Privacy
The legal issues centering around privacy can be complicated. Privacy focuses on the confidentiality of information. When a network operator monitors the use of the network, the users necessarily lose some amount of privacy, at least with regard to the network operator. Do users of your network have a right to privacy of what they do on the network or of what they store on the network? Does a hacker have a right to privacy that could make it improper for you to collect information on his or her activities? Conversely stated, do we have the right to deploy a honeypot and capture the keystrokes and conversations of users (perhaps including intruders)?
These questions are raised to some extent regardless of the type of honeypot deployed ...
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