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Government, military scramble for encryption technology
From: InfoSec News <isn () c4i org>
Date: Fri, 6 Jul 2001 03:41:49 -0500 (CDT)


By John Leyden
Posted: 04/07/2001 at 15:03 GMT

The government and military are investing more heavily in encryption
technology as a defence against hackers who are beginning to deploy
more sophisticated cracking techniques.

That's the conclusion of a study by industry analysts Frost & Sullivan
who said sales of encryption technologies to military and government
agencies, along with contractors, are growing from $176 million to a
projected $457.6 million by 2007.

"Hackers are no longer solely focused on disrupting service and
implanting viruses," said Frost & Sullivan senior analyst Brooks

"They are also doing less noticeable, but potentially more damaging
activities such as reading e-mail and gathering restricted information
from Internet sites and computers."

Frost & Sullivan reports that international agencies ranging from the
National Security Agency (NSA) to NATO are increasing network defence
spending and modernising equipment to ensure privacy. Interestingly,
Frost & Sullivan reports a particular interest from the military in
wireless encryptors.

Contractors to the military are as wary of corporate espionage from
competitors as subversive attacks, according to Lieske, who added
military suppliers require the same high-speed encryptors as their
clients in order to comply with government security regulations.

Brian Gladman, a noted encryption expert and ex-technical director at
NATO, said that the military had always led the commercial sector in
adoption of encryption technology, and wider uptake of the technology
depends in large part in making it easier to use.

Traditional government has used custom designed cryptographic products
but it is beginning to adopt commercial technology, according to
Gladman, who added that, for example, the UK's Ministry of Defence has
begun using PGP to protect its less sensitive traffic.

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