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From Tony Bradley, CISSP-ISSAP, for About.com

Forums: Can Your Employer Snoop Your Home Network?

Monday April 18, 2005
There has been a fair amount of discussion over the years about whether or not an employer can snoop, or monitor, what their employees do on the company network. Can they dig into the computer? Can they read employee email? In most cases the answer is "yes". The company owns the computers, the network and the email servers and the company has a reasonable expectation that you are working and not goofing off using their equipment. But, for employees that work from home, does the employer have any right to hack or monitor the employee's home computer or network? That is the question posed by kcaliflakers in this post in the Internet / Network Security Forums: Employers Hacking Home Networks?
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