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'£25m IT blackmail case' held in secret

Barclaycard wants to protect its computer security

James Middleton, vnunet.com, vnunet.com 19 Oct 2001
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A £25m alleged blackmail case involving computer security is being held behind closed doors because of fears that eight million Barclaycard accounts may be compromised.

Although the details of the case are not yet known, The Guardian has reported that Graham Browne, former head of the encryption unit at Barclays, has denied allegations that he attempted to extort £25m from the company.

It would appear that the case centres on an alleged blackmail attempt involving knowledge of the security systems and technology used to protect the UK's eight million Barclaycard account holders.

But the company maintains that customers can still use their cards and accounts in confidence.

Usually hearings take place "in camera" only if national security is deemed to be at risk, but Barclays has asked for the proceedings to take place behind closed doors to avoid leaks about its computer security systems.

It is not known whether the full trial, due to begin at the end of this month at the Old Bailey, will be held in camera.

Meanwhile, in the US, the White House said that it would be supporting proposed changes to the Freedom of Information Act to limit government agencies' disclosures about cyber attacks.

The move is a bid by the National Security and Telecommunications Advisory Committee to encourage organisations to come forward with details of electronic breaches, without fear of public disclosure.

The Bush administration has released a letter of support for a "narrowly crafted" amendment to the information act, while ensuring that it is still protective of privacy.

But Mark Read, network security analyst at MIS Corporate Defence, said that the only way to fight electronic threats is by making the information public. "If organisations keep quiet about threats, nothing gets done," he said.

See also:

Vulnerabilities discovered in high street banks' software  09 Nov 2001
Former IT security employee cleared of £25m blackmail attempt  08 Nov 2001
Full virus disclosure is 'arming cyber criminals'  18 Oct 2001

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