According to government officials, The C.I.A. is paying AT&T more than $10 million a year to assist with overseas counterterrorism investigations by exploiting the company’s vast database of phone records, which includes Americans’ international calls.
Via New York Times:
The cooperation is conducted under a voluntary contract, not under subpoenas or court orders compelling the company to participate, according to the officials. The C.I.A. supplies phone numbers of overseas terrorism suspects, and AT&T searches its database and provides records of calls that may help identify foreign associates, the officials said. The company has a huge archive of data on phone calls, both foreign and domestic, that were handled by its network equipment, not just those of its own customers…
Because the C.I.A. is prohibited from spying on the domestic activities of Americans, the agency imposes privacy safeguards on the program, said the officials, speaking on the condition of anonymity because it is classified. Most of the call logs provided by AT&T involve foreign-to-foreign calls, but when the company produces records of international calls with one end in the United States, it does not disclose the identity of the Americans and “masks” several digits of their phone numbers, the officials said.
Still, the agency can refer such masked numbers to the F.B.I., which can issue an administrative subpoena requiring AT&T to provide the uncensored data. The bureau handles any domestic investigation, but sometimes shares with the C.I.A. the information about the American participant in those calls, the officials said.