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On Monday, U.K.-based digital rights organization Open Rights Group submitted an open letter to major online media players, urging them to prevent ISP-level behavioral targeting firm Phorm from tracking user interactions on their Web sites. The letter, sent to Google, AOL, Microsoft, Facebook, Yahoo, Amazon and Ebay, said, "[ORG] believes that it is clearly in your company's interest, it is in the interests of all of your customers, and it will serve to protect your brand's reputation, if you insist that the Phorm/Webwise system does not process any data that passes to or from your website." "We have received the letter and are giving it careful consideration from privacy and business perspectives," a spokesperson for AOL and its social network Bebo told ClickZ News. Similarly, in reference to the ORG correspondence, a Google spokesperson told ClickZ, "We've received the ORG's letter, but we're still considering the points they raised, so we don't have a response to make at this time." According to information published on the British Telecom Web site (one of Phorm's ISP-partners,) site owners can specifically request that their properties are not "scanned" by Phorm's technology, by contacting the firm directly. Phorm announced deals with three major U.K. ISPs over a year ago, but its technology is still yet to be fully deployed. BT has, however, carried out live trials of the platform with some of its customers. Phorm's CEO, Kent Ertugrul, claims that BT will implement his company's technology by the end of the year, but BT itself remains less committed to that timeline. Both AOL and Google have vested interests in the behavioral targeting space, although not in the controversial area of deep packet inspection (DPI), in which Phorm's technology lies. AOL-owned Tacoda targets ads based on users' activity across a range of partner sites, but does not directly intercept ISP-data. Google also announced this month that it will begin testing similar behavioral targe

"Yahoo released a beta of a tool, Ad Interest Manager, designed to be a transparent user dashboard for privacy. It works. Yahoo has everything from your surfing habits to your operating system to your screen resolution. The tool gives users a one-stop shop to opt out of ad categories (statement). As Yahoo notes on its overview: To make our ads more relevant and useful for you, we make educated guesses about your interests based on your activity on Yahoo!'s sites and services. Some of the ads we show you reflect these interests. You can opt out of interest-based advertising altogether using the tools on this page. Here's what it looks like:"

Profile Optimization True Story: I'm at a party a few months ago - not the usual raucous affair that us search and social media types get into but a full on wine and cheese extravaganza. The kind of shindig Republicans go to and then accuse Democrats of loving when they get up in front of a "Joe the Plumber" type crowd. But I digress… After far too much wine the discussion turned to crazy work environments and I naturally brought up the Fortress of Googletude and it's predilection for hallway scooter parking and riding. A fellow party-go-er who I'll call "Natasha" to protect her identity, nodded and said, 'Yes it's true, I've been there too!" This led to a long, room-clearing talk about search and social media, the kind of talk that true geeks engage in while their spouses go off to chat about politics and religion. Somewhere between bottles Natasha said to me "Have you seen Google People Search?" "Google what now?" I replied. She went on to describe an internally searchable database that the Google folks showed her of people sorted by interests and web habits, ready to be rolled out to advertisers at some point in the future. Thank goodness for the red wine clause in their NDA. Well the future arrived today, at least partially, with Google's announcement that behavioral targeting is being rolled out to the AdWords content network. As the Googlelords put it: "With interest-based advertising, you will be able to reach users based on your past interactions with them, such as their visits to your website. We'll also provide interest categories, such as "sports enthusiasts," so you can reach the audience of your choice. Whether your goal is to drive brand awareness or increase responses to your ads, these capabilities can help expand the success of your campaigns." This is a most effective riposte to the OPA's announcement of new, ludicrous banner ad standards - why futz around with annoying crap no-one will clic

