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Special EU & EURO Warning – December 14, 2011Offshore Jurisdiction Comparison 
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Executive Summary – We always referred to Skye as just being acceptable for casual conversations or chats. Skype does offer encryption but skype has the keys to this encryption. It is acceptable for secreting chats away from your ISP. ISP’s in police states save all data for many years, if not forever. This includes copies of all emails, chats, websites visited and so forth. It is always wise to use a security service that has encryption so the ISP does not know where you went on the Internet, does not have your emails and chats.
Now skype is being aggressively approached by the EU regarding their encryption of voice communications. Skype is owned by EBay but is actually a Danish-Swedish business thus subject to the EU jurisdiction. Skype has over 350 million users, probably one tenth of then are really actively using skype.
Discussion – If you think for one minute that the USA does not get access to skype encryption keys we have a bridge for sale that connects New York to London that you should buy. EBay is under the USA laws. If they did not freely open up their encryption keys there would be no EBay and no Paypal, which is owned by EBay.
Ok now the EU may not have the access it wants. They may be tired of having to ask the USA to get what they want. So they are going to have to pass some legislation to make skype spend money, time and energy giving it to them. Although skype does have in place a law enforcement program they are not making public the details about it. I expect skype can identify, track etc. users by screen name as well as ip address. If one used an anonymizing service to alter their ip addresses, and changed screen names with regularity and only spoke to others who did the same thing then you would still not beat their system unless you really cleaned skype software out of the computer each time you changed screen names.
The software has identifiers in it and it gets into the registry. This means they could tie all your IP addresses together with all your screen names. Software does exist that can get firmware readings from your computer thus identifying the computer even if you reformat and install every program. I think it is doubtful that they have this feature since it would only be useful in maybe 1 out of 1,000,000 instances. To be safer one would need to reformat every time they changed screen names and then do a clean reinstall.
Basically skype is security flawed and only good for casual use. If you require serious encryption we have a seriously encrypted chat you can access from our website. You can also use yahoo messenger with the open source encryption product called zfone. This enables you to use voice with encryption very securely. If an encryption product is not open source code then it is worthless because you have no idea about any back doors. Zfone is open source code, skype is not. Voice with encryption is better than typing. Screenshot savers, and keystroke loggers will not work on voice encryption. It is our belief that if you practice good computer security the only way to capture the conversations would be to put a microphone near the computer you are using. It could however be determined what IP address you were communicating with.
Summary – Skype is only good for casual encryption. Do not trust it for serious privacy.
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*Offshore Legal Associates Law Firm.We have no legal ties or associations with any other law firm or corporation with similar or like sounding names anywhere and should not be so confused with any other entity having a similar or like sounding name.
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