________________________________________________________________________________ Wired News Smile for the US Secret Service by Declan McCullagh 3:00 a.m. 7.Sep.99.PDT WASHINGTON -- A New Hampshire company began planning in 1997 to create a national identity database for the federal government, newly disclosed documents show. Image Data's US$1.5 million contract with the US Secret Service to begin digitizing existing driver's license and other personal data was widely reported early this year. But documents unearthed by the Electronic Privacy Information Center reveal the details and scope of the project. An Image Data presentation to the government -- marked confidential -- stressed that pilot projects in three states would "ensure the viability of deploying such service throughout the United States," according to about 300 pages of files EPIC obtained under the Freedom of Information Act. In a February 1999 report, Image Data CEO Robert Houvener ridiculed the idea that there were any legitimate privacy issues at stake, including those raised by civil libertarians when the project was first disclosed. "Many other newspapers, television programs, magazines also did news stories on Image Data LLC and its system [that] in some cases... focused on the 'Privacy' concerns and presented an inaccurate presentation," Houvener wrote. But privacy groups aren't wavering. "We think that their proposal for a national database of photographs runs directly contrary to the types of privacy safeguards that should be developed," says EPIC director Marc Rotenberg, who met with Houvener last week. "This is not a database that people can easily opt out of. You have to give up your photograph when you get a driver's license." Houvener, who says he has been a "victim of identity fraud," says his national photo file will be targeted at "identity criminals" that he estimates cost businesses billions of dollars a year. US legislators who funded the project believed the database would be used to stop illegal immigrants and terrorists. "The TrueID technology has widespread potential to reduce crime in the credit and checking fields, in airports to reduce the chances of terrorism, and in immigration and naturalization to verify proper identity," said a September 1997 letter from eight members of Congress to Image Data. Image Data's "True ID" technology currently feeds photos into its database in one of two ways. The company has contracts with state motor vehicle departments that supply the analog negatives or the digital images on magnetic tape. It also persuades shoppers to scan their IDs into the database by inserting them into devices at specially equipped stores. After news reports appeared focusing on the project, the governors of Colorado and Florida halted the transfer of images to Image Data, and South Carolina filed suit asking for the return of millions of images already in the company's possession. How did Image Data feel about South Carolina's actions? "The PR, legal, and legislative situation in the pilot State will continue to be evaluated and dealt with," a January 1999 company report says. Image Data has publicly downplayed the Secret Service's involvement, but the documents show that the agency decided which states would be part of the initial pilot project and directed the timing of the effort. According to one of Image Data's monthly reports sent to Special Agent Cary Rosoff of the Secret Service's financial crimes division, company representatives were negotiating a contract with Missouri officials, too. "Missouri [is] in the final stages of implementing a digital driver license system. Most issues are resolved, and we expect closure within 4-6 weeks," the document says. The Secret Service deleted some information from the documents before releasing them, and only a few pages prepared by the government are included. But it seems that discussions of the project began in early 1997. The government signed an agreement with Image Data in late 1997 and the contract took effect on 15 December of that year. Soon after, the company began to work closely with Telecheck, a subsidiary of First Data Corporation. By mid-June 1998, the computer interface between Image Data and Telecheck was complete and images could readily be exchanged. One frequent problem: Scanning millions of existing 35 mm photos into the database. "The digitizing machine is behind schedule.... There has also been some slippage due to the custom machining of the components for the scanner itself," the documents reported about Colorado DMV photos. Another headache for Image Data executives was Florida's policy of allowing drivers to renew their licenses twice by mail. That means people are less likely to come in and be photographed by digital cameras, which can automatically forward the photo to Image Data. "For a state like Florida, [up] to 45 million negatives would have to be digitized to get an online image of all current licenses," a November 1998 report says. The documents show how Image Data planned to sell the idea not just to the federal government, but also to state officials. "This program will demonstrate a highly effective way of ... increasing tax revenue. The positive impact of this demonstration cannot be ignored. Once government agencies and businesses see the effectiveness of this technology and implement it for their own programs, the positive impact to state and federal budgets will be in the billions of dollars per year," says one Image Data proposal that is marked "proprietary." http://www.wired.com/news/news/politics/story/21607.html ________________________________________________________________________________ no copyright 1999 rolux.org - no commercial use without permission. is a moderated mailing list for the advancement of minor criticism. more information: mail to: majordomo@rolux.org, subject line: , message body: info. further questions: mail to: rolux-owner@rolux.org. archive: http://www.rolux.org