Privacy News Highlights
08–14 December 2006
Contents:
CA – CATSA Pumps $40 Million Into Biometric Tech
CA – Mortgage Fraud an ‘Absolute Epidemic,’
Conference Told
CA – NF Minister Announces Roll-Out of New
Drivers’ Licences and Photo ID Cards
US – Direct Marketers Watch for 3 Legal Issues Next Year
UK – Online e-Government Systems at Heart of Blair’s Plan
for Red Tape Busting
US – OMB Score Card Neglects Citizens: Report
WW – E-mail Service Seeks to Charge Spammers
US – Americans Believe Digital Medical Records Would
Increase Quality of Healthcare
US – NIST Issues Recommendations for Digital Signature
Applications
UK – Tabloids Drive Black Market, Says UK Privacy Tsar
US – Two-Thirds Think U.S. Spies on Its Citizens: Poll
UK – 79% Agree UK Is a Surveillance Society: Poll
UK – Online Banking Fraud ‘Up 8,000%
UK – UK Financial Institutions Not Reporting Online Fraud
UK – UK Gov’t Proposes Changes in the Operation of the
FOI Act
US – Online Database to Provide Info About People With
Disabilities During Disasters
US – UCLA Break-In Puts Data on 800,000 at Risk
US – Stolen Laptop Puts 382,000 Boeing Worker Data at
Risk
US – Ameriprise Financial Services Settles With Mass.
Secretary Of State Over Data Loss
US – GPO Makes Millionth E-Passport
US – FTC Mails 1,400 Claim Forms to ChoicePoint Data
Breach Victims
US – Web Users Have False Sense of Security: Truste, TNS
Survey
US – Officials Announce Legal Sweep Against Online Fraud
US – Va. AG Wants Law Requiring Sex Offenders to Register
IDs
US – 110th, Democratic-led Congress Wows to Guard Privacy
Rights
US – HP to Pay $14.5 Million to Settle With California AG
US – DHS Panel Softens Stance on RFID
US – Injunction May Slow Momentum for RFID E-Pedigrees
US – Medline Markets RFID System for Surgical Sponges
WW – Survey: Security Vendors Face Lucrative Opportunity
in Protecting Cell Phones
AU – Australia Access Card Details Unveiled
US – RSA Releases Government Compliance Product
US – Data-Mining Won’t Catch the Terrorists, Will Hurt
Privacy: Experts
US – New Tracking Software Allows MIT Students to Locate
Friends With Privacy Intact
WW – International Travel Groups Oppose Traveler
Screening Program
US – HHS: Less Than 25% of Medical Privacy Complaints
Merit Further Investigation
US – Senators Propose Repeal of National ID Card Law
US – Anti-Pretexting Bill Passed by Congress, Awaits President
Signature
US – Congress Approves Data Security Bill for VA
US – Tech Firms Seek Federal Data-Privacy Law
US – McCain Bill Would Require Reporting of Illegal
Images
Transport
The roll-out has begun for
During 2007, familiar issues are poised to have the
largest impact on the direct marketing industry. Net Neutrality, increased
privacy regulation and do not mail legislation at the state level will be the
year’s big issues. How each of these issues will play out is unclear, but
whatever happens, these issues will impact the way direct marketers do
business. [Source]
A government-wide action plan identifying over 500
ways to reduce red tape was unveiled by the Prime Minister this week - and
e-Government services are central to its delivery. The government ‘Simplification
Plans’ will save business and the third sector over £2 billion in
administrative costs. The detailed measures, across 19 departments and
agencies, have been identified as a result of comprehensive consultation with
business, public and third sector organizations. The aim is to cut
administrative burdens by 25% by 2010. [Source] [Single Point for Details Updates] [Customer
voice in transforming public services - Government response published]
The Executive Branch Management Score Card that
measures the use of e-government in agencies neglects citizen input, according
to a new report. The Office of Management and Budget scores agencies quarterly
on how well they are instituting the President’s Management Agenda, but the
scoring leaves goals related to citizens untracked, said a senior research
analyst at Government Insights, an IDC company, and author of the report, “Citizen-Centered
eGovernment Needs Performance Measures for Success.” OMB needs to measure
citizen satisfaction or possibly risk ignoring the citizen-centered aspect of
the initiative as agencies push to match the agenda’s performance metrics,
according to the report, which was released today. [Source] [IDC Report]
A new e-mail-forwarding service hopes to make senders
pay for access to your eyeballs, and is offering you a piece of the action. San
Francisco-based Boxbe lets you set up an
e-mail address and add your friends, family and co-workers to an approved
senders list, allowing them to e-mail you for free. Anybody else who wants to
reach you will have to pay. Boxbe plans to add an anonymous profiling capability
that will help marketers target likely candidates for particular products or services.
