Privacy News Highlights
15—20 September
2006
Contents:
US – NIST Releases
Biometric Data Specification for Personal Identity Verification
CA – Nymity Study: Business Responding to
Privacy Requirements
CA – BC Government Loses Tapes with
Personal Data on BC Citizens
US – BBB & ANSI Spearhead Coalition to Combat ID
Theft & Fraud
UK – Government: Public & Private Sectors Should
Share Personal Information
US – Anti-Spam Group Ordered to Pay $11.7 Million
US – Spam Canned: FTC Busts Four Operations, Fines $400K
CA – Federal Government Has a Role to Play
in Spam Reduction: Minister
UK – Report: Too Much Recklessness Blights Government IT
Projects
EU – Terrorism No Excuse for Privacy Breaches, Says EU
Regulator
EU – Irish Journalists Urge Defeat of Planned Privacy Law
US – Ponemon Study: Boardroom Privacy Tops Personal
Privacy
UK – Corporate ID Theft Costs British Firms £50m a Year
US – Justice Dept Defends Mandatory Web Labeling
AU – Privacy Commissioner Comments on Anti-Money
Laundering Bill 2006
CA – PIPEDA Case Summary: Law Firms
Collected Credit Reports Without Consent
CA – September 25-29 is Right to Know Week
US – Study: Healthcare Firms Lack Security Plan
US – Pair Indicted for Filing Phony Medicare Claims with
Stolen Patient Information
US – University of Texas San Antonio Server Breached
US – Nikon World Magazine Subscribers’ Data Exposed
US – Employee Files Found in Dumpster
US – Unisys Subcontractor Arrested in VA Computer Theft
US – Study: Data Breaches Not the Leading Cause for
Identity Theft
US – ID Theft Task Force Issues 7 Recommendations
UK – No Idea Where Your ID is? Youngsters Haven’t a Clue
Says Passport Service
CA – CIPPIC Files Objection to Sony Rootkit
Settlement
US – AG: Congress Should Requires ISPs to Save User Data
US – Social Security Numbers (SSNs) Remain On State Web
Site
US – Organized Crime Gets More Sophisticated Online
US – Study: Americans Oppose Outsourcing Personal
Financial, Health Data
US – EFF Publishes Search Privacy Tips
UK – Report: Children at Risk on Networking Web Sites
EU – ICC Hopes to Makes Data Transfer Out of EU Simpler
EU – Digital Rights Ireland Files Suit Over Surveillance
US – HP Investigation Extended Beyond Digging Up Phone
Records
US – House Committee to Hold Hearing on HP Pretexting
US – Privacy & American Business and Center for
Social & Legal Research Bid Farewell
US – Opinion: Growing Need to Educate the Public About
RFID Technologies
EU – Survey: Most Businesses Unaware of Data Leaks
WW – Rivals Skirmish With Microsoft over VISTA Security
WW – Gartner Report Forecasts Top IT Security Threats for
2006-2007
US – Senate Committee Votes to Authorize Warrantless
Wiretapping
US – EFF Tackles US Government on Covert Surveillance
CA – Jasper Approves Public Video Surveillance
CA – Bombardier Launching Digital
Surveillance System for Train Security.
US – White House Selects Cyber Security Chief
US – DHS Releases Report on February Cyber Storm Exercise
US – E-Authentication Maps Out Its Future
US – DHS Federal Advisory Committees Set to Review
Privacy Policy Issues
US – CDT "Internet Watch List" Identifies
Dangerous Legislation
EU – Study: Surfing A Bigger Risk than Spam to Company
Networks
NIST Special
Publication 800-76-1, Biometric
Data Specification for Personal Identity Verification, is now available
for a 3 week public comment period. This document is a revision for the earlier
version of February. Changes include incorporation of the published errata
document, clarification on performance testing and certification procedures,
and caution regarding fingerprint minutiae generation. [Source]
A new study conducted by Nymity finds that corporate
Thirty-one computer tapes holding information about
hundreds of thousands of B.C. citizens are missing from a government facility
in
The American National Standards Institute (ANSI) and
the Better Business Bureau system (BBB) have announced a partnership with a
cross-sector team of high profile companies to create a single resource of
standards and guidelines that businesses and other organizations can use to
prevent and respond to identity theft and fraud. The initiative, called the Identity Theft Prevention and Identity
Management Standards Panel (IDSP),
will have two main charges: First, it will identify and catalogue any existing,
broadly-applicable identity theft and fraud prevention standards and
guidelines. Second, it will identify areas where updated or new standards are
needed. The panel’s recommendations for revised or additional standards shall
serve as a call to action for further work by the standards development
community. Issues to be explored by the IDSP include managing access, storage
and disposal of customer and employee data, personnel qualifications and
training for the handling of sensitive data, criteria for selecting data
contractors, and recapturing and restoring the integrity of stolen identities.
