Privacy News Highlights
09–15 December
2005
Contents:
WW – Researchers
Foil Biometric Devices
CA – Carleton Scientist Pushing Device to
Read Your Mind
CA – New Federal Outsourcing Guidelines to
Shield Personal Data
CA – Survey: Canadians Content with Gov’t e-Services,
but Privacy Still Big Concern
AB – What the Alberta Information and
Privacy Commissioner Wants for Christmas!
US – Survey: Retailers Need to Improve Data Security
AU – Australia Launches Review of Anti-Spam Law
WW – Expert: Lengthy Logs Not Always a Good Thing
EU – EU Prepares ‘Anti-Terror’ Data Legislation
EU – Privacy International (PI) Report Criticizes EU
Anti-Terror Policies
UK – Information Commissioner Publishes Good Practice
Notes
DE – German Data Privacy Watchdog Praises Change of Heart
at Microsoft
UK – Scottish Freedom of Information Act Under Review
WW – New Device Will Prevent Eavesdropping
US – NY State Commission Approves Governor’s Plan to
Expand DNA Databank
US – New York City to Register, Monitor 500,000 Diabetics
AU – Police Embarrassed by Crime Photos Bungle
US – Security Breach at Sam’s Club Exposes Credit Card
Data
UK – Hackers Steal Donor Info from UK Charity
UK – Thousands targeted in tax credit fraud
US – US Study: Fears Over Identity Theft Overblown
US – Secret US ID Law Goes to Court
US – Sony BMG Says it is Rethinking DRM Policy
EU – Law Requires Italian Internet Cafes to Record ID
EU – European Parliament Approves Data Retention Rules
EU – Ireland to Contest Data Retention Law at EU Court
CA – Nova Scotians Still Vulnerable as U.S.
Patriot Act is Extended
CA – EFF & CIPPIC Launch New Online
Rights Organization
US – Princeton Students Lobby for Internet Privacy
US – New Hampshire Bill to Regulate RFID Privacy
JP – Paper-thin, Foldable Battery to Attach to Clothes
CA – Survey: More than 50% of Companies
Admit Data is at Risk
UK – New International Standard for Information Security
WW – Survey: Firms Count the Cost of Security Threats
WW – ITU Report: The Internet of Things
US – FTC Fines Directv $5.3M for Telemarketing Violations
US – Privacy Groups Comment to HHS on “Parent Locator
Databases”
US – Feds Get D+ on 2005 Cybersecurity
US – Congress Reaches Deal to Extend Key Provisions of
the USA Patriot Act
US – Coalition Wants to Delay Patriot Act Vote
US – House Ready, Senate Balks on Patriot Act
Researchers fooled biometric systems with fake
fingerprints made out of Play-Doh nine out of ten times, demonstrating a
weakness of some computer security systems. Led by Stephanie Schuckers, an
associate professor of electrical and computer engineering at Potsdam,
N.Y.-based
Brainwave the ultimate security key: Researchers hope to soon be
able to use brainwaves to unlock doors and access bank accounts. Some companies
are already offering iris recognition systems that many countries want to put
into biometric passports. But Ottawa-based
A federal proposal would allow government departments
to cancel immediately any contract with an American firm if it hands personal
information about Canadians to
While largely happy with the quality of e-services
provided by the public sector, Canadians still have concerns around the privacy
and security of their online transactions with government. That’s a key finding
of a recent survey titled ‘Citizens First 4’ conducted by the Institute for
Citizen-Centered Service (ICCS) and the Institute of Public Administration of
Canada (IPAC). The survey canvassed the views of around 7,000 Canadians on
public sector service quality. Most stated service levels had improved at all
three levels of government, but highlighted the need for better access to
services. Canadians are worried about security and privacy of personal
information, said Wendy Paquette, information manager with ICCS. “Their
concerns are about secure storage of their information. If you’re online and
you provide personal information, [you] want to ensure that information is
protected and secure.” Paquette said another concern relates to the unauthorized
use of personal information – for example the possibility of someone breaking
into the system and using information to create a false identity. [Source]
“The Office of the Information and Privacy Commissioner
conducted several investigations this year involving businesses that failed to
look after customers’ information, putting those customers at risk for identity
theft. “The prospect of consumer fraud as a result of poor information practices
is deeply troubling,” said Commissioner Work. “The risk of identity theft is a
problem all year round, but particularly during the holiday season.” Businesses
in
According to a recent survey by Retail Systems Alert
