Background

Useful literature on cryptography:

• Shafi Goldwasser, Mihir Bellare, Lecture Notes on Cryptography (online lecture notes, taught at the MIT)
• Oded Goldreich, ``Foundation of Cryptology Basic Tools v.1'', Cambridge University Press, 2001. ISBN: 0521791723 [online information, see Ch. 4] /* Excellent background book though it does not cover the 'practice-oriented' approach */

Useful literature on data-mining

(Unedited, thanks to Ella)

Going to ACM Digital Library and using search terms "KDD survey" or "data
mining survey" gives bunches of material.

Below are papers etc that are useful, at least to some extent.

Suggested reading is "From Data Mining to Knowledge Discovery in
Databases" by Usama Fayyad, Gregory Piatetsky-Shapiro, and
Padhraic Smyth. AI Magazine 17(3): Fall 1996, 37-54. Found at
http://www.kdnuggets.com/gpspubs/aimag-kdd-overview-1996-Fayyad.pdf

Other material:

http://www.cis.hut.fi/Opinnot/T-122.103/t122103-2003.pdf (Course material
on T-122.103 Algorithmic methods of data mining. Concentrates on discrete
data and discrete algorithms instead of machine learning and probabilistic
modeling)

http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=3520 (A book
"Principles of Data Mining" by David J. Hand, Heikki Mannila and Padhraic
Smyth. Not available online.)

http://doi.acm.org/10.1145/240455.240464 (General and nontechnical.
Overlaps largely with suggested reading link.)

http://citeseer.nj.nec.com/5126.html (for database people)

http://citeseer.nj.nec.com/berkhin02survey.html  (about clustering)

http://citeseer.nj.nec.com/4799.html (intrusion detection)

Courses

Courses on cryptography and data-mining currently going on:

• T-79.503 Foundations of Cryptology (Kaisa Nyberg), Wed 14-16 (exercises Wed 12-14 and Wed 16-18)
• T-122.103 Algorithmic Methods of Data-Mining (Heikki Mannila), Fri 10-12

NBSee also PPDM links by Helger. This link farm has links to most of the papers on this subject, and will be continuously updated.