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"Got an e-mail list of customers or readers and want to know more about each - such as their full name, friends, gender, age, interests, location, job and education level? Facebook has just the free feature you're looking for, thanks to its recent privacy changes. The hack, first publicized by blogger Max Klein, repurposes a Facebook feature that lets people find their friends on Facebook by scanning through e-mail addresses in their contact list. But as Klein points out, a marketer could take a list of 1,000 e-mail addresses, either legally or illegally collected - and upload those through a dummy account - which then lets the user see all the profiles created using those addresses. Given Facebook's ubiquity and most people's reliance on a single e-mail address, the harvest could be quite rich. Using a simple scraping tool, a marketer could then turn a list of e-mail addresses into a rich, full-fledged set of marketing profiles, with names, pictures, ages, locations, interests, photos, wall posts, affiliations and names of your friends, depending on how users have their profiles set. Run a few algorithms on that data and you can start to make inferences about race, income, sexual orientation and interests. While that information isn't available for all users, Facebook changed its privacy settings in early December so that certain information can't be made private, including one's name, current city, profile picture, gender, networks and friend list (the latter can be somewhat hidden from public view). Anyone with your e-mail address can harvest that information, the company admits."

Probably not limited to FaceBook

Federal Trade Commission staff today issued a report describing its ongoing examination of online behavioral advertising and setting forth revisions to proposed principles to govern self-regulatory efforts in this area. The key issue concerns how online advertisers can best protect consumers' privacy while collecting information about their online activities. Over the last decade, the FTC has periodically examined the consumer privacy issues raised by online behavioral advertising - which is the practice of tracking an individual's online activities in order to deliver advertising tailored to his or her interests. The FTC examined this practice most recently at its November 2007 "Behavioral Advertising" Town Hall. The following month, in response to public discussion about the need to address privacy concerns in this area, FTC staff issued a set of proposed principles to encourage and guide industry self-regulation for public comment. Today's report, titled "Self-Regulatory Principles for Online Behavioral Advertising," summarizes and responds to the main issues raised by more than 60 comments received. It also sets forth revised principles. The report discusses the potential benefits of behavioral advertising to consumers, including the free online content that advertising generally supports and personalization that many consumers appear to value. It also discusses the privacy concerns that the practice raises, including the invisibility of the data collection to consumers and the risk that the information collected - including sensitive information regarding health, finances, or children - could fall into the wrong hands or be used for unanticipated purposes. Consistent with the FTC's overall approach to consumer privacy, the report seeks to balance the potential benefits of behavioral advertising against the privacy concerns it raises, and to encourage privacy protections while maintaining a competitive marketplace. The report points ou

The row over the changes Facebook made to its terms has thrown the light on the rights people surrender when they sign up to use a website. It is likely though that until the row over Facebook's Terms and Conditions went public, few people knew what rights sites claim over the content that their members upload and share. "Less than 25% of users are making a specific point of going to the privacy settings and making changes," said Simon Davies, head of digital rights group Privacy International. Most, he said, are so keen to get using a site after registering that they do not take time to learn what will happen to any data that they are surrendering. Only later do they go back and adjust what happens to their data. "A lot of sites do have strong privacy controls," said Mr Davies. Tweaking these settings can help cut down on how much of a person's data is distributed. "It can make a difference," said Mr Davies, "particularly if the default is set in terms of maximum information flow." Blogger Amanda French looked through the pages where sites such as Facebook, MySpace, Flickr, YouTube and others spelled out their policies with regard to the data that members upload. Although the wording was different, she found that sites such as MySpace, Yahoo, Google and Twitter explicitly backed away from claiming ownership over uploaded content. A brief survey of Europe's Top 5 social sites found a similar situation. The text of the terms available on the UK sites of Facebook, Bebo, MySpace, Friends Reunited and Windows Live all back away from claiming ownership. By contrast, she wrote, the changes Facebook made to its terms were "extraordinarily grabby and arrogant".