Visit the Amazon.com site to buy a book online and your welcome page will include recommendations for other books you might enjoy, including the latest from your favorite authors, all based on your history of purchases. Most customers appreciate these suggestions, much the way they would recommendations by a local librarian. But, what if you visited an investment site, only to find advertising messages suggesting therapies for your recently diagnosed heart condition? Chances are that you would experience what Fran Maier calls the "creepiness" factor, a sense that someone has been snooping into a part of your life that should remain private. Maier is the Executive Director of TrustE, a nonprofit that sets guidelines for online privacy and awards a seal of approval to companies meeting those guidelines. She was a speaker at the recent Supernova conference, an annual technology event in San Francisco organized by Wharton legal studies and business ethics professor Kevin Werbach in collaboration with Wharton. Creepiness Factor The creepiness factor is a risk inherent in so-called behavioral targeting. This practice is based on marketers anonymously observing a user's behavior on the Internet and compiling a personal profile based on interests and behavior -- sites visited, searches conducted, articles read, even emails written and received. Based on their profiles, users receive advertising targeted specifically to them, regardless of where they travel on the web. Consumer advocates worry that online data collection and tracking is going too far. Marketing executives counter that consumers benefit from seeing advertising relevant to their interests and contend that relinquishing some personal data is a reasonable trade-off for free access to Internet content, much of it supported by advertising.

Last month, the digital advertising industry's use of behaviorally targeted advertising gained a reprieve of sorts when the Federal Trade Commission issued a final report confirming its earlier support of self-regulation. But some commission members remained concerned about ads that are shown to Web users based on their previous online activities, and in particular the possibility of violations of online privacy. Some form of legal restrictions may be imposed on the industry, the FTC indicated, if the online ad industry isn't up to the task of regulating itself. "Privacy is definitely the biggest concern today," said Joe Apprendi, CEO of Collective Media, an online advertising network based in New York. "There has been the concern that through such approaches as deep-packet technology, companies can leverage information through subscriber-based providers to marry anonymous behavioral segment data and identify real people. "The fact is, online advertising is subject to a higher standard that offline direct marketing tactics," Apprendi said. The FTC report, "Self-Regulatory Principles for Online Behavioral Advertising," continues to advocate voluntary industry self-regulation, in keeping with its principles governing online behavioral advertising issued at the end of 2007, despite the urgings of consumer advocacy groups that it impose rules regulating online advertising. The commission's new guidelines are based on four principles: * Transparency and consumer control. The commission advises that Web sites that collect data for behavioral advertising provide "a clear, concise, consumer-friendly and prominent statement" that the data are being collected to provide ads tailored to the user's interests and that the user has an easy and obvious way to choose whether to allow this. * Security for data retention. Companies that collect data for behavioral advertising should provide "reasonable" protection of that information and reta

(March 31, 2009) First Data Corp. announced on Tuesday it will use technology from Inside Contactless, a French chipmaker, for its Go-Tag product, a sticker that can be affixed to mobile phones to make them work like contactless-payment devices. Under the three-year agreement, Inside Contactless will supply so-called prelams, or chip-and-antenna elements, that card manufacturers can use to manufacture the stickers for First Data. Up to now, Go-Tags have been proprietary devices for use in so-called closed-loop networks involving individual merchants, but with Inside Contactless's technology the product will likely be usable by mid-year on the payWave and PayPass contactless platforms operated by Visa Inc. and MasterCard Inc., pending certification on those systems, according to industry sources. A First Data spokesperson will not comment beyond Tuesday's announcement concerning the company's arrangement with Inside Contactless to provide prelams for Go-Tags. In addition, CPI Card Group, a card manufacturer based in Littleton, Colo., last fall said it expected to ship millions of contactless stickers based on prelams from Inside Contactless (Digital Transactions News, Oct. 15, 2008). CPI's customers are financial institutions interested in using the stickers to permit contactless transactions on payWave and PayPass. CPI is a manufacturer of Go-Tags, but will not comment on any plans for that product. First Data's deal with Inside Contactless follows by one day an announcement by Blaze Mobile Inc., an Alameda, Calif.-based provider of applications for mobile devices, that it is introducing a similar sticker that will work on the PayPass platform. The product works with the Blaze Mobile Wallet, a service the 4-year-old company launched a year ago when it was known as Mobile Candy Dish Inc. (Digital Transactions News, April 10, 2008). The stickers link to prepaid accounts managed by MetaBank, a Storm Lake, Iowa-based unit of Meta Financial Group Inc. Devel

