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Archive for February, 2008

UK, US, and Surveillance

I was cruising through my Google News Privacy Alert when I happened upon this article:

This is a point emphasized by a new report. In the most recent survey of “Leading surveillance societies in the EU and the World,” the United States gives new meaning to the hackneyed chant, “We’re Number 1!” According to London-based Privacy International (PI), a human rights group formed in 1990 as a watchdog on surveillance and privacy invasions by governments and corporations, the U.S. now has an “endemic surveillance society.”

  • At minimum the 2007 PI report confirms, in spades, previous reports suggesting that the U.S. was moving toward implementing a thorough surveillance state. Nevertheless, even with my background in researching and writing on the subject of privacy and surveillance, I was still taken aback to see the relative comparisons between the U.S., the UK, and everyone else. Even as I stated in my TNA surveillance cover story, that “the UK is now the world’s most watched country, having upwards of five million closed-circuit TV (CCTV) cameras keeping a watchful eye on the public, with the average citizen being caught on camera around 300 times per day,” I was unprepared to see the stark comparisons. (Yes, I’m a slow learner!)
  • I decided to take a look into Privacy International to see what this report was all about.

    Privacy Map

    Honestly, I did not feel that the United States would meet the standard of recording its citizens 300/times per day, but it looks like Privacy International gives the U.S. some issues of its own:

  • No right to privacy in constitution, though search and seizure protections exist in 4th Amendment; case law on government searches has considered new technology
  • No comprehensive privacy law, many sectoral laws; though tort of privacy
  • FTC continues to give inadequate attention to privacy issues, though issued self-regulating privacy guidelines on advertising in 2007
  • State-level data breach legislation has proven to be useful in identifying faults in security
  • REAL-ID and biometric identification programs continue to spread without adequate oversight, research, and funding structures
  • Extensive data-sharing programs across federal government and with private sector
  • Spreading use of CCTV
  • Congress approved presidential program of spying on foreign communications over U.S. networks, e.g. Gmail, Hotmail, etc.; and now considering immunity for telephone companies, while government claims secrecy, thus barring any legal action
  • No data retention law as yet, but equally no data protection law
  • World leading in border surveillance, mandating trans-border data flows
  • Weak protections of financial and medical privacy; plans spread for ‘rings of steel’ around cities to monitor movements of individuals
  • Democratic safeguards tend to be strong but new Congress and political dynamics show that immigration and terrorism continue to leave politicians scared and without principle
  • Lack of action on data breach legislation on the federal level while REAL-ID is still compelled upon states has shown that states can make informed decisions
  • Recent news regarding FBI biometric database raises particular concerns as this could lead to the largest database of biometrics around the world that is not protected by strong privacy law
  • Interesting article on public trust of data security:

    Privacy International’s Director, Simon Davies, warned that the statistics revealed a deep-seated public anxiety over the way data was being handled. “Commerce has nothing if it loses trust. People will simply not risk putting their personal information onto commercial systems. It follows that they will also go out of their way to minimise their interaction with government systems.”

    Real ID Civil Liberties Issues

    Good summary of civil liberties issues considering Real ID from the Atlanta Journal Constitution (AJC) on Feb 6, 2008:

    If, as proposed in the law, a person must have a Real ID Act-compliant card in order to access a federal building, access any regulated or interstate mode of transportation, or obtain any federal benefit, then we have surrendered to the federal government (that is, federal bureaucrats) the power to deny citizens all manner of activities guaranteed in the Bill of Rights. Consider:

    * A person not possessing a Real ID Act-compliant identification card could not enter any federal building, or an office of his or her congressman or senator or the U.S. Capitol. This effectively denies that person their fundamental rights to assembly and to petition the government as guaranteed in the First Amendment.
    * A person seeking to exercise their right to keep and bear arms as guaranteed by the Second Amendment could henceforth be denied that ability if they do not possess a precious Real ID card, because the federal bureaucracy known as the Bureau of Alcohol, Tobacco, Firearms and Explosives probably will decree that such a form of identification is necessary to meet federal requirements for purchasing a firearm.
    * Very possibly the Real ID card will be required in order to vote in any election for federal office.
    * A veteran may be denied access to a VA hospital because he or she lacks the requisite Real ID card, perhaps because they did not have the money required to purchase it or because they could not locate the background forms the Department of Homeland Security required to obtain one.
    * A business traveler, unable to afford to travel by private jet, is denied the ability to make a living because their job requires air travel and they do not have a Real ID card — even though they demonstrably pose no danger whatsoever to their fellow travelers.
    * Even though individual states, such as Georgia, may provide greater legal protection for private information of its residents than other states or the federal government, this will mean nothing in the Real ID Act world, because all the data under that law will be subject to the lower federal standards, thereby subjecting residents to a higher likelihood of identity theft than they would risk under the laws of their state.
    * And, they would have no recourse to correct erroneous data, or prevent identity theft pursuant to the Real ID regulations.

