SECRET WEAPONS 

 FBI Using High-Tech Gadgets

Computer Keyboard Bugging


By D. Ian Hopper
AP Technology Writer
Saturday, July 28, 2001; 12:23 p.m. EDT

WASHINGTON –– By bugging a keyboard or using special software, FBI agents can remotely capture a computer user's every keystroke.

With a black box, they can intercept e-mail from miles away.

In a van parked outside, they secretly can recreate the pictures on a computer screen from its electromagnetic energy.

The legal limits for these new investigative tools will get a test Monday when a federal court in New Jersey examines a mob case in which agents, without a wiretap order, recorded a suspect's computer keystrokes.

Privacy experts are watching the case of Nicodemo S. Scarfo Jr. with great interest because it could bring major changes to investigative tactics in the online age.

"It's the idea of secret government surveillance technology being installed with very little oversight or accountability," David Sobel of the Washington-based Electronic Privacy Information Center said. "It gets about as close to the common perception of Big Brother as anything I could really imagine."

Armed only with a search warrant, the FBI broke into Scarfo's business and put either a program on his computer or an electronic bug in his keyboard – officials will not say which – and recorded everything typed by the son of the jailed former boss of the Philadelphia mob.

The FBI says it needed a password in order to decrypt coded files that allegedly contained records of illegal gambling and loan-sharking operations.

Scarfo used the software PGP – Pretty Good Privacy – to encode his records. PGP is a strong, free encryption program that can be used for e-mail or individual files. The FBI tried to break the encryption without the password, but failed. So agents surreptitiously bugged the computer to capture it from Scarfo himself.

Scarfo's lawyer wants a Newark, N.J., federal court to suppress the evidence and make the FBI say how the bug worked. The lawyer says that because the FBI recorded everything Scarfo typed, they got private e-mails that were not part of the investigation.

U.S. Attorney Robert J. Cleary has told the court that the surveillance device is a "highly sensitive law enforcement search and seizure technique" and should not be made public.

Mark Rasch, former head of the Justice Department's computer crimes section, said that if the device transmitted the captured keystrokes back to the police via e-mail, or emitted them through radio signals, then it might be considered a wiretap.

"You really need to understand at what point it captured things, and how it got it back to the government, in order to figure out what the Fourth Amendment concerns are," Rasch said.

Authorities have to meet a much higher standard for a full wiretap, which includes filtering out nonrelevant communications and having stronger proof that a crime is taking place.

The government argues it only needed a search warrant for Scarfo's computer because the captured keystrokes were not immediately being transmitted on the phone line or on the Internet, and should not be considered the products of a wiretap.

There are many tools the FBI can use for secretly capturing computer information.

Earlier this year, the FBI used a keystroke bug to nab two Russians suspected of hacking into U.S. Internet companies. The Russians have not yet gone to trial.

In addition to the keystroke logger, technicians can sneak in a program that will take intermittent snapshots of the monitor, or install a hidden camera pointed at the computer.

There is even a system called TEMPEST that detects electromagnetic emanations from a computer monitor. Agents in a van parked outside can then reconstruct the desktop.

The FBI also has received widespread attention for a device – formerly known as Carnivore and now called DCS 1000 – that can follow suspects' Web browsing, e-mail and instant messages.

"If they can find a way to read your mail or peek in your bedroom and find a way for a judge to authorize them to do it, they will do it," Rasch said.

The Supreme Court recently reined in one high-tech tactic when it ruled police needed a warrant to use a special heat-sensing device to discover that a man was growing marijuana in his home.

However the Scarfo case ends, Sobel said, the high-tech crime landscape is bound to change.

"I think it has significant implications for future law enforcement investigations," he said. "This type of investigation is the wave of the future."

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'US Used Hallucinogenic Weapons Against Iraq' In Gulf War


The Times of India
7-28-1

PRETORIA (AFP) - Wouter Basson, the spy and mastermind behind the apartheid government's chemical warfare programme, claimed on Friday the United States had used hallucinogenic weapons against Iraq during the Gulf War.

Basson told the Pretoria High Court television footage shot during the war showed clearly that elite Iraqi troops who surrendered en masse were under the influence of hallucinogens.

He said their faces were expressionless, their pupils were dilated and they were drooling at the mouth - typical side effects of a particularly dangerous type of hallucinogenic drug.

Basson, a former military officer, was testifying about the 1993 destruction of hundreds of kilograms (pounds) of drugs such as cocaine, Mandrax and Ecstasy, manufactured or bought by the South African army for use in crowd control.

He told the court: "Analysis of video material showing surrendering (Iraqi) troops emerging from their underground bunkers show that they had dilated pupils, were drooling and had vacant stares."

"It appeared like the clinical profile of a BZ variant. The variant was also tested in laboratory animals in South Africa but it was stopped because it caused permanent damage to the subject.

"I had good reason to believe that America used a BZ variant against Iraq during the Gulf War." Basson said BZ was a hallucinogenic which altered a person's ability to act rationally.

It could either make somebody completely passive or uncontrollably aggressive, to the point where he would attack his own colleagues, he said.

Basson is facing 46 charges ranging from murder to fraud for acts allegedly committed while he was a high-ranking member of the apartheid-era military.

