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            BRIT HUME, HOST: Last time we
                reported on the approximately 60 Israelis who had
                been detained in connection with the Sept. 11
                terrorism investigation. Carl Cameron reported
                that U.S. investigators suspect that some of
                these Israelis were spying on Arabs in this
                country, and may have turned up information on
                the planned terrorist attacks back in September
                that was not passed on. Tonight, in the second of four
                reports on spying by Israelis in the U.S., we
                learn about an Israeli-based private
                communications company, for whom a half-dozen of
                those 60 detained suspects worked. American
                investigators fear information generated by this
                firm may have fallen into the wrong hands and had
                the effect of impeded the Sept. 11 terror
                inquiry. Here's Carl Cameron's second report.
            (BEGIN VIDEOTAPE) CARL CAMERON, FOX NEWS
                CORRESPONDENT (voice-over): Fox News has learned
                that some American terrorist investigators fear
                certain suspects in the Sept. 11 attacks may have
                managed to stay ahead of them, by knowing who and
                when investigators are calling on the telephone.
                How? By obtaining and analyzing data
                that's generated every time someone in the U.S.
                makes a call. UNIDENTIFIED FEMALE: What city and
                state, please? CAMERON: Here's how the system
                works. Most directory assistance calls, and
                virtually all call records and billing in the
                U.S. are done for the phone companies by Amdocs
                Ltd., an Israeli-based private elecommunications
                company. Amdocs has contracts with the 25
                biggest phone companies in America, and more
                worldwide. The White House and other secure
                government phone lines are protected, but it is
                virtually impossible to make a call on normal
                phones without generating an Amdocs record of it.
            In recent years, the FBI and other
                government agencies have investigated Amdocs more
                than once. The firm has repeatedly and adamantly
                denied any security breaches or wrongdoing. But
                sources tell Fox News that in 1999, the super
                secret national security agency, headquartered in
                northern Maryland, issued what's called a Top
                Secret sensitive compartmentalized information
                report, TS/SCI, warning that records of calls in
                the United States were getting into foreign hands
                - in Israel, in particular. Investigators don't believe calls
                are being listened to, but the data about who is
                calling whom and when is plenty valuable in
                itself. An internal Amdocs memo to senior company
                executives suggests just how Amdocs generated
                call records could be used. "Widespread data
                mining techniques and algorithms.... combining
                both the properties of the customer (e.g., credit
                rating) and properties of the specific
                'behavior.'" Specific behavior, such as who
                the customers are calling. The Amdocs memo says the system
                should be used to prevent phone fraud. But U.S.
                counterintelligence analysts say it could also be
                used to spy through the phone system. Fox News
                has learned that the N.S.A has held numerous
                classified conferences to warn the F.B.I. and
                C.I.A. how Amdocs records could be used. At one
                NSA briefing, a diagram by the Argon national lab
                was used to show that if the phone records are
                not secure, major security breaches are possible.
            Another briefing document said,
                "It has become increasingly apparent that
                systems and networks are vulnerable.Such crimes
                always involve unauthorized persons, or persons
                who exceed their authorization...citing on
                exploitable vulnerabilities." Those vulnerabilities are growing,
                because according to another briefing, the U.S.
