"Surveillance is the business model of the Internet," Schneier told attendees. "We build systems that spy on people in exchange for services. Corporations call it marketing."

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"The NSA woke up and said, corporations are spying on the Internet, let's get ourselves a copy,'" Schneier said. Most NSA surveillance "piggybacks" what the companies are already doing, he said.

The government didn't tell anyone they have to carry around a tracking device, but people now carry mobile devices. The government doesn't require users to notify any agency about their relationships. Users will tell Facebook soon enough, Schneier noted. "Fundamentally, we have reached the golden age of surveillance because we are all being surveilled ubiquitously."