Dubbed "Dr Death", he was the mastermind behind the regime's secret programme to develop biological and chemical warfare capabilities and this week testified that he had bought a zoo to research the use of animal hormones to control crowds.


http://timesofindia.indiatimes.com/articleshow.asp?art_id=67147283

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 THE SHOCKING MENACE OF SATELLITE SURVEILLANCE

JOHN FLEMING:

John Fleming is the author of a book called 'The War of All Against All: An Analysis of Conflict in Society,' which can be ordered by calling toll free 800-462-6420 (120 pp., paperback, $24, Univ. Press of America)
 

Unknown to most of the world, satellites can perform astonishing and often menacing feats. This should come as no surprise when one reflects on the massive effort poured into satellite technology since the Soviet satellite Sputnik, launched in 1957, caused panic in the U.S. A spy satellite can monitor a person’s every movement, even when the “target” is indoors or deep in the interior of a building or traveling rapidly down the highway in a car, in any kind of weather (cloudy, rainy, stormy). There is no place to hide on the face of the earth. It takes just three satellites to blanket the world with detection capacity. Besides tracking a person’s every action and relaying the data to a computer screen on earth, amazing powers of satellites include reading a person’s mind, monitoring conversations, manipulating electronic instruments and physically assaulting someone with a laser beam. Remote reading of someone’s mind through satellite technology is quite bizarre, yet it is being done; it is a reality at present, not a chimera from a futuristic dystopia! To those who might disbelieve my description of satellite surveillance, I’d simply cite a tried-and-true Roman proverb: Time reveals all things (tempus omnia revelat).
Probably the most sinister aspect of satellite surveillance, certainly its most stunning, is mind-reading. As early as 1981, G. Harry Stine (in his book Confrontation in Space), could write that computers have “read” human minds by means of deciphering the outputs of electroencephalographs (EEGs). Early work in this area was reported by the Defense Advanced Research Projects Agency (DARPA) in 1978. EEG’s are now known to be crude sensors of neural activity in the human brain, depending as they do upon induced electrical currents in the skin. Magnetoencephalographs (MEGs) have since been developed using highly sensitive electromagnetic sensors that can directly map brain neural activity even through even through the bones of the skull. The responses of the visual areas of the brain have now been mapped by Kaufman and others at Vanderbilt University. Work may already be under way in mapping the neural activity of other portions of the human brain using the new MEG techniques. It does not require a great deal of prognostication to forecast that the neural electromagnetic activity of the human brain will be totally mapped within a decade or so and that crystalline computers can be programmed to decipher the electromagnetic neural signals.
In 1992, Newsweek reported that “with powerful new devices that peer through the skull and see the brain at work, neuroscientists seek the wellsprings of thoughts and emotions, the genesis of intelligence and language. They hope, in short, to read your mind.” In 1994, a scientist noted that “current imaging techniques can depict physiological events in the brain which accompany sensory perception and motor activity, as well as cognition and speech.” In order to give a satellite mind-reading capability, it only remains to put some type of EEG-like-device on a satellite and link it with a computer that has a data bank of brain-mapping research. I believe that surveillance satellites began reading minds--or rather, began allowing the minds of targets to be read--sometime in the early 1990s. Some satellites in fact can read a person’s mind from space.

John Fleming is the author of a book called 'The War of All Against All: An Analysis of Conflict in Society,' which can be ordered by calling toll free 800-462-6420 (120 pp., paperback, $24, Univ. Press of America)

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Digital Angel -  Human Implants Set To Debut


By Joseph Farah
WorldNetDaily.com
© 2001 WorldNetDaily.com
6-14-1

Beginning tomorrow, Applied Digital Solutions will begin beta testing on humans an implant technology capable of allowing users to emit a homing beacon, have vital bodily functions monitored and confirm identity when making e-commerce transactions.

The first production run of "Digital Angel®" devices has begun, the Florida-based, NASDAQ-traded company has announced.

While the manufacturers of the technology bill it as a potential lifesaver, others fear the advent of the device threatens personal privacy - and even raises the ugly specter of the Bible's "mark of the beast." Applied Digital Solutions, an e-business-to-business solutions provider, acquired the patent rights to the miniature digital transceiver it has named "Digital Angel®." The company plans to market the device for a number of uses, including as a "tamper-proof means of identification for enhanced e-business security."

Digital Angel® sends and receives data and can be continuously tracked by global positioning satellite technology. When implanted within a body, the device is powered electromechanically through the movement of muscles and can be activated either by the "wearer" or by a monitoring facility.

"We believe its potential for improving individual and e-business security and enhancing the quality of life for millions of people is virtually limitless," said ADS Chairman and Chief Executive Officer Richard Sullivan. "Although we're in the early developmental phase, we expect to come forward with applications in many different areas, from medical monitoring to law enforcement. However, in keeping with our core strengths in the e-business to business arena, we plan to focus our initial development efforts on the growing field of e-commerce security and user ID verification."

Dr. Peter Zhou, chief scientist for development of the implant and president of DigitalAngel.net, a subsidiary of ADS, told WorldNetDaily the device will send a signal from the person wearing Digital Angel® to either his computer or the e-merchant with whom he is doing business in order to verify his identity.

But e-commerce is only one field to which Digital Angel® applies. The device's patent describes it as a rescue beacon for kidnapped children and missing persons. According to Zhou, the implant will save money by reducing resources used in rescue operations for athletes, including mountain climbers and skiers.

Law enforcement may employ the implant to keep track of criminals under house arrest, as well as reduce emergency response time by immediately locating individuals in distress.

The device also has the ability to monitor the user's heart rate, blood pressure and other vital functions.

"Your doctor will know the problem before you do," said Zhou, noting peace of mind is possible for at-risk patients who can rest in the knowledge that help will be on the way should anything go wrong.

Indeed, peace of mind is Digital Angel®'s main selling point.

"Ideally," the patent states, "the device will bring peace of mind and an increased quality of life for those who use it, and for their families, loved ones, and associates who depend on them critically."

