Disclaimer: I do not, nor ever had, any level of secret clearance for any government. I have no connections to Snowden, the NSA, or any person or organization linked to them.
From 2006 through 2012, I was the information security officer for a global financial services company, selling subscription based services to the largest companies in the world in every industry sector. Understandably, many of the larger corporate customers expressed a lot of concern over the confidentiality of their financial data when stored in our systems. Despite having numerous external audits and penetration tests (with reports available to these customers), many of the larger customers won additional concessions in the form of additional security controls, in exchange for their business.
The U.S. PATRIOT Act was a tremendous stumbling block for many potential non-U.S. customers. They were concerned about the ability for law enforcement to serve secret subpoenas and obtain business records without their knowledge or consent. Our only argument was that we were not the source for original data, and that federal law enforcement would more likely go after original records, such as banking and telecommunications. Still, many non-U.S. companies elected not to do business with our U.S. based company because of PATRIOT.
Revelations of Prism and XKeyscore represent U.S. law enforcement and spy agencies taking a gigantic leap beyond PATRIOT. With PATRIOT (as I understand it — my former employer was never, to my knowledge, served with a National Security Letter), a judge was required to sign or approve the national security letter on behalf of the federal law enforcement agency that wished to obtain information. But with Prism and XKeyscore, U.S. federal law enforcement and other agencies have unilaterally obtained – and apparently continuously obtain – many forms of electronic records, without the consent of anyone.
Prism and XKeyscore, in my belief, will prove to be extremely harmful to U.S. based electronic services providers at every level: Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and virtually all other forms of electronic services that store, transmit, or process electronic information. With PATRIOT, the mere prospect of law enforcement obtaining information in special, limited circumstances was enough to scare away many potential customers. With XKeyScore and Prism, law enforcement continuously obtains much of this same information. Thus, the probability of law enforcement (and other agencies) obtaining sensitive information increases from longshot to near absolute certainty.
This has got to be bad for U.S. based businesses in nearly every sector that provides services to customers worldwide.
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Aug 5 update: headline article in Puget Sound Business Journal echos my sentiments. http://www.bizjournals.com/seattle/news/news-wire/2013/08/05/nsa-revelations-could-cost-us-lead.html
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