Privacy
News Highlights
07–14 September 2006
Contents:
EU – Slovenia
Adopts Biometric Passports
CA – Information Commissioner Raises Alarm on Ad for his
Job
CA – Government Too Lax on Spam, Task Force Member Says
AU – Company’s Reputation Suffers After Spammers Assume
its Identity
US – First Felony Conviction Against Spammer
AU – Australia Health Project in Disarray
US – IBM Engineers Develop New Technology
EU – EC Proposes Law Changes for Data Breach Notification
US – Top Corporations Web Sites Evaluated
WW – Credit Card Companies Update PCI Security Standards
CA – Supreme Court Ruling Opens Door to Freedom of
Information
US – GAO Report: Healthcare Records Need Stronger Privacy
Protections
US – Chase Bank Puts Credit Card Data in the Trash
US – Security Breach at Fantasy Site Loses 660,00 Credit
Card Numbers
CA – BMO Laptop With Customer Account Info Stolen
CA – Canadians Won’t Need Passports to Visit U.S.: Rice
Promises Cheaper, Easier ID
US – AOL to Offer ID Theft Insurance to Subscribers
EU – Warnings Exchanged in EU, Microsoft Over Vista
US – CDT Offers Framework for Evaluating DRM
EU – Report: Privacy Safeguards Needed in a World of
Ambient Intelligence
US – Facebook Revamps Website After Privacy Criticisms
US – Company to Pay $1 Million to Settle Child Privacy
Charges
US – Companies to Pay $2.05 Million for Creating Spyware
Programs
EU – Bank of Ireland Will Refund Phishing Victims’ Losses
US – N.J. Prosecutors Defend Bid for Phone Company
Records
US – Investigations Underway in HP Phone Records Scandal
US – HP Probe Is Spurring Efforts to Tighten Phone
Protections
US – Lawmakers, U.S. Attorney Join HP Leak Probe
WW – EPIC Publishes Privacy & Human Rights 2005
US – California Legislature Passes RFID Privacy Bill
US – Government Agencies Expanding Use of RFID
US – RFID Security Consortium Receives $1.1 Million Grant
to Study Privacy, Security
US – IBM “Clipped Tag” Recognized with WSJ Innovation
Award
CA – Ontario Privacy Commissioner & BMO Release
Brochure on Portable Privacy
US – NIST Releases PIV Card / Reader Interoperability
Guidelines
EU – EU Releases Discussion paper on Surveillance
Technology
US – New Rules to Require Automakers to Inform Customers
About Black Boxes
US – Black Box Evidence Thrown Out of Court
EU – MEPs Attack EU Air Data Sharing Plans
US – Oregon Judge Blocks Attempt to Stop NSA Spying Suit
US – TSA Sends Employee Data to the Wrong Addresses
US – Committee Votes to Expand Warrantless Surveillance
Authority
US – Colorado Passes Strong Computer Security Bill
CA – Biometrics in the Workplace
Slovenia started issuing its
new biometric passports, featuring a biometric facial scan, at the end of
August. This is in accordance with EU Regulations requiring all Member States
to include facial scans on their passports as of August this year. It is also
in response to requirements set by the USA for countries with a visa-free entry
regime (Visa Waiver Programme). Slovenian citizens will not need to replace
their passports immediately as current documents will remain valid until their
expiry date. All new passports issued as of 1 September 2006 will, however,
conform with the new regulations. [Source]
The federal government is
moving to curtail the independence of the information commissioner’s office,
outgoing commissioner John Reid complained this week. That runs counter to the
Conservatives’ election promise to bring more openness to government. John Reid
said taht a recently posted job notice strongly suggests the Conservative
government wants to fill the coming vacancy with a senior bureaucrat rather
than someone more independent. “Although it appears to be what the government
is seeking, a bureaucrat is the last thing Parliament and the public need as
their information commissioner,” Reid said in his last official speech to the
National Press Club. Reid, who’s scheduled to end his term Sept. 29, noted the
Privy Council Office posted the job vacancy on an obscure government website on
the Friday before the Labour Day weekend, and allowed just seven days for
interested citizens to deliver their applications. The web posting has since
been removed. [Source]
[Source]
An antispam crusader fears
Industry Minister Maxime Bernier is ignoring the spiraling threat of
unsolicited e-mail, but a government official says substantial progress is
being made. Technology consultant Neil Schwartzman, a member of Industry Canada’s
spam task force, said he’s worried about Bernier’s silence on the issue since
being appointed minister in February. “Nothing has moved forward,” Schwartzman
said in an interview. “He has ignored the [task force] report.” Members of the
task force will step up efforts to pressure Bernier to deal with the spam
dilemma in the fall session of Parliament, Schwartzman said. [Source]
A Queensland Australia company
is suffering from the fallout of a spam attack that spoofed its good name.
