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The software vendor's commissioned research will be revealed during a panel discussion with leaders from the California Office of Privacy Protection, Intel, and MySpace. Wednesday, Jan. 28, 2009, is Data Privacy Day, and to mark the occasion, Microsoft is participating in a panel discussion in San Francisco with privacy experts from the California Office of Privacy Protection, the Center for Democracy and Technology, Intel (NSDQ: INTC), and MySpace. Better this week than last, when Heartland Payment Systems and Monster.com disclosed major malware-driven data breaches that promise privacy headaches or worse for affected account holders. It is such incidents that worry Peter Cullen, Microsoft (NSDQ: MSFT)'s chief privacy strategist, because of the impact they can have on consumer trust. "Trust is becoming increasingly important," he said. That's why Data Privacy Day exists. Microsoft and other organizations recognize that without trust, the online economy only gets worse for everyone. Cullen explained that Data Privacy Day represents a global opportunity for organizations and individuals to come together to discuss how to better educate consumers about data privacy issues. One way to advance the discussion, Cullen said, was to commission some research, which Microsoft did in two cities, in California and Texas. "We wanted to understand how different segments of consumers, from teens to professionals to boomers, thought about privacy," he said. "There were some rather interesting results that came out of this." "Our hypothesis is that across these three segments, there would be different ways of thinking about these things," said Cullen. "We were really surprised to learn there's a large degree of similarity in the way people think about privacy."

In honor of this day, the California Office of Privacy Protection--the first governmental privacy office in the nation--has created a presentation which you can download from their Web site at www.privacy.ca.gov. It's called "Secure Your Computer to Protect Your Privacy," and it explains why computer owners should use Internet firewalls, install and maintain anti-virus and anti-spyware software, and keep their operating systems and applications up to date to protect themselves from malicious attacks. The state privacy office offers lots of other information on how Californians can protect themselves and their data. You can visit their Web site, call them toll-free at (866) 785-9663, or go Wednesday at 5:30 p.m. to the main San Francisco Public Library, where Joanne McNabb, the state's privacy chief, is scheduled to appear on a panel with representatives from Microsoft, Intel, the Center for Democracy and Technology, MySpace and Teen Angels. The panel is free and is part of an international effort to raise awareness about privacy practices and privacy rights

New Englanders have a reputation for being taciturn, but when it comes to data Massachusetts takes the cake. No state loves its privacy more than the Bay State, which last year passed the nation's most exacting data privacy law, requiring companies to check off a honey-do list of steps designed to protect personal data belonging to commonwealth residents. Connecticut and Rhode Island preceded Massachusetts in joining the minority of states that have enacted proactive data privacy laws, requiring businesses to protect information like Social Security and credit card numbers. Maine, Vermont and New Hampshire, like nearly all states, have only reactive data laws, requiring companies to take certain steps - like reporting a breach to authorities - after data has been compromised. Rhode Island's law, passed in 2006, requires businesses that own or license Rhode Islanders' personal information to "provide reasonable security" for that data. Connecticut's law, passed shortly before Massachusetts enacted data privacy legislation last summer, requires businesses to create and publicly display a data protection policy, but does not specify what that policy should entail. The Connecticut and Rhode Island laws stop far short of the controversial requirements in Massachusetts, where new regulations are scheduled to take effect by January 2010. "They're not technically one-liners, but they're very general," Goodwin Procter LLP partner David Goldstone said of the Connecticut and Rhode Island statutes, which are similar to laws passed in Texas and California. "Essentially they say companies have to have reasonable protections in place."

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Heartland Payment Systems CEO discusses breach, previews speech Not a week had passed after the announcement of what some have described as the largest data breach ever, when the CEO of Heartland Payment Systems, Robert Carr, began calling for better industry cooperation and new efforts directed at preventing future breaches. Recently, Carr announced that trials will begin late this summer on an end end-to-end encryption system Heartland is developing with technology partners. It is expected to be the first system of its kind in the U.S. The company is also pushing for an end-to-end encryption standard. At the upcoming Practical Privacy Series in Silicon Valley, Carr will discuss the Heartland breach and the role industry, including privacy professionals, must play to prevent future breaches. Here's a preview: IAPP: Many companies have experienced breaches. What made yours different? Ours was different because we are a processor and had passed six years of PCI audits with no problems found. Yet, within days of the most recent audit, the damage had begun. IAPP: Did you have a chief privacy office or a privacy professional on staff before your breach? Do you now? Ironically, when we learned of the Hannaford's breach, we hired a Chief Security Officer who started just three weeks before the breach began. IAPP: In the era of mandatory breach reporting, what is the trajectory of consumer reaction? As a processor it is difficult to really know this. Our customers are merchants who accept card payments. IAPP: Do you think consumers will become numb to breach notices? I believe that many are numb to so many intrusion notices. IAPP: Are breach notices good public policy? Do the notices provide an incentive for companies to change or improve practices? I don't think so. Nobody wants to get breached and the damage caused by a breach is sufficient reason for most of us to do everything we can to prevent them. IAPP: What has Heartland done differentl

