New Scientist, 22 July 1996, p. 10. Crackdown on Net Crooks 'a charter for state snoopers' Britain and France have become the first European nations to take concerted action against swindlers and other criminals operating on the Internet. The governments of both countries last week announced plans to license Trusted Third Parties (TTPs) to act as "honest brokers" for online business transactions. But civil liberties campaigners fear that the schemes may be snoopers' charters, giving police forces and security agencies unprecedented opportunities to spy on the world of business. The idea is for TTPs to act as "introduction agencies" that will reassure each party to a deal that the other has been vetted and is reputable. TTPs will also hand out encryption software that business partners will use to exchange information in confidence. But in both countries, TTPs will be required to release the keys to this encryption to the police or the security services, on production of an appropriate warrant. Currently there are few safeguards to protect those contemplating buying goods or services over the Internet from fraudsters. "Cyberspace has become the new frontier for scam artists," concluded a report released by the US Federal Trade Commission last month. "The scams are not new but the medium is." John Moroney, a senior consultant at the computer consultancy Ovum, believes TTPs are the best way to drive forward the growth of business over the Internet. As online transactions become commonplace, he argues, banks may be especially keen to volunteer as TTPs, to protect their dominance in the financial services market. "If home shopping takes off they could be left exposed," says Moroney. But Simon Davies, director of the London-based civil liberties watchdog, Privacy International calls the plan "naive". He argues that businesses are perfectly capable of setting up secure systems for electronic trade without government involvement: "What is the government doing in this field in the first place?" The British and French proposals, Davies says, bear a strong resemblance to the failed "Clipper chip" plan in the US. The Clipper scheme involved building a scrambling chip into all new telephones and computers. The keys to the scrambler would have been in the hands of government-appointed agencies. "With Clipper it quickly became clear the agenda was broader than initially stated," says Davies, "and that is exactly what will happen in Europe." He fears that if the scheme takes off, companies not using TTP-approved encryption software will instantly come under surveillance by the police or security services. The Department of Trade and Industry in Britain rejects this claim. "The government licensing of TTPs is just a way of enhancing consumer confidence," says a spokesman, who adds that there are no plans to ban non-TTP software. Banks, trade associations and telecommunications firms are the most likely candidates for becoming TTPs, the DTI says. -- Mark Ward [End]