Over 140 big name companies, academics and white hat researchers have warned US president Barack Obama to cease the government's war on encryption, or face economic disaster.
The letter, which has been signed by tech giants including Apple, Google Microsoft, Twitter, Yahoo, Symantec and HP, was sent to the White House on Tuesday.
It urges Obama to reject proposals that will let agencies legally collect and decrypt data from smartphones and "other communications devices", claiming that the move will exacerbate existing trust issues with US firms.
"US companies are already struggling to maintain international trust in the wake of revelations about the National Security Agency's surveillance programmes," read the letter.
"Introducing mandatory vulnerabilities into American products would further push many customers - be they domestic or international, individual or institutional - to turn away from those compromised products and services."
The trust problems erupted in 2013 when whistleblower Edward Snowden leaked documents to the press proving that the NSA is collecting vast amounts of web user data from companies including Google, Apple, Microsoft, Facebook, Twitter and Yahoo.
Early estimates from European Commission digital agenda commissioner Neelie Kroes suggested that the scandal could cost the cloud industry billions of dollars.
The letter added that the move would lead customers to use foreign encryption services, meaning that intelligence agencies still wouldn't be able to access all the data they wanted.
"[Customers] and many of the bad actors whose behaviour the government is hoping to impact will simply rely on encrypted offerings from foreign providers, or avail themselves of the wide range of free and open source encryption products that are easily available online," read the letter.
The letter has been welcomed by members of the security community. F-Secure security advisor Sean Sullivan mirrored the letter's sentiments, arguing that weakening businesses' encryption protocols will benefit cyber criminals.
"I think I can safely say that F-Secure agrees with Google, Apple et al. It's just not feasible to have backdoors built into the hardware," he told V3.
"If governments require messaging service providers to act as a man-in-the-middle [for intelligence agencies] the bad guys will just use other services. So there's really no point in reducing security for the general public."
The news follows widespread concerns that the US government is investing vast sums of money and time in finding ways to subvert encryption.
Reports broke in December 2014 that the National Security Agency's (NSA) specialist Office of Target Pursuit maintains a team of engineers dedicated to cracking the encrypted traffic passing through virtual private networks.
Michael Wertheimer, former director of research at the NSA, issued an apology for the agency's decision to push a cryptography solution, which has since been proven insecure, to businesses one month later.
Doubts have also been cast about the NSA's close links to EMC's RSA security division.
Researchers from Johns Hopkins University, the University of Wisconsin, Eindhoven University of Technology, the University of Illinois and the University of California reported uncovering evidence that the NSA exploited a flaw in commonly used RSA security technology to crack encryption keys significantly faster.
The US law enforcement and intelligence communities are two of many government departments hostile to encryption.
The newly elected Tory government in the UK similarly pledged to increase the surveillance powers of intelligence and law enforcement agencies, claiming that it is needed for "anti-terrorism purposes".
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