    Total Estimated Cost of Real ID

    Well, I did not expect to be frequently referencing something that the ACLU put out, but here is an interesting number and comment from the National Conference of State Legislatures:

    Even combined with about $80 million in federal dollars already in place to pay for Real ID implementation, the funding would fall far short of the projected cost – estimated by the Department of Homeland Security to fall between four and 23 billion dollars – for the constitutionally suspect driver’s license program. States are left to fend for themselves to comply with the unfair, unworkable demands of the Real ID Act. The National Conference of State Legislatures, a bipartisan coalition of state legislators, expressed outrage at the paltry funding request, calling it the “most egregious example” of unfunded federal mandates.

    From the National Conference of State Legislatures site:

    Real ID: The budget proposal includes $50 million for federal verification system development and connectivity support. The $50 million state-focused Real ID grant program created in FY2008 is zeroed out in favor of a new $110 million National Security and Terrorism Prevention Grant program. The program provides competitive grants to specific state and local agencies to support proposals which address national vulnerabilities identified by the Secretary as priorities, which may include the Real ID. The Department of Homeland Security estimates the state cost of implementation to be no more than $4.0 billion.

    Data Privacy Day

    Yes, we missed Data Privacy Day, but add it to your calendars for next year.

    January 28 was designated as Data Privacy Day by the International Association of Privacy Professionals in order to promote the importance of protecting personally identifiable information. Given the increasing importance of data privacy, Data Privacy Day is a good reminder for you to review your company’s data privacy policy and ensure it meets today’s regulations and protects against today’s threats.

    Link

    Does Real ID Stop Terrorism?

    The LA Times Editorial section sheds some light on Feb 7, 2008 on whether or not Real ID will meet its proclaimed security goals:

    Let’s imagine that Real ID was in place on 9/11. Would it have prevented the 19 hijackers from boarding those four planes? No. The hijackers had legal documentation that would have allowed them to get driver’s licenses even under the provisions of Real ID. Terrorist organizations are vast, complex, highly trained and well funded. They have the resources and know-how to make some of the best forged documents in the world or recruit people who can get valid documents. This is not to say that we should just give up, but we certainly shouldn’t be fooled into thinking that new documents are going to fully protect us.

    Only adding to the ridiculousness of the law is the fact that we’ll end up having to trust DMV workers to make important national security decisions, like whether or not someone’s documents are valid. If you think waiting in line at the DMV is bad now, wait until you have to get your Real ID.

    I tend to agree that adding more bureaucracy to the DMV is not a good idea. Especially in the context of decisions that supposedly will have an impact on national security.

    This next paragraph made me laugh out loud a little bit. I do not believe our country has come to the point on immigration reform where we need to do it through a bill that was introduced, sat around, then tacked onto another bill and passed. Considering that this legislation is a burden on the states on the people (whip out your Constitution), it doesn’t make sense to play a game of duck, duck, gray duck to solve our immigration problem.

    Only seven states allow undocumented immigrants to have a license, and yet undocumented immigration continues. The Real ID law does allow states the option of issuing licenses solely for the use of driving, but licenses must clearly state the limits of their use. Since only those without legal documentation are likely to ask for such a “driver’s license-only card,” these licenses might as well have “undocumented immigrant” emblazoned on them. Talk about a disincentive.

    If we could count on illegal immigrants self-identifying under our current laws, I think they would have done it by now. Maybe there is proof that works, but it still leaves the larger question of how to handle immigrants unanswered.

    This last paragraph from the anti-Real ID side of the editorial explains why this feeble attempt at solving an immigration problem does not work. People will need the right set of comprehensive incentives to identify themselves.