Clients of the National Online Talent Management (NOTM) agency as well as
people unfamiliar with the company have deluged it with angry email messages
about unsolicited commercial email that appeared to come from NOTM. The phony
email had copied large portions of text from a legitimate NOTM email. NOTM is
unsure how to repair its professional relationships and redeem its reputation.
The individuals responsible for the phony email messages reside outside of
Australia. [Source]
A Virginia Court of Appeals
has upheld the first felony conviction of illegal spamming in the U.S. In its
unanimous ruling, the state appeals court wrote that Virginia has a “legitimate
public interest” in policing unsolicited e-mail advertising and that the state
anti-spamming law’s impact on interstate commerce “is incidental and clearly
not excessive.” The appellate ruling upheld the criminal conviction of a North
Carolina spammer who intentionally misidentified himself in bulk email ads, in
violation of the nation’s first and toughest anti-spam law. [Source]
Australia’s health IT strategy
is in disarray, with the peak HealthConnect governance and advisory bodies
caught up in another round of deckchair rearrangement. The Australian Health
Information Council, which is supposed to be responsible for introducing the
$128 million nationwide e-health record program, has been in abeyance since its
former chair, Professor Andrew Coats, resigned earlier this year. The council
and the National Health Information Group, which provides independent advice to
Australia’s health ministers, have apparently fallen foul of a review and their
committees have been disbanded. Last week, the council’s website, and all the
information on it, disappeared without trace, even though HealthConnect still
links to the site. Meanwhile, all federal funding for HealthConnect projects
ended on June 30, and no new contracts have been put in place for 2006-07. [Source]
To strengthen an
organization’s ability to protect sensitive data, IBM engineers in Tuscon have
developed an encrypted tape that offers advanced features to protect data.
Users will have the ability to turn the encryption device on or off at the
drive and the key can be changed if it is compromised. Sun Microsystems is
planning to offer an encrypting tape drive soon. [Source]
The European Commission is
proposing changes to European law that would require “electronic communications
networks or services” to notify customers of security risks. Specifically, the
changes would require subscribers to be informed of the nature of the risk,
appropriate measures to take to safeguard against risk, and the likely costs
subscribers will endure. [Source]
[EC
working document]
The Customer Respect Group
evaluates the performance of the Web sites of 100 Fortune 500 companies, rating
them on the site’s functionality, communications and trust. This year’s top
scorers were Intel and Sears & Roebuck. The evaluations also revealed that
fewer companies are sharing personal data with business partners or third
parties now than were doing so in the past. [Source]
The five major credit card
companies, American Express, Discover Financial Services, JCB, MasterCard
Worldwide and Visa International, have formed the Payment Card Industry
Security Standards Council, marking the first time all have agreed on a common
framework for payment card security. Their first order of business was to
update the current PCI Data Security Standard by providing instructions for
implementing the requirements and clarifying the language, for instance,
replacing vague terms, such as “regularly,” with specifics, such as “annually”
or “quarterly.” The council’s goal is “to enhance payment account security by fostering
broad adoption of the PCI Data Security Standard.” [Source] [Source]
The Supreme Court of Canada
struck a blow for freedom of information and the right to pursue a lawsuit last
week, opening up a potential gold mine of information to future litigants. The
5-2 judgment was vindication for a man who has spent 10 years battling the government
for files it had suppressed relating to his prosecution on environmental offences.
The court said the government must hand over the material so the man can pursue
a lawsuit for fraud, perjury, conspiracy and abuse of prosecutorial powers.
