Russian spooks could claim web chat for themselves

Jim Giles, consultant


Should the ability of governments to eavesdrop be a factor in deciding where a communications company is based? Apparently so, at least according to US law enforcement officials.

The issue came up after ICQ, an instant messaging service, was purchased for $187.5 million by the Russia investment company Digital Sky Technologies. ICQ may no longer be fashionable in US and Britain, but it remains popular in eastern Europe and Russia.

ICQ is based in Israel, a country that generally cooperates with US law enforcement. The DST deal will see those servers move to Russia, which has a history of frustrating US investigations. That's a problem for law enforcement, since online chat is popular among cyber criminals.

ICQ is owned by AOL, a US company, which might have allowed the US government to intervene in the sale on security grounds. The FT reports that senior law enforcement officials made this case to the government, but apparently without success.

The move would also be a boon to Russia's powerful secret service, the FSB, says security analyst Jeffrey Carr. Russian law will require ICQ to open its logs when the spooks come knocking, notes Carr, so "if you're on ICQ, and you work for an employer who may be of interest to the FSB, now would be a really good time to close your account".

http://www.newscientist.com/blogs/shortsharpscience/2010/07/russian-spooks-could-claim-web.html

Ain't much the US gov't can do once this is 100% under Russian control, for good or bad.