Referring to the threat of kidnapping, the patent goes on to say, "Adults who are at risk due to their economic or political status, as well as their children who may be at risk of being kidnapped, will reap new freedoms in their everyday lives by employing the device."

Digital Angel®'s developer told WND demand for the implant has been tremendous since ADS announced its acquisition of the patent.

"We have received requests daily from around the world for the product," Zhou said, mentioning South America, Mexico and Spain as examples.

One inquirer was the U.S. Department of Defense through a contractor, according to Zhou. American soldiers may be required to wear the implant so their whereabouts and health conditions can be accessed at all times, said the scientist.

But for critics, military use of the implant is not at the top of their list of objections to the new technology. ADS has received complaints from Christians and others who believe the implant could be the fulfillment of biblical prophecy.

The Book of Revelation states all people will be required to "receive a mark in their right hand, or in their foreheads: And that no man might buy or sell, save he that had the mark." (Rev. 13: 16-17)

In an increasingly cashless society where identity verification is essential for financial transactions, some Christians view Digital Angel®'s ID and e-commerce applications as a form of the biblical "mark of the beast."

But Zhou dismisses such objections to the implant.

"I am a Christian, but I don't think [that argument] makes sense," he told WND. "The purpose of the device is to save your life and improve the quality of life. There's no connection to the Bible. There are different interpretations of the Bible. My interpretation is, anything to improve the quality of life is from God. The Bible says, 'I am the God of living people.' We not only live, we live well."

Sullivan, responding to religious objections to his product, told WorldNetDaily no one will be forced to wear Digital Angel®.

"We live in a voluntary society," he said. According to the CEO, individuals may choose not to take advantage of the technology.

Zhou alluded to some Christians' objection to medicine per se, adding such opposition wanes when the life-saving, life-improving benefits of technology are realized.

"A few years ago there may have been resistance, but not anymore," he continued. "People are getting used to having implants. New century, new trend."

Zhou compared Digital Angel® to pacemakers, which regulate a user's heart rate. Pacemakers used to be seen as bizarre, said Zhou, but now they are part of everyday life. Digital Angel® will be received the same way, he added.

Vaccines are another good comparison, said the scientist, who noted, "Both save your life. When vaccines came out, people were against them. But now we don't even think about it."

Digital Angel®, Zhou believes, could become as prevalent as a vaccine.

"Fifty years from now this will be very, very popular. Fifty years ago the thought of a cell phone, where you could walk around talking on the phone, was unimaginable. Now they are everywhere," Zhou explained.

Just like the cell phone, Digital Angel® "will be a connection from yourself to the electronic world. It will be your guardian, protector. It will bring good things to you."

"We will be a hybrid of electronic intelligence and our own soul," Zhou concluded.

ADS, DigitalAngel.net's parent company, received a special "Technology Pioneers" award from the World Economic Forum for its contributions to "worldwide economic development and social progress through technology advancements."

The World Economic Forum, incorporated in 1971 with headquarters in Geneva, is an independent, not-for-profit organization "committed to improving the state of the world."

When delivery and beta testing begin tomorrow, it will enlist the support of a limited number of pre-registered subscribers and end users and last for a period of 90 days.

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Big Borders Bookshop Is Watching You


High-tech surveillance ... the kind used to catch terrorists will be spying on shoppers
By Jenifer Johnston


IT'S supposed to be the sedate home of book lovers, coffee drinkers and the chattering classes, but Borders, the high street bookseller, has been attacked by human rights organisations for using high-tech surveillance equipment to spy on their customers.
The company is to become the first retailer in the world to introduce a controversial security scheme, normally used to trap football hooligans, paedophiles and terrorists, to photograph customers as they enter stores.

SmartFace -- known as FaceIt in the USA -- keeps a database of 'unique digital face-maps' that will check customers' pictures against those of known shoplifters.

The advanced CCTV technology can locate individual faces within crowds, track a targeted face and then match it against images of suspected criminals kept on its database.

The American-based retailer has 11 outlets in the UK, including stores in Glasgow and Edinburgh. Only UK stores are participating in the SmartFace pilot.

Borders has already been criticised in the UK for its attitude to unions. Marketing itself as laid-back and hip, it has been accused of operating a vigorous anti-union policy.

In America, the company used the union-busting legal firm, Jackson, Lewis, Schnitzler & Krupman to fight bitter campaigns to destabilise unions. This included sacking activists and threatening to close stores if workers joined unions.

The SmartFace technology is manufactured by Visionics, a major player in American surveillance technology. It is used by the US Immigration and Naturalisation Service to check for illegal immigrants trying to cross the Mexican border, by the Israeli Army on the Gaza Strip, and at Iceland's Keflavik airport to seek out known terrorists. The US Army Research Laboratory ranked the technology top of their list of face recognition systems.

SmartFace has already come up against strong opposition in the US. On Thursday a city councillor in Jacksonville, Florida began a legal bid to stop local law-enforcement agencies using the technology, claiming it breaches privacy laws.

The system is already used by South Wales Police to spot football hooligans who are banned from attending matches. In the London Borough of Newham, which has 300 cameras linked to a database, the council claims that SmartFace has helped to achieve a 34% drop in crime since its installation in 1998. Tony Blair gave the scheme his stamp of approval when he visited the borough last year.

Rosemarie McIlwhan, director of the Scottish Human Rights Centre, was appalled by the move by Borders, saying: 'I can see why they don't want shoplifters in their store, but I would question whether this is proportionate to what they are trying to do.

'We are talking about having a bank of pictures of everyone going into the shop -- I would consider that a serious breach of privacy. There is no control over what they do with those pictures, or how they are kept -- are they safe? Nor is there much control over whether Borders could sell the information on, or whether people will actually know this is happening.'

