Privacy News Highlights
17—23 November
2006
Contents:
UK – New UK
Biometric Passports Can Be Cloned Using Simple Microchip Reader
UK – Police to Fingerprint on Streets
CA – Manitoba Province to Introduce Information Commissioner: Doer
CA – Saskatchewan Privacy Chief: Change
Privacy Act to Prevent ID Theft
CA – Canada’s No-Fly List Runs Into Rights
Storm
US – FTC, EDS Corp. Offer Online Shopping Tips
US – IRS Reports 478 Missing Laptops
US – Phishers Target Seniors in Attempt to Obtain Social
Security Numbers
CA – Nova Scotia Information System to
Improve Patient Care
WW – EU, U.S. Officials Explore Ways to Save Counterterrorism
Banking Program
EU – German Draft Law on Data Retention Made Public
EU – Swiss Big Brother Awards 2006
CA – One in Three Canadians surveyed Not
Protecting Their Identity: Survey
UK – Less than Third Trust Local Government with Data
Security
US – FTC Axes Two Alleged Spyware Operations
US – Justice, ACLU Argue 1998 Online Porn Law Before U.S.
Judge
EU – EU Agency Finds Data Transfers To U.S. By Swift
Illegal
UK – Man Gets 32 Months for Using MP3 Player to Steal
Data from ATMs
US – Drug Law Faces Court Challenge
UK – Doctors Wary Of National Medical Records Database:
Poll
US – Credit Card Companies Confirm Data Breach
Investigation in Michigan
UK – Laptop Theft Exposes 11 Million to ID Theft
SA – ID Theft Increasing In South Africa
CA – Saskatchewan Website Tracks Offenders
WW – Surge in Spam Linked to Botnet Run by Russian
Hackers
WW – Microsoft Files 129 Lawsuits Against Alleged
Phishers
US – $66,000 Fine to Protect Phone Privacy in Australia
US – Software Company Settles with FTC Over Failure To
Secure Data
US – FTC Axes Two Alleged Spyware Operations
UK – UK Passport Security Has Weak Link
WW – Cell Phones Are New Target of Phishing-Type Attacks
UK – Information Commissioner Report Blasts Government’s
Proposed Child Database
CH – Real Name Registration Soon Mandatory for Chinese
Mobile Phone Users
US – IT Security Testing Weak, GAO Finds
EU – Finland Data Ombud Says Web Search on New Employees
Illegal
New Passports can be easily cloned using a microchip
reader bought over the internet for less than £100. The revelation is a huge
embarrassment for the Home Office, which has increased the cost of travel
documents by 60% in less than a year. The rise to £66 paid for the introduction
of a supposedly-secure biometric chip on the passport, containing the owner’s
personal details and an image of their face. The idea was to make it harder to
produce a copy of a person’s travel document. But it has now emerged that a
simple microchip reader, purchased from the Internet for £95.73, can clone the
information - including the photograph. It could then be used to produced an
exact replica of the travel document, complete with a new microchip. Opposition
MPs called for the three million biometric passports issued since March this
year from the Home Office’s new £60m production lines to be recalled. [Source] [Source]
Police across
Premier Gary Doer said his government will introduce
legislation to create the office of a new information commissioner, which will
help the provincial ombudsman handle access-to-information requests. He made
the statement after Tory Leader Hugh McFadyen asked why the NDP government had
failed to establish such an office, even though the NDP had called for the establishment
of a privacy commissioner before it was elected to office in 1999.
Gary Dickson,
Concern over the safety of online transactions is
heightened as shoppers are expected to buy about 25% of their gifts online this
year. Increased online shopping means an increased risk of online fraud. To
better prepare online shoppers, the FTC and the EDS Corp. are arming consumers
with some tips to avoid falling prey to cybercriminals. For example, shoppers
should rely on secure Web sites that use encryption to protect data and review
privacy and security policies. [Source]
[FTC Consumer
Alert page]
The IRS has reported 478 laptops either missing or
stolen between 2002 and 2006. The agency reports that 112 laptops contained
sensitive information such as Social Security numbers. Of the 478 missing laptops,
379 were stolen. The IRS has decided to install an automatic encryption system
that will encrypt all information on the hard drives of its laptops.