“We’ll eventually be launching software that allows retailers to profile
members automatically,” said Barr. “That should add up to more earnings for
members.” [Source]
The Markle Foundation has released a survey which
found that Americans have high hopes for electronic personal health records.
The survey of 1,003 Americans found that 88% believe digital health records
would help to reduce the number of tests and procedures ordered by doctors. The
respondents also believe that the electronic records would give them more
control over their healthcare. The Markle Foundation this week also released a white
paper that stresses the need to couple privacy protections with the development
of electronic personal health records. [Source] [News
Release] [Research
Summary] [Connecting
Americans to Their Health Care: A Common Framework for Networked Personal
Health Information]
NIST announces the release of Special Publication
800-89, Recommendation for Obtaining Assurances for Digital Signature
Applications. This Recommendation specifies methods for obtaining the
assurances necessary for valid digital signatures: assurance of domain
parameter validity, assurance of public key validity, assurance that the key
pair owner actually possesses the private key, and assurance of the identity of
the key pair owner. [Source] [Source]
A league table of newspapers and magazines which have
paid private detectives to obtain illegal information about celebrities and
other individuals was published this week. Richard Thomas, the
Two-thirds of Americans believe that the FBI and other
federal agencies are intruding on privacy rights as part of terrorism
investigations, but they remain divided over whether such tactics are
justified, according to a News poll released this week. Overall, the poll
showed a continued skepticism about whether the government is adequately
protecting privacy rights as it conducts terrorism-related investigations. Compared
with June 2002, for example, almost twice as many respondents say the need to
respect privacy outranks the need to investigate terrorist threats. 66% of
those questioned said that the FBI and other agencies are “intruding on some
Americans’ privacy rights” in terrorism investigations, up from 58% in September
2003. 30% think the government is not intruding on privacy. Support for
intrusive tactics has dropped even more significantly during that time. A bare
majority, 51%, feel the tactics are justified, down from 63% three years ago. [Source]
Many
Britons are concerned about the increased use of cameras and biometrics in
their country, according to a poll by YouGov published in the Daily Telegraph.
79% of respondents believe the country can accurately be described as a surveillance
society. [Source]
The
A Metropolitan Police officer giving evidence to the
all-parliamentary group on identity fraud told British Members of Parliament
that financial institutions are not reporting online fraud. Detective Superintendent
Russell Day attributed the reluctance to two factors: the financial
institutions’ lack of confidence in the police’s ability to deal with the
crimes and their concerns about what effect attack disclosures would have on
their reputations. Det. Supt. Day’s comments indicate the cost of ID theft in
the
The UK Department of Constitutional Affairs published
a consultation paper with draft regulations on 14 December 2006. These could
allow government departments to refuse more requests for information on the
grounds of excessive cost. The draft regulations would allow public authorities
to include time for reading, considering and consultation in calculating the
cost of handling a request. They would also be able to aggregate requests made
by any person or persons apparently acting in concert in making a calculation.