An aggressive timetable of 12-18 months has been set to produce a
comprehensive, cross-sector set of requirements and best practices that can
help any organization protect the confidential personal data of its employees
and customers. In addition to industry, participation is being sought from
standards development organizations, trade and professional associations,
government agencies, consumer groups, organized labor, academia and other
interested groups. [Source].
The Department of Constitutional Affairs has proposed
in its Information
Sharing Vision Statement that the public and private sectors share
information on fraud. The UK Information Commissioner supports more public
sector data sharing with proper privacy safeguards. Commissioner Richard Thomas
said he does not “want data protection to be wrongly blamed for preventing
sensible information sharing.” Civil liberties groups are concerned by the new
plan. [Source] [Information
sharing vision statement] [Vast
database a ‘sinister’ expansion of the ‘Big Brother’ – Big Brother row as
400,000 civil servants win right to snoop] [Source] [Gov
spins data sharing] [Conservatives
alarmed by ‘Big Brother’ databases]
The nonprofit group behind a popular blacklist used to
block spam has been hit with a multimillion-dollar judgment, but the order may
not be enforceable. The U.S. District Court for the Northern District of Illinois
ordered that Spamhaus must pay $11,715,000 in damages to e360insight and its
chief, David Linhardt, who sued the U.K.-based organization earlier this year
over blacklisting. [Source]
The FTC has shut down four illegal e-mail spamming
operations, including one that offered the opportunity to “date lonely wives,”
the agency said Thursday. Two of the other operations sending unwanted
commercial e-mail hijacked the computers of third parties and used them to spam
customers with sexually explicit e-mail, the FTC said Thursday. The FTC charged
the four operations with violating the CAN-SPAM Act. Federal courts in
The federal government has a role to play in stopping
spam from clogging Canadians’ email inboxes, Industry Minister Maxime Bernier
said last weekend. Bernier said he just received a copy of a 2005
report assembled by the National
Spam Task Force, which recommended the government institute an anti-spam
statute. “The report that I received, it told me yes, we have a role,” Bernier
said. “I just want to be sure that the thing that we’re going to do, it will be
something that will solve the problem. The question is, what can we do? And I’m
not sure right now. Maybe the market will decide in the end.” [Source]
A new report from The Work Foundation finds that too
many government ICT projects have been insufficiently piloted before being
rolled out, are over-complex in design, ignore the advice of the staff who must
use the systems, and try to solve too many problems at once, rather than build
on systems that are already in place. The report says public managers need a ‘balanced’
approach to risk when delivering ICT projects – neither too cautious, nor too
foolhardy. The report’s co-author said: “Too many government ICT projects fail
to deliver the promised benefits because public sector managers have a reckless
streak – they become dazzled by the potential of the technology and lose sight
of what is practically deliverable. “Government should not be about cutting
edge innovation - it should be about serving citizens well and efficiently. If
someone gets their benefit late due to computer failure, it matters in a way
that it simply doesn’t when private sector ICT projects fail. The private
sector can afford the luxuries of innovating; in the public sector, ICT needs
to work.” [Source] [News Release] [Report]
Terrorism and organised crime should not be used as
excuses for passing laws which undermine people’s privacy and data protection
rights, according to the European Data Protection Supervisor (EDPS). Existing
laws do not need changed, he said. In an update on data protection in
Privacy legislation drawn up by Michael McDowell, the
Irish justice minister, has been criticised by legal academics as being rushed,
ill-drafted, and uninformed by public consultation or debate, At a conference
organised by the National Union of Journalists this week, lawyers urged
McDowell to withdraw the privacy bill and allow the courts to balance the
rights to privacy and to freedom of expression on a case-by-case basis. Andrea
Martin, a solicitor and media law consultant, said the provisions were “premature,
ill-thought-through and poorly drafted”. The bill was brought to cabinet and
published by McDowell in July, but only after his efforts to introduce a reform
of defamation law first was rebuffed by other ministers who wanted the two
bills introduced together. [Source]
[Source]
The Ponemon Institute released a study this week that
found that 85% of the 226 directors who participated said that they placed a
higher priority on corporate confidentiality than the protection of their privacy
rights. The survey also found that more than half of the directors surveyed
said they had served on corporate boards that had approved “aggressive”
surveillance efforts to plug a boardroom leak. [Source]
Corporate identity theft cost British businesses £50m
in 2005 - and the figure is set to increase 1,300% by 2020, new research shows.