Images that are not matched on the database are discarded after they have been run through a complex matching process, using 80 facial features. Visionics claims its match rate can be more than 99%.

As a private company Borders cannot be prosecuted if it breaches human rights legislation. If it were to breach a citizen's human rights then the British government would have to answer the case in Strasbourg for not protecting human rights sufficiently under UK law.

Roger Bingham, spokesman for the human rights group Liberty, reacted angrily to Borders' security proposal, saying: 'Anyone who wants to know if their image is on a system such as this is able under the Data Protection Act to request that information. We have to know if the company is going to have a system ready to cope with that. I'm inclined, not being a shoplifter, just not to shop there.'

Theft from book retailers is currently booming. Sydney Davies, trade and industry manager of the Booksellers Association, said: 'Customer theft is certainly the biggest problem that book retailers have in terms of crime. Most of the efforts used to combat theft concentrate on tagging books, and having security guards and CCTV in store, so the SmartFace system is certainly a new thing.'

Last year British retailers spent £626 million on crime prevention, and theft from stores reached a staggering £746m, equating to a cost of £85 for each household in the country. David Southwell of the British Retail Consortium said that new technology was one of many ways these costs could be reduced. 'When new technology becomes available it can play a very significant role in reducing shop theft,' he said, 'but there is no single magic bullet in terms of shoplifting that is going to eradicate this very serious problem.

'The investment in shop technology to reduce theft is going to continue to rise. Retailers will use new technology but will also stick with traditional methods such as store detectives to reduce crime.'

A spokeswoman for Borders UK confirmed that the pilot scheme was going ahead in two London stores. She denied that SmartFace was a step too far in monitoring potential shoplifters.

'It is very difficult to distinguish one face from another with the human eye,' she said. 'If the system infringes on anyone's human rights then Borders wouldn't be using it.'

A spokeswoman from Borders' company headquarters in Michigan said the organisation was waiting for confirmation from the British distributors of SmartFace -- Dectel -- that their technology is within the limits of the UK Data Protection Act and EU human rights legislation. She said: 'Borders will now have to validate Dectel's assurances.'


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Senate OKs Increased Use of Carnivore And Wiretapping


By Sam Costello
IDG News Service
9-15-1

WASHINGTON, DC - In response to Tuesday's terrorist attacks, the U.S. Senate has approved the FBI's use of the Carnivore e- mail surveillance system to investigate acts of terrorism and computer crimes. It also approved broader "wiretapping" of the Internet by law enforcement, and urges the government to "make better use of its considerable accomplishments in science and technology" to combat terrorism.

The measure, called the "Combating Terrorism Act of 2001," is part of an amendment to the 2002 appropriations budget for the departments of Commerce, Justice and State and the Judiciary. It broadens existing law to include terrorism as one of the crimes that merits high-tech surveillance. All U.S. Attorneys would have the authority to order installation of Carnivore, a power previously reserved only for U.S. Deputy Assistant Attorneys General.

The act also authorizes a number of programs and initiatives aimed at preventing future terrorism. It urges the president to launch a research program that would study and recommend procedures to prevent, detect, and respond to "catastrophic terrorist attacks." A new or existing federal agency would oversee the program.

Speed Urged

"If we wait any longer [to grant law enforcement these powers] ... it is a big, big mistake," says bill sponsor Senator Orrin Hatch (R-Utah), alluding to the week's events during the Senate's debate. The measure's co-sponsor is Senator Jon Kyl (R-Arizona).

"Millions of dollars are lost annually as a direct result of [computer crime], and it is no longer a fantasy that thousands of lives could be lost in future terrorist incidents," Hatch says.

Carnivore has drawn considerable criticism from privacy and civil liberties advocates who fear its use will severely encroach on civil rights of U.S. citizens. Since Tuesday's attacks, concerned groups have warned that the response to the crimes may include restrictions on civil liberties. They point out there is no evidence linking the attackers to the use of any high technology.

They have criticized use of Carnivore technology as unnecessarily intrusive. The FBI has resisted releasing specifics of the tool, which is installed at ISPs to monitor e- mail. The agency recently renamed the tool DCS1000, but it is still widely known as Carnivore.

Hatch sought to address some of those concerns on the Senate floor.

"We must also be careful that in our quest for vengeance we do not trample those very liberties which separate us as a society from those who want to destroy us," Hatch says in response to those concerns.

The Center for Democracy and Technology, a cyber-rights group that has opposed high-tech surveillance, issued a statement Friday saying that "surrendering freedom will not purchase security" and that "open communications networks are a positive force in the fight against violence and intolerance."

The statement also urges both the president and Congress to proceed cautiously and calmly on such matters.

"If we give up the constitutional freedoms fundamental to our democratic way of life," the CDT writes, "then the terrorists will have won."


http://www.pcworld.com/news/article/0,aid,62104,00.asp

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      Tracking Device That Is Implanted Under the Skin

Wednesday December 19,
Press Release
SOURCE: Applied Digital Solutions
Applied Digital Solutions Introduces Verichip, a Miniaturized, Implantable Identification Device With a Variety of Medical, Security and Emergency Applications
PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 19, 2001--Applied Digital Solutions, Inc. (Nasdaq: ADSX - news), an advanced digital technology development company, announced today that it has developed a miniaturized, implantable identification chip -- called VeriChip(TM) -- that can be used in a variety of medical, security and emergency applications.

