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U.S. warns about Canadian spy coins
Associated Press ^ | 01/11/07

Posted on 01/11/2007 7:36:49 AM PST by presidio9

Money talks, but can it also follow your movements?

In a U.S. government warning high on the creepiness scale, the Defense Department cautioned its American contractors over what it described as a new espionage threat: Canadian coins with tiny radio frequency transmitters hidden inside.

The government said the mysterious coins were found planted on U.S. contractors with classified security clearances on at least three separate occasions between October 2005 and January 2006 as the contractors traveled through Canada.

Intelligence and technology experts said such transmitters, if they exist, could be used to surreptitiously track the movements of people carrying the spy coins.

The U.S. report doesn't suggest who might be tracking American defense contractors or why. It also doesn't describe how the Pentagon discovered the ruse, how the transmitters might function or even which Canadian currency contained them.

Further details were secret, according to the U.S. Defense Security Service, which issued the warning to the Pentagon's classified contractors. The government insists the incidents happened, and the risk was genuine.

"What's in the report is true," said Martha Deutscher, a spokeswoman for the security service. "This is indeed a sanitized version, which leaves a lot of questions."

Top suspects, according to outside experts: China, Russia or even France — all said to actively run espionage operations inside Canada with enough sophistication to produce such technology.

The Canadian Security Intelligence Service said it knew nothing about the coins.

"This issue has just come to our attention," CSIS spokeswoman Barbara Campion said. "At this point, we don't know of any basis for these claims." She said Canada's intelligence service works closely with its U.S. counterparts and will seek more information if necessary.

Experts were astonished about the disclosure and the novel tracking technique, but they rejected suggestions Canada's government might be spying on American contractors. The intelligence services of the two countries are extraordinarily close and routinely share sensitive secrets.

"It would seem unthinkable," said David Harris, former chief of strategic planning for the Canadian Security Intelligence Service. "I wouldn't expect to see any offensive operation against the Americans."

Harris said likely candidates include foreign spies who targeted Americans abroad or businesses engaged in corporate espionage. "There are certainly a lot of mysterious aspects to this," Harris said.

Experts said such tiny transmitters would almost certainly have limited range to communicate with sensors no more than a few feet away, such as ones hidden inside a doorway. The metal in the coins also could interfere with any signals emitted.

"I'm not aware of any (transmitter) that would fit inside a coin and broadcast for kilometers," said Katherine Albrecht, an activist who believes such technology carries serious privacy risks. "Whoever did this obviously has access to some pretty advanced technology."

Experts said hiding tracking technology inside coins is fraught with risks because the spy's target might inadvertently give away the coin or spend it buying coffee or a newspaper. They agreed, however, that a coin with a hidden tracking device might not arouse suspicion if it were discovered in a pocket or briefcase.

"It wouldn't seem to be the best place to put something like that; you'd want to put it in something that wouldn't be left behind or spent," said Jeff Richelson, a researcher and author of books about the CIA and its gadgets. "It doesn't seem to make a whole lot of sense."

Canada's largest coins include its $2 "Toonie," which is more than 1-inch across and thick enough to hide a tiny transmitter. The CIA has acknowledged its own spies have used hollow, U.S. silver-dollar coins to hide messages and film.

The government's 29-page report was filled with other espionage warnings. It described unrelated hacker attacks, eavesdropping with miniature pen recorders and the case of a female foreign spy who seduced her American boyfriend to steal his computer passwords.

In another case, a film processing company called the FBI after it developed pictures for a contractor that contained classified images of U.S. satellites and their blueprints. The photo was taken from an adjoining office window.

___


TOPICS: Canada; Culture/Society; Extended News; Foreign Affairs; Miscellaneous
KEYWORDS: blamecanada
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To: Phantom Lord
Also little known, candian coins are magnetic.

Does that mean Canadians can store their pocket change on their refrigerator?

Which brings up another question: Why would a Canadian even NEED a refrigerator?

21 posted on 01/11/2007 8:34:18 AM PST by presidio9 (It's "news" that New Jersey smells bad?)
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To: presidio9

My change includes a 1993 Canadian nickel with a beaver on one side
and some sort of varmint (a possum?) on the other side.


22 posted on 01/11/2007 8:38:06 AM PST by tumblindice (Pussycat, pussycat, where have you been? Why, I've been to London, to see the Queen!)
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To: presidio9

"Does that mean Canadians can store their pocket change on their refrigerator"

To keep the beer warm.


23 posted on 01/11/2007 8:38:10 AM PST by Groganeer (God, Guns, Trucks-The Redneck Trinity)
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To: Groganeer

"Which brings up another question: Why would a Canadian even NEED a refrigerator?"

Man I need to slow down.... wrong line.


24 posted on 01/11/2007 8:38:57 AM PST by Groganeer (God, Guns, Trucks-The Redneck Trinity)
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To: presidio9

Ever heard of global warming?


25 posted on 01/11/2007 8:43:14 AM PST by US_MilitaryRules (Time to eradicated islambs and mooselimbs! GO PTSC)
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To: presidio9

Whoever wants to track Americans should simply wait for the new U.S. passports equipped with RFID chips.


26 posted on 01/11/2007 9:10:15 AM PST by xenophiles
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To: gate2wire

I'm waiting for our vault security guy to stand at the entrance and damand that I put all my coins into a lead-lined jar at the entrance. Thats how silly this whole may become within a year or two.


27 posted on 01/11/2007 9:24:05 AM PST by pepsionice
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To: presidio9


I want one.

28 posted on 01/11/2007 9:45:51 AM PST by zeugma (If the world didn't suck, we'd all fall off.)
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To: zeugma

me too


29 posted on 01/11/2007 10:56:42 AM PST by kimmie7 (Liberals embrace the sin......Christians embrace the sinner.)
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To: presidio9
 
[[[[*BREAKING*]]]]
 
The FBI has identified the culprits.
 
Seems the coins were used to track certain contractors who frequented bars and restaurants after they got off work to see "where the good beer is"
 
 
 
 
SCTV - Bob and Doug McKenzie
FBI file photo
 
 
 
 

30 posted on 01/11/2007 11:24:00 AM PST by lapsus calami (What's that stink? Code Pink ! ! And their buddy Murtha, too!)
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To: presidio9

This photo released by the Central Intelligence Agency shows a hollow container, fashioned to look like an Eisenhower silver dollar

Those tricky guys at the CIA then disguised the Eisenhower silver dollar too look like a Susan B. Anthony pot-metal dollar.

31 posted on 01/11/2007 10:54:04 PM PST by steve-b (It's hard to be religious when certain people don't get struck by lightning.)
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To: presidio9

Lead pockets oughta stop the signal.


32 posted on 01/11/2007 10:56:55 PM PST by Lancey Howard
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To: presidio9

When we were little, most unspent foreign change ended up with the children in the family- I guess as a geography lesson/play money deal.

It's creepy that these chips might end up tracking to one's children...which seems like something out of a Jack Bauer/24 scenario...


33 posted on 01/12/2007 5:40:08 AM PST by sockmonkey (Die, Possums, Die)
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