Corporate ID theft is one of the fastest growing risks firms face and large
businesses are most likely to be affect, a study from commercial insurer Royal
& SunAlliance (R&SA) found. It happens when fraudsters steal the
identity of a legitimate company and then trade under its credit and name. [Source]
[Source]
[Background]
The U.S. Department of Justice has stepped up its
defense of a proposal to imprison Web site operators who don’t label pages
containing sexually explicit material. The idea, outlined in an April speech by
Attorney General Alberto Gonzales, is approaching a vote in Congress. [Source]
The Australian Privacy Commissioner has released a
second round of comments in relation to the second exposure draft of the
proposed anti-money laundering and counter-terrorism regime. This second round
of comments follow the office’s previous recommendations made to the department
and to the Legal and Constitutional Legislation Committee Inquiry in March
2006. [Source]
[News Release] [Submission]
The Office of the Privacy Commissioner of
A special panel discussion in
Most healthcare companies are investing in security
because of legal requirements, not forward thinking, a new study says. For
healthcare, pharmaceutical, biotech and biomedical companies, legal and
regulatory requirements as well as potential liability continue to be key
drivers behind security investments, and much of this spending is still
reactionary, according to the Global State of
Information Security study. The report was released by PwC and others.
While improving physician effectiveness and quality of life is a top priority
for provider organizations – prompting a rise in the use of laptops, personal
digital assistants and remote access to patient records – incidents involving
the loss or theft of executive laptops and their stored data continue to occur,
the report said. Yet only 29% of pharmaceutical companies have security
standards or procedures for handheld and portable devices, and 30% still do not
classify data and information assets according to risk levels, according to the
report. Other key findings from the survey:
o
Only 34% of pharmaceutical companies keep an accurate inventory of all 3rd
parties using customer data, 56% do not require 3rd parties,
including outsourcing vendors, to comply with privacy policies.
o
Despite 54% of pharmaceutical respondents indicating employees as the
likely source of attack this year, 73% of pharmaceutical companies do not yet
have an identity-management solution.
o
8 in 10
o
Only 46% of pharmaceuticals have an overall security strategy, and 73%
do not integrate information-security safeguards with privacy and compliance
plans. [Source]
[Report]
See also 6 September 2006 GAO Report: Health Care Privacy Breaches Widespread
]
Two people were indicted on charges of conspiracy to
commit computer fraud, conspiracy to commit identity theft and conspiracy to
wrongfully disclose individually identifiable health information as well as
charges related to fraud in connection with computers and violations of HIPAA.
The two allegedly conspired to steal personal medical information belonging to
more than 1,100 Cleveland Clinic
A security breach of a server at the
The names, addresses and credit card numbers of 3,235
subscribers to Nikon World magazine were accessible on the Internet for
approximately nine hours last week. The problem was discovered on September 13
when an
Following the buyout of a telemarketing company,
employees found personnel files and files containing consumer data dumped in
the trash. The employee files included photocopies of driver’s licenses and Social
Security cards. The state attorney general’s office plans to examine the
discarded files. Federal law requires businesses to take measures to destroy
personal data beyond simply tossing it in the trash. [Source] [Source]
Authorities have charged a 21 year-old Unisys Corp.