Legal experts said the ruling is a major boon for litigants who launch legal
action after a criminal or regulatory offence has been resolved, and who want
access to the strategies used by authorities. Those who could benefit include
groups who launch product-liability class actions, plaintiffs seeking damages
arising from a government program; or citizens who believe they were unfairly
prosecuted. [Source]
A report from the GAO titled “Domestic and Offshore
Outsourcing of Personal Information in Medicare, Medicaid and TRICARE“ says
that more than “40% of federal health insurance contractors and state Medicaid
agencies reported experiencing a privacy breach involving personal health
information in the past two years.” The report also indicates that services
involving healthcare data are commonly outsourced. The report suggests that
there is inadequate privacy protection for health care records. The GAO report
recommends that privacy breach notifications should be extended to more
Medicare contractors that deal with personal health information and to state
Medicaid agencies.” [Source] [Source]
[GAO Report] [CMS should tighten
privacy of health data held by contractors]
A division of J.P. Morgan
Chase has said that personal information on 2.6 million past and current
Circuit City credit card holders was mistakenly thrown out as trash. Chase Card
Services said last week that it mistakenly tossed out computer tapes with the
personal information of Circuit City card holders. It said it believes the
tapes, inside a locked box, were compacted, destroyed, and buried in a
landfill. [Source]
Second Life, a
three-dimensional virtual world for entrepreneurs, is asking its 660,000
members to change passwords after a security breach may have exposed users’
confidential data, including credit card numbers and passwords. The company has
determined that a hacker accessed at least one Web server for up to several
hours. [Source]
Hundreds of banking customers
have been told to monitor their accounts after a laptop containing personal
information was stolen from a downtown Ottawa branch. Stolen computer contains
personal data for 900 of bank’s clients A spokesman for BMO Bank of Montreal
confirmed yesterday that a laptop
containing clients’ personal information went missing last May. [Source]
U.S. Secretary of State
Condoleezza Rice sought to reassure Canadians this week that they will be able
to travel to the U.S. with documents other than a passport once new travel
security rules take effect in 2008. “It will not be the necessity of a
passport. We are looking for an authentic document, a document that can
authenticate identity, but one that is relatively cheap and easy to acquire,
but that can help to keep the border secure, and we will be getting those rules
out very soon,” Ms. Rice said during her visit. When asked to be more specific,
Ms. Rice acknowledged people are confused about what will be required and said
only that it needs to be clarified quickly. [Source]
Free insurance coverage for
identity theft and computer damage is among the premium security offerings AOL
is making available to its dwindling base of paying subscribers. The move
follows last month’s decision to give away AOL.com e-mail accounts, software,
and other features once reserved for paying subscribers and remove key reasons
for millions of customers to keep paid accounts. [Source]
EU officials warned Microsoft
yesterday not to shut out rivals in the security software market as the company
plans to launch its Windows Vista operating system with built-in protection
from hackers and malicious programs. Meanwhile, Microsoft warned EU regulators
to avoid attempting to block the in-house security upgrades it is making to the
long-delayed Windows upgrade now scheduled for release to companies in November
and consumers in January. [Source]
[Microsoft
gives go-ahead to open-source Web services: Company won’t assert patents
related to 35 Web services specs--a move designed to ease developers’ legal
concerns] [Microsoft
Open Specification Promise (OSP)]
The Center for Democracy &
Technology (CDT) this week released a document designed to help promote a
greater public understanding of the choices and tradeoffs associated with
products and services that include Digital Rights Management (DRM) technology.
The paper details a series of “metrics” for evaluating DRM that fall into four
major categories: transparency, effect on use, collateral impact, and
purpose/consumer benefit. The paper is
aimed at fostering greater public understanding and discussion of DRM, on the
assumption that marketplace pressures from an informed consumer base can help
promote a market for digital media products that is diverse, competitive, and
responsive to reasonable consumer expectations. [Press Release] [Evaluating DRM Paper] [Quick Reference
Guide] See also: [NZ Govt Identifies DRM
and Trusted Computing Risks and associated
document: Trusted
Computing and Digital Rights Management Principles & Policies
A recent EU report concluded
that personal data protection is vital to future civil liberties. How will we
safeguard our personal privacy in a society characterized by ubiquitous
intelligent sensors? SWAMI project researchers aimed to find out. Product
miniaturisation is fast reaching the level where tiny, intelligent devices can
be embedded into virtually any part of our environment. This is the era of
ambient intelligence (AML), where microelectro-mechanical sensors no larger
than a grain of sand will be capable of detecting everything from light to
vibrations. These advances place us on the threshold of a civilization in which
our very surroundings are intelligent, in which our every action is accompanied
by a host of invisible interactions. In an environment of continuous
communication surrounding everything we do and where we go, how can our
security, personal privacy and civil liberties be protected? These are the
issues that the partners in the IST project SWAMI set out to examine. [Source]
[SWAMI site] [Final Report]
Facebook, a popular Web-based
hangout for students, revamped its site to let users disable or modify a new
feature that had touched off protests from hundreds of thousands of members.