Group retailers need to improve their customers’ privacy protection. The study
measures the extent to which retailers are capturing and using
consumer-specific data to offer unique value to customers, and examines what
retailers are doing to protect consumers’ privacy. The survey results show that
most retailers rely on internal control audits to ensure the security, confidentiality,
and integrity of consumer-specific data. More than 50% of the respondents have
assigned responsibility to a security program coordinator, and an even greater
number provide training to employees regarding consumer privacy and information
security. Only 43% of retailers, however, have formal incident response plans,
and even fewer test those plans. Most retailers do not encrypt
customer-specific data within the database itself, and only 40% are capturing
forensic data about how customer-specific data are captured and accessed. Most retailers
do not use an external certification program to ensure controls. Customers don’t
fare very well either. They have little control over how data specific to them
are used, and only 60% of retailers allow customers to opt out of
frequent-shopper or club programs. Retailers’ internal staff members have ad
hoc access to consumer-specific data, according to almost 50% of the survey respondents.
Most retailers do not share event-aggregated data with business partners, and
very few share transaction data. [Source]
System administrators should consider keeping minimum
log records and brushing up on privacy laws to better protect employees’ right
to free speech, according to the non-profit Electronic Frontier Foundation.
While IT shops can use computer logs to spot malicious activity on machines,
they can also be used as part of a “very effective” surveillance tool against
individuals and companies. [Source]
The European Parliament approved new rules governing
the retention of phone and mobile phone data pioneered by the
In a report released this week Privacy International,
a London-based watchdog organization, compares the anti-terrorism approaches in
the
The Information Commissioner’s Office (ICO) has
published a series of user-friendly guides, designed to answer frequently asked
questions about the application of data protection to everyday situations like
email marketing and CCTV. [Source]
[ICO Website]
The software titan Microsoft has moved on the data
privacy issue. This was becoming apparent on the one hand in that the global
player was actively seeking to engage in a dialogue with German and European
data privacy advocates. And on the other in that the company had “radically
overturned its previous data privacy policy in a refreshingly unambiguous
manner,” the head of the Independent State Center for Data Protection of the
German federal state of Schleswig-Holstein Thilo Weichert – in the wake of his
exchange of ideas with Microsoft’s Chief Privacy Strategist Peter Cullen – has said
by way of summing up his assessment of the change of strategy of the
Redmond-based company. [Source]
With the first anniversary of the Freedom of
Information Act’s enforcement approaching, the Scottish Executive announced a
review of the Scottish version of the legislation yesterday, to identify areas
that may need fine-tuning. According to the Scottish Executive, the review will
consider: coverage of the Act, the fees regime, statutory prohibitions to
disclosure of information, general feedback on discharge of functions under the
Act and any areas where difficulty is arising. [Source]
A new device, called Babble, is billed as a solution
to keeping coworkers from overhearing telephone conversations. The device,
scheduled for release next year, attaches two speakers and a sound generator to
a telephone. It produces sounds that mix with a person’s voice, producing
sounds without any meaning. The device could help bolster patient privacy if
used in waiting rooms and reception areas. [Source]
A NY state commission on Tuesday approved Gov. George
Pataki’s plan to expand the state’s DNA databank, a move expected to add to the
system DNA samples from as many as 40,000 more criminals. Pataki last week
ordered additional DNA samples be collected from individuals as a condition of
release from parole, probation, a plea bargain or a temporary release program.
The order came after a broader legislative proposal to widen the DNA database
stalled in the state Assembly. Pataki’s plan, which does not expand the list of
crimes eligible for DNA testing, was approved by a 9-3 commission vote, said Jessica
Scaperotti, a spokeswoman for the state Division of Criminal Justice Services.