How VeriChip Works

VeriChip is an implantable, 12mm by 2.1mm radio frequency device about the size of the point of a typical ballpoint pen. Each VeriChip will contain a unique identification number and other critical data. Utilizing an external scanner, radio frequency energy passes through the skin energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the identification number and other data contained in the VeriChip. The scanner will display the identification number, but the VeriChip data can also be transmitted, via telephone or the Internet, to an FDA compliant, secure data-storage site. It will then be accessible by authorized personnel. Inserting the VeriChip device is a simple procedure performed in an outpatient, office setting. It requires only local anesthesia, a tiny incision and perhaps a small adhesive bandage. Sutures are not necessary.

Medical Device Identification

Hundreds of thousands of medical devices are surgically implanted into patients every year. Examples of these life-saving and life-enhancing devices include pacemakers, artificial joints, orthopedic hardware, heart valves, and medication pumps. After insertion, these devices often require adjustment, repair, replacement, or even recall. VeriChip, inserted subdermally just above the implanted medical device, provides patients, medical providers, and manufacturers with a rapid, secure and non-invasive method for obtaining medically critical information about the device. VeriChip is a ready source of data about the patient's name and condition as well as the medical device's original components, required settings and other essential parameters. Future applications may include full medical record archival/retrieval for emergency medical care.

Emergency or Security-related Identification

Personal identity verification technology has gained considerable interest recently. A great deal of focus has been trained on so-called ``biometric'' technologies - which identify individuals by their unique biological or physical characteristics, such as fingerprints, voiceprints, retina characteristics, and face recognition points. VeriChip, by contrast, relies on imbedded, tamper-proof, microchip technology, which allows for non-invasive access to identification, medical and other critical data. Use of advanced VeriChip technology means that the threat of theft, loss, duplication or counterfeiting of data is substantially diminished or eliminated. Specific application areas include: enhancement of present forms of identification, search and rescue, and various law enforcement and defense uses.

Commenting on the announcement, Richard J. Sullivan, Chairman and CEO of Applied Digital Solutions stated: ``With VeriChip, Applied Digital has taken another significant step in developing leading-edge personal security technologies for a rapidly evolving marketplace. VeriChip joins Digital Angel(TM) and Thermo Life(TM) in our repertoire of breakthrough technologies. All of these are designed specifically to save lives, enhance personal security and improve quality of life. We're looking forward to working with the medical community and other potential partners to bring VeriChip to market as quickly as possible.''

About Digital Angel(TM)

Digital Angel represents the first-ever combination of advanced biosensor technology and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions - such as temperature and pulse - and transmit that data, along with accurate location information, to a ground station or monitoring facility. Digital Angel Corporation has announced a proposed merger with Medical Advisory Systems. For more information on Digital Angel, visit www.digitalangel.net.

About Thermo Life(TM)

In November of 2001, Applied Digital Solutions created a wholly owned subsidiary called Advanced Power Solutions, Inc. (APSI). This new unit will further develop, market and license Thermo Life(TM), a proprietary, thermoelectric generator powered by body heat. Thermo Life is intended to provide a miniaturized power source for a wide range of consumer electronic devices, including attachable or implantable medical devices, wristwatches and other consumer devices. The Company estimates that the potential marketplace for Thermo Life exceeds $30 billion.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is an advanced digital technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Wireless unit, the Company specializes in security-related data collection, value-added data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. For more information, visit the company's website at http://www.adsx.com.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts, are `forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. The Company intends that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.


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Face-ID technology gains new support

By Julia C. Martinez
Denver Post Capitol Bureau

Wednesday, September 19, 2001 - The face-recognition technology that had lawmakers and civil libertarians so worried a few weeks ago is gaining new support after last week's terrorist attacks.

State lawmakers planning to sponsor legislation restricting its use now say they are reassessing their plans. And the New York company that developed the computer technology that maps facial characteristics has been deluged with phone calls and e-mails from governments and companies around the world - even the Olympics - seeking greater security.

"September 11 is causing a lot of people to reconsider a lot of things," said Rep. Shawn Mitchell, a Broomfield Republican who had planned legislation. "Now, I have to think of other benefits that go beyond stopping financial crime."

The company, Visionics, had to upgrade its phone-messaging system to handle all the calls, its chairman, Joseph Atick, said. Its stock, which trades on the Nasdaq market, soared 93 percent Monday. On an average day, the company trades about 50,000 shares, Atick said. It is currently trading more than 3 million.

"This is an international campaign that these terrorists have kicked off," he said. "We've had inquiries from just about every government agency in Washington. Everyone from national intelligence to airport security and law enforcement in this country and security agencies and embassies in countries as far away as Thailand and Malaysia have contacted us."

About 70 or 80 airports have called, most in the United States, Atick said. He didn't know if Denver International Airport was among them, and DIA officials did not return phone calls seeking comment. Sports arenas and even Olympic officials who previously said they wouldn't use face recognition are making inquiries, he said.

But civil libertarians fear a further erosion of personal liberties.

"I have concern that in the rush we will make some bad decisions about privacy," said Richard Smith, of the University of Denver's Privacy Foundation. "There's already a big rush to loosen up the wiretap laws. I'm concerned about that. And there's a lot of talk about the face-recognition stuff."

Colorado passed a law earlier this year that allows the Department of Motor Vehicles to buy a system to map every driver's facial characteristics like a three-dimensional land chart when a driver's license is obtained. The system, which was to be in place by next July, is an effort to prevent identity theft and driver's-license fraud by comparing photographs with pictures already in the system.

Atick said the system could prevent terrorists from obtaining false driver's licenses and using them to travel around the country. "We all agree now that terror is not faceless. It has a face. It has an identity," he said.

Rutt Bridges, founder and chief executive of the Bighorn Institute research group in Colorado, said more people are now willing to compromise some civil liberties for security.

