[ISN] Government, military scramble for encryption technology

From: InfoSec News (isnat_private)
Date: Fri Jul 06 2001 - 01:41:49 PDT

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    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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