Atrocity stories are nothing else than lies; the two words "atrocity stories" simply pretend to be more diplomatic.
The purpose is to destroy an image of the enemy, to create a new one, mostly a bad one. The story creating the image is not necessarily made up completely. It can also be a changed into a certain variable direction.
The most important thing about atrocity stories is to follow the line of possibility. Even if the whole story is made up it must be probable or at least possible, following rumors. Most successful might it be if a rumor is spread on purpose, some time before the atrocity story is launched, because as soon as something seems to be familiar, it is easier to believe it.
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The Clipper Chip is a cryptographic device proposed by the U.S. government that purportedly intended to protect private communications while at the same time permitting government agents to obtain the "keys" upon presentation of what has been vaguely characterized as "legal authorization." The "keys" are held by two government "escrow agents" and would enable the government to access the encrypted private communication. While Clipper would be used to encrypt voice transmissions, a similar chip known as Capstone
would be used to encrypt data. The underlying cryptographic algorithm, known as Skipjack, was developed by the National Security Agency (NSA).