In October the DCA released a review of FOI that claimed the average cost for a
central government official to deal with a request is £254 per hour and that it
takes 7.5 hours. It proposed the right to refuse any request costing £600 or
more. [Source]
The Utah Division of Homeland Security is creating an
online database that would give disaster teams information about people with
disabilities. The database will hold information provided voluntarily online or
by telephone. State homeland security officials said the sensitive data will be
stored on a protected server and only certain personnel will have access to the
information. [Source]
In one of the largest known
security breaches at a university, the database at the
In a disturbing case of deja vu, 382,000 Boeing
retirees and active workers are at risk of ID theft and credit-card fraud
because of the theft of a company laptop computer. The files on the computer contained
their names, SSNs and home addresses, phone numbers and birth dates as well as
salary information on some. The theft, which Boeing confirmed this week, is the
third such incident in the past 13 months in which a laptop computer containing
personnel information was stolen, and it took place despite safeguards the
company put in place. This time around, the huge number of people affected includes
mostly retirees. As was the case in the other situations, information on the
laptop wasn’t encrypted. [Source]
Secretary of State William F. Galvin announced this
week that Ameriprise Financial has agreed to pay $25,000 to settle an
investigation into the loss of a company laptop that contained the personal
data of thousands of
The Government Printing Office reached a landmark this
week when it produced its millionth electronic passport. At the beginning of
the year, GPO began producing the passports for the State Department, which
then personalizes the blank documents. “We are very proud to reach this
milestone,” said an assistant public printer for security and intelligent
documents. “In the post-[Sept. 11] era, many documents require new levels of
security, from their creation to the distribution.” [Source]
The US FTC has mailed claim forms to 1,400 individuals
who incurred out-of-pocket expenses as a result of data aggregator ChoicePoint’s
massive security breach in the fall of 2004. One third of the US$15 million
settlement reached in January 2006 has been designated to reimburse affected
consumers. The reparation forms must be postmarked by February 4, 2007 to be
considered for reimbursement. [Source]
[Source]
TRUSTe and TNS have collaborated on a survey that
shows that 86% of U.S. Internet users believe they know what steps to take to
protect their online privacy. However, the research shows that a much lower
percentage of the users actually take the common online privacy protection
steps. For example, only 20% read privacy statements and 33% regularly changed
their passwords. The survey, which polled 1,025
A combined federal-state task force announced a law
enforcement sweep targeting bogus business opportunities and work-at-home
scams, including several Internet operations. Dubbed Project FAL$E HOPE$, Assistant
A-G Peter Keisler said the ongoing law enforcement action so far this year has
resulted in 23 fraud convictions and the sentencing of 25 individuals to more
than 160 years of prison time. [Source]
Virginia Attorney General Bob McDonnell said he will
seek legislation requiring convicted sex offenders to register their online
identities with the state to help MySpace and other online hangouts more easily
block access. If enacted,
The incoming Democratic chairman of the U.S. Senate
Judiciary Committee promised this week to combat what he denounced as President
Bush’s war-time trampling of American rights. “We have a duty to repair real damage
done to our system of government over the last few years,” Sen. Patrick Leahy
of
HP has agreed to pay $14.5 million to settle
allegations that it violated
A technology advisory panel to the Homeland Security
Department has toned down its objections to radio frequency identification in
the latest version of its report on the subject. The report, “The Uses of RFID
for Human Identification,” was revised at the Dec. 6 meeting of the Emerging
Applications and Technology Subcommittee, which is part of the Data Privacy and
Integrity Committee that advises the department. The new Version 3.4a states
that if DHS selects RFID systems as the best available technologies to identify
individuals, then privacy and information security must be built into the system
in the design stage. [Source]
US – Injunction May Slow
Momentum for RFID E-Pedigrees
US government efforts to tighten security in the
pharmaceutical supply chain hit a roadblock last week when a federal court
judge issued an injunction that lifts pedigree requirements for drug shipments.
While RFID had not been a requirement for the pedigrees, industry observers
agreed that pedigree enforcement generally was a positive step toward the ultimate
adoption of RFID-based e-pedigrees. Thus, with the FDA pedigree requirement now
postponed, momentum behind RFID e-pedigree adoption may be slowed.
[What
the FDA Announcement Means for RFID] [RFID
Industry Implications of the FDA Update] [Commentary]
[HDMA
press release] [RFID-based
track-and-trace initiative] [Pharmaceutical
Pilot Finds Promise, Problems] [library
of court filings] [pharmaceutical
law blog]
Medline Industries, a
Juniper Research predicts that companies and
individual users will seek mobile phone security products because of the threat
of ID theft, malware, corporate governance rules, new legislation and the
increasing reliance on mobile devices. The study estimates that those factors
will result in mobile security software installation on 247 million devices
over the next five years. The demand will increase revenues from security
products to almost $5 billion by 2011, according to Alan Goode, who wrote the
study, Mobile
Data Security: Access, Content, Identity & Threat Management, 2006-2011.