The changes came a few days after the site launched a service that prominently
displayed changes members made to their Web profiles on the pages of others in
their Facebook social networks – a move that critics said called too much
attention to personal information, such as when a relationship ended. [Source]
[Source]
Xanga.com, a social-networking
and blog site, has been ordered to pay $1 million in a settlement with the FTC
for violating the Children’s Online Privacy Protection Act. The FTC said that
Xanga, which has been in operation since 1999, had been letting people create accounts
even if the dates of birth they entered indicated that they were under the age
of 13. [Source]
Two California companies have
agreed to pay $2.05 million to the FTC to settle charges that they created
spyware programs that reached 18 million computers worldwide. The payment is
the second-biggest spyware settlement collected by the agency. Industry experts
contend the problem is difficult to contain despite enforcement efforts. One
problem is that many users still do not protect themselves by installing or
updating anti-spyware programs. Last month, Webroot researchers indicated that
89% of computers used by consumers were infected with an average of 30 pieces
of software. [Source]
[Source]
[COPPA
background info]
Bank of Ireland (BOI) has
apparently had a change of heart, agreeing to restore funds of nine customers
bilked out of a total of €160,000 with phishing emails. The nine customers had
threatened to sue the bank after it initially said it would not refund the
money that they had lost. Some people have expressed concern that BOI’s
willingness to refund the money will encourage other phishers to launch attacks
and cause other customers to expect the same compensation should they fall
victim to phishing attacks. Banks are likely to begin implementing more
stringent security measures for online banking, including placing some of the
onus of protecting account details on the customers’ shoulders. [Source]
The State of New Jersey argued
last week that it has the right to obtain information about a federal domestic
surveillance program because that program is no longer a secret. New Jersey
prosecutors subpoenaed 10 phone companies in May because of suspicion that
state consumer protection laws may have been violated if phone companies were
turning over records to the NSA. The federal government sued the New Jersey
attorney general’s office in federal court June 14, claiming compliance with
the state’s subpoenas or even acknowledging the existence of such a program
would threaten national security. [Source]
After confidential information
about Hewlett Packard’s (HP) long-term strategy was leaked to the media, HP
chairwoman Patricia Dunn hired a consultant to investigate board of directors
members’ communications and determine the source of the leak. The directors
were unaware of the investigation. The consultant obtained the directors’ home
and private cell phone records through “pretexting,” or deceiving the phone
company into believing he was the account holder. HP has filed a report with
the SEC acknowledging an internal investigation into the matter. Meanwhile, the
California Attorney General is investigating whether the actions violated state
laws against identity theft or theft of computer information. [Source] [Source] [Source] [Source]
[Source] [Source] [Pretexting]
[Pretexting]
[Experts:
Companies Should Keep a Close Eye On Consultants, Vendors] [California Bill
against pretexting phone records on track] [HP Chairman to Step Down]
In the wake of disclosures
that HP investigators obtained private phone records of board members, the FCC
is redoubling efforts to toughen rules requiring phone companies to protect
customer information. By the end of October, the FCC plans to propose rules
that will require phone companies to strengthen security procedures and close
loopholes that have allowed private investigators and others to access private
records. [Source]
The U.S. Department of Justice
has launched a probe into the techniques HP used to identify the source of
media leaks. Meanwhile, a House of Representatives committee has also requested
the computer maker to turn over documents and to provide certain information by
Sept. 18. [Source]
The Electronic Privacy
Information Center and Privacy International have issued the 2005 edition of
their massive Privacy and Human Rights, reporting on the state of data
protection in 70 countries. “Many countries have pursued new identification
schemes, increased the monitoring of private communications, and launched
assaults on data protection laws,” said EPIC director Marc Rotenberg. “At the
same time, there is a growing political debate about these proposals and
creative efforts by non-governmental organizations to stop new systems of
surveillance. Citizens around the world still care deeply about the right of
privacy, which is found in virtually every constitution of a modern nation
state. How well governments succeed in protecting this fundamental right is the
question that the annual Privacy and Human Rights report seeks to answer.” [Source]
The California legislature has
passed the Identity Information Protection Act, which requires that ID
documents issued by state agencies with remotely readable RFID chips must
contain adequate security features to prevent them from being read by
unauthorized parties. The bill, SB 768 by State Sen. Joe Simitian, would
require a higher level of security when the state ID document includes personal
information. The bill also requires the California Research Bureau (CRB) to
conduct a research study on the use of RFID in government-issued identification
documents as well as the security and privacy of the new technology The bill
awaits consideration by Gov. Arnold Schwarzenegger. Other bills to prevent RFID
tagging of children or restrict RFIDs in non-state IDs are pending before the
legislature [Source]
[Industry
View]
The U.S. Department of
Defense, as well as federal and state civilian agencies are increasingly
deploying or planning to implement RFID technologies throughout their organizations.