"The real question is where is that line going to be drawn," Bridges said. He predicts a national debate on privacy in the year ahead. He also predicts an expanded use of face scanning.

DU's Smith said that in order to use face recognition to catch terrorists, the government needs pictures.

"I don't see that there are that many terrorists that we know about," he said.

But Atick said security companies need to work with government intelligence to start putting together the photographs and video images into a database.

Face-recognition systems were deployed at this year's Super Bowl in Florida in an attempt to catch terrorists. But a national public outcry ensued after only petty criminals and a ticket scalper were caught at the game.

Tampa officials also later allowed police to use the technology on the streets of a renovated entertainment district to scan faces in the crowd. The public objected to the camera-lined streets as a serious invasion of privacy.

State Sen. Ken Gordon, D-Denver, chairman of the Senate Judicial Committee, said the mood in the country has changed dramatically in just seven days.

"Until last week we were trying to expand people's privacy against incursions from the government," Gordon said. "Now we might have to fight for what we already have."
 

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ID card idea attracts high-level support

October 16, 2001


Top executives, lawmakers back national identification card proposal
BY ELISE ACKERMAN
AND PAUL ROGERS
Mercury News

Silicon Valley software mogul Larry Ellison's proposal to create a national ID card has gained substantial ground -- and the interest of top Bush administration officials -- in a signal that the controversial idea may be closer to reality than ever.

In an interview with the Mercury News on Tuesday night, Ellison, the chairman and CEO of Oracle, said he met with U.S. Attorney General John Ashcroft and officials at the CIA and FBI in Washington, D.C., over the past week to discuss the idea. U.S. Sen. Dianne Feinstein, D-Calif., has endorsed it, other tech executives have jumped on board and even some prominent civil libertarians have said the idea is worth pursuing.

``We are in the process of putting a proposal together and analyzing what it would take to get to get something running in a matter of a small number of months, like three months, 90 days,'' Ellison said. ``We think we could put up this technology very, very quickly.''

The idea of a national ID card has been debated since the 1930s. But Ellison's proposal in the wake of the Sept. 11 terrorist attacks has reignited the dispute over privacy and security.

Under Ellison's plan, the government would create a national identification card. The card would contain basic information about the holder, including Social Security number, and would be linked to a federal database containing detailed personal data, including digital records of the person's thumbprint, palm print, face or eyes.

Passengers would show the card at airports, Ellison said, and would have their thumbs scanned by a digital reader to verify identity before boarding a plane.

The cards also would be instantly checked against a new national database. That database would base would link existing criminal and immigration data to screen out potential terrorists.


Oracle software

Ellison unveiled the idea three weeks ago in an interview with a Bay Area TV station. In it, he offered to donate the software. His company, Oracle, based in Redwood City, is the world's leading maker of database software. He is among the world's richest men, with a fortune estimated at $15 billion.

Since then, Ellison has offered more details.

The cards would be voluntary for all U.S. citizens, he said Tuesday. Any American without a card still could board a plane, but only after undergoing a more rigorous search.

``I think 99.99 percent of Americans will want these ID cards,'' Ellison said. ``Wouldn't you feel better if everyone who walked into an airport showed their ID card and put their thumb in the scanner and you knew they were who they said they were?''

The cards would be mandatory, however, for foreign visitors, including students on visas and non-citizens living and working in the United States who now carry ``green cards,'' he said. Ellison has not offered specifics on how the estimated 8 million illegal immigrants in the United States might be affected.

The national ID card idea has won the approval of retired Gen. Norman Schwarzkopf, Harvard law professor and civil rights expert Alan Dershowitz and Sun Microsystems CEO Scott McNealy in the past week.

More important, it is now supported by Feinstein, the chairwoman of the Senate subcommittee on terrorism, who met with Ellison on Thursday. Feinstein said she will write a letter this week to Ashcroft asking the Bush administration to move forward.

``There has to be some ID,'' Feinstein said. ``We have had a major catastrophe. This is a very serious time. The country is at war. The purpose here is to protect ourselves.''

Mindi Tucker, a spokeswoman for Ashcroft, said the attorney general would have no comment Tuesday night.


Concern for liberty

Critics say such a card would give government too much power to track citizens.

``ID cards were used by the South African government to keep apartheid in place and by Malaysia to separate religious people by group,'' said Marc Rotenberg, executive director of the Electronic Privacy Information Center, a non-profit group in Washington, D.C.

Rotenberg and other opponents, including the American Civil Liberties Union, worry it could be required to board buses, apply for jobs, or even enter cities facing terrorist threats.

But supporters say those concerns are overblown.

At a speech in Salt Lake City last week, former Desert Storm commander Schwarzkopf said he saw nothing wrong with ID cards. ``I've had a military ID card since I was a cadet at West Point and I haven't lost any freedom,'' he told a cheering crowd.

Taking another approach, Harvard lawyer Dershowitz said he believes having an ID card would reduce racial profiling at airports.

``Four Arab-looking guys reading the Koran are much less suspicious if they have the cards and can just slash them through card readers,'' he said.

Dershowitz said the database would have to be carefully guarded and that police should not be able to ask for a card at will, a view Ellison and Feinstein share.

``You don't give up much,'' Dershowitz said. ``Civil libertarians will come around.''

Any move by the federal government to institute a national ID card system could mean millions for Silicon Valley companies.

Shalini Chowdhary, an analyst at Frost & Sullivan, said the U.S. government could end up spending more than $3 billion on computer chips, hardware, software and services that go into creating so-called ``smart'' ID cards.