Google has moved forward the debate about privacy and Internet advertising, in its typical way, with deceptively simple engineering and a willingness to impose its way on others. On Wednesday, Google became the last of the big advertising companies to start keeping track of where Internet users surf online so ads can be shown to people based on what they might be interested in buying. In its approach to ad targeting, the company is responding to calls by the Federal Trade Commission and others to be more clear with users' information and control over the information it collects. It has created a window into part of its database, so users can see that Google has deduced that they are interested in "Anime & Manga" comics, or "Alternative-Punk-Metal" music or travel to Afghanistan. (Yes, those are on its list of 600 interest categories.) It also built technology to allow your browser to remember that you don't want Google (or its DoubleClick unit) to remember anything about you. It is more robust than the opt-out system used by many companies that rely on cookies in browsers. These are technical feats that other ad companies said would be too hard.

Concerned that Google knows too much about you? The company provides many ways to protect your privacy online -- you just need to find them. Here are six good ones. 1. Know your privacy rights: Use the Google Privacy Center. This site includes all of Google's privacy policies, as well as privacy best practices for each of its products and services. Although the "legalese" of privacy policies can be difficult to understand, Google's Privacy Channel offers a library of short YouTube videos with practical tips on protecting your data when using Google products and services. Try the "Google Search Privacy" and "Google Privacy Tips" series. 2. Protect your content on the services you use. Some content that Google stores for you, such as photos uploaded in Picasa Web Albums, are public by default. You can protect your privacy when you upload photos by choosing the appropriate checkbox. Choices include "unlisted" (accessible only if you have the Web link, and not indexed by Web search engines) or private (viewable only by named users who must sign in). Another example: You can take a Google Chat "off the record" if you don't want the instant messaging transcript stored. In contrast, Google Latitude, which tracks your whereabouts by way of GPS-enabled cell phones, does not share your location data by default. You must authorize others to see it. Latitude stores your last known location, but not your history. 3. Turn off the suggestion feature in the Chrome browser. By default, Chrome retains a history of Web sites you've visited -- and the full text of those pages -- so it can try to guess which Web address you want as you type in the "Omnibox." You can turn the feature off by going to "Under the Hood" under Options and unchecking the "Use a suggestion service" box. You can also select other privacy options, including surfing in Chrome's "incognito" mode. 4. Turn off Web History. You may have turned on the Web History option, also called Personalized Search, when yo

Google will unveil new privacy measures today that will give consumers more control over behavioral targeting. Now, when Google serves banner ads on outside publishers' sites, the ads will include links that provide more information explaining why they were served. Clicking through will lead to details about the company's behavioral advertising program, which categorizes consumers as interested in particular types of goods or services based on the sites they visited. The program is only in beta for now, but once Google signs up publishers, consumers will be able to view the categories they have been placed in--such as "interested in travel"--and also tell Google to remove them from whatever buckets they wish. Consumers also will be able to opt out of the program permanently via a browser plug-in. Or, if people want to receive ads for certain types of products, they can edit their profiles to reflect that--in effect, opting in to particular types of ads. Google's new measures come at a time when online behavioral targeting is facing increased scrutiny. Last month, two Federal Trade Commissioners warned that the online advertising industry could face new laws if it didn't take steps to self-regulate on privacy issues. Recently, Google rival Yahoo announced enhancements to its privacy policies. Among other changes, Yahoo said it would allow consumers to opt out of behavioral targeting on its own site. Google's move drew praise from the Interactive Advertising Bureau's Mike Zaneis, vice president for public policy. "It's really a consumer empowerment tool, which is great," he said. "It's one more example of how industry is competing on the privacy issue, to the benefit of consumers--and also to the benefit of businesses."

