US and UK intelligence have reportedly
cracked the encryption codes protecting the
emails, banking and medical records of
hundreds of millions of people.
Disclosures by leaker Edward Snowden allege the
US National Security Agency (NSA) and the UK's
GCHQ successfully decoded key online security
protocols.
They suggest some internet companies provided the
agencies backdoor access to their security systems.
The NSA is said to spend $250m (£160m) a year on
the top-secret operation.
It is codenamed Bullrun, an American civil-war
battle, according to the documents published by
the Guardian in conjunction with the New York
Times and ProPublica.
The British counterpart scheme run by GCHQ is
called Edgehill, after the first major engagement of
the English civil war, say the documents.
'Behind-the-scenes persuasion'
The reports say the UK and US intelligence agencies
are focusing on the encryption used in 4G
smartphones, email, online shopping and remote
business communication networks.
The encryption techniques are used by internet
services such as Google, Facebook and Yahoo.
Under Bullrun, it is said that the NSA has built
powerful supercomputers to try to crack the
technology that scrambles and encrypts personal
information when internet users log on to access
various services.
The NSA also collaborated with unnamed technology
companies to build so-called back doors into their
software - something that would give the
government access to information before it is
encrypted and sent over the internet, it is reported.
As well as supercomputers, methods used include
"technical trickery, court orders and behind-the-
scenes persuasion to undermine the major tools
protecting the privacy of everyday
communications", the New York Times reports.
The US reportedly began investing billions of dollars
in the operation in 2000 after its initial efforts to
install a "back door" in all encryption systems were
thwarted.
'Gobsmacked'
During the next decade, it is said the NSA employed
code-breaking computers and began collaborating
with technology companies at home and abroad to
build entry points into their products.
The documents provided to the Guardian by Mr
Snowden do not specify which companies
participated.
The NSA also hacked into computers to capture
messages prior to encryption, and used broad
influence to introduce weaknesses into encryption
standards followed by software developers the world
over, the New York Times reports.
When British analysts were first told of the extent of
the scheme they were "gobsmacked", according to
one memo among more than 50,000 documents
shared by the Guardian.
NSA officials continue to defend the agency's
actions, claiming it will put the US at considerable
risk if messages from terrorists and spies cannot be
deciphered.
But some experts argue that such efforts could
actually undermine national security, noting that
any back doors inserted into encryption programs
can be exploited by those outside the government.
It is the latest in a series of intelligence leaks by Mr
Snowden, a former NSA contractor, who began
providing caches of sensitive government
documents to media outlets three months ago.
In June, the 30-year-old fled his home in Hawaii,
where he worked at a small NSA installation, to
Hong Kong, and subsequently to Russia after
making revelations about a secret US data-
gathering programme.

Source: m.bbc.co.uk/news/world-us-canada-23981291