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Da-Chief
01-11-2007, 09:59
;-)



DoD Warns About Spy Coins

Associated Press | January 11, 2007WASHINGTON - Can the coins jingling in your pocket trace your movements? The Defense Department is warning its American contractor employees about a new espionage threat seemingly straight from Hollywood: It discovered Canadian coins with tiny radio frequency transmitters hidden inside.


In a U.S. government report, it said the mysterious coins were found planted on U.S. contractors with classified security clearances on at least three separate occasions between October 2005 and January 2006 as the contractors traveled through Canada.

The U.S. report doesn't suggest who might be tracking American defense contractors or why. It also doesn't describe how the Pentagon discovered the ruse, how the transmitters might function or even which Canadian currency contained them.

Further details were secret, according to the U.S. Defense Security Service, which issued the warning to the Pentagon's classified contractors. The government insists the incidents happened, and the risk was genuine.

"What's in the report is true," said Martha Deutscher, a spokeswoman for the security service. "This is indeed a sanitized version, which leaves a lot of questions."

Top suspects, according to intelligence and technology experts: China, Russia or even France - all said to actively run espionage operations inside Canada with enough sophistication to produce such technology.

The Canadian Security Intelligence Service said it knew nothing about the coins.

"This issue has just come to our attention," CSIS spokeswoman Barbara Campion said. "At this point, we don't know of any basis for these claims." She said Canada's intelligence service works closely with its U.S. counterparts and will seek more information if necessary.

Experts were astonished about the disclosure and the novel tracking technique, but they quickly rejected suggestions Canada's government might be spying on American contractors. The intelligence services of the two countries are extraordinarily close and routinely share sensitive secrets.

"It would seem unthinkable," said David Harris, former chief of strategic planning for the Canadian Security Intelligence Service. "I wouldn't expect to see any offensive operation against the Americans."

Harris said likely candidates include foreign spies who targeted Americans abroad or businesses engaged in corporate espionage. "There are certainly a lot of mysterious aspects to this," Harris said.

Experts said such tiny transmitters would almost certainly have limited range to communicate with sensors no more than a few feet away, such as ones hidden inside a doorway.

"I'm not aware of any (transmitter) that would fit inside a coin and broadcast for kilometers," said Katherine Albrecht, an activist who believes such technology carries serious privacy risks. "Whoever did this obviously has access to some pretty advanced technology."

Experts said hiding tracking technology inside coins is fraught with risks because the spy's target might inadvertently give away the coin or spend it buying coffee or a newspaper.

They agreed, however, that a coin with a hidden tracking device might not arose suspicion if it were discovered loose in a pocket or briefcase.

"It wouldn't seem to be the best place to put something like that; you'd want to put it in something that wouldn't be left behind or spent," said Jeff Richelson, a researcher and author of books about the CIA and its gadgets. "It doesn't seem to make a whole lot of sense."

Canada's physically largest coins include its $2 "Toonie," which is more than 1-inch across and thick enough to hide a tiny transmitter. The CIA has acknowledged its own spies have used hollow, U.S. silver-dollar coins to hide messages and film.

The government's 29-page report was filled with other espionage warnings. It described unrelated hacker attacks, eavesdropping with miniature pen recorders and the case of a female foreign spy who seduced her American boyfriend to steal his computer passwords.

In another case, a film processing company called the FBI after it developed pictures for a contractor that contained classified images of U.S. satellites and their blueprints. The photo was taken from an adjoining office window.


Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

HMC-FMF-PJ
01-17-2007, 23:59
<<sarcasm>> But the government tells us that "if you are not doing anything wrong, you have nothing to worry about" when they spy on us, so I don't understand why they are upset that someone is monitoring them... They must be crazy conspiracy theory fruitcakes or something...:?

Don't let my "if I'm not doing anything wrong, leave me the hell alone" editorial fool you; OpSec, InfoSec & CE are serious matters that must not be overlooked...

(So how many of you realize that OnStar is basically an open microphone in your car that is NOT controlled by you and does NOT have an off switch -- imagine all those "private" conversations, radio sing-alongs, bad traffic rants, and back seat activities that may now be on tape.:shock:)

HMC-FMF-PJ
01-19-2007, 00:45
Defense Department Retracts Spy Coin Report
By TED BRIDIS, AP

WASHINGTON (Jan. 18) - Reversing itself, the Defense Department says an espionage report it produced that warned about Canadian coins with tiny radio frequency transmitters was not true.

The Defense Security Service said it never could substantiate its own published claims about the mysterious coins. It has begun an internal review to determine how the false information was included in a 29-page report about espionage concerns.

The service had contended since late June that such coins were found planted on U.S. contractors with classified security clearances on at least three separate occasions between October 2005 and January 2006 as the contractors traveled through Canada.

"The allegations, however, were found later to be unsubstantiated following an investigation into the matter," the agency said in a statement published on its Web site last week.

Intelligence and technology experts were flabbergasted over the initial report, which suggested such transmitters could be used to surreptitiously track the movements of people carrying the coins.

Experts said such tiny transmitters almost certainly would have limited range to communicate with sensors no more than a few feet away, such as ones hidden inside a doorway. The metal coins also would interfere with any signals emitted, they said.

Experts warned that hiding tracking technology inside coins would be fraught with risks because the spy's target might inadvertently give away the coin or spend it buying coffee or a newspaper.

Robert Moroz, who organizes an annual technology conference in Canada said one vendor in 2005 attached coin-sized transmitters to casino chips as part of a proof-of-concept demonstration.

Moroz also cited previous industry proposals - later abandoned - to build such transmitters into the euro. But he was skeptical about the Defense Department's claims even before the Pentagon said its own report was false.

"To make it work with current, commercially available technology - I don't see how it could work," Moroz said.

The now-disavowed report never suggested who might be tracking American defense contractors or why. It never described how the Pentagon discovered the purported ruse, how the transmitters worked or even which Canadian currency allegedly contained them.

The service initially maintained that its report on the spy coins was accurate but said further details about the spy coins were classified.


[[Which may mean the technology probably exists but has been classifiedso we can use it.]]

Da-Chief
01-19-2007, 05:11
Do you sometimes wonder who is leaking this crap? I am suspicious of the China stories too!! Sometimes I wonder if they are being submitted by the onion..

Later

HMC