The export of encryption software programs remains an issue in the United States. The US Government has banned the importation of such programs overseas unless the companies first provide government with a "key'' to decode the encryption. The FBI and the National Security Agency claim criminals and terrorists could use the programs to evade scrutiny.

A coalition of 13 of the largest computer companies has suggested they be allowed to export the programs without providing the key. The programs would however allow a network operator to access and decode information at the request of government officials who have a proper warrant or court order.

Sounds like a good compromise. Encryption is key to helping Internet commerce off the ground.

Meanwhile the Electronic Frontier Foundation, out to combat any invasion of privacy, recently announced it has built the first unclassified hardware for cracking messages encoded with the government's Data Encryption Standard (DES).

The EFF DES Cracker took three days to complete RSA Laboratory's DES Challenge II contest, shattering the old record of 39 days. The EFF point was to prove the DES standard is insecure. The US government has wanted the industry to limit encryption to the DES standard, claiming information would be protected.

The Cracker took the EFF one year and $250,000 to build. The RSA prize was worth $10,000. DES can be found in 281 foreign and 466 US encryption products, about one-third of the encryption market.

The EFF breakthrough shows cracking the code can be done without special equipment. See the EFF archive of information on encryption policy, privacy and free speech at www.eff.org The Federal Trade Commission has put out its "dirty dozen'' E-mail schemes used by the unscrupulous to gain money from the unsuspecting in exchange for false promises.

The use of unsolicited E-mail to market to Internet users is called spam -- or electronic junkmail. While the top 12 doesn't differ much from regular scams done through the mails or by other methods, the Internet has helped the crooks reach more people. All they need is a $10 to $30 Internet account and they can flood mailboxes with thousands of messages with the touch of a button.

The Internet industry estimates about 25 million spams are sent across the Internet a day, boosting their operating costs.

The top 12 spams are: business opportunity scams, making money by sending bulk E-mail, chain letters, work-at-home schemes, health and diet scams, get-rich-quick schemes, get-something-for-free schemes, investment opportunities, cable descrambler kits, guaranteed credit or loans on easy terms, credit-repair scams, and vacation-prize scams.

Here's one alleged Internet scam that was stopped. The Securities and Exchange Commission has charged an Illinois broker with using the Internet to defraud elderly investors of $7.2 million by offering bogus certificates of deposit in a non-existent offshore bank.

The SEC alleges the broker had allegedly set up a Ponzi scheme in which early investors were paid with the deposits of later customers instead of actual returns.

About 185 investors were caught by the scheme, losing as much as $275,000 each by responding to telephone and Internet solicitations.

Netscape Communications share of the browser market fell to 54 percent among corporate users, while Microsoft Explorer rose to 45 percent from 36 percent in September.

The September 30 deadline for ending US control of the naming system for the Internet approaches but there is still little advance on how to replace the current process with an international non-profit organisation.

In September the US government contract with Network Solutions ends. Network Solutions has had sole right to register international Internet addresses. The company currently handles 4,000 new registrations a day.

Network Solutions and other companies don't want to lose a very profitable business to a non-profit organisation.

Top Wall Street investment brokers just finished a Year 2000 test of their software to see whether the millennium computer bomb would explode in the securities market.

So far the 30 firms participating seem to have escaped unscathed. However the Securities Industry Association said it could take up to six months to make sure the test worked properly before it is applied nationwide in March next year.

The tests were on stock market trading options, corporate bonds, municipal bonds, mutual funds and other areas. Money markets and the futures industry will be tested in September.

Local companies looking on at this flurry of testing should take heed of the statements coming from some of the participants. J.P. Morgan chief information Peter Miller: "The question is not if things will go wrong, but how many things will go wrong.'' Merrill Lynch has said it will no longer do business with brokers who do not show any improvement after the industry wide testing.

US Securities and Exchange Commission director Richard Lindsey: "If there are firms that are not ready by then (fourth quarter 1999), we would make preparations to take away their licenses and relocate their accounts.'' Tech Tattle focuses on technology issues. Contact Ahmed at 295-5881 ext. 248 or 238-3854 .

TOP 12 SPAMS The top 12 spams -- unsolicited e-mails which flood Internet mailboxes -- are: Business opportunity scams; Making money by sending bulk E-mail; Chain letters; Work-at-home schemes; Health and diet scams; Get-rich-quick schemes; Get-something-for-free schemes; Investment opportunities; Cable descrambler kits; Guaranteed credit or loans on easy terms; Credit-repair scams: and Vacation-prize scams.