[Source]
NYC health officials will create a database to monitor
the blood-sugar levels of about 500,000 diabetics, alerting them and their
doctors to changes in condition and helping them obtain medical care. The program
approved by the Board of Health today, the first of its kind for a patient
population as large as New York's, will require laboratories to send the health
department blood test results showing any abnormally high level of hemoglobin
A1C, a three-month average measure of glucose indicating diabetes. The department
will then notify patients and their doctors. As many as 250,000 more of
Hundreds of disturbing police photographs showing
murder victims and crime scenes have been found in a suburban dumpster,
renewing pressure on the Australian Government to tighten security over confidential
police material. Only months after thousands of secret police files were leaked
in the state’s biggest ever privacy breach, graphic pictures showing victims
who were stabbed, bashed or burnt to death have been found in a rubbish bin at
a Cranbourne shopping centre in Melbourne’s outer south-east. The 330 photographs
include close-ups of murdered Irish tourist Nicholas McNulty, 28, who was
stabbed by a psychiatric patient while taking his dog for a run in Clifton Hill
in July 1997. [Source]
Sam’s Club, a division of Wal-Mart Stores Inc., is
investigating a security breach that has exposed credit card data belonging to
an unspecified number of customers who purchased gas at the wholesaler’s stations
between Sept. 21 and Oct. 2. In a brief statement released Dec. 2, the company
said it was alerted to the problem by credit card issuers who reported that
customers were complaining of fraudulent charges on their statements. It’s
still not clear how the data was obtained, according to the statement. But “electronic
systems and databases used inside its stores and for Samsclub.com are not involved,”
the company said. Sam’s Club is currently working with both Visa International
Inc. and MasterCard International Inc. to investigate the breach. The company
also has notified the U.S. Attorney’s Office for the Western District of Arkansas
and the U.S. Secret Service. [Source]
Hackers have stolen the personal details of thousands
of donors to Aid to the Church in Need, a Christian charity Web site. The
charity does not yet know how much money the criminals have stolen, but the addresses
of more than 2,000 online donors have been compromised, and the hackers have used
these details to contact the benefactors directly to try to extract more money.
[Source]
MPs are worried that organized criminals have stolen
thousands of staff identities in fraud which forced the closure of the online
tax credit system. Security breaches at the online tax credit service are likely
to be more widespread than first thought as criminals have targeted a group of
13,000 staff in order to use their identities to make fraudulent claims, the
department responsible admitted this week. The Department for Work and Pensions
said that thousands of staff at its Jobcentre Plus offices were targeted by
organized criminals who then used their identities to make fraudulent claims
through the online service, which has remained closed for the past 13 days.
According to official figures, 547,000 claims are made through the website
annually. Staff responsible for handling benefits claims across multiple offices
were targeted. It is thought that the Financial Accounting Management
Information System which covers thousands of staff was attacked by the fraudsters.
[Source]
A new study suggests consumers whose credit cards are
lost or stolen or whose personal information is accidentally compromised face
little risk of becoming victims of identity theft. The analysis, released late
on Wednesday, also found that even in the most dangerous data breaches – where thieves
access social security numbers and other sensitive information on consumers
they have deliberately targeted – only about 1 in 1,000 victims had their
identities stolen. [Source]
A three-judge panel of the U.S. Circuit Court of
Appeals heard arguments last week on tech entrepreneur and Internet freedom
fighter John Gilmore’s challenge to a secret government order forcing airline
passengers to show identification or submit to a pat-down search. Gilmore contends
that the policy violates his right to travel and that the additional search of
those who do not show ID is a form of punishment. [Source]
Sony BMG is rethinking its anti-piracy policy
following weeks of criticism over the copy protection used on CDs. The head of
Sony BMG’s global digital business, Thomas Hesse, told the BBC that the company
was “re-evaluating” its current methods.
A new Italian law requires businesses that offer
Internet access to the public to ask clients for identification and log the
owner’s name and the document type. Internet cafes also must make and keep a
photocopy of the ID and be registered with their local police station, dictates
the law, part of an anti-terror package approved after the July terrorist
bombings in London. Many cafe owners say the law has increased their work load
and decreased their profits. [Source]
The European Parliament adopted new rules drawn up by the
European Union to store phone and Internet data for up to two years. Some EU
lawmakers criticized the assembly saying it had caved in to pressure from
member states, and arguing that the new rules would allow authorities to do what
they wanted with the data. The parliament voted by 378 to 197 with 30 abstentions.
