Privacy News Highlights

18–24 April 2009

 

Contents:

US – F.B.I. and States Vastly Expand DNA Databases. 2

CA – Alberta Bars Could Collect Names, Photos Under Proposed Bill 2

AU – Australia Tax Office Has Culture of Privacy Violation: Report 2

US – NY Tax Worker Accused of Stealing Taxpayers' IDs. 2

BC – NDP Candidate Quits After Embarassing Facebook Pics Surface. 3

US – Mayo Clinic Backs New Personal Health Record Site. 3

UK – ICO Takes Enforcement Action for Serious Data Breach. 3

UK – MPs to Probe ISP Snooping and Throttling. 3

UK – Phorm Not Worried by Government ISP Investigation. 4

US – Lost Laptops Cost Companies $50k Apiece: Ponemon Study. 4

EU – Dutch Authorities Give Strict Ruling on Legal Hurdles for Viral Marketers. 4

US – Device Identification in Online Banking is Privacy Threat, Expert Says. 4

AU – CrimTrac: Expand DNA Collection. 5

UK – “My Genome is My Property” 5

US – Bigger FTC Presence in Healthcare. 5

CA – Court Overturns Alberta Privacy Commissioner Order on Surgeon's Patient List 5

US – US Court Backs Children’s Privacy. 5

UK – Another NHS Breach: Stolen NHS laptop Has Records of 1,400 Scots. 6

UK – British Council Violated Data Protection Act, Says Info Commissioner's Office. 6

UK – UK's Regulation of Investigatory Powers Act Under Review Due to Alleged Overuse. 6

US – Dept of Health and Human Services Issues EHR Data Security Guidance. 6

US – Students Lose, Fair Use Wins in Suit Targeting Anti-Plagiarism Tool 6

WW – Facebook Users' Vote Ending Way Short of Threshold. 7

WW – Cloud Computing Security Group Releases Report Outlining Trouble Areas. 7

UK – Google Street View Cleared of Breaking UK Data Protection Act 7

MY – Malaysian Personal Data Protection Act to Protect Personal Information. 7

US – AT&T Backs Privacy Rules. 7

NZ – Bill on Cross-Border Data Transfers. 7

US – Supreme Court Limits Warrantless Car Searches. 8

US – Student Strip-Search Case Before Supreme Court 8

US – Congress Examines Cable, Web Privacy. 8

US – Court Delivers Blockbuster Blow.. 8

US – Second RFID Bill Signed. 8

UK – More than 1/3 of Employees Would Sell Employer's Secrets. 9

US – Verizon: Organized Crime Behind Data Breaches. 9

US – Two Charged With Invasion Of Privacy. 9

US – Newly Released Documents Shed (a Bit) More Light on FBI's Spyware. 10

US – NSA Wiretaps Have Exceeded Limits. 10

UK – Council Use of RIPA Needs to be Reined in, Says Government 10

UK – Britain's 'Database State' 10

US – Obama, Congress to Revisit Real ID.. 10

US – House Members Plan to Draft New Online Privacy Bill 11

 

 


Biometrics

 

US – F.B.I. and States Vastly Expand DNA Databases

Starting this month, the FBI will begin collecting DNA samples from innocent people in order to help solve future violent crimes, reports the New York Times. The bureau will take genetic samples from those who have been arrested or detained, but not convicted. In past practice, the FBI only swabbed convicts. The move has prompted privacy concerns and fears of a genetic surveillance society, the report states. ACLU lawyer Michael Risher said the Constitution prohibits "the indiscriminate taking of DNA for things like writing an insufficient funds check, shoplifting, drug convictions..." [Source]

 

Canada

 