Ellison said that if he does donate the software, maintenance and upgrades won't be free.

``I don't think the government has any trouble paying for the labor associated with the software,'' he said. ``I made this offer not because the government can't afford to pay for the software, but because I shut up the critics who were saying, `Gee, Larry Ellison wants to build a national database because he wants to sell more databases,' which is pretty cynical and bizarre. What's in it for me is the same thing that's in it for you: a safer America.''
 

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Oakland Airport to begin using Facial ID System


SAN FRANCISCO, Oct 17 (Reuters) - A facial recognition technology used by police east of San Francisco will soon be working at the Oakland International Airport, said Imagis Technologies Inc (Vancouver:NAB.V - news), the system's developer.

Vancouver, British Columbia-based Imagis Technologies Inc said on Wednesday the Oakland Police Department, one of 32 local police departments using the company's technology, was linking the airport to its facial identification system.

``It's there for people who refuse to give a name or give a clearly false name,'' Iain Drummond, president and chief executive of Imagis, told Reuters.

Heightened airport security concerns after the September 11 hijacking attacks on New York and Washington, have helped shares in companies such as Minnetonka, Minnesota-based Visionics Corp (NasdaqNM:VSNX - news) and Littleton, Massachusetts-based Viisage Technology Inc (NasdaqNM:VISG - news). Like Imagis, both companies are developers of biometric identification technology.

Imagis' systems are in use in Canada, where they were first developed for the Royal Canadian Mounted Police, Britain and Mexico, the company said.

Shares in the company have rallied by more than 200 percent since last month's attacks on the World Trade Center in New York and the Pentagon in Washington, which killed nearly 5,400 people.
 

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Living in a Police State (Michigan)
By JOHN WISELY and STEPHEN W. HUBER, Of The Oakland Press April 24, 2002


The state Legislature has given police power to search your home without telling you why.
Two new laws, which took effect Monday as part of anti-terror efforts, also shield from public scrutiny the reasons for police searches.
Defense lawyers and civil libertarians are outraged at the laws, which make search warrants and supporting documents such as affidavits non-public records.

"If you think the police did secretive work before, just wait," defense attorney William Cataldo said. "It gives more power to the ignorant and more power to those who would take your rights."

Defense lawyer Walter Piszczatowski said: "This is nuts, this is beyond nuts.

"What happened to the Fourth Amendment? We're living in a police state."

That means the public, the press, and in some cases even the person accused of the crime, can't know why the police entered a home without permission.

Under previous laws, the records were public, unless a judge ordered them sealed for a specific reason. In federal courts, that remains the case. But now, search warrants in state courts are automatically closed to public view.

"I think this is absolutely unconstitutional," said Dawn Phillips, a First Amendment lawyer with the Michigan Press Association. "We objected to it at the time. This thing passed like greased lightning."

The House portion of the bill passed unanimously and the Senate version passed 27-8. The chief sponsor of the bill in the state senate was Shirley Johnson (R-Royal Oak) while Bill Bullard (R-Highland Township) was a cosponsor. In the state House, Nancy Cassis (R-Novi) was among 20 sponsors.

The American Civil Liberties Union also objected to the law's change. ACLU spokeswoman Wendy Wagenheim said the group is reviewing the law.

Law enforcement supported the changes. Oakland County Prosecutor David Gorcyca said the laws protect victims, witnesses and confidential informants.

Gorcyca said the procedure for obtaining a search warrant didn't change, nor did the rights of the defendant to challenge a bad warrant or the ill-gotten gains of an illegal search.

"When affidavits are filed, previously they divulged a large portion of the investigation and where it was heading and that could hamper the investigation and the direction of the investigation," Gorcyca said.

"It doesn't mean you can circumvent the judicial process. All we're doing is suppressing the contents of the affidavit. It does prevent the public and the media from obtaining information during the investigation but it doesn't prevent the defendant and the defense attorney from challenging the search warrant."

Gorcyca cited drug conspiracy cases as those where witnesses are frequently in danger unless their identity is kept private during the investigation.

"In the drug world, witnesses are fearful all the time," he said. "Those are reluctant witnesses who are afraid to come forward and testify. In those cases, fear and intimidation is real. That's why grand juries are so vital. And this provides the same secrecy as a grand jury and does not impugn anyone's rights."

Civil libertarians say those goals can be met with a much narrower approach, like the one used in federal court.

"A judicial finding needs to be made on a case-by-case basis," said David Moran, a constitutional law professor at Wayne State University in Detroit.

When police are investigating a crime and they believe evidence is stored in someone's home, car or other private place, they must submit a sworn affidavit to the court spelling out their case.

A judge reviews the document, then decides if there is enough evidence to search without the owner's permission.

The Fourth Amendment to the U.S. Constitution requires "probable cause" to issue a warrant and notes they must be written "particularly describing the place to be searched and the persons or things to be seized."

The changes are contained in two new laws - public acts 112 and 128.

State Court administrator John Ferry Jr. spelled out the changes to courts across the state in a memo last Friday. Public act 112 makes "all search warrants, affidavits and tabulations in any court file or record retention system nonpublic," according to Ferry's memo.

The memo goes on to say that public act 128 "provides for suppression of a search warrant affidavit upon a showing that it is necessary to protect an ongoing investigation or the privacy or the safety of a victim or witness."

When contacted Tuesday for clarification on the memo, a spokeswoman for the state court administrator's office declined comment. Marcia McBrien said the laws could appear before the Supreme Court for interpretation and it would be improper for her to offer one in advance.

The new laws could also create headaches for court recordkeepers. In many courts, search warrants are filed along with the case file. It's unclear how clerks will keep the two separate.

