"In 1982 a financial group, FIMAS endorsed a DES based method to authenticate Electronic Funds Transfer, or EFT. Banks move upwards of a trillion dollars daily, and in an effort to insure that all monies are moved accurately and to their intended desti- nations, the technique of Message Authentication Coding was introduced. For still unknown reasons it was decided that en- crypting the contents of the messages, or transfers, was unneces- sary. Thus, financial transactions are still carried out with no protection from eavesdropping."
"Excuse me, Mr. Hammacher, I want to understand this," interrupt- ed Senator Deere. "Are you saying that, since 1976, we have had the ability to camouflage the nation's financial networks, yet as of today, they are still unprotected?" Rickfield looked over at Nancy in disgust but the single camera missed it.
"Yes, ma'am, that's exactly the case," replied Hammacher.
"What does that mean to us? The Government? Or the average citi- zen?"
"In my opinion it borders on insanity. It means that for the price of a bit of electronic equipment, anyone can tap into the details of the financial dealings of banks, the government and every citizen in this country."
Senator Deere visibly gulped. "Thank you, please continue."
"In 1984, President Reagan signed National Security Decision Directive 145. NSDD-145 established that defense contractors and other organizations that handle sensitive or classified informa- tion must adhere to certain security and privacy guidelines. A number of advisory groups were established, and to a minimal extent, the recommendations have been implemented, but I must emphasize, to a minimal extent."
"Can you be a little more specific, Mr. Hammacher?" Asked Senator
Deere.
"No ma'am, I can't. A great deal of these efforts are classified and by divulging who is not currently in compliance would be a security violation in itself. It would be fair to say, though, that the majority of those organizations targeted for additional security measures fall far short of the government's intentions and desires. I am sorry I cannot be more specific."
"I understand completely. Once again," Nancy said to Hammacher,
"I am sorry to interrupt."