CA – Alberta Bars Could Collect Names, Photos Under Proposed Bill

The Alberta government is moving toward letting bars collect personal information from patrons in a bid to identify troublemakers and prevent gang activity. An amendment to the provincial Gaming and Liquor Act, introduced in the legislature, proposes that bars and nightclubs be given authority to collect, use, and share with each other information about problem patrons. In 2008, Alberta's privacy commissioner ordered Tantra, a Calgary nightclub owned by Penny Lane, to stop scanning patrons' driver's licences, disputing the company's view that the practice curbed violent behaviour. If Bill 42 is passed, venues could collect names, ages and photos of patrons and share them with other businesses to prevent the same troublemakers from moving between bars and clubs and creating the same problems, the solicitor general's office said. However, clubs would have to follow the privacy commissioner's guidelines. Kent Hehr, justice critic for the Alberta Liberals, said there are still privacy concerns in the proposed legislation. "There's no real filter for how they're going to dispose of this information, what it's to be used for, and it can really open up a whole can of worms as to what information we're going to be allowed to be collected by private organizations," he said. [Source] [Privacy chief backs crackdown on problem bar patrons Official fears some guests will be unfairly targeted]

 

E-Government

 

AU – Australia Tax Office Has Culture of Privacy Violation: Report

The Australian Tax Office (ATO) is reportedly preparing to revamp tax information sharing rules, after a report raised concerns about collusion between the ATO, Australian Crime Commission and Australian Federal Police. The confidential investigation follows allegations made as part of the Project Wickenby tax fraud crack down, regarding a culture of inappropriate disclosure of information to law enforcement agencies. The ATO was accused of passing on information to the AFP and other agencies in their attempts to prosecute high-profile figures such as Paul Hogan and Glen Wheatley. The Boucher report gave credibility to these claims, and also said there was evidence of pressure on ATO staff seconded to the AFP to be facilitated and made faster, the AFR said. "There may be a gap between current policy and practice. It also appears ... there is legal risk which should be addressed by serious non-compliance concerning these important arrangements," the paper quoted the report as saying. The ATO is expected to propose major changes to its culture, policies and procedures in a report to Parliamentary Joint Committee of Public Accounts and Audit. [Source]

 

US – NY Tax Worker Accused of Stealing Taxpayers' IDs

A former New York state tax department worker was accused of stealing the identities of thousands of taxpayers and running up more than $200,000 in fraudulent charges. Walter Healey gathered credit card, brokerage account and Social Security numbers that he used to open more than 90 credit card accounts and lines of credit between 2006 and 2008. [Washington Post]

 

BC – NDP Candidate Quits After Embarassing Facebook Pics Surface

The NDP candidate for the new riding of Vancouver-False Creek has abruptly withdrawn from the election race hours after inappropriate photos of him surfaced on a social networking site. Ray Lam, a community organizer who sits on the board of Vancouver Pride and other gay-rights group, said the photos were taken from his private Facebook page. "I regret this material and the associated comments that have now become public," Mr. Lam said in a statement. [Source]

 

Electronic Records

 

US – Mayo Clinic Backs New Personal Health Record Site

The Mayo Clinic has combined its medical expertise with Microsoft's technology in a free Web site launching yesterday that will let people store personal health and medical information. The Mayo Clinic Health Manager uses Microsoft's HealthVault system to store medical histories, test results, immunization files and other records from doctors' offices and hospital visits, along with data from home devices like heart rate monitors. [Washington Post]

 

EU Developments

 

UK – ICO Takes Enforcement Action for Serious Data Breach

The Information Commissioner’s Office (ICO) has found the British Council in breach of the Data Protection Act after the loss of an unencrypted computer disc. Details lost include sensitive personal information relating to trade union membership of over 2,000 members of staff. The ICO required the British Council to sign a formal Undertaking outlining that it will take reasonable measures to keep personal information secure in future. By signing the Undertaking the British Council agrees to implement a number of security measures to protect personal information more effectively. For example, all portable and mobile devices which are used to store and transmit personal information must be encrypted, with immediate effect. Failure to meet the terms of the Undertaking is likely to lead to further enforcement action by the ICO. [Source]

 

