Disturbing: Food stamp fraud rampant: GAO report
**Posted by Phineas
Under things that make me a bit uncomfortable, we find:
The Obama administration is drawing up plans to give all U.S. spy agencies full access to a massive database that contains financial data on American citizens and others who bank in the country, according to a Treasury Department document seen by Reuters.
The proposed plan represents a major step by U.S. intelligence agencies to spot and track down terrorist networks and crime syndicates by bringing together financial databanks, criminal records and military intelligence. The plan, which legal experts say is permissible under U.S. law, is nonetheless likely to trigger intense criticism from privacy advocates.
Financial institutions that operate in the United States are required by law to file reports of “suspicious customer activity,” such as large money transfers or unusually structured bank accounts, to Treasury’s Financial Crimes Enforcement Network (FinCEN).
The FBI already has access to FinCEN, and intelligence agencies can make requests to get access on a case-by-case basis. There’s no doubt this kind of information is useful in our war with Islamic terrorists: they need money to carry out their operations, and suspicious transactions can be an early warning that something’s afoot, as well as revealing how they’re getting their funds. In fact, the US and its allies have had great success disrupting terrorist finance since 9/11 by data mining international bank records, at least until the operation was exposed by the press in 2006. (Don’t worry. The revelation came under a Republican president, so the press was only doing its duty.)
And the fact is we are still at war against an enemy who’d dearly love to give us another 9/11; in such times, the boundaries between liberty and security shift a bit toward security. Trust me, I’m a national security conservative, not a doctrinaire “Big L” libertarian on this issue. I remember how the failure to share information was one of the big weaknesses that let al-Qaeda’s plan work.
More than 25,000 financial firms – including banks, securities dealers, casinos, and money and wire transfer agencies – routinely file “suspicious activity reports” to FinCEN. The requirements for filing are so strict that banks often over-report, so they cannot be accused of failing to disclose activity that later proves questionable. This over-reporting raises the possibility that the financial details of ordinary citizens could wind up in the hands of spy agencies.
Emphases added. In other words, the financial institutions, to avoid trouble with Washington, shovel all they can at the Feds and tell them to sort it out.
I’m sure we can all imagine the problems arising from that, such as database errors leading to people being misidentified as possible terrorists or their bag-men. We’ve heard enough stories about “no fly” list mistakes to know it’s bound to happen. Imagine waking up one day to find all your accounts frozen while investigators paw through your life. And this is without even considering the broader Fourth Amendment implications inherent in intelligence agencies searching through all the information the financial institutions dump on them, in order to find the worthwhile material.
“Privacy? What’s that?”
So, like I said: “uncomfortable.” This is a case where Congress could very usefully fulfill its investigatory functions by hauling the relevant officials before a couple of committees and letting some skeptics of central government power (Hello, Ted Cruz and Rand Paul!) ask some pointed questions to make sure proper safeguards are in place.
via Bryan Preston
(Crossposted at Public Secrets)