subcontractor with stealing a desktop computer with billing information on as
many as 38,000 U.S. Department of Veterans Affairs medical patients. The
Washington, D.C.-area man was charged Wednesday with theft of government
property. He is the employee of an unnamed company that “provides temporary
labor to Unisys,” according to a statement released by the Veterans Affairs
department’s Office of Inspector General. [Source]
[Source]
A 12-month study conducted by Javelin Strategy and
Research has concluded that data breaches are not the leading cause for
identity theft. The leading causes are lost or stolen wallets, check books and
credit cards. The focus on data breaches compared with other causes of ID theft
has misled consumers “on how to set overall priorities for guarding against
identity fraud,” said Javelin’s president. [Source] [Source]
See also: [RCMP
Investigator Urges Full Disclosure on IT Security Breaches]
Victims of identity theft should be allowed to seek
restitution from defendants for time spent undoing damage from the offense,
according to interim
recommendations issued this week by a federal task force on ID theft. The
Task Force issued seven recommendations These include 1) directing the Office
of Management and Budget to issue guidance to federal agencies on how to handle
data breaches; 2) strengthening data security in the government; 3) accelerating
and broadening the review of where social security numbers are used by
agencies; 4) establishing a new "routine use" by which agencies would
be allowed to share information otherwise restricted by the Privacy Act to
facilitate responding to a data breach; 5) holding workshops for academics and
businesses to develop better methods to authenticate identities; 6) amending
criminal statutes to allow identity theft victims to seek restitution from defendants
for time spent undoing damage from the offense; and 7) developing a universal police
report to make it easier to report identity theft and enter it into existing
systems. [Source]
[Source]
[Source]
[Source]
According to research carried out for the Identity and
Passport Service (IPS), when put on the spot, only half of young people (49%)
could say where their passport was without having to think or look for it. Two
thirds (60%) could not say, without checking, which month their passport was
due for renewal. The same number (62%) do not have a record or copy of the
passport or its number in case of emergencies. This is despite the fact that a
third of young people (31%) rely on their passport as proof of age in bars and
nightclubs. Even more concerning, 41% of young people admit they do not keep
their passport locked away or in a secure place - they’d rather keep it in a
drawer (12%) or on their person (6%). iPods and mobiles are treated with far
more care – 72% of young people keep these valuables either locked away or in a
safe place. [Source] [UK Identity & Passport website
news release]
The Canadian Internet Policy and Public Interest
Clinic (CIPPIC) has filed an objection to the proposed Sony rootkit class action
settlement, pointing to the absence of future conduct provisions that were included
in the U.S. settlement as well as the “explanation” Sony BMG offered for their
absence. EFF submitted an affidavit in support of the objection. [Source] [Privacy
And Copyright - An Increasingly Volatile Mixture] [DRM is anti-privacy,
anti-security, anti-cryptography]
During testimony this week before a Senate panel,
Attorney General Alberto Gonzales said that Congress should require ISPs to save
customer records to help the government in the online fight against child pornography.
Justice Department officials have told the companies that they need the records
saved for up to two years to help them get the information they need to build
and prosecute cases. [Source]
A software program successfully removed 97% of the
SSNs listed in documents accessible through the Ohio Secretary of State’s web
site. Seven months after the personal information was discovered online,
staffers are manually checking the database to remove what’s left on the site.
A spokesman for the Secretary of State said the office is unaware of any ID
theft that resulted from the exposure of the personal information. [Source]
According to a top U.S. Department of Justice official,
cyber scams are increasingly being committed by organized crime syndicates out
to profit from sophisticated ruses rather than hackers keen to make an online
name for themselves. [Source]
New York-based law firm White & Case LLP and the
Ponemon Institute have released the results of a study on outsourcing. The
survey found that almost 90% of those surveyed oppose the outsourcing of their
health records to companies outside the
Recent data breaches and AOL’s search engine query
disclosure scandal have made many users more concerned about search engine
privacy. In an attempt to help educate Internet users, the EFF has published a
concise guide entitled, “Six Tips to Protect
Your Online Search Privacy.” An assortment of common-sense suggestions, the
EFF’s tips are ranked by difficulty level, from easy to advanced. The advanced
tips recommend changing one’s IP address, and using an anonymizing proxy like
Tor. The EFF warns users not to log in or register for accounts with major
search providers, and explains the risks of inputting search queries that
contain personally identifiable information. The guide also contains detailed
instructions that describe how to disable cookies. [Source]
Children using hugely popular social networking Web
sites such as MySpace.com and Bebo.com face bullying, unsuitable advertising
and pornography, a report by a UK consumer watchdog magazine said. [Source]
[Which?
