Business

Billions of supposedly private e-mail messages a day flow through unsecured links, where they can be snared in digital dragnets operated by the National Security Agency and other intelligence services.

Recent revelations about NSA surveillance -- including a top-secret document discussing "collection of communications on fiber cables and infrastructure as data flows past" -- have highlighted the ease with which government eavesdroppers can exploit the Internet's infrastructure. Another classified document, which the Guardian published Thursday, mentions network-based surveillance of Hotmail servers.

Over the last decade or so, Web mail providers began to turn on encryption to armor the connections … Read more

Google today asked the U.S. government to lift a legal gag order and let it clear up speculation and erroneous reports about what information it's forced to turn over to the feds.

In an open letter to Attorney General Eric Holder and FBI Director Robert Mueller asking for "transparency," the Mountain View, Calif.-based company is effectively applying an unusual amount of public pressure to the Obama administration. President Obama has claimed to have "the most transparent administration in history," though critics have argued otherwise.

Google, Apple, Yahoo, Microsoft, Facebook, and other Internet companies … Read more

Update, June 8 at 2:45 p.m. PT: In response to outcry over PRISM, the U.S. director of national intelligence has released some details. Among other things, he says the government "does not unilaterally obtain information from the servers of U.S. electronic communication service providers" and that PRISM-related activities are conducted "under court supervision." More here.

The National Security Agency has not obtained direct access to the systems of Apple, Google, Facebook, and other major Internet companies, CNET has learned.

Recent reports in The Washington Post and The Guardian claimed a classified program … Read more

Google CEO Larry Page has flatly denied involvement in a secret spy program operated by the National Security Agency, calling into question recent news reports that alleged the company gave spooks a backdoor into its servers.

Page said in a statement on the company's official blog today, which we're reproducing in full:

You may be aware of press reports alleging that Internet companies have joined a secret U.S. government program called PRISM to give the National Security Agency direct access to our servers. As Google's CEO and Chief Legal Officer, we wanted you to have the … Read more

Update, June 7, 2013: The National Security Agency has not obtained direct access to the companies' systems, contrary to earlier claims, CNET is reporting.

A top-secret surveillance program gives the National Security Agency surreptitious access to customer information held by Microsoft, Yahoo, Apple, Google, Facebook, and other Internet companies, according to a pair of new reports.

The program, code-named PRISM, reportedly allows NSA analysts to peruse exabytes of confidential user data held by Silicon Valley firms by typing in search terms. PRISM reports have been used in 1,477 items in President Obama's daily briefing last year, according to … Read more

It seemed like yet another corporate privacy flap: Yahoo CEO Marissa Mayer decrees that Yahoo Mail users will have their e-mail "scanned and analyzed" so relevant ads can be displayed.

That apparent revelation prompted dozens of news articles in the last few days describing the practice as "creepy" or "freaking people out." One wondered if it was an "aggressive invasion of privacy."

The only problem is that Yahoo hasn't, well, actually changed its policy. At all. A version of Yahoo Mail's terms of service adopted in 2011 gives the company … Read more

Online currency company Liberty Reserve has been shut down following charges that it laundered more than $6 billion over the past several years and became a "bank of choice for the criminal underworld," The New York Times reported today.

An indictment, filed today by U.S. prosecutors in the U.S. District Court for the Southern District of New York, accused Liberty Reserve of establishing its digital currency exchange to launder money, resulting in 55 million laundering transactions for at least a million people.

Furthermore, prosecutors painted Liberty Reserve as a currency marketplace that enabled criminals to commit … Read more

The U.S. Department of Homeland Security confirmed it has initiated legal action that prompted the Dwolla payment service to stop processing bitcoin transactions.

Nicole Navas, a representative for U.S. Immigration and Customs Enforcement, confirmed the legal action to CNET this afternoon.

Dwolla, a Des Moines, Iowa-based startup, which raised $16.5 million in funding two weeks ago, notified users about the move earlier Tuesday. It blamed the decision on "recent court orders" limiting its ability to send money through Mt. Gox, the largest bitcoin exchange.

"In order not to compromise this ongoing investigation being conducted … Read more

Update: The Senate late today passed the bill, sending it to the House.

The U.S. Senate is planning to vote Monday to levy new taxes on mobile app developers, cloud computing services, music and movie downloads, and even people selling collections of WordPress themes.

Senators who are backing the legislation known as S.743 describe it as a way to force out-of-state retailers to collect taxes on physical shipments. Sen. Mike Enzi, R-Wyo., claims his bill will "put local and Main Street retailers on a level playing field with their out-of-state and online counterparts."

What Enzi and … Read more