[Source]
[Press
Release] [Mobile
security is the next gold rush]
More than 300 executives from the banking and
technology sectors were present as the federal Government unveiled the
hotly-anticipated details of its $1.1 billion welfare Access Card. The
delegation, including representatives of
RSA Security has announced a smart-card management
product aimed at helping
Noting that the 9/11 terrorists “were hiding in plain
sight,” a report released
this week by the Washington, DC-based Cato Institute concludes that the practice
of data-mining will not help investigators discover terrorists and severely
infringes on civil liberties. The report was written by Jeff Jonas, a
distinguished engineer and chief scientist with IBM’s Entity Analytic Solutions
Group, and Jim Harper of the Cato Institute. Applying this concept to
terrorism is faulty, the report warns. Jonas and Harper find that “Unlike
consumers’ shopping habits and financial fraud, terrorism does not occur with
enough frequency to enable the creation of valid predictive models....The one
thing predictable about predictive data mining for terrorism is that it would
be consistently wrong.” Frighteningly, the report cites other studies that show
that “Assuming a 99% accuracy rate, searching our population of nearly
300,000,000, some 3,000,000 people would be identified as potential terrorists.”
To become more effective “data-mining efforts would rely on even more
collections of transactional and behavioral information, and on centralization
of that data, all to examine Americans for criminality or disloyalty to the
Students at the Massachusetts Institute of Technology
will be able to pinpoint the location of their friends on campus with new
tracking software that debuts this week. The iFIND software project allows
users to share their locations with friends without uploading personal
information onto a central network. Laptops determine users’ locations by using
Wi Fi access points and then shares that information with a select group of
friends. However, the network never receives any personal information. [Source]
A Department of Homeland Security (DHS) program used
to perform risk assessments of foreign travelers coming into the country by
land, sea and air is encountering increased opposition from inside the
Less than a quarter of the total medical privacy
complaints lodged with the Department of Health and Human Services (HHS) were
eligible for further federal investigation of healthcare organizations covered
by HIPAA. Since April 2003, when the deadline for complying with HIPAA’s
privacy rules took effect, HHS has received 23,268 complaints about alleged
breaches of patient privacy. The department says that 76% of the privacy and
43% of the security complaints have been closed - in some cases because they
were not HIPAA violations. HIPAA gives federal prosecutors the power to
prosecute criminal violations. HHS has referred 346 privacy complaints and two
security complaints to the Department of Justice, which has taken action on
four cases [Source]
[HHS Prefers ‘Voluntary Cooperation,’
Not Fines]
A pair of Senators last week proposed legislation to
repeal a controversial law mandating the creation of a national identification
card. Senators Daniel Akaka (D-Hawaii) and John Sununu (R-N.H.) proposed the
bill on the last day before the 109th Congress adjourned for good, but are
likely to reintroduce it in 2007. The Real ID Act – approved in 2005 without
hearings or debate – was intended to standardize state drivers’ licenses and
create a national network of databases of personal information. Since then, it
has become increasingly apparent that REAL ID is so fraught with privacy and
security concerns that it requires fundamental reevaluation. CDT supports the
bill and urges Sens. Akaka and Sununu to reintroduce it in the 110th Congress.
[Akaka-Sununu Bill]
[Akaka Floor
Statement]
The Senate has passed a bill that would make it
illegal to obtain s consumer’s telephone records without permission. The
legislation would impose a maximum 10-year prison sentence and a maximum
$500,000 fine for tricking telephone companies into providing telephone
records. The bill also would ban the sale of telephone records and contains
penalties for people who obtain phone records to help them commit a violent
crime. [Source]
[Senate
Passes Bill To Criminalize Pretexting]
The high-profile theft of a laptop computer from the
home of an employee of the Department of Veterans Affairs led to a bill
approved by Congress last week that would require the creation of a new
information security program for the agency. The bill would require the
development of security programs to provide a cost-effective way to reduce
risks to an “acceptable” level. The program also establishes procedures to
follow if VA data is lost, stolen or misplaced. It would require periodic
assessments on each of the VA’s information systems. It also would require
annual employee security awareness training, which also would apply to
contractors or any others granted access to the VA’s records. [Source]
Microsoft, HP, and other high-tech companies are
preparing to push for data-privacy legislation next year to replace what they
consider an outdated patchwork of state and federal laws that are inconsistent
and burdensome. Microsoft, HP, and eBay earlier this year formed the Consumer
Privacy Legislative Forum to lobby for privacy legislation. Google, Intel,
Oracle, and other companies later joined. [Source]
Millions of commercial Web sites and personal blogs
would be required to report illegal images or videos posted by their users or
pay fines of up to $300,000, if a new proposal in the U.S. Senate came into
law. The legislation, drafted by Sen. John McCain, would also require Web sites
that offer user profiles to delete pages posted by sex offenders. [Source]
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