Report on NSA 'secret' payments to RSA fuels encryption controversy

The U.S. National Security Agency (NSA) paid US$10 million to vendor RSA in a "secret" deal to incorporate a deliberately flawed encryption algorithm into widely used security software, according to a Reuters report that is reigniting controversy about the government's involvement in setting security standards.

The contract was part of an NSA campaign to weaken encryption standards in order to aid the agency's surveillance programs, Reuters reported on Friday.

The report, based on two sources that Reuters said were familiar with the contract, has sparked a series of headlines that are stoking the ongoing debate about NSA surveillance tactics. The NSA declined immediate comment. RSA, which initially declined to comment, late Sunday denied that it had entered into a secret contract with the NSA.