In a recent survey of government IT professionals, a significant number of
respondents were already using, expanding or about to adopt RFID to enhance
personnel ID and access control, asset management and inventory control, and
supply chain logistics, among other uses. One in five respondents who are using,
or plan to use, RFID said they were now engaged in “full-scale integration” of
RFID systems, and two-thirds said they were either in pilots, early-stage
implementations or conducting initial evaluations for deployments. 56% of
respondents were from federal civilian agencies, 26% from the DoD, 9% from
state and local governments and another 8% from other organizations (government
suppliers, contractors, consultants and OEMs) working for government agencies.
[Source]
The National Science
Foundation (NSF) has awarded a $1.1 million grant to a consortium studying the
privacy and security implications of RFID technology. This group, the RFID
Consortium for Security and Privacy (RFID
CUSP), is comprised of academics and industry representatives tasked with
researching ways in which RFID applications may impact consumer security and
privacy. The group will also suggest methods for ensuring that RFID is deployed
in a manner that makes it safe both for consumers and for companies
incorporating the technology into their businesses. CUSP hopes to develop
cryptographic protocols and work with standards bodies to incorporate stronger
data protection tools into standard tag and reader protocols, as well. [Source] [CUSP website]
IBM was recognized by the Wall
Street Journal this week for its “Clipped Tag” RFID technology, which allows
consumers to tear or scratch off the RFID antenna on a tagged item. The WSJ
acknowledged IBM’s leadership in RFID technology as part of the newspaper’s
annual Innovation Awards. [Source]
Thousands of people have found
themselves facing the potential threat of identity theft simply because someone
took a laptop – packed with personal information – home with them or on a
business trip and the laptop was later lost or stolen. A brochure from the
Information and Privacy Commissioner for Ontario, Canada, “Reduce Your Roaming Risks: A
Portable Privacy Primer“ provides hands-on, practical information on how to
reduce risks. [Source]
[Brochure] [Robert
Ellis Smith’s Laptop Hall of Shame]
NIST has announced the release
of NIST Special Publication 800-96, PIV Card to Reader Interoperability
Guidelines. This document provides requirements for PIV card readers in the
area of performance and communications characteristics to foster
interoperability. Requirements for the contact and contactless card readers for
both physical and logical access control systems are provided in this document.
The requirements are for the PIV readers designed to read end-point cards. [Source]
The European Commission (EC)
has adopted a green paper on surveillance technology used by the civil society
in the fight against terrorism that will be open for public consultation until
the end of this year. The green paper is meant to find the best technologies to
be used “in the service of the security of its citizens”. The EC aims to
enhance the collaboration between the private and public sector in finding the
best present practices and systems and helping in spreading them within the EU
as well as to support the creation of new more efficient surveillance
technologies, more available and at lower costs. The green paper admits
detections technologies are intrusive into private life and states limitations
must be established to this intrusion when developing and using such
technologies. However, concerns have been expressed by the defendants of civil
liberties who believe the industry already has too much control over
surveillance policies in Europe. Green
Paper on detection technologies in the work of law enforcement, customs and
other security authorities - Press
Release - Tell
the EC about surveillance – Statewatch report: Arming Big
Brother The EU’s Security Research Programme
The Department of
Transportation’s National Highway Traffic Safety Administration (NHTSA) has
issued rules
requiring automakers to inform car buyers if their cars contain “black boxes”
that record and store data and help to determine the causes of accidents.