Additionally, the IRS plans to educate, train and make employees aware of the
need to protect sensitive information through encryption. [Source]
The Social Security Administration’s commissioner has
asked the agency’s Inspector General to investigate the source of phishing
emails that target seniors. The email purports to provide a notification to Social
Security recipients about the cost-of-living increase expected for 2007. The
fraudulent emails then direct users to a Web page that looks like the Social
Security site. They are instructed to provide their Social Security number,
bank account and credit card information. [Source]
[Record Amount of Spam
Predicted During Holidays]
A new primary health-care information system was
introduced Nov. 20 in
An EU
committee this week is expected to release its findings about whether a global
banking telecommunications network violated European privacy laws by turning
over financial information on EU citizens to
On 8 November 2006, the German Minister of Justice presented
a draft law aimed at transposing the EU directive on data retention. The law
would override the recent jurisprudence on IP logging by mandating the
retention of traffic data for a period of six months. Retention requirements
are also to apply to anonymization services, making them practically
superfluous. Furthermore anonymous e-mail accounts are to be banned. Access to
traffic data shall be permissible for the investigation of “substantial”
offences, but also for the investigation of any offence committed by use of
telecommunications networks (including sharing of copyrighted content). The law
is to enter into force on 15 September 2007. The draft law was sharply criticized
by the activist Working Group on Data Retention for being unconstitutional and for
going beyond EU requirements in relation to anonymization services, e-mail
services and access to retained data. The activist group presented a class
action to be submitted to the
On 16 November 2006, the Swiss Big Brother Award
winners of 2006 were presented. The trophy for the category “State” was awarded
to the Federal Council of Corpore for the application of internal security
measures involving phone tapping, secret search of information systems and installation
of secret microphones in apartments without concrete basis just under the cover
of preventive investigations. The winner of the “Business” category was the
insurance company Assurance CSS for having given their collaborators large
access to their clients’ data that included medical information and even HIV
test results. Other candidates were companies such as Microsoft, Cablecom,
Swisscom or Crédit Suisse as well as many sports clubs and associations and
transport companies who survey their employees and clients. The “
Nearly one in three Canadians surveyed are putting
their identity at risk by not shredding their personal documents before
throwing them in the garbage according to internet research issued today by
Royal & SunAlliance Insurance Company of
Less than one in three people trust local government
agencies to protect confidential information, according to a new survey. The
study by polling firm NOP of 999 adults found that 27% scored local government’s
ability to secure personal data from external threats either one or two on a
scale of five. Banks fared better with 57% of people awarding four or five out
of five for data protection. A score of one meant that the respondent felt
information held by an organization was “not at all secure”, a score of five
meant data was “extremely secure”. The research also found that 43% of
respondents said are put off shopping or banking online by security concerns.
Only 35% of people felt “very confident” in their employers’ ability to keep
confidential records secure. Just over of third (34%) felt that data was more secure
in the days when data was stored on paper than now where it is stored on disk.
[Source]
The U.S. FTC announced this week that it has
permanently shut down an alleged spyware operation run by Odysseus Marketing
and its principal, Walter Rines. The FTC said Odysseus Marketing had deceptively
installed spyware on consumers’ computers by advertising free downloads that
turned out not only to be phoney, but also bundled with malicious software. [Source]
Closing arguments concluded this week before Senior
U.S. District Judge Lowell Reed Jr., ending four weeks of testimony challenging
the 1998 Child Online Protection Act. The ACLU, which is challenging the
law, argues that filters are more effective than legislation because they let
parents set limits based on their own values and their children’s ages. Justice
Department attorneys argued yesterday that software filters often block valid
sites that teens might seek out. [Source]
Data transfers found to breach civil rights: A
European Union monitoring agency concluded this week that a banking consortium
breached EU data protection rules when it gave the Bush administration access
to millions of records of private financial transactions. The consortium, known
as SWIFT has come under scrutiny for participating in a program that allows
analysts from the CIA and officials from other
Max Parsons, of
Outcome Of Federal Challenge To N.H. Prescription Drug
Law Could Have Broader Impact: IMS Health Inc. and Verispan LLC are challenging
the constitutionality of New Hampshire’s Prescription
Confidentiality Act, which bars the sale of prescription drug information
for commercial purposes, including data on what drugs patients take and which
drugs doctors prescribe. The companies gather and sell the data, which helps
pharmaceutical companies better market their products to doctors. The case,
which goes to trial in January, may have ramifications outside the
About 50% of family doctors said in a Guardian
poll that they are planning to refuse to input patient records into a new
national database because of security concerns. The survey found that four
out of five doctors believe their patients’ confidentiality will be at risk to
hacking, bribery and blackmail if they are stored on a new national e-medical
records database. The poll, which was conducted by Medix, also found that 51%
of doctors indicated they will not submit the patient records for uploading to
the electronic database without the person’s consent. The agency overseeing the
database said the Department of Health views the new system as a “great benefit
to a great majority of people” that will improve healthcare and prevent
unnecessary deaths. [Source]
MasterCard and VISA
Nationwide, the
The Alexander Forbes Risk and Insurance Services has
issued a report warning that South Africans face an increased risk of ID theft.