UK – MPs to Probe ISP Snooping and Throttling

UK MPs have launched an investigation into the use of snooping technology by ISPs which allows them to profile customers for advertisers and throttle or block specific types of traffic. An inquiry by the All-Party Parliamentary Group on Communication will examine issues such as the emergence of Phorm's profiling system, and the restriction of bandwidth available to specific applications such as BitTorrent. Both activities are reliant on Deep Packet Inspection (DPI) technology. The informal cross-party group of MPs and Lords will also consider calls for ISPs to do more to block spam and botnets. The group, chaired by Labour MPs John Robertson and Derek Wyatt, has called for submissions on five questions around the subject (below). It will hold evidence sessions in June, with a final report due in Autumn.

·         Can we distinguish circumstances when ISPs should be forced to act to deal with some type of bad traffic? When should we insist that ISPs should not be forced into dealing with a problem, and that the solution must be found elsewhere?

·         Should the Government be intervening over behavioural advertising services, either to encourage or discourage their deployment; or is this entirely a matter for individual users, ISPs and websites?

·         Is there a need for new initiatives to deal with online privacy, and if so, what should be done?

·         Is the current global approach to dealing with child sexual abuse images working effectively? If not, then how should it be improved?

·         Who should be paying for the transmission of Internet traffic? Would it be appropriate to enshrine any of the various notions of Network Neutrality in statute? [Source] [Details of how to respond]:

 

UK – Phorm Not Worried by Government ISP Investigation

Parliament has formed a new group to investigate internet traffic issues - and Phorm wants to make it clear that it welcomes the chance to convince more people about the merits of its behavioural advertising system. Formerly formed this week, the All Party Parliamentary Group on Communications will look into internet traffic issues including behavioural advertising, privacy, child abuse and internet neutrality, in order to decide how the government should regulate internet service providers (ISPs). "Recent technical advances are beginning to make it practical to inspect internet traffic - 'bad' traffic might then be blocked; 'bulk' traffic might then be slowed; 'wicked' traffic detected and crimes investigated; or personal profiles could be built to better target advertising," the group wrote on its site. The comms group will be taking submissions on the issues until 22 May, with a final report due in the autumn. [Source] [All Party Parliamentary Group on Communications]

                       

Facts & Stats

 

US – Lost Laptops Cost Companies $50k Apiece: Ponemon Study

A single lost or stolen laptop costs a business an average of nearly $50,000, according to an Intel-sponsored study by the Ponemon Institute. That figure is based on Ponemon's recent voluntary survey of 28 US companies reporting 138 separate cases of missing laptops. Value of missing kit was mathmagically calculated by factoring laptop replacement, data breach cost, loss of productivity, investigation cost, and other variables. The value of a lost laptop to a firm cost an average of $49,246. Minimum damage calculated in the survey was about $1,200, and the maximum reported value was just short of a cool $1m. Consulting firms, law firms, financial services, healthcare, pharmaceutical, education, and technology are companies which would take the biggest financial hit from a lost notebook, according to the study. Tech firms top the list when just factoring the cost of IP loss and lost productivity. The Ponemon peeps claim a lost laptop that has encryption will cost a company about $40,000, while a machine without encryption runs up an average of $60,000. That's a $20k difference - but still a peculiarly large amount of damage being done by a supposedly secure laptop. Ponemon suspects the reason encrypted costs aren't zero because the encryption may have not been implemented properly. [Source]

 

EU – Dutch Authorities Give Strict Ruling on Legal Hurdles for Viral Marketers

Viral marketing which relies on people to hand over friends' contact details can be legal but only if certain conditions are met, Dutch authorities have ruled. Companies must be careful not to break telecoms and data protection laws, regulators said. 'Tell a friend' promotions are a staple of viral marketing and involve one user providing email addresses to a company so that a friend of theirs can receive a message from that company.  [Source]

 

Finance

 