[Source]
[Source] [Source]
[Source]
Nova Scotia NDP House Leader and Justice Critic Kevin
Deveaux is calling on the Minister of Justice, Michael Baker, to release his
Department’s plans for protecting Nova Scotians who have personal information
stored in American data bases – accessible to the FBI under section 215 of the
USA Patriot Act. “Let’s pay attention here,” says Deveaux. “
The Electronic Frontier Foundation and the Canadian
Internet Policy and Public Interest Clinic have joined forces to create Online Rights Canada, a new grassroots organization
focused on technology and information policy issues. ORC is initially focused
on Internet surveillance and copyright reform. One of ORC’s first actions is a
petition drive against unwarranted surveillance law. The petition asks Canadian
lawmakers to protect citizens’ privacy rights when the new government convenes
in 2006. Other important issues for ORC will include copyright law, access to
information, and freedom from censorship. Online Rights Canada is the latest
group to join the global fight for digital rights. Digital Rights Ireland
launched earlier this week, and the Open Rights Group launched in the
A trio of graduate students is alleging in a new
web-based petition that students who surf websites, connect to peer-to-peer
networks or access online services from their dorm rooms are unwittingly
leaving behind a wealth of personal information. The students’ website, www.princetonprivacy.org,
illustrates a property of Dormnet — the service that provides Internet access
to dorm rooms — that allows website operators, both on and off campus, to uncover
such personal information as email, dorm telephone and campus address. [Source]
State lawmakers have crafted a bill that, if passed,
would make New Hampshire the first state in the nation to regulate so-called “spy
chips” in an effort to protect consumer privacy. The full House of Representatives
is scheduled to vote on the measure, House Bill 203, in January. State
lawmakers and advocates say it represents the most complete effort so far among
the states to address the use of radio frequency identification, or RFID,
microchips. One provision would require retailers to inform consumers if a RFID
chip is embedded in a product or its packaging at the time of a sale, giving
buyers the chance to ask to have the chip removed if they prefer. The bill also
would make it a felony to implant human beings with a “spy chip” without their
consent. It would set up a commission to track the technology’s growth and
monitor its affect on individual privacy rights. Four states —
Although a vast majority of Canadians are concerned
about the privacy of their personal information, more than half of Canadian companies
admit confidential and private data is at risk. A survey conducted by Leger
Marketing shows that 55% of companies say customer information is not safe and
secure. The survey also showed that 58% of consumers would immediately
terminate their relationship with a company that compromised the safety of
personal information. These numbers conflict with the 98% of business leaders
who say they believe it is important for companies to ensure private data is
protected. Most companies concerned about security feel the greatest danger rests
in the hands of an uninformed employee, and 46% of business leaders say the
greatest risk comes from the accidental download of viruses, spyware or adware.
[Source]
A new international standard will provide an
international framework and improve the security of information systems has
been launched at a
Security threats soared during 2005, along with the
risk of financial losses, but a new report shows that companies still aren’t
heeding the warnings. According to the State of Information Security 2005
report from PricewaterhouseCoopers and CIO Magazine, not only are
security-related events up 22.4% on last year’s figures, but the number of
organisations reporting financial losses as a result of the attacks is also
surging. Twenty-two% of companies said they had been hit financially, compared with
last year’s 7%. But despite the growing security threat to businesses, only 37%
of respondents have a security plan in place, with only 24% saying that they
expected to develop one in the coming year. However, organisations with a chief
information security officer (CISO) or chief security officer (CSO) fare a
little better, with 62% implementing a security plan. More companies are
employing a CISO or CSO, with 40% of respondents in the survey having one on
the payroll compared with 31% in 2004. Security spending is slightly increasing
to compensate for the growing threat, accounting for 13% of an organisation’s
IT budget this year, compared with 11% last year. Malicious hackers are the top
culprits to carry out the attacks, with 63% of events attributed to them
compared with 66% last year. However, the number of employee-related attacks is
also up, at 33% compared with 2004’s 28%. Former employees remain a likely