The group’s spokesman said identity thieves are accessing personal details over
the Internet to help them create an identity to commit fraud. The report
indicates that the increasingly sophisticated attacks take an average of
more than 14 months to discover, typically after the fraud has adversely
affected the target’s credit. [Source]
With a click of a computer mouse,
The recent surge in e-mail spam hawking penny stocks
and penis enlargement pills is the handiwork of Russian hackers running a
botnet powered by tens of thousands of hijacked computers. Internet security
researchers and law enforcement authorities have traced the operation to a
well-organized hacking gang controlling a 70,000-strong peer-to-peer botnet
seeded with a trojan. [Source]
Internet telephone calls are fast becoming a national
security threat that must be countered with new police wiretap rules, according
to an FBI proposal presented quietly to regulators this month. [Source]
Microsoft is helping law enforcers hunt down criminals
who try to steal bank account details on the Internet and has initiated 129
lawsuits in Europe and the
After three years of delays, a massive database
containing personal information on every Australian with a phone number could
soon be protected. A bill before federal Parliament includes fines up to
$66,000 or two years imprisonment for anyone misusing personal information in
the Telstra-managed phone directory. The Integrated Public Number Database
contains current contact information for all listed and unlisted phone numbers.
An industry standard aimed at restricting business use of the database has met
with a number of delays. [Source] [Source]
Guidance Software has agreed
to settle FTC charges that its failure to take reasonable security measures to
protect sensitive customer data. According to the FTC complaint, Guidance
failed to implement simple, inexpensive and readily available security measures
to protect consumers’ data. Guidance’s data-security failure allowed hackers to
access sensitive credit card information for thousands of consumers. The settlement
will require the company to implement a comprehensive information-security
program and obtain audits by an independent 3rd-party security
professional every other year for 10 years. Guidance sells software and related
training, materials, and services customers use to investigate and respond to
computer breaches and other security incidents. This is the FTC’s 14th
case challenging faulty data-security practices by companies that handle
sensitive consumer information. [Source] [Agreement Containing Consent
Orders] [Complaint] [Exhibits A and B] [Analysis of Proposed Consent Order
to aid Public Comment] [News
Release] [Coverage]
The U.S. FTC announced this week that it has
permanently shut down an alleged spyware operation run by Odysseus Marketing
and its principal, Walter Rines. The FTC said Odysseus Marketing had deceptively
installed spyware on consumers’ computers by advertising free downloads that
turned out not only to be phoney, but also bundled with malicious software. [Source]
The
Phishers are launching new attacks that target cell
phones by sending a short message service message to a person’s cell phone,
according to PCWorld columnist Andrew Brandt. The messages alerted cell-phone
users, for example, that a dating Web site would charge $2 a day unless they
unsubscribed via a specific URL provided in the message. When the targets used
their computers to click on the URL, the damage was done. Trojan horse software
downloaded onto the computer to steal passwords and perform other nefarious
operations to the PC. The columnist reminds cell-phone users that if they did
not sign up for a service that required them to provide their cell phone
numbers, they should ignore the message and its instructions. [Source]
Parents will be devalued and family privacy shattered
by the mass surveillance of all 12 million children in
Will Real Name Registration Harm
Despite the emphasis placed on IT security in recent
years, federal agencies are not testing their security controls with any
consistency or timeliness, and as a result may not realize their systems’
weaknesses, a new GAO report has found. “Federal agencies have not adequately
designed and effectively implemented policies for periodically testing and
evaluating information security controls,” the GAO concluded after surveying 24
major agencies and conducting in-depth case studies on 30 IT systems at six of
the agencies. These problems are occurring despite the requirements of the
Federal Information Security Management Act, under which agencies have been
laboring since its passage in 2002. The study was initiated at the request of
Rep. Tom Davis, chairman of the House Government Reform Committee and the
originator of FISMA. [Source]
[GAO Report]
BNA’s Electronic Commerce & Law Report reports
that the Finland Data Protection Ombudsman has ruled that Finnish employers cannot
use Internet search engines, such as Google, to obtain background information
about potential employees. The decision stemmed from a complaint the ombudsman
received from an unsuccessful job applicant who previously attended a
conference on mental health as a patient’s representative. [Article]
--------