US – Device Identification in Online Banking is Privacy Threat, Expert Says

Banks' use of device fingerprinting technology for preventing fraud poses a threat to privacy, according to an Electronic Frontier Foundation (EFF) attorney. CNET News reports that during an RSA conference panel yesterday, the EFF's Jennifer Granick said the device identifiers used by the biggest online banks and e-commerce companies in the U.S. let them monitor consumer transactional patterns. "There is very little privacy protection in the U.S. for this type of information," Granick said. "We don't want it shared with [advertising affiliates]." A banking industry attendee said that the privacy issue is encumbering banks' fiduciary obligation to prevent fraud, while another said: "Data is being collected in the name of fraud prevention, but is being sold." [Source]

 

Genetics

 

AU – CrimTrac: Expand DNA Collection

The head of CrimTrac, the agency that maintains the national DNA database, thinks that the collection of genetic information should be expanded. "I personally believe that newcomers to crime need to be added to the national DNA database through broader DNA testing," said Chief Executive Ben McDevitt. McDevitt suggests that authorities begin taking DNA samples from those who are charged but not convicted of crimes, and those who are charged for minor crimes such as burglary and auto theft, the report states. "They are recidivist offenders, and in my view recidivist offenders need to be added to the national database as early as possible in their cycle of offending." [Source]

 

UK – “My Genome is My Property”

The founder of genetic fingerprinting has spoken out against the collection of DNA information from innocent citizens, The Guardian reports. Sir Alec Jeffreys said that while convicted offenders should expect to have their DNA collected and retained, the government should not be storing DNA data on those simply arrested on suspicion of a crime. Britain's DNA database is Europe's largest. "My genome is my property," said Jeffreys. "It is not the state's." Jeffreys also condemned the government's planned response to an EU court of human rights ruling against the practise. [Source]

 

Health / Medical

 

US – Bigger FTC Presence in Healthcare

The FTC last week issued proposed rules on federal breach notification requirements for certain healthcare providers or affiliates. Under the American Recovery and Reinvestment Act of 2009, the commission will have authority over an estimated 900 entities that are not subject to the privacy and security requirements of HIPAA, but that play in the Health 2.0 space in some way. Although it is not the FTC's first foray in the health field, its presence may take some by surprise, reports Modern Healthcare. "They bring a lot of enforcement actions..." said Pam Dixon of the World Privacy Forum, "healthcare may not be accustomed to this." [Source]

 

CA – Court Overturns Alberta Privacy Commissioner Order on Surgeon's Patient List

Alberta's Court of Queen's Bench has overturned a decision by the province's privacy commission that ordered cosmetic surgeon Dr. Barry Lycka to stop using patient information to seek donations and sell services, such as those offered by a medi-spa. In an April 17 decision, Justice Gerald Verville said the Office of the Information and Privacy Commission made legal mistakes by not disclosing the names of the two complainants and by stating that even with patient consent, Lycka couldn't use personal health information to raise money. Verville said if a patient does give consent, an office such as Lycka's can market any commercial service or solicit money without contravening the Health Information Act. The spa, foundation and Lycka's medical clinic all operate separately, but the 10,000-patient database is shared, as is a list of 5,000 other names collected at the Edmonton Bridal Show and Women's Show. Verville said without knowing the names of the two complainants who said they didn't give consent, Lycka's office had no opportunity to confirm or deny the women's words. "The commissioner's decision limited the ability of the applicants to defend themselves," the judgment reads. [Source]

 

US – US Court Backs Children’s Privacy

The state Supreme Court affirmed children’s privacy rights with an April 17 ruling: Parents do not have unconditional access to their children’s health records. But both legal and mental-health experts say parents should not panic; the court’s decision is not intended to wrestle control of children’s treatment away from caregivers. The court decided it was not in three children’s best interest for their mother, Susan Harder of North Liberty, to have specific information from their counseling sessions. [Source]

 

