to service crooks. The trio were each sentenced to three years on probation in addition to 300 hours of community service and fines, the e-commerce Journal reports (http://ecommerce-journal.com/node/11427) Chief exec Douglas Jackson was fined $200, after his lawyer successfully argued he was all but broke. Two other directors, Barry Downey and Reid Jackson, were ordered to pay a $2,500 fine each. Reid Jackson and Douglas Jackson are brothers. The three defendants were also ordered to obtain licences to operate money transferring businesses in those states where such a permit is required. e-gold recently registered with FinCEN and is in the process of signing-up with state regulators. e-gold and Gold & Silver Reserve were each fined $300,000, with re- payments following an initial $10,000 payout only due to begin next May. Each might have been fined up to $3.7m. The service remains open for business but has stopped allowing new accounts to be registered until it works out how to apply a stricter registration regime. During the federal prosecution, e-gold supporters said the Feds targeted it because it allowed virtually anonymous money transfers. Prosecutors dismissed the libertarian philosophy behind the service as irrelevant, contesting that e-gold's directors must have known crooks were using its services. The firm has recently implemented a customer identification program so that its users are obliged to register details such as their tax particulars and dates of birth as well as addresses and points of contacts, information previously requested. e-gold, established in 1996, allows the ownership of gold to be transferred between an estimated three million users, a quarter of whom actively use their accounts. At its peak $5m in fund transfers day passed through e-gold.

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