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What The Gov’t Pays Industry To Snoop

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The FBI said it could not say how much it spends on industry reimbursements because payments are made through a variety of programs, field offices and case funds. In an emailed statement, the agency said when charges are questionable, it requests an explanation and tries to work with the carrier to understand its cost structure.

Technology companies have been a focus of law enforcement and the intelligence community since 1994, when Congress allotted $500 million to reimburse phone companies to retrofit their equipment to accommodate wiretaps on the new digital networks.

But as the number of law enforcement requests for data grew and carriers upgraded their technology, the cost of accommodating government surveillance requests increased. AT&T, for example, said it devotes roughly 100 employees to review each request and hand over data. Likewise, Verizon said its team of 70 employees works around the clock, seven days a week to handle the quarter-million requests it gets each year.

To discourage extraneous requests and to prevent losing money, industry turned to a section of federal law that allows companies to be reimbursed for the cost of “searching for, assembling, reproducing and otherwise providing” communications content or records on behalf of the government. The costs must be “reasonably necessary” and “mutually agreed” upon with the government.

From there, phone companies developed detailed fee schedules and began billing law enforcement much as they do customers. In its letter to Markey, AT&T estimated that it collected $24 million in government reimbursements between 2007 and 2011. Verizon, which had the highest fees but says it doesn’t charge in every case, reported a similar amount, collecting between $3 million and $5 million a year during the same period.

Companies also began to automate their systems to make it easier. The ACLU’s Soghoian found in 2009 that Sprint had created a website allowing law enforcement to track the location data of its wireless customers for only $30 a month to accommodate the approximately 8 million requests it received in one year.

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Posted by FanSite on Aug 1st, 2013 and filed under American Street Guide. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site

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