Here is a letter from the Director of the Secret Service to US Rep. Don Edwards, D-California, in response to questions raised by Edwards' Subcommittee. This copy comes from Computer Professionalsfor Social Responsibility in Washington, DC.                                                                    DEPARTMENT OF TREASURY                                         UNITED STATES SECRET SERVICE                                          WASHINGTON, DC 20223                                         APR 30 1990   The Honorable Don Edwards Chairman Subcommittee on Civil and Constitutional Rights Committee on the Judiciary House of Representatives Washington,  D.C.  20515  Dear Mr. Chairman:  Thank you for your letter of April 3, 1990, concerning your  committee's interest in computer fraud.  We welcome the  opportunity to discuss this issue with your committee and I  hope the following responses adequately answer your  questions.  Question 1:  Please describe the  Secret Service's process for investigating  computer related crimes under Title 18, United States Code,  Section 1030 and any other related statutes.  Response:  The process by which the  Secret Service investigates  computer related crimes is similar to the methods we use to  investigate other types of criminal investigations.  Most of the  investigative techniques are the  same; surveillances, record  checks, witness and suspect interviews, etc.  the primary  difference is we had to develop resources to assist in the  collection and review of computer evidence.  To provide  our agents with this expertise, the secret service  developed a computer fraud investigation course which, as of  this date, has trained approximately 150 agents in the proper   methods for conducting a computer fraud investigation.   Additionally, we established a computer  Diagnostics center,  staffed  with computer professional, to review evidence on  computer  systems.  Referrals of computer related criminal investigations occur in  much the same manner as any other case.  A victim sustains a  loss and reports the crime, or, a computer related crime is  discovered during the course of another investigation.  In the investigations  we do select, it is not our intention to  attempt to supplant local or state law enforcement.  We  provide enforcement in those cases that are interstate or  international in nature and for one reason or another are  beyond the capability of state and local law enforcement  agencies.  When computer related crimes are referred by the various  affected industries to the local field offices, the Special  Agent in  Charge (SAIC) determines which cases will be  investigated based on a variety of criteria.  Each SAIC must  consider the economic impact of each case, the prosecutive  guidelines of the United States Attorney, and the investigative  resources available in the office to investigate the case .  In response to the other portion of your question, the other  primary statute we use to investigate computer related crimes  is Title 18, United States  Code,  Section 1029 ( Access Device  Fraud).  This service  has primary jurisdiction in those cases  which are initiated outside a bank and do not involve   organized crime, terrorism, or foreign counterintelligence  (traditional responsibilities of the FBI).  The term "access device" encompasses credit cards, debit  cards, automatic teller machines (ATM) cards, personal  identification numbers (PIN's) used to activate ATM machines,  credit or debit card account numbers, long distance telephone  access codes, computer passwords and logon sequences, and  among other things the computer chips in cellular car phones  which assign billing.  Additionally, this Service has primary jurisdiction in cases  involving electronic fund transfers by consumer (individuals)  under Title 15, U. S. code, section 169n (Electronic Fund  Transfer Act).  This could involve any scheme designed to  defraud EFT systems used by the public, such as pay by phone  systems, home banking, direct deposit, automatic payments,  and violations concerning automatic teller machines.  If the  violations can be construed to be a violation of the  banking  laws by bank employee, the FBI would have primary  jurisdiction.    There are many other statutes which have been used to  prosecute computer criminals but it is within the purview of  the U.S. Attorney to determine which statute will be used to  prosecute an individual.  Question 2:  Has the Secret  Service ever monitored any computer bulletin  boards or networks?  Please describe  the procedures for  initiating such monitoring, and list those computer bulletin  boards or networks monitored by the Secret  Service since  January 1988.  Response:  Yes, we have occasionally monitored computer bulletin boards.   The monitoring occurred after we received complaints  concerning criminal activity on a particular computer bulletin  board.  The computer bulletin boards were monitored as part of  an official investigation and in accordance with the directives  of the Electronic Communications  Privacy  Act of 1986 (Title  18 USC 2510)  The procedures used to monitor computer bulletin boards  during an official investigation have involved either the use of  an informant (under the direct supervision of the investigating  agent)  or an agent operating in an undercover capacity.  In  either case, the informant or agent had received authorization  from the computer bulletin board's owner/operator to access  the system.  We do not keep records of the bulletin boards which we have  monitored but can provide information concerning a particular  board if we are given the name of the board.  