UK – Another NHS Breach: Stolen NHS laptop Has Records of 1,400 Scots

The UK Information Commissioner is demanding an explanation for a breach of personal information at Scotland's Aberdeen Royal Infirmary, reports the Aberdeen Press and Journal. NHS Grampian acknowledged that a laptop containing details on nearly 1,400 Scots was stolen from a locked office in the gastro-intestinal department last week. The patient information was password protected, but not encrypted, despite the Scottish Government's 2008 health directorates calling for such a measure. "Funds and a contract for the necessary technology have been made available to help make this happen," said a government spokesperson. NHS Grampian said it will encrypt all files within three months. [Source]

 

Horror Stories

 

UK – British Council Violated Data Protection Act, Says Info Commissioner's Office

The UK Information Commissioner's Office says that the British Council'sloss of an unencrypted disk containing personally identifiable information constitutes a breach of the Data Protection Act.  The disk

holds sensitive data belonging to more than 2,000 staff members.  The breach was reported to the ICO promptly; the ICO has required theBritish Council to officially agree to a number of security measures toguard against future data loss.  Among those measures are ensuring that all portable and mobile data storage devices are encrypted. [Source] [Source]

 

UK – UK's Regulation of Investigatory Powers Act Under Review Due to Alleged Overuse

UK Home Secretary Jacqui Smith has announced a review of the Regulation of Investigatory Powers Act (RIPA) following complaints that the powers had been invoked for trivial offenses, including littering and taxi overcharging.  The review invites public feedback.  The review seeks input on which public authorities should have the authority to invoke RIPA. [Source] [Source]

 

US – Dept of Health and Human Services Issues EHR Data Security Guidance

The US Department of Health and Human Services has released a document offering guidance on protecting electronic health record data.  The document says that electronic medical data must be rendered "unusable, unreadable or indecipherable" to those who do not have the authority to view them, and recommends encryption and destruction as acceptable methods of meeting those requirements.  The document is tied to two sets of breach notification regulations required by the Health Information Technology for Economic and Clinical Health (HITECH) Act, part of the economic stimulus bill.  One set of notification guidelines will be issued by HHS, and the second will be issued by the FTC for entities not covered by HIPAA.  Organizations that comply with the guidelines set forth in the document will not be held to breach notification requirements.  HHS will accept public comments on the document through May 21, 2009. [Source] [Source] [Source] [Source] SEE ALSO: [SunTrust Banks Announce Security Breach: Bank Sends Letters To Customers Warning Accounts Compromised]

 

Intellectual Property

 

US – Students Lose, Fair Use Wins in Suit Targeting Anti-Plagiarism Tool

Students have suffered another defeat in their legal fight against the company that runs a plagiarism-detection tool popular among professors. A federal appeals court last week affirmed a lower court’s decision that the Turnitin service does not violate the copyright of students, even though it stores digital copies of their essays in the database that the company uses to check works for academic dishonesty. [Chronicle]

 

Internet / WWW

 

WW – Facebook Users' Vote Ending Way Short of Threshold

Facebook invited the 200 million people who regularly use the site to vote on its governing documents. The site gave its members until yesterday afternoon to choose either the current terms of use, or a revised set of documents that reflect input from users over the past 30 days. However, Facebook said the vote would be binding only if 30% of the site's active users voted. That would be 60 million people. As of yesterday morning, a vote on the site revealed that only about 609,000 people had cast ballots. [SiliconValley.com]

 

WW – Cloud Computing Security Group Releases Report Outlining Trouble Areas

The Cloud Security Alliance has released a document outlining more than a dozen areas it says must be addressed to better secure cloud computing environments. The 83-page report, "Security Guidance for Critical Areas of Focus in Cloud Computing," outlines 15 areas or domains that need to be addressed, spotlighting two in particular: governance and operations within the cloud. The report outlines the framework that makes up many cloud computing architectures and also addresses governance and risk management issues encountered by companies and service providers. It recommends that service providers conduct regular third-party risk assessments and make the results available to customers. Other domains addressed in the report include compliance and audit, recommending service providers adhere to SAS 70 Type II audits and ISO 27001 certifications, as well as a greater uniformity in comprehensive certification scoping. Encryption and key management, storage issues, application security concerns and virtualization security problems are also addressed in detail. [Source] [Report]

