Mr. Chairman and members
of the Subcommittee: Thank you for this opportunity to share my views on this
important subject. SafeWeb develops Internet privacy and security technologies
for businesses and consumers. Our core consumer product, www.safeweb.com,
lets Internet users surf the Web anonymously so that no one can pry into their
online communications.
SafeWeb's technology lets
users access the entire Web through a layer of encryption. All of the
information coming in and out of their computers is fully encrypted, and
dangerous code such as cookies and Web bugs is filtered. Our servers communicate
directly with the SSL (Secure Socket Layer) engine present in every browser so
that no software download or installation is necessary.
Because our solution is free,
effective and easy to use, it has quickly grown to become the most widely used
online privacy service in the world. We currently secure over 100 million Web
pages each month through www.safeweb.com.
We are also licensing this technology to
businesses and governmental agencies that place the utmost importance on
security and require the strongest technology available to meet their stringent
requirements.
Before discussing the topic of
privacy, let's begin with a broad view of what is happening in information
technology. You may be familiar with Moore's Law, originally formulated by
Gordon Moore, one of the co-founders of Intel. Moore observed that the computing
power of microchips doubles roughly every 1.5 years. It is no surprise that
today's laptop is far superior to the supercomputer of 10 years ago. A similar
trend is occurring in the areas of
data storage and data transmission: the cost of storing data is cut in half each
year and the capacity to transmit data is doubling each year. With these factors
in play, the end result is exponential growth in our ability to store, transmit
and analyze information.
What does this mean for
privacy? It means that technology will inevitably make it easier for governments
and corporations to invade the privacy of individual citizens. Consider the
following example. Currently, someone with access to my credit card records
could gain a fairly accurate picture of my eating, shopping and leisure habits.
Perhaps two-thirds of all of my personal purchases are made on this credit card.
Imagine the situation five years from now, when digital cash and smart cards are
ubiquitous and nearly 100 percent of all purchases are executed digitally.
Eventually, databases will be able to record not just how much money I spend,
but exactly what I purchased, as well as where and when I
made this purchase. This will apply to purchases of entertainment and
food, as well as other items. It will not be long before databases will be
capable of recording all of the phone and e-mail traffic of ordinary individuals
- not just basic data (e.g., identities of sender/caller/recipient, time and
length of communication), but the actual content of the communications.
Why would someone be motivated
to assemble such data? The answer is simple. Most businesses, from banks to shoe
stores, spend significant amounts of money on customer acquisition. As
businesses, they are highly motivated to make this process as efficient and
economical as possible, and technology can oblige in astounding ways. Government
and law enforcement have different, but equally strong, motivations to know more
about what people are doing.
Is this a bad thing? Not necessarily. It would be foolish not to acknowledge the
advantages this future will bring both to individuals as well as to corporations
and governments. However, it is easy to see that these
massive databases, once created, will be subject to myriad forms of abuse.
Survey after survey indicates that the overwhelming majority of Americans is
already concerned about their online privacy and desire greater protections when
they surf the Web. According to one
recent survey, Americans are more concerned about loss of privacy than health
care, crime, or taxes.
On
a global level, the need for online privacy and freedom of speech is even more
urgent. Despite different countries' differing laws, we at SafeWeb believe that
the right to privacy and the right of free speech are not just rights granted to
American citizens by the United States Constitution; these are human rights that
every country, democratic or not, ought to accord their citizens. Approximately
327 million people worldwide use the Internet today, and an estimated 502
million people will be online by 2003.
As
the number of Internet users steadily grows, we can expect privacy concerns to
escalate and grow increasingly volatile. The general public has only just begun
to realize the extent of the privacy problem, and has only just begun to explore
the possible privacy solutions.
While it would be convenient to
claim that technology alone can solve these problems, to do so would be to
pronounce a fallacy. There are several companies like SafeWeb that create
technologies to help consumers protect their online privacy. However, these
technological tools tend to be used by sophisticated, technologically savvy
people, and less so by the average Internet user. According to one survey, only nine percent of online users have used encryption to scramble their
e-mail, and a mere five percent have taken advantage of anonymous Web browsing
services. Americans
should not have to become experts on cookies, Web bugs or
relational databases in order to preserve their privacy.
It
is my opinion that the protection of consumer privacy requires both legal and
technological action. I hope that legislators will recognize the current trends
and pass laws that will protect the rights of individuals in this burgeoning
information age.
Thank you.