    Wouldn’t we actually be safer if more, not fewer people had a driver’s license? Of course we would. A license certifies that an individual has taken a driver’s training course and has met a minimum standard of driving know-how. Unlicensed drivers, on the other hand, have no formal training and are thus generally more dangerous behind the wheel. According to the AAA Foundation for Traffic Safety, unlicensed drivers are five times more likely to be in a fatal crash than unlicensed drivers. So much for keeping us safe.

    The editorial also takes up the other side of the issue.

    Every modern society requires a system of identification — there’s simply no way to avoid that in a large, urbanized nation where few people live and work in the same community with the same neighbors their whole lives.

    In most countries, that need for ID is filled by the central government with some form of national identification card. America’s more decentralized experience has led to a different result — a patchwork system of state driver’s licenses serving as our de facto national ID system.

    “A patchwork system of state driver’s licenses…” To me this quote sounds exactly what the Constitution intended for the roles of the states. A policy laboratory where the states experiment and come up with the best system and if they find something innovative, other states following suit. The result – a de facto national policy. I think we need to ask a fundamental question: Do state ID’s need a federal stamp of approval? Currently, I have a Minnesota license and reside in Illinois. I drive around Chicago. I drive through Wisconsin to get home. If I were pulled over, I am certain that if I offered my license the state would be happy to fine me if I broke the law. I am no less a citizen of the United States for not having a Real ID. The way the Real ID Act is set up is to define our citizenship in terms of your identification. If you consider this bill worth its cost, the only arguments that come close would be for national security, in terms of immigration and terrorism. This very fact lends to my point that the purpose of this is to make being American represented by your identification.

    I think part of the unique American experience is our federalist system. Maybe more on federalism later…

    Does an ID Make You American?

    The Heritage Foundation supports Real ID after the federal government pledges funds to support the states:

    Creating a secure identity document is needed to help keep America safe, free, and prosperous. States should put the interests of their citizens first and implement Real ID. Congress and DHS can help speed the process by moving the first eligible states into the system as quickly as possible. Michigan, California, and North Carolina have set an example thus far. Once compliance is underway, momentum will build for other states to join; citizens will not want to be left out of a program that contributes to their safety and prosperity while protecting individual freedoms.

    First, is a secure identity document necessary? Does anyone feel that their current state issued driver’s license and/or United States Passport are not secure documents. Let us address the latter first. If there is an inherent need for a secure identity document and the passport does not meet the requirement, I think DHS should take a look at that. Now the former. State issued driver’s licenses have been the standard form of ID during my lifetime and I have not heard any complaints of them yet. Obviously, that does not mean there are none, but I believe they are getting better and better as states develop them. I know Minnesota, for one, is proud of its licensing program.

    A more metaphysical question whether or not being American and America have anything to do with a piece of plastic and a identification number in a databank. I would argue that there is no relationship and being American is much more than that. The interest of the people is not served by Real ID, I believe that 17 states refusing to comply is proof of that. If that is not enough, the Heritage Foundation can only name a handful of states ready to go along with this.

    I think the American people and their state legislators have spoken loud and clear that this is something they don’t want. I think DHS and Congress have admitted this is something they don’t want to deal with.

    DHS – Real ID Regulation

    This article on the DHS website, more or less outlines Real ID and its justification. It is interesting to consider the concept of linking many databases that compile more information that before somehow leads to a decrease in identity theft. This site also lists the cost of Real ID as $8 per license, according to Chertoff. That is still $102,655,760 for Illinois to pay.

    “The American public’s desire for greater identity protection is undeniable,” said Homeland Security Secretary Michael Chertoff. “Americans understand today that the 9/11 hijackers obtained 30 drivers licenses and ID’s, and used 364 aliases. For an extra $8 per license, REAL ID will give law enforcement and security officials a powerful advantage against falsified documents, and it will bring some peace of mind to citizens wanting to protect their identity from theft by a criminal or illegal alien.”

    The problems that Americans face from document fraud are diverse and growing. A Public Opinion Strategies poll taken last year shows that more than 80 percent of the American public favors secure identification to prevent terrorism and identity theft. Identity theft has increased by nearly 800 percent from 2000 to 2006, according to the Federal Trade Commission. U.S. Immigration and Customs Enforcement made 863 criminal arrests during various worksite enforcement operations in fiscal year 2007 – more than 500 were charged with crimes relating to federal and state document fraud – and their Identity and Benefit Fraud Units made 1,211 criminal arrests for document fraud related charges. The U.S. Secret Service made 4,348 arrests last year for identity theft or financial fraud crimes, accounting for approximately $690 million in actual fraud loss to individuals and financial institutions. In a sampling of Secret Service identify theft cases from 2000 to 2006, fraudulent drivers’ licenses were used 35 percent of the time.