 

UK – Google Street View Cleared of Breaking UK Data Protection Act

Google Street View, the controversial website that shows 360-degree street views of many of Britain's cities does not breach the Data Protection Act, the information commissioner ruled today. Hundreds of people complained that their privacy was breached by the service, which launched last month for 25 cities and towns. [Guardian] [Common sense on Street View must prevail, says the ICO] [Google CFO defends Street View despite privacy concerns]

 

Offshore

 

MY – Malaysian Personal Data Protection Act to Protect Personal Information

The lack of a Personal Data Protection Act has hindered legal action against those who misuse the personal information of individuals, said Malaysian Deputy Minister of Science, Technology and Innovation, Fadillah Yusoff. He said before this many had suggested that the act be had to guard the personal information of individuals but till now a bill had not been tabled in Parliament. [Source]

 

Online Privacy

 

US – AT&T Backs Privacy Rules

As the impact of digital advertising on consumer privacy comes under scrutiny, AT&T is taking a stance in support of stricter standards. In its testimony Thursday at a House subcommittee hearing on the issue, the telecommunications heavyweight is expected to advocate more transparency and consumer control in the fast-growing field of targeted ads. [WSJ]

 

Other Jurisdictions

 

NZ – Bill on Cross-Border Data Transfers

A bill to ensure that New Zealand's data protection standards apply to personal data crossing into New Zealand had its first reading in Parliament earlier this month. Minister of Justice Simon Power said that the Privacy (Cross-Border) Amendment Act 2008 would "enable us to assure our international business partners that their customers' personal information will be protected." Power noted the lack of attention to cross-border privacy concerns in the Privacy Act of 1993. Privacy Commissioner Marie Shroff said: "The changes in this Bill should help secure a finding from the European Union that New Zealand law offers an adequate standard of data protection, thus opening up trading opportunities with Europe." [Source]

 

Privacy (US)

 

US – Supreme Court Limits Warrantless Car Searches

The Supreme Court has sharply limited the power of police to search a suspect's car after making an arrest, acknowledging that the decision changes a rule that law enforcement has relied on for nearly 30 years. In a decision written by Justice John Paul Stevens, an unusual five-member majority said police may search a vehicle without a warrant only when the suspect could reach for a weapon or try to destroy evidence, or when it is "reasonable to believe" there is evidence in the car supporting the crime at hand. The justices noted that law enforcement for years has interpreted the court's rulings on warrantless car searches to mean that officers may search the passenger compartment of a vehicle as part of a lawful arrest of a suspect. But Stevens said that was a misreading of the court's decision in New York v. Belton in 1981. [Source]

 

US – Student Strip-Search Case Before Supreme Court

The Supreme Court will soon issue a decision, the first to address the issue of strip searches in schools, will set legal limits, if any, on the authority of school officials to search for drugs or weapons on campus. If limits on searches are imposed, the school district warns, its ability to keep all drugs out of its schools would be reduced. In California and six other states, strip searches of students are not permitted. Only once in the past has the high court ruled on a school-search case, and it sounds quaint now. It arose in 1980 when a New Jersey girl was caught smoking in the bathroom, and the principal searched her purse for cigarettes. The justices upheld that search because the principal had a specific reason for looking in her purse. But they did not say how far officials could go - and how much of a student's privacy could be sacrificed - to maintain safety at school. [Source]

 

US – Congress Examines Cable, Web Privacy

U.S. lawmakers took aim at privacy practices of cable and Internet providers at a House hearing, laying the groundwork for a bill that could restrict targeted Web ads. The focus of the hearing was on new efforts by Internet providers to collect and share data on consumers' behavior to target online advertising and by cable companies to target ads at subscribers via their set-top boxes. [WSJ]

 

