I don't have a particular recommendation other than that we base decisions on as much hard data as possible. We need to carefully look at all the options and all their ramifications in making our decisions.

Although cyber attacks have caused billions of dollars in damage and affected the lives of millions, few if any can be characterised as acts of terrorism.

However, leaving everything to the market is not necessarily good for society.

While the vast majority of hackers may be disinclined towards violence, it would only take a few to turn cyber terrorism into reality.

Cyber terrorism could also become more attractive as the real and virtual worlds become more closely coupled, with automobiles, appliances, and other devices attached to the Internet.

The concern is over what will happen as strong encryption becomes commonplace with all digital communications and stored data. Right now the use of encryption isn't all that widespread, but that state of affairs is expected to change rapidly.

We have never really had absolute privacy with our records or our electronic communications - government agencies have always been able to gain access with appropriate court orders.