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Re the Phiber Optik case. I understand that only vanilla, split-band
modems (1200, 2400 baud) were tapped, on the analog loop. They were,
and still are, common in the mundane telco world.  Throw a bandpass
filter on the upper half of the audio band, get the answer data. Throw
a filter on the lower half, get the originate data. Much MUCH easier
than tapping modern full-duplex full-band modems with echo
cancellation and compression. I know some of the datacops involved,
and I seriously doubt they have a clue about how to handle V.32
without help from the NSA, which DOES know how to intercept them.

Of course, even if the modems had NSA-proof encryption built in, the
victim could always intercept the decrypted data on the DTE
connector...  cracking is and will remain a risky and stupid thing to
do...