source of the security threats, representing 20% of events. Meanwhile, computer
viruses still top the charts as the most common type of attack, rising to 59%
of attacks from 53% the previous year. Privacy issues delivered mixed results,
with 17% of respondents employing a chief privacy officer. More organisations
also said they kept inventory of all third-party use of their data this year
than in 2004 - 26% compared to 16% in 2004. However, some areas received a “could
do better” rating, including posting the organisation policy on the company
website. The number of companies providing employees with privacy training also
slipped from 75% in 2004 to 58%. [Source]
The internet as we know it is set to transform radically,
according to a new ITU Internet Report entitled The Internet of Things,
specially prepared to coincide with the World Summit on the Information Society
(WSIS) in
Satellite television provider DIRECTV will pay
$5,335,000 to settle FTC charges that, since October 2003, DIRECTV and
companies it hired to promote DIRECTV programming have been violating the Do
Not Call provisions of the Commission’s Telemarketing Sales Rule. This is the
largest civil penalty the FTC has ever announced in a case enforcing any
consumer protection law. At the Commission’s request, the U.S. Department of
Justice filed the complaint, which names as defendants DIRECTV, 5 firms that
telemarketed on its behalf, and 6 principals of those telemarketing firms. “This
multimillion dollar penalty drives home a simple point: Sellers are on the hook
for calls placed on their behalf,” said Chairman Deborah Platt Majoras. “The Do
Not Call Rule applies to all players in the marketing chain, including retailers
and their telemarketers.” [Source]
The
The federal government earned a barely passing grade
in enacting meaningful improvements in cybersecurity during the past year, an
industry group announced today. The Cyber Security Industry Alliance (CSIA)
released its report card evaluating the federal government’s progress on 12
recommendations. Congress and the Bush administration received one B, four Cs,
six Ds and an F - a 1.4 average on a 4.0 scale, or a D+. “Cybersecurity research
is in a crisis,” said Paul Kurtz, CSIA’s executive director. “Information
sharing is largely at a standstill. There continues to be a lack of priorities.”
“It’s kind of old that we haven’t been making as much progress for as many
years as we’ve been working on this,” said James Lewis, senior fellow and
director of the Technology and Public Policy Program at the Center for
Strategic and International Studies. Lewis moderated a panel discussion of CSIA
board members who commented on the report card. [Source] [Source]
House and Senate leaders have reached a deal on the
anti-terrorism law approved after Sept. 11. Under the deal, 14 of 16 provisions
would become permanent. However, two controversial measures would expire in
four years - one that would give the FBI broad authority to subpoena business
records and another that would allow law enforcement investigators the power to
tap any telephone used by a suspected terrorist. Opponents have argued that the
law has eroded the privacy and civil liberties of Americans. [Source]
[Criticism]
An unusual bipartisan coalition wants to delay Friday’s
scheduled vote to reauthorize the Patriot Act until privacy protections are
improved, a report said. The coalition of lawmakers and activists urging the
delay is the strongest to lobby Congress on any issue. Up to 41 senators are
willing to block reauthorization of the bill that the Bush administration has
said is vital to its war on terror, the Christian Science Monitor reported.
Many lawmakers were stunned by reports the FBI has issued up to 30,000 “national
security letters” under the Patriot Act. The letters order public and private
entities to turn over people’s personal data and remain silent about it, which
would be subject to judicial review under the revised bill that would extend 14
of the original 16 provisions. Sens. Larry Craig, R-Idaho, and Russell
Feingold, D-Wis., threatened a filibuster if privacy concerns are not met.
Senate and House negotiators said they have come up with a better, not perfect,
Patriot Act with four-year rather than 10-year sunset provisions. [Source]
The GOP-controlled House plans to quickly renew
portions of the USA Patriot Act before they expire at the end of the year. Some
Republicans say the nation’s safety could be endangered if the Senate doesn’t
follow suit. The House on Wednesday was expected to pass a White House-backed
bill that would renew more than a dozen provisions of the Act - the government’s
premier anti-terrorism law - which are due to expire Dec. 31. But saving those
provisions will be more difficult in the Republican-controlled Senate, where
some GOP and Democratic senators are unsatisfied with the compromise bill,
which was worked out last week between key Republicans in the House and Senate.
[Source]
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