    REAL ID will address document fraud by setting specific requirements that states must adopt for compliance, to include: (1) information and security features that must be incorporated into each card; (2) proof of the identity and U.S. citizenship or legal status of an applicant; (3) verification of the source documents provided by an applicant; and (4) security standards for the offices that issue licenses and identification cards.

    It appears that the largest figure being touted around for funding is partly for Real ID and the rest belongs to general homeland security costs. $80 million dollars does not cover the cost of Illinois at the low estimate provided by DHS. They further justify the policy’s implementation by claiming costs have been reduced. It seems to me that this just delays costs down the road. Another government strategy to make something appear viable in the short term.

    DHS is making approximately $360 million available to assist states with REAL ID implementation – $80 million in dedicated REAL ID grants and another $280 million in general funding as part of the Homeland Security Grant Program.

    The 73 percent cost reduction – from an original estimate of $14.6 billion to approximately $3.9 billion – was achieved mainly by giving states greater flexibility in issuing licenses to older Americans. Enrollment will be completed for all individuals under 50 years of age by Dec. 1, 2014. For all others, enrollment may be extended three additional years to Dec. 1, 2017. At that time, all state-issued drivers’ licenses and identification cards intended for official federal purposes must be REAL ID compliant.

    DHS Real ID Funding – Better Numbers

    There was a previous post citing the DHS Fact Sheet and its request for a funding increase. Here are some numbers that are little more exact on what DHS will be offering to the states:

    DHS is making an additional $48.5 million available to assist states with REAL ID implementation. Previously funded at $31.3 million, the additional grants funding was authorized on Dec. 26, 2007 with the signing of the Omnibus appropriations bill. These dedicated grants are now available to help states improve driver’s license and identification card issuance capabilities and facilitate collaboration among states in the development of more secure systems that verify an applicant’s identity while protecting their personal privacy.

    Add Another Relieved State to the List: Idaho

    Idaho also avoids the cost of implementing a $40 million policy in the state. Interestingly, this article includes a statistic that it would cost between $2 and $9 million to maintain Real ID each year. The New West Magazine explains:

    The good news is that Idaho has applied for, and received, an extension to the deadline for complying with the requirements for the so-called REAL ID Act, until December 2009. The bad news is that the costs for implementing it – estimated last year to be $11 billion nationwide and $40 million for Idaho – haven’t changed.

    Pamela Lowe, director of the Idaho Transportation Department, updated the Joint Finance-Appropriations Committee this morning on the status of Real ID. In addition, the state – without committing to complying with the Real ID regulations – has also applied for federal grant money to help pay the program’s costs in Idaho, but does not know how much money, if any, the state will receive.

    osts were estimated to be up to $40 million setup for Idaho and $2 to $9 million per year thereafter, as well as increasing the workload at Departments of Motor Vehicles by 75% because renewal by mail or by the Internet would no longer be permitted, Hannah Saono, legislative counsel for ACLU Idaho, had said last year when testifying

    In addition to the cost, civil liberties are also a factor. Even Governor Butch Otter, one of the cosponsors of the bill in Congress, has since repudiated it, calling it “every bit as bad as anything George Orwell suggested in 1984.” He went on to say that, for the amount of money it would cost Idaho, “I could buy everyone in Idaho a passport.”

    West Virginia Receives Extension to Implementing $40 Million Real ID Program

    At an estimated cost of $40 millino dollars for a state of 1.5 million people, it is no wonder the DMV is relieved the federal government granted an extension. The Charleston Gazette reports:

    Until recently, West Virginia’s Division of Motor Vehicles thought it would face a $40 million headache to begin implementing federal Real ID mandates for state driver’s licenses this year.

    Instead of having to begin implementing the Real ID requirements this May, and having to complete the changeover of all 1.5 million state driver’s licenses within 2 1/2 years, the extension gives West Virginia until 2017 to complete the process, he said.

    With the extension, drivers born after 1964 will have to have Real ID-compliant licenses by 2014, and drivers born in 1964 or earlier will have to have the new licenses by 2017.



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