It's often the security issue that dogs Google, Microsoft and other purveyors of personal health records (PHR): How will so much personal medical data be kept safe? A tangential question for Google, however -- one that has dogged the search giant since its Google Health offering was first made available in May 2008 -- is whether Google's search-based advertising platform creates a conflict with storing personal health data. Speaking at the Mastermind Session at Everything Channel's Healthcare Summit in San Diego in November,Google Vice President of Research and Special Initiatives Alfred Spector told health care CIOs, solution providers and other attendees that Google intended Google Health as an extension of the Google brand, and it was and would continue to be entirely separate from Google's main advertising platform. Watchdog organizations have taken Google to task over that claim, however, with one, Consumer Watchdog, even accusing Google of trying to lobby Congress to allow it to sell medical records by loosening regulatory language in the stimulus bill. "The medical technology portion of the economic stimulus bill does not sufficiently protect patient privacy, and recent amendments have made this situation worse," wrote Jerry Flanagan of Consumer Watchdog in a Jan. 27 open letter to Congress. "Medical privacy must be strengthened before the measure's final passage, rather than allowing corporate interests to take advantage of the larger bill's urgency." Flanagan in the letter states that, "Google is said to be lobbying hard ... to weaken the ban currently in the draft measure on the sale of our private medical records." While Consumer Watchdog did not cite specific evidence of Google pushing for softer restrictions, Google responded to the group's claims on its Public Policy Blog last week. "The claim -- based on no evidence whatsoever -- is 100 percent false and unfounded," wrote Pablo Chavez, Google's Senior Policy Counsel. "Google does not sell health

"The attempted attack on a Detroit-bound flight last week, along with the events preceding and following it, has provided a snapshot of the ongoing struggle to balance civil liberties and national security. President Obama on Tuesday admitted a "systemic failure" on multiple levels in the run-up to the attempted bombing. Suspect Umar Farouk Abdulmutallab was in a terror database of more than a half-million people but was not on a "no-fly" list. The administration has initiated a review of airport security and the watch-list system in the wake of the failed plot. But so far, analysts say what happened is emblematic of the struggle between privacy and security interests. "It's just (an) inability to understand the right way to strike the balance that's at fault," said constitutional attorney David Rivkin. Airlines don't have access to the government's comprehensive terrorist database. They screen travelers based on the smaller, "no-fly" list."

Perhaps this is more a question of trust (not privacy) versus security. Do we really trust our government and its agents to handle private information securely?

The US government has now adopted a policy of fostering the adoption of electronic medical records (EMR). The policy is intended to increase the efficiency of the US healthcare system, thereby lowering costs and reducing the incidence of preventable errors. At the same time, through its The Health Insurance Portability and Accountability Act (HIPAA) privacy rules, the government has set minimum standards for the security of those records. These two goals-privacy and security of these records, along with their free interchange among medical providers-can easily wind up at odds with each other. A recent study that looked at the role of state privacy laws in EMR adoption suggests that the problem is very real, as state privacy laws seem to inhibit the use of EMR by hospitals located there. The authors, based at MIT and the University of Virginia, line up a variety of data that validate their suggestion that privacy and the use of EMR may require a careful balance. So, for example, they cite some highly publicized lapses when it comes to the maintenance of patient privacy: someone once offered the records of 200,000 patients for sale on Craigslist, while hospitals have seen their own employees attempt to get at the electronic files of famous patients. Perhaps more significantly, the authors suggest that the public, as represented by their legislators, has concerns about the privacy of EMR. They found that states that have passed their own privacy laws to supplement the HIPAA rules tend to have a higher percentage of their populace signed up for the Do Not Call Registry, indicating a corresponding individual-level interest in maintaining privacy. So, they looked at whether these laws had any impact on the adoption of EMR by hospitals located in each state.