US – Court Delivers Blockbuster Blow

A U.S. District Court judge has paved the way for a potential class-action lawsuit against Blockbuster for alleged violations of the federal Videotape Privacy Protection Act. The case stems from Blockbuster's participation in Facebook's Beacon program, which notified users about friends' online purchases. Judge Barbara Lynn ruled that a Dallas County resident's claims should be heard in court despite Blockbuster's argument that she waived her rights to a class action suit when agreeing on the company's terms of service contract. Judge Lynn said that the contract was "illusory" because it included a statement that the company could change the terms at any time. [Source]

 

RFID

 

US – Second RFID Bill Signed

A bill signed by Washington Governor Christine Gregoire last week puts limits on who can scan an RFID tag. With some exceptions, House Bill 1011 prohibits the scanning of an RFID tag by anyone except the business or agency that issued the tag, the report states. The goal is to help prevent the surreptitious reading of RFID tags by those not entitled to the stored information. The law, which goes into effect on July 26, is the result of "a six-year engagement with the stakeholders," says bill sponsor, House Speaker Pro Tempore Jeff Morris (D-Mount Vernon). "I think this is a big step for privacy," Morris says. [Source]

 

Security

 

UK – More than 1/3 of Employees Would Sell Employer's Secrets

More than one in three workers have said that they would be willing to sell their employer's secrets to a stranger. Some of the London commuters taking part in the survey said that they could be bribed with the cost of a good meal. The question was put to 600 commuters at London railway stations last week. 37% of those questioned were wiling to part with company secrets for the right price. Of those who could be corrupted, 63% said they would disclose sensitive data for £1 million; 10% would do it if their mortgage was paid off; 5% would do it for a holiday; 5% would do it for a new job; 4% for getting rid of their credit card debt; and 2% would do it "for a free slap-up meal." The survey was conducted by researchers from Infosecurity Europe. The types of information that the workers had access to included customer data bases (83%); business plans (72%); accounting systems (53%); human resources databases (51%); and IT admin passwords (37%). Two thirds (68%) of employees think it is easy to sneak information out of their organisation and 88% of employees thought that the information that they had access to was valuable. [Infosecurity Europe] [Source]

 

US – Verizon: Organized Crime Behind Data Breaches

Of the 285 million records compromised in the 90 confirmed network breaches Networx vendor Verizon examined last year, 91% were linked to organized crime. And only a third were publicly disclosed. With increasing supply and falling prices, criminals have had to overhaul their processes and differentiate their products to maintain profitability, the report states. Their method: Target points of data concentration or aggregation to get the most valuable information. "The big money is now in stealing personal identification number information, together with associated credit and debit accounts," the report states. In the 2009 Data Breach Investigations Report released April 15, the Verizon Business Risk Team based its results on evidence the company collected during data breach investigations from 2004 to 2008, with 2008 events forming the primary analytical focus. Although financial organizations were the biggest targets, 13% of the team's caseload were companies that had recently been merged or acquired. "Mergers and acquisitions bring together not only the people and products of once separate organizations, but their technology environments as well," the report states. "Integration rarely happens overnight or without a hitch. Technology standards are sometimes set aside for the sake of business expediency." The report also quashed the widely held belief that insiders perform most hacks: 74% of the breaches were from external sources, such as organized crime and government entities.  However, hackers were greatly aided in their activities by the victims, with 67% of breaches resulting from someone taking advantage of a vulnerability to hack into a network and install malware to collect data. More than 80% of attacks occurred in Eastern Europe, East Asia and North America, the report states. "Though it's tempting to pander to hype surrounding state-sponsored attacks from Asia, we find no evidence to support the position that governments are a significant source of cyber crime," Risk Team members wrote. However, evidence is strong that malicious activity in Eastern Europe is the work of organized crime, they added. [Source]

 

US – Two Charged With Invasion Of Privacy

Two FBI police officers have been charged and one was arraigned in Marion County magistrate court after videotaping high school girls who were trying on prom dresses at the Middletown Mall. According to an FBI press release, the two employees were charged with criminal invasion of privacy and conspiracy to commit video voyeurism by the Marion County prosecuting attorney's office. [Source]