Question 3:  Has the Secret Service or someone acting its direction ever  opened an account on a computer bulletin board or network?   Please describe the procedures for opening such an account and  list those bulletin boards or networks on which such accounts  have been opened since January 1988.  Response:  Yes, the U.S.  Secret Service has on many occasions, during the  course of a criminal investigation, opened accounts on  computer bulletin boards or networks.  The procedure for opening an account involves asking the  system administrator/operator for permission to access to the  system.  Generally, the system administrator/operator will  grant everyone immediate access to the computer bulletin  board but only for lower level of the system.  The common  "pirate" computer bulletin boards associated with most of  computer crimes have many different level in their systems.   The first level is generally available to the public and does not  contain any information relation to criminal activity.  Only  after a person has demonstrated unique computer skills, been  referred by a known "hacker," or provided stolen long-distance  telephone access codes or stolen credit card account  information,  will the system administrator/operator permit a  person to access the higher levels of the bulletin board system  which contains the information on the criminal activity.  As previously reported in our answer for Question 2, we do not  keep records of the computer bulletin boards on which we have  established accounts.  Question 4:  Has the Secret Service os0someone acting under its direction  ever created a computer bulletin board or network that was  offered to the public?  Please describe any such bulletin board  or networks.  Response:  No, the U. S. Secret Service has not created a computer bulletin  board nor a network which was offered to members of the  public.   We have created an undercover bulletin board which  was offered to a select number of individuals who had  demonstrated an interest in conducting criminal activities.   This was done with the guidance of the U.S. Attorney's  office  and was consistent with the Electronic Communications  Privacy Act.  Question 5:  Has the Secret Service ever collected, reviewed or  "downloaded" transmissions or information from any computer  network or bulletin board?  What procedures does the Secret  Service have for obtaining information from computer bulletin  boards or networks?  Please list the occasions where  information has been obtained since January 1988, including  the identity of the bulletin boards or networks,  the type of  information obtained,   and how that information was obtained  (was it downloaded, for example).  Response:  Yes, during the course of several investigations, the U. S.   Secret Service has "down loaded" information from computer  bulletin boards.  A review of information gained in this manner  (in an undercover capacity after being granted access to the  system by it's system administrator)  is performed in order to  determine whether or not that bulletin board is being used to  traffic in unauthorized access codes or to gather other  information of a criminal intelligence nature.  At all times,  our methods are in keeping with the procedures as outlined in  the Electronic Communications Privacy Act (ECPA).  If a commercial network was suspected of containing  information concerning a criminal activity, we would obtain  the proper court order to obtain this information in keeping  with the ECPA.  The U. S. Secret Service does not maintain a record  of the  bulletin boards we have accessed.  Question 6:  Does the Secret Service employ, or is it considering employing,  any system or program that could automatically review the  contents of a computer file, scan the file for key items,  phrases or data elements, and flag them or recommend further  investigative action?  If so, what is the status of any such  system.  Please describe this system and research being  conducted to develop it.  Response:  The Secret  Service has pioneered the concept of a Computer   Diagnostic Center (CDC)  to facilitate the review and  evaluation of electronically stored information.  To streamline  the tedious task of reviewing thousands of files per  investigation, we have gathered both hardware and software  tools to assist our search of files for specific information or  characteristics.  Almost all of these products are  commercially  developed products and are available to the  public.  It is conceivable that an artificial intelligence process  may someday be developed and have application to this law  enforcement function but we are unaware if such a system is  being developed.  The process of evaluating the information and making  recommendations for further investigative action is currently  a manual one at our CDC.  We process thousands of computer  disks annually as well as review evidence contained in other  types of storage devices (tapes, hard drives, etc.).   We are  constantly seeking  ways to enhance our investigative mission.   The development of high tech resources like the CDC saved  investigative manhours and assist in the detection  of criminal  activity.  Again, thank you for your interest.  Should you have any further  questions, we will be happy to address them.                                                   Sincerely,                                                  /s/                                                 John R.  Simpson, Director  cc: Honorable Charles E.  Schumer