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A National Security Agency eavesdropping program exceeded legal limits intended to safeguard privacy, and officials have taken steps to bring the intercepts program into compliance, the Justice Department said Wednesday. The department, in a statement, said problems with the NSA program were uncovered as the Justice Department and National Security Agency were conducting routine oversight of intelligence activities to ensure compliance with laws and court orders. Attorney General Eric Holder has sought court approval to renew the NSA program after instituting new safeguards. The House intelligence committee was informed of the compliance issues and is conducting an inquiry, a House congressional official said. The New York Times on Wednesday reported on its Web site that the program intercepted private email messages and phone calls of Americans. However, intelligence officials have described the program as primarily searching for information based on data about communications, such as email addresses, subject headers and the time a message or phone call was placed. The Justice Department said officials notified the Foreign Intelligence Surveillance Court of the problems with the NSA program and took "comprehensive steps" to correct the matter. "The Justice Department takes its national security oversight responsibilities seriously and works diligently to ensure that surveillance under established legal authorities complies with the nation's laws, regulations and policies, including those designed to protect privacy interests and civil liberties," the department said.

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Facebook has been in the news a lot lately, and that's not good news for Chris Kelly, who is the chief privacy officer for Facebook, and - as we've reported - is quietly exploring a possible run for the Democratic nomination for state attorney general. Kelly was at the center of a firestorm this week regarding changes in Palo Alto-based Facebook's terms of service, which critics argued gave the social-networking site control over members' uploaded material, including photos, seemingly forever. On Wednesday, Kelly told CNN that the company will listen to complaints. The company's official blog now outlines how it has pulled back but Facebook has faced other problems that could hamper Kelly's efforts to run for a California political post. Last year, as Cnet reported, the firm reached an agreement with New York Attorney General Andrew Cuomo after an investigation of complaints that Facebook hadn't addressed consumers' complaints of "harassment and inappropriate conduct" regarding underage members. Facebook officials have said they are cooperating with law enforcement to protect their users from predators. But with the Democratic AG race already looking crowded - with San Francisco District Attorney Kamala Harris and Los Angeles City Attorney Rocky Delgadillo in the mix, among others - Democratic consultants are watching with great interest. Poke this, friends: Could this be the juicy stuff of television ads in a Democratic law-and-order race in California?

Cloud services are now vulnerable to malicious use, a security company has suggested, after a techie worked out how Amazon's EC2 service could be used as a BitTorrent file harvester and host. Amazon's Elastic Compute Cloud (EC2) is a web service software developers can use to access computing, compilation and software trialling power on a dynamic basis, without having to install the resources locally. Now a developer, Brett O'Connor, has come up with a step-by-step method for using the same service to host an open source BitTorrent application called TorrentFlux. Getting this up and running on Amazon would require some technical know-how, but would be within the reach of a moderately experienced user, right down to following O'Connor's command line low-down on how to install the public TorrentFlux app straight to Amazon's EC2 rather than a user's local machine. Finding an alternative way of using BitTorrent matters to hardcore file sharers because ISPs and admins alike are increasingly keen to block such bandwidth-eating traffic on home and business links, and O'Connor's EC2 guide was clearly written to that end - using the Amazon service would make such blocking unlikely. "I created a web-based, open-source Bittorrent 'machine' that liberated my network and leveraged Amazon's instead," says O'Connor. He then quips "I can access it from anywhere, uploading Torrent files from wherever, and manage them from my iPhone." However, security company GSS claims the guide shows the scope for possible abuse, using EC2 to host or 'seed' non-legitimate BitTorrent file distribution. "This means, says Hobson, that hackers and other interested parties can simply use a prepaid (and anonymous) debit card to pay the $75 a month fee to Amazon and harvest BitTorrent applications at high speed with little or no chance of detection," said David Hobson of GSS. "The danger here is that companies may find their staff FTPing files from Amazon EC2 - a completely legitimate domain -