Magazine report]
The International Chamber of Commerce has produced a
standardized application form that can be used to seek permission from all 25
EU countries to send personal information from within the EU to outside it.
Stringent controls on the transfer of personal data are in place in the EU and
a company must apply to all 25 member states to formalize rules controlling the
movement of that data. Previously that involved a separate application for each
country, but the ICC has produced a form which it hopes will become a standard
across all member states. It awaits approval by EU data protection authority
the EC Article 29 Data Protection Working Party. [Source] [ICC
standard application form] [UK
ICO’s information on international transfers]
Irish civil rights group Digital Rights Ireland has
started a High Court action against the Irish Government challenging new
European and Irish laws requiring mass surveillance. The action challenges the
law on data retention contained in the Irish Criminal Justice (Terrorist
Offences) Act, 2005 and the European Data Retention Directive passed
in 2006. [Source] [Source] See also [Ireland brings case
against data retention to Europe]
According to published reports, HP investigators
hunting for a boardroom leak extended beyond the techniques that identified
people’s private phone records, by shadowing the company’s directors and trying
to install snooping software on at least one reporter’s computer. Authorities
and politicians remain primarily concerned about the deceptive measures that
enabled HP’s investigators to obtain the personal phone logs of several
directors, 9 reporters, 2 employees and a semiretired physicist. [Source]
[Source]
[Spokesman Among Targets
in HP Leak Probe] [HP
pretexting
case raises concerns in Canada] [Coverage] [Coverage] [Coverage]
The US House Energy and Commerce Committee plans to
hold a two-day investigative hearing regarding the legality of telephone
pretexting, or pretending to be someone else to obtain their phone records. The
hearing was prompted by the recent scandal at HP in which it was revealed that
a company hired by an HP contractor to discover the source of corporate
information leaks used pretexting to conduct its investigation. One day of the
hearing will focus on HP; company executives, board members and others are
likely to be called as witnesses. HP was given until this Monday to submit
numerous documents to the committee. [Source] [Source] [Security Firm Part of Probe of HP] [‘Pretexting’
Is Common in Business World] [Protect
Yourself From Pretexting] [Coverage]
Alan Westin, a privacy pioneer, has announced that
P&AB and The Center for Social and Legal Research are closing. Westin
launched P&AB in 1993 when consumer privacy “was just emerging as a serious
national issue in the
Mark Roberti, founder and editor of RFID Journal,
says it is time for the vendors of RFID technology to create a nonprofit group
focused on education. The group would “promote and encourage companies using
RFID” to use best practices to protect consumer privacy. The group also would
educate the public, lawmakers, journalists and privacy advocates about privacy
issues and ways to address them. Lastly, Roberti suggests that the group would
be helpful in coordinating the work of various RFID industry groups to “ensure
a unified approach to RFID labeling.” [Source]
Portable devices, email attachments and email content
are the top 3 ways that information leaks from an organization, according to
the Workshare Information Risk survey. The survey, which was commissioned by
Workshare, tapped 200 security and risk professionals in organizations with
more than 1,000 employees in the
Microsoft and its security rivals are feuding over a
key piece of Windows Vista real estate. The fight is over the display of
technology that helps
Gartner research analysts are predicting myriad IT
security hazards over the next two years. Gartner released the list of IT
Security threats this week during its IT Security Summit in London, part of the
company's "hype cycle" reports that track technology trends. The
threats, says Gartner, have a "potential to inflict significant damage"
on businesses. The threats are: Cyberattacks with a financial motive; Identity
theft; Spyware; Social engineering; Viruses; and Rootkits. [Source]
A bill radically redefining and expanding the
government’s ability to eavesdrop and search the houses of
The Electronic Frontier
Foundation (EFF) has launched a campaign to shed light on the
The
Jasper Municipal council approved a policy last week that allows for the
placement and use of video surveillance equipment in public outdoor spaces. In
part, the policy states that the municipality recognizes its shared role with
the RCMP and other agencies in providing “a safe and secure community for
residents and visitors. Council also recognizes society’s obligation to ensure
the rights of individuals to privacy are not unfairly infringed upon by efforts
to achieve and maintain safety and security.” The policy goes on to set out a
