I know you are interested in electronic privacy issues, so I thought you would like to see the following article. Yikes! -- Harry Subject: Postal Service and IRS mull national identity cards Forwarded-by: bostic@vangogh.CS.Berkeley.EDU (Keith Bostic) Forwarded-by: kole@hydra.convex.com (John P. Kole) Forwarded-by: cavasin@bach.convex.com (Vince Cavasin)
From Digital Media, May 9, 1994.
EVER FEEL LIKE YOU'RE BEING WATCHED? YOU WILL.... Postal Service and IRS mull national identity cards, Clinton to sign orders Digital Media has learned that the Clinton administration is debating not if, but how, to create a card that every American will need in order to interact with any federal government agency. Combined with two potential executive orders and the Postal Service's designs on putting its stamp on personal and business electronic transactions, the card could open a window on every nuance of American personal and business life. The wrangling among the administration, the U.S. Postal Service, the Internal Revenue Service and Department of Defense, emerged into the public eye at this April's CardTech/SecureTech Conference. The gathering of security experts was convened to discuss applications for smart card and PCMCIA memory card technologies in business and government. The Postal Service, at the conference presented a proposal for a "general purpose U.S. services smartcard," which individuals and companies would use to authenticate their identities when sending and receiving electronic mail, transferring funds and interacting with government agencies, such as the I.R.S., Veterans Administration and the Department of Health and Human Services. President Clinton is also considering signing two executive orders that would greatly expand the government's access to personal records, including an order that would allow the I.R.S. to monitor individual bank accounts and automatically collect taxes based on the results, said sources close to the White House. The collection service will be presented as a convenient way to avoid filling out a tax return. The White House did not respond to requests for comments about this report. The Post Office: We deliver for you. The Postal Service's U.S. Card would be designed to use either smart cards (plastic cards with an embedded microprocessor carrying a unique number that can be read by a electromagnetic scanner and linked to computerized records stored on a network) or PCMCIA cards, which can contain megabytes of personal information. (You've probably seen this type card in AT&T's "You Will" ad campaign, which shows a doctor inserting a woman's card in a reader in order to access a recording of a sonogram). The Postal Service said it is considering AT&T and other companies' smart card technologies. In a slide presentation at the conference, Postal representative Chuck Chamberlain outlined how an individual's U.S. Card would be automatically connected with the Department of Health and Human Services, the U.S. Treasury, the I.R.S., the banking system, and a central database of digital signatures for use in authenticating electronic mail and transactions. The U.S. Card is only a proposal, Chamberlain insists. Yet the Postal Service is prepared to put more than a hundred million of the cards in citizens' pockets within months of administration approval, he said. "We've been trying to convince people [in the different agencies] to do just one card, otherwise, we're going to end up with two or three cards," said Chamberlain. He said in addition to the healthcare card proposed by President Clinton last year, various government agencies are forwarding plans for a personal records card and a transactions (or "e-purse") card. Chamberlain said the I.R.S in particular is pursuing plans for an identity card for taxpayers. Don't leave home without it. Though he did not name the U.S. Card at the time, Postmaster General Marvin Runyon suggested that the Postal Service offer electronic mail certification services during testimony before the Senate Governmental Affairs Subcommittee in March. The proposal is clearly intended as a way to sustain the Postal Service's national role in the information age, since it would give the agency a role in virtually every legally-binding electronic transaction made by U.S. citizens. For instance: % When sending or receiving electronic mail, U.S. Card users would be able to check the authenticity of a digital signature to screen out impostors. % Banking transactions (notably credit card purchases) that depend on authentication of the participants identities and an audit trail, would be registered in Postal Service systems. % Veterans, or for that matter college students and welfare recipients, could check their federal benefits using the identification data on their U.S. Cards. % Visitors to an emergency room would have instant access to medical records at other hospitals, as well as their health insurance information. These