NHTSA’s new rules take effect in 2011. [Source]
A jury acquitted a man charged
with vehicular homicide after his attorney argued that the black box in his car
that prosecutors used to show that he was driving too fast on a snowy road was
subject to a recall. The case highlights the privacy concerns surrounding the
use of data collected by the devices, which are beneath the hoods of 64% of
model year 2005 cars. [Source]
MEPs have attacked
controversial EU handovers of air passenger data to US security agencies.
European justice commissioner Franco Frattini came under fire last week during
a debate on a new EU-US passenger name record (PNR) agreement. “The vast
majority of this house is not opposed to strengthening security where
necessary. But the majority are opposed to the transfer of PNR,” One MEP
declared. “It must be done in a reasonable way and we do not think this is the
case in current proposals.” MEPs are concerned the collection of PNR data
breaches privacy and may not be used solely to fight the so-called war on
terror. “It is not clear that there is use for PNR,” Another MEP remarked. “We
need to know what PNR is being used for in the US. Concerns also arise over EU
plans for positive profiling.” After heated discussions, the MEPs decided to
back the Commission in the negotiations of the interim accord that will be
valid by the end of November 2007 on condition they are involved in the
negotiations. The EP asked for joint decision-making rights with the Council of
Ministers on the negotiations that will take place after November 2007. It also
proposed a dialogue between parliamentarians from the EU, US, Canada and
Australia by the end of this year in order to have a global approach on the
issue of PNR and also to help in the preparation of the 2007 review of the
agreement. [Source]
[Source] [Source] [EU
fights flight data deal with US] [Source]
[Source] [Source]
[Source] [Source]
A federal judge in Oregon has
rejected the government’s attempt to block a lawsuit against the NSA’s massive
electronic surveillance without warrants or court permission as part of
supposed anti-terrorism investigations. The decision follows a similar case in
Michigan. [Decision]
The error-prone Transportation
Security Administration (TSA) says one of its contractors sent former
employees’ personal documents to the wrong addresses. The agency said that
Accenture, a global technology consulting firm that was contracted to the TSA,
had mistakenly mailed nearly 1,200 former employees documents on other employees,
including personal information such as names, addresses, Social Security
numbers, and salary information. The TSA notified affected former employees by
mail in late August. Neither the TSA or Accenture offered a statement
explaining or apologizing for the error, though the TSA counseled employees to
put fraud alerts on their credit files. [Source]
The mail mixup is the latest in a series of privacy-related snafus for the TSA.
[Source]
The Senate Judiciary Committee
approved several NSA bills this week – two of which would radically expand the
President’s authority to conduct warrantless surveillance inside the United
States. Senator Arlen Specter’s bill
(S. 2453), which Specter revised to accommodate White House requests for
greater authority, would ratify and dramatically expand the President’s
authority to wiretap Americans without judicial approval. Senator Mike DeWine’s
bill (S. 2455) would authorize warrantless wiretapping programs without prior
judicial approval and under a lower standard than the Fourth Amendment
requires. The full Senate could take up the bills as early as next week. [CDT Analysis:
Specter and Wilson FISA Bills]
Colorado House Bill 1157
officially creates the position of chief information security officer. Under
the legislation, this officer has control over the state’s cyber security
policies and procedures to protect computer systems in state agencies and the
citizen information on those computers. The governor had made cyber security
one of his priorities in the State of the State. [Source]
Blake,
Cassels & Graydon LLP have reviewed litigation and court decisions about
the use of biometric technology in the workplace. They conclude that recent
decisions “make it clear that courts and arbitrators find it challenging to
balance the privacy rights of employees and the legitimate business needs of
employers in applying privacy laws to the employment relationship.” The review
concludes that the “the current state of the law in Canada appears to accept
biometric technology in the workplace, so long as it is implemented for a clear
business purpose and its necessity is supported by objective evidence.” [Source]
--------