series of guidelines overseeing when and how a camera system would be installed
and operated. Although the policy allows for cameras as an option to help
address problems downtown, the policy states that placement of cameras “shall
be undertaken only when all other avenues to resolve concerns...have been
exhausted.” [Source]
Bombardier Inc. is launching a new-generation digital
video surveillance and monitoring system for passenger trains at a trade show
in
The Homeland Security Department picked a technology
industry lobbyist this week as its cybersecurity chief, filling a job that has
had no permanent director for a year. Greg Garcia, VP of information security
policy and programs for the Information Technology Association of America, was
appointed assistant secretary for cybersecurity and telecommunications, DHS
Secretary Michael Chertoff said. The cybersecurity job was created in July
2005, but department officials have struggled to find candidates willing to
take significant pay cuts from industry jobs to fill it. Garcia will oversee
DHS’s implementation of the “National
Strategy to Secure Cyberspace,” a far-reaching blueprint for securing the
nation’s most critical information networks and for crafting a
disaster-recovery and response plan in case of a major cyber-attack or other
massive malfunction. [Source]
[Source]
[GAO Report: Critical
Infrastructure Protection: DHS Leadership Needed to Enhance Cybersecurity.
GAO-06-1087T, September 13 – Highlights ]
The US Department of Homeland Security (DHS) has
released a report detailing the findings of its Cyber Storm exercise that took
place in February 2006. It was designed to simulate events requiring the need
for coordination between public and private entities in the face of a major
cyber attack or natural disaster. The exercise simulated the effects an attack
could have on a variety of critical infrastructure elements, and was designed
to simulate cascading events. DHS said the exercise provided valuable
information about the ability of numerous public and private organizations to
work together in the face of disaster. According to the report, the public and
private sectors need to improve the coordination of their communication
regarding multiple events. [Source] [Source] [Source] [Lawmakers Fault DHS for Cybersecurity Efforts] [Port-Worker ID Program Stalled,
Fails Privacy Safeguards]
The General Services Administration estimates that
agencies have about 600 applications that would benefit from E-Authentication
services. Right now, about 14 do. So GSA and the government have a long way to
go before they fully enjoy the benefits of a single-sign-on environment.
Officials from GSA and the OMB are working with agencies to figure out how and
in what order the other 586 applications will start using SAML or a digital
certificate. Final plans, which some agencies already have handed in, are due
Sept. 30. “We are looking for systems that will get the greatest return for
agencies,” said Michel Kareis, E-Authentication program executive. “The goal is
all 600, but the time frame of when is what the plans will provide.” The
systems either face the public, meaning they are outside the agency’s firewall,
or are internal systems that hundreds of feds use. For instance, Kareis said,
Grants.gov recently became the first of the 25 original E-Government projects
to adopt the E-Authentication model. [Source]
The Data Privacy and Integrity Advisory Committee at
the Homeland Security Department and the Information Security Privacy Advisory
Board at the National Institute of Standards and Technology are planning to
issue a report within the next year on the impact of information technology in
the agencies. The goal, according to one participant, is not to redo
legislation. Rather, the aim is to determine whether the use of new
technologies may have advanced beyond the effectiveness of some laws. [Source] [Federal privacy law
faces review from data advisers]
“As Congress mounts its final push before the midterm
elections, a number of bills that threaten the bedrock of Internet privacy and
civil liberties could either come up for votes or worm their way into larger
legislative packages that end up being rushed into law. Today, the Center for
Democracy & Technology (CDT) issued its "Internet Watch List,"
which contains nine legislative efforts that should not be allowed to succeed
in the so-called "silly season" at the end of the 109th Congress. In
the coming weeks, CDT will urge lawmakers, journalists and the online public to
keep close watch on these legislative efforts to ensure that this collection of
bad ideas doesn't become a collection of bad laws. [Internet Watch List]
[CDT Press Release,
September 14, 2006 ]
According to a new study by IDC Denmark, company
networks are now more likely to pick up malicious software via employee Web
surfing than from e-mail attachments. Nearly 40% of the 200 Danish companies
surveyed said their systems had been infected by a virus or worm, despite the
fact that 75% had implemented a security policy. [Source]
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