NSA paid security firm RSA $10 Million to Create Backdoors for Them

The US National Security Agency has secretly arranged a contract worth $10 million with RSA, one of the most influential corporations in the computer security industry, according to the report of Reuters.

Documents leaked by former NSA contractor Edward Snowden show that the NSA created and promulgated a flawed formula for generating random numbers to create a “back door” in encryption products, the New York Times reported in September. Reuters later reported that RSA became the most important distributor of that formula by rolling it into a software tool called Bsafe that is used to enhance security in personal computers and many other products.

Undisclosed until now was that RSA received $10 million in a deal that set the NSA formula as the preferred, or default, method for number generation in the BSafe software, according to two sources familiar with the contract. Although that sum might seem paltry, it represented more than a third of the revenue that the relevant division at RSA had taken in during the entire previous year, securities filings show.

RSA, now owned by computer storage firm EMC Corp, has a long history of entanglement with the government. In the 1990s, the company was instrumental in stopping a government plan to include a chip in computers that would've allowed the government to spy on people.

It has also had its algorithms hacked before, as has RSA-connected VeriSign.