Symantec may not be concerned about the much-discussed Conficker virus, but the company is now dealing with an incident involving its own data security. Two weeks ago, the BBC published an investigative report in which reporters, working with an India-based middleman, bought credit-card information obtained from a Symantec call center. Cris Paden, a spokesman for the Cupertino, Calif., security-software firm, said it sent warning letters to the slightly more than 200 customers affected by the theft. It began an internal investigation immediately after being notified by the BBC. "We believe this was an isolated incident," Mr. Paden said, "but as the investigation continues, we will promptly notify any additional customers affected by the situation and will take appropriate action to protect their interests." In a letter to New Hampshire's attorney general, Symantec said, "We have no evidence that the credit card information of any United States resident was actually compromised." Mr. Paden added that to his knowledge, none of the stolen credit cards were used before their owners canceled them.

A third (34 per cent) of discarded hard disk drives still contain confidential data, according to a new study which unearthed copies of hospital records and sensitive military information on eBayed kit. The study, sponsored by BT and Sims Lifecycle Services and run by the computer science labs at University of Glamorgan in Wales, Edith Cowan University in Australia and Longwood University in the US, also found network data and security logs from the German Embassy in Paris on one purchased drive. Researchers bought 300 drives from eBay, other auction sites, second-hand stalls and car boot sales. A disk bought on eBay contained details of test launch routines for the THAAD (Terminal High Altitude Area Defence) ground to air missile defence system. The same disk also held information belonging to the system's manufacturer, Lockheed Martin, including blueprints of facilities and personal data on workers, including social security numbers. Lockheed Martin denies that the disk came from it. The arm manufacturer has launched an investigation that aims to uncover just how the sensitive data might have been wound up on the disk. Two discs bought in the UK apparently came from Lanarkshire NHS Trust, including patient medical records, images of X-rays and staff letters. Lanarkshire NHS Trust runs the Monklands and Hairmyres hospitals. In Australia, the exercise turned up a disk from a nursing home that contained pictures of actual patients and their wound photos, along with patient details. A hard disk from a US bank contained account numbers and details of plans for a $50bn currency exchange through Spain. Details of business transactions between the bank and organisations in Venezuela, Tunisia and Nigeria were also included. Correspondence between a member of the Federal Reserve Board and the unnamed banks revealed that one of the deals was already under scrutiny by the European Central Bank, and that federal investigators were also taking an interest. Yet anothe

On Friday, Brunswick, Maine-based heating and hardware firm Downeast Energy & Building Supply sent a letter notifying at least 850 customers that the company had suffered a data breach. Downeast sent the notice after discovering that hackers had broken in and stolen more than $200,000 from the company's online bank account. The attack on Downeast Energy bears all the hallmarks of online thieves who have stolen millions from dozens of other businesses, schools and counties over the past several months. In every case, the thieves appeared more interested in quick cash than in pilfering their victims' customer databases. Nevertheless, the intrusions highlight an additional cost for victims of this type of crime: complying with state data breach notification laws. "This is something new to us, fortunately, but we have responsibilities under Maine statute to report these things to our customers and employees," said the company's president, John Peters, in an interview with Security Fix. At least 44 other states and the District of Columbia have similar data breach notification laws. Sometime prior to September, attackers planted keystroke logging malware on Downeast's computer systems, and stole the credentials the company uses to manage its bank accounts online. Then, on or around Sept. 2, the hackers used that access to initiate a series of sub-$10,000 money transfers out of the company's account to at least 20 individuals around the United States who had no prior business with Downeast Energy. This type of crime is impossible without the cooperation of so-called "money mules," willing or unwitting individuals typically hired via Internet job search Web sites to act as "local agents" or "financial agents" responsible for moving money on behalf of a generic-sounding international corporation, legal experts say.The mules are then instructed to withdraw the cash and wire it via Western Union or Moneygram to fraud gangs overseas, typically in Eastern Europe.