 

Surveillance

 

US – Newly Released Documents Shed (a Bit) More Light on FBI's Spyware

Documents obtained under the Freedom of Information Act (FOIA) indicate that the FBI has used technology known as a computer and Internet protocol address verifier, or CIPAV, in a number of cases over the last seven years.  CIPAV is spyware that is placed on target computers to gather specific information and send it back to an FBI server.  The public became aware of CIPAV in 2007 when it was used to track down the source of a bomb threat against a high school in Washington State. The documents do not detail CIPAV's capabilities, but an affidavit in the Washington case indicates that the information it collects includes the machine's IP and MAC addresses; open ports; programs running on the machine; current logged-in user name and last-visited URL.  CIPAV is of particular use to the FBI because it is able to trace even suspects who use proxy servers and other anonymization techniques. [Source]

 

US – NSA Wiretaps Have Exceeded Limits

US government officials said that the National Security Agency's (NSA) domestic wiretaps have gone beyond established legal limits.  The problems were detected during a periodic Justice Department review of NSA activities; officials at DoJ "took comprehensive steps to correct the situation and bring the program into compliance."  Last July, legislators passed and then-president Bush signed into law the Foreign Intelligence Surveillance Act (FISA), which gave NSA the authority to conduct wiretaps without warrants against foreign terror and espionage suspects. [Source] [Source]

 

UK – Council Use of RIPA Needs to be Reined in, Says Government

The Government has admitted that local authorities have abused surveillance powers and has ordered a review of snooping law the Regulation of Investigatory Powers Act (RIPA). "There have been some cases where RIPA has been clearly misused," said a Home Office statement announcing a public consultation on planned changes. "There have been a number of occasions recently when public authorities have used techniques under RIPA when most people would have regarded it as inappropriate to do so," said the consultation itself. [Source] See: The consultation (124-page / 1.34MB PDF)

 

UK – Britain's 'Database State'

According to a report published this week, Britain has become a 'database state'. The report, by the Joseph Rowntree Reform Trust, found that many of the largest database projects concerning the public sector clearly breach human rights laws and European data protection. Britain is the worst at protecting privacy and the most intrusive in terms of surveillance when compared to other western democracies. As part of the report, researchers looked at the National DNA database, which holds the profiles of four million people, over half of whom are innocent. It includes 39,000 children and nearly 40% of all black men in England under the age of 35. It has been ruled unlawful by the European court of human rights. The researchers point out that these databases penalise the most vulnerable people in society. They cite the examples of a 13-year-old girl who now has a criminal record for life after an incident in a playground, and of a single mother who needed to talk to a GP about post-natal depression, but feared that social services would take her child away if she did. [Source]

 

US Government Programs

 

US – Obama, Congress to Revisit Real ID

Congress and the Obama administration are considering ceding key ground in a long-running battle between the federal government and the states over Real ID. Proposed legislation being circulated on Capitol Hill would give states more time, flexibility and money to meet federal Real ID requirements. For the nation's more than 245 million drivers, the legislation would allow them to keep using their current driver's licenses to board commercial flights or enter federal buildings for the foreseeable future. The congressional proposal may have the backing of the Obama administration. In a recent appearance in Washington, D.C., Homeland Security Secretary Janet Napolitano gave the clearest indication to date that the administration plans to push for changes that are favorable to the states. [Source]

 

US Legislation

 

US – House Members Plan to Draft New Online Privacy Bill

Members of the House Subcommittee on Communications, Technology and the Internet say they will this year introduce legislation related to online advertising, particularly behavioral advertising. The committee held a hearing on the topic yesterday. Committee Chair Rick Boucher (D-VA) said the not-passed 2002 Consumer Privacy Protection Act will serve as the foundation for the new legislation. That bill would have required consumer notification on data collection. "The thought that a network operator could track a users' every move on the Internet, record the details of every search and read every e-mail or attached document is alarming," Boucher said. [Source]

 

 

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