                relies too much on foreign companies like Amdocs
                for high-tech equipment and software. "Many
                factors have led to increased dependence on code
                developed overseas.... We buy rather than train
                or develop solutions." U.S. intelligence does not believe
                the Israeli government is involved in a misuse of
                information, and Amdocs insists that its data is
                secure. What U.S. government officials are
                worried about, however, is the possibility that
                Amdocs data could get into the wrong hands,
                particularly organized crime. And that would not
                be the first thing that such a thing has
                happened. Fox News has documents of a 1997 drug
                trafficking case in Los Angeles, in which
                telephone information, the type that Amdocs
                collects, was used to "completely compromise
                the communications of the FBI, the Secret
                Service, the DEO and the LAPD." We'll have that and a lot more in
                the days ahead - Brit. HUME: Carl, I want to take you
                back to your report last night on those 60
                Israelis who were detained in the anti-terror
                investigation, and the suspicion that some
                investigators have that they may have picked up
                information on the 9/11 attacks ahead of time and
                not passed it on. There was a report, you'll recall,
                that the Mossad, the Israeli intelligence agency,
                did indeed send representatives to the U.S. to
                warn, just before 9/11, that a major terrorist
                attack was imminent. How does that leave room for
                the lack of a warning? CAMERON: I remember the report,
                Brit. We did it first internationally right here
                on your show on the 14th. What investigators are
                saying is that that warning from the Mossad was
                nonspecific and general, and they believe that it
                may have had something to do with the desire to
                protect what are called sources and methods in
                the intelligence community. The suspicion being,
                perhaps those sources and methods were taking
                place right here in the United States. The question came up in select
                intelligence committee on Capitol Hill today.
                They intend to look into what we reported last
                night, and specifically that possibility - Brit.
            HUME: So in other words, the
                problem wasn't lack of a warning, the problem was
                lack of useful details? CAMERON: Quantity of information.
            HUME: All right, Carl, thank you
                very much. Comment From David A. Doane dad@inconnect.com
 12-18-1
I have worked in the
                telecommunications operational software systems
                (OSS) business for a number of years. AMDOCS does
                have a significant market share of the local
                phone billing through their contracts with the
                "Baby Bells", BUT does not
                "own" this market, and, there are a
                number of other significant players in the
                cellular and long distance. For example all
                AT&T long distance calls go through a billing
                system built by CONVERGYS (a long time supplier
                to AT&T). Many very big companies are
                involved in this billing space of the total OSS
                market. AND (and this is a very big and),
                most of the installed billing systems are nut
                managed by AMDOCS. When a system is installed it
                is managed by the telecom customer. One thing
                Telecommunications companies are VERY serious
                about is owning the billing service, because in
                the final analysis that is the only contact that
                most end users have with the phone company,
                therefore it is the perceived point of value.
                Some Telecoms contract out the actual printing
                and mailing of the bill and some of the software
                companies provide this service (AMDOCS is one
                that does). The bottom line is that there are
                points in the billing process that third parties
                MAY get a hold of the call detail records, BUT it
                is VERY unlikely that one company can have a
                large enough share to undermine the system or
                mine for data. The only place that this is
                possible is with government telecom contractors
                and that should be looked into seriously. Below is a short list of the
                software companies that play in this space.
            Abiliti Solutions ACE*COMM Am-Beo AMDOCS Apogee Networks Avolent The Billing College Billing World and OSS Today
            BillSoft The Board Room CBILL, Inc. Checkfree i Solutions ComArch Group Comm Soft Communications Data Group Comporium Data Services Comptel Corporation Convergys CTI Group Daleen Technologies DATAMATX DocSense DPC DST Innovis edocs Ericsson eMIS Engel Consulting Group EUR Systems European Communications Exstream Software Financial Statement Services
            Fujitsu Consulting Group 1 Software Hewlett-Packard Company High Deal, Inc. IBM Info Directions Infotech Solutions Intec Telecom Systems PLC Intrado Inc. IPDR.org Isis Papyrus America Inc. Kabira KPMG Consulting Inc. Lucent Technologies Mail2000, A UPS Company Metavante Corporation Metratech MIND CTI MindSparX Moore BCS Narus nTels Co. OSG Billing Services Output Technology Solutions
            Personix Platinum Communications, Inc.
            Portal Software Protek Quintrex Data Systems RateIntegration Schlumberger Sema Sentori Service Level Corporation Smarten U.S. SMS Consulting SunTec Business Solutions Teleflex Systems, Inc. TeleKnowledge TeleStrategies, Inc. Telution The Tower Group Times Ten Performance Software
            TMNG Inc. TSI Telecommunication Services
            UDP United Support Systems USHA Communications Technology
            Vertex Inc. Vestcom International Vibrant Solutions XACCT Technologies Sincerely, David
Sincerely, David
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