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No spy coins, says Defense Security Service

A 2006 report from the U.S. Defense Security Service which reported tiny radio frequency transmitters were found hidden inside Canadian coins is not true, according to DSS officials.

The service said it could never substantiate its own published claims about the coins it had said were found on military contractors.

According to DSS officials, the 2006 annual report should not have contained this information. The acting director of the DSS directed an internal review of the circumstances leading up to the publication of this false information to prevent incidents like this from recurring.

The Canadian Security Intelligence Service denied knowledge of the coins from the beginning.

?This issue has come to our attention,? said CSIS spokeswoman Barbara Campion of the initial report. ?At this point, we don?t know of any basis for these claims. She said Canada?s intelligence service works closely with its U.S. counterparts and will seek more information if necessary.

The initial report did contain other espionage warnings that the DSS claims are valid including unrelated hacker attacks, eavesdropping with miniature pen recorders and the case of a female foreign spy who seduced her American boyfriend to steal his computer passwords.

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