examples may seem benign separately, but collectively they paint a picture of a citizen's or business's existence that could be meddlesome at best and downright totalitarian at worst. Will buying a book at a gay bookstore with a credit card that authenticates the transaction through the Postal Service open a Naval officer up to court martial? If you have lunch with a business associate on a Saturday at a family restaurant, will the IRS rule the expense non-deductible before you can even claim it? "There won't be anything you do in business that won't be collected and analyzed by the government," said William Murray, an information system security consultant to Deloitte and Touche who saw Chamberlain's presentation. "This [National Information Infrastructure] is a better surveillance mechanism than Orwell or the government could have imagined. This goddamned thing is so pervasive and the propensity to connect to it is so great that it's unstoppable." Deep Roots; Deep Pockets; Long History. Chamberlain said the Postal Service has been working for "a couple years" on the information system to back up the U.S. Card. He said the project was initiated by the Department of Defense, which wanted a civilian agency to create a national electronic communications certification authority that could be connected to its Defense Messaging System. Chamberlain said the Postal Service has also consulted with the National Security Agency, proponents of the Clipper encryption chip which hides the contents of messages from all but government agencies, like law enforcement. The National Aeronautics and Space Administration's Ames Research Laboratories in Mountain View, Calif. carried out the research and development work for Clipper. "We're designing a national framework for supporting business-quality authentication," said John Yin, the engineer heading up the U.S. Card- related research for NASA Ames' advanced networking applications group. "This is not specifically with just the Postal Service. We'll be offering services to other agencies and to third-party commercial companies that want to build other services on the card." For example, VISA or American Express could link their credit services to the U.S. Card. Yin, who works on Defense Messaging Systems applications, said his group has collaborated with "elements of Department of Defense" for the past year, but would not confirm the participation of the National Security Agency, a Department of Defense agency. The NSA is specifically prohibited from creating public encryption systems by the Computer Security Act of 1987. Yin also would not comment on the budget for the project, which other sources said was quite large and has spanned more than two years. A false sense of security? According to Yin, the cards would allow individuals or businesses to choose any encryption technology. "It's not our approach to say, 'Here's the standard, take it our leave it,'" he said. "We're not trying to create a monopoly, rather it's an infrastructure for interoperability on which a whole variety of services can be built." Yet, NASA, which is a participant in the CommerceNet electric marketplace consortium will "suggest" to its partners that they adopt the U.S. Card certification infrastructure, he said. The reality is that government agencies' buying power usually drives the market to adopt a particular technology -- not unlike the way the Texas Board of Education, the largest single purchaser of textbooks in the U.S., sets the standard for the content of American classroom curricula. Since, the administration has already mandated use of Clipper and its data-oriented sibling, the Tesserae chip, in federal systems it's fairly certain that the law enforcement-endorsed chips will find their way into most, if not all, U.S. Cards. Even in the unlikely event that one government agency should weather the pressure and pass on the Clipper chip, it's still possible to trace the source, destination, duration and time of transactions conducted between Clippered and non-Clippered devices. "Most of this shift [in privacy policy] is apparently being done by executive order at the initiative of bureaucracy, and without any Congressional oversight or Congressional concurrence, " Murray said. "They are not likely to fail. You know, Orwell said that bureaucrats, simply doing what bureaucrats do, without motivation or intent, will use technology to enslave the people." EDITOR'S NOTE: Digital Media has filed a Freedom of Information Act request for Clinton and Bush Administration, Postal Service, NSA, Department of Defense, NASA, I.R.S. and other documents related to the creation of the U.S. Card proposal. -- Mitch Ratcliffe Copyright 1994 by Mitch Ratcliffe and Seybold Publications. Digital Media: A Seybold Report 444 De Haro St., Ste. 128 San Francisco, Calif. 94107 415.575.3775 dmedia@netcom.com Mitch Ratcliffe Editor in Chief 415.575.3775 office 206.581.1892 home godsdog@netcom.com