The problem with securing data and insuring its safety is that there is simply so much more stored electronically these days that opportunities for outside hackers or insiders to steal valuable, confidential information off a company's computer systems are growing exponentially, according to those in the insurance industry who make it their business to cover this expanding exposure. Indeed, "you can take out more data in a thumb drive now than people could take out in a super-computer 10 years ago," according to Kevin Kalinich, co-national managing director for Professional Risk Solutions at Aon. The risk of a data breach is very real for companies large and small across almost any industry, noted Mr. Kalinich. He cited a report from the University of California, Berkeley, that more data has been aggregated and stored in the last three years than in the entire history of mankind. He also noted that between 75 and 85 percent of Fortune 2000 companies have suffered a "material data breach," meaning there is a growing market for those selling insurance coverage for liability and repair costs, as well as loss control services. Companies that take an "it won't happen to me" approach to securing data need only look at news headlines to see that organizations are often hit by breaches, and as more data is being stored electronically, the potential for, and impact of possible breaches increase. Princeton, N.J.-based credit and debit processing company Heartland Payment Systems reported that it had been compromised in 2008 in a breach that involved up to 100 million records, which would be tops for number of records accessed in a breach. The Heartland incident would displace the 2007 breach of TJX, in which over 45.6 million credit and debit card numbers were stolen. The TJX breach, in turn, took the record set by a breach of CardSystems Solutions in 2005.

"The Electronic Frontier Foundation said it sued the Justice Department and other U.S. agencies to get information about their policies for using social networks including Facebook and Twitter in investigations, data collection and surveillance. The civil rights group said in a complaint filed yesterday in federal court in San Francisco that the government has used social-networking sites in conducting investigations and hasn't clarified the scope of that use or whether there are any restrictions or oversight to prevent abuses. The EFF said in its complaint that it is seeking the information to "help inform Congress and the public about the effect of such uses and purposes on citizens' privacy rights and associated legal protections." It cited news articles that reported police searching Facebook photos for evidence of underage drinking and an FBI search of an individual's home after the person sent messages on Twitter during the G-20 Summit notifying protesters of police movements. Facebook, based in Palo Alto, California, is the world's largest social networking site with more than 300 million users who post photos, messages and other information on their own free Facebook pages. Twitter, based in San Francisco, is a free Web service with 58 million users that lets people send 140- character messages, called "tweets," to multiple followers. EFF, also based in San Francisco, filed Freedom of Information Act requests with federal agencies in October. None of the agencies had completed processing the requests by the applicable 20-day deadline, according to the complaint. The lawsuit seeks a court order for the government to process the requests and produce documents."

Hackers, possibly from Asia, have stolen about a decade's worth of personal information on current and former UC-Berkeley students, the university announced Friday. The breaches involved records dating to 1999 at the school's health center that included Social Security numbers, health insurance information, immunization history and the names of treating physicians. No other treatment-related records were stolen, the university said, although self-reported medical histories of students who studied abroad were hacked. The school on Friday sent e-mails and letters to 160,000 people, including about 3,400 Mills College students who used or were eligible for University of California-Berkeley medical services. About 97,000 people are most at risk because their names and Social Security numbers could be connected by the hackers, said Steve Lustig, the university's associate vice chancellor for health and human services. "What's been taken is bits of data that the thief might put together into an identity," he said. The university traced the hackers back to Asia, possibly China, but the exact origin could not be pinpointed. UC and FBI investigators are probing the breaches, which apparently occurred over several months. An FBI spokesman said the agency was informed of the hacking immediately, but declined to provide more information. The thefts were discovered about a month ago, but system administrators did Advertisement not realize the breadth of the attack until April 21. The hackers disguised their work as routine operations and then left taunting messages for UC-Berkeley employees, said Shelton Waggener, the university's associate vice chancellor for information technology. The thieves accessed the information through the university Web site, he said. "You should think of it as a public building," Waggener said. "They got into the building properly, but then they broke into secure areas." Administrators at Mills College, which contracts with UC-Berkeley for