The new law also affects the rights of people who are searched. According to a analysis of the law done in the House of Representatives, the state Court of Appeals ruled that affidavits be given along with a warrant at the time of a search.

The new law changes that.

"An officer executing a search is not required to give a copy of the affidavit to the person or leave a copy at the place from which the property was taken," according to Ferry's memo.

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'Son of Star Wars' is readied in Alaskan outpost

May 21, 2002

In the place where President Bush has chosen to draw a line in the sand against the ultimate terrorist threat, there is no sand and little sign of terrorists.

 

There was snow, at least there was until last week. There are moose, stalking over the open ground when the earthmovers allow, and even the odd grizzly bear.

Workers on contract to the US Army Corps of Engineers have been quietly clearing a large T-shaped swath of forest from the Fort Greely military reservation, 200 miles south of the Arctic Circle in the heart of Alaska, for nearly a year.

The site is invisible from civilian roads. The airspace above it is restricted. Visitors are vetted exhaustively and the perimeter is guarded by military police and a newly installed cordon of steel boxes 6ft high and filled with gravel.

Security is tight here and will get tighter. Starting on June 14, six months to the day after Mr Bush announced that the United States was withdrawing from the Anti-Ballistic Missile Treaty signed by Presidents Nixon and Brezhnev 30 years ago, excavators will gouge six yawning silos out of the Fort Greely earth.

By 2004 each of them will house a 65ft “exo-atmospheric kill vehicle” designed to intercept incoming nuclear missiles high over the Pacific Ocean.

Whether any of America’s enemies can or would launch a first nuclear strike of this kind is now beside the point. After two decades of debate the talking is over: Mr Bush believes that the threat is credible. Initial construction contracts worth $250 million (£171 million) were awarded last month.

Barring a humiliating U-turn for the White House, America is going to get some sort of missile defence shield, starting in Fort Greely.

It is bitterly cold here in winter, swarms with oversized mosquitoes by May and hauntingly remote, all of which is somehow apt. Few places could reflect more accurately the defiant unilateralism that Mr Bush brings this week to Europe, however artfully clothed in talk of co-operation with Russia.

His missile defence plans are part of a foreign policy based on crushing military superiority that Washington now wants to extend with technologies that none of its allies could conceive of building themselves and to which many of them remain strongly opposed.

The Pentagon insists that Fort Greely will be only a test site, at least at first. But, if the testing goes well, orders could come from Washington for 100 more silos and “kill vehicles” to fill them. There would be plenty of room.

“This is good for us and great for America,” said one local contractor who last week got the go-ahead to build a year-round work camp for 350 labourers on the edge of the reservation. Others in the Alaska Steakhouse in Delta Junction, the only source of liquor in the only civilian settlement within a two-hour drive, overwhelmingly agreed.

A year ago Fort Greely was virtually defunct. Its housing for 400 soldiers and their families stood empty and its pool tables were being sold for $25 each. Now being reborn as science fiction made fact, it is due for an injection of $400 million even if missile defence does not go beyond testing, and billions more if it does.

It is meant to operate as follows: alerted by military satellites over the north Pacific and enhanced early warning radar beacons in Alaska and California, Fort Greely would launch an interceptor roughly 20 minutes into the flight of any hostile ballistic missile heading for America.

Once airborne, the interceptor would be guided by a specially-built X-band radar station, probably installed on Shemya Island in the Aleutians and linked to a Battle Management Command and Control Centre at Fort Greely by 1,000 miles of fibre-optic cable. With three separate systems providing constant real-time telemetry the interceptor would be targeted to within a margin of error of a few feet and would be able to distinguish the incoming warhead from any decoys that it released. It would hit its target 150 miles above the Pacific at 15,000mph and the fruits of years of secret labour for a rogue state, international terrorist group or combination of the two would detonate harmlessly in outer space.

Whether missile defence will actually work is still a multibillion-dollar question. President Reagan’s plans for a space-based “Star Wars” shield were mothballed before they could be tested.

President Bush has enlisted every relevant technology, including giant lasers mounted on Boeing 747s, and is reserving judgment on which to use until the “north Pacific test bed” based at Fort Greely starts producing results.

Those obtained elsewhere are not encouraging. Two of America’s past five anti- missile tests failed when the interceptors missed their targets completely and none of the other three was fully realistic as the kill vehicles were fed their target data by the targets themselves.

Professor Theodore Postol, of the Massachusetts Institute of Technology, claimed last year that the tests had been rigged and that fundamental design flaws meant that the kill vehicles would never find their prey. He had singlehandedly disproved the US Army’s boast of a 96 per cent success rate against Iraqi Scud missiles with the Patriot system during the Gulf War (he says that not a single Scud was intercepted) and the Pentagon took his new intervention seriously enough to send two agents to his office in an apparent attempt to intimidate him. It also demanded that his correspondence be classified. Officials say that his latest claims relate to an interceptor that is no longer being used. Even so, no replacement has been chosen.

That the White House is pressing ahead with missile defence at all has stunned many of its critics into silence. Before the September 11 attacks, Russia, China, most European governments, many US Democrats and some Republicans agreed that any anti-missile shield would be technically fraught, prohibitively expensive, diplomatically risky and above all strategically wrong, since it countered a threat that went out with the Cold War. These critics seized on the September atrocities as tragic proof that America’s enemies would find alternatives to building their own missiles.

Mr Bush and his advisers declared that, on the contrary, if terrorists or states that sponsored them did have missiles, they would use them. Resistance crumbled. Congressional Democrats dropped their vetoes on spending and tests that violated the ABM treaty. The treaty was torn up and “Son of Star Wars” was born.

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