Online fraud is a $4 billion dollar a year industry. It grows as the unemployment rate increases and the jobless attempt to earn a living through whatever means necessary. Meanwhile, the Internet's footprint on the global economy and culture becomes larger every day. The expansion of fraud and the identification of this risk will create more jobs in the fields of compliance, risk management, and best practices. Who will fill these positions? For many companies looking to take action, the initial move will be to consolidate roles. Individuals in areas such as sales and marketing will absorb fraud identification, reporting, and prevention responsibilities. This will prove to be ineffective for the following reasons: 1. The sales and marketing staffs are not trained to identify fraud and they cannot keep up with the ever-changing tactics. 2. Associates are conflicted when faced with a fraud incident. They are not motivated to report fraud and their compensation structure dissuades them from reporting incidents. 3. Business goals are not aligned appropriately, which naturally moved fraud last on the priority list for the associates assigned the additional responsibilities. 4. While the internal attempt is made, no time is spent on partner due diligence and monitoring. Organizations will benefit in the long term by hiring dedicated staff. This tactic is one component of my company's Best Practice approach to doing business. My dedicated team helped realign business goals and create a culture that now embraces a higher set of standards and expectations. Staffing and training were the largest challenges I have faced in the last year. The positions were new, the skill set was specific, and as a result we received a dichotomous set of resumes. Applicants with online marketing experience had little to no experience with fraud, or they came from companies where more unscrupulous methods were used, and I was not confident those habits would be easily kicked. The app

Data classification is a cornerstone of good privacy & security management. If you can measure it, you can manage it, right? First you have to know where it is.

Why classify data? Classifying data can help make data more accessible (or less accessible) to the users in your environment who need it. For example, suppose the Human Resources department created a folder on the file server within their department called Litigation. In this folder they place files that are needed for any litigation the company is associated with. The permissions on the folder are configured so that HR employees can edit the contents of the folder and add documents. Senior management can read the documents in the litigation folder, and the HR manager can remove documents that are no longer needed. The question is, how is it determined that a document is no longer needed and how do we apply these criteria to existing files in such a way that minimizes user interaction with them? The new classification feature in Windows Server 2008 R2 makes it possible to automatically assign classification information to files on file servers and apply policy to them based on that information. Classification in Windows Server 2008 R2 consists of several elements: properties, rules, and a policy segment including reporting and file management. Properties are the fields that you wish to assign a value for, and the rules are the criteria that set these values. There are other methods of classification available as well, including applications and scripts. More detailed examination of the methods of configuring the File Classification Infrastructure will follow in a future post. For the above example, a rule would be used to label a set of files in the Litigation folder. Adding a label such as Litigation-Case Number X (where X is the number of the case) can allow easy organization of files for each litigation case. When the classification rule is run against the specified folder, all files meeting the rule conditions would be classified with an appropriate label. You could use an expiration date here, but doing that might require reclassification of files if the ex

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

The owner of a website onto which a purportedly stolen Goldman Sachs Group Inc computer code was downloaded has declined to say whether or not other people accessed the code while it was on the site. Roopinder Singh, who runs file storage website xp-dev.com, told Reuters in London on Friday that computer files show whether or not the valuable code -- which U.S. prosecutors have charged former Goldman employee Sergey Aleynikov with stealing -- was viewed by others, but he declined to say what they show due to the scale of the case. According to Singh, accounts at xp-dev.com initially have a privacy setting that only lets the user see them. However, users can change that setting to allow other people to view files. "Private is the default," he said. "You then have the option ... You can explicitly either share it (or keep it private)." He declined to say what the settings on Aleynikov's account were.

Opinion: Privacy columnist Jay Cline says the time is ripe for a global privacy standard to replace the hodgepodge of privacy principles that multinational businesses must cope with. The first step is to agree on what privacy really means. Whenever I've mentioned to chief privacy officers the idea of having a single set of privacy rules for their companies to abide by worldwide, their response has been unanimous: Bring it on. Why? The legal and technical costs of complying with an expanding patchwork of state, federal and foreign privacy laws are mounting for multinationals. Having one set of rules would improve the bottom line. Data-protection commissioners from many world governments are singing the same tune. At a November conference in London, they issued a communique urging the United Nations to launch an international privacy convention toward this end. > You and I as customers and employees would also benefit from one set of rules that we could come to know and understand - instead of the vast array of obtusely worded privacy notices that we see on Web sites and find in our mailboxes. It's hard to imagine a major constituency, outside of the Idaho and Michigan militias, that would be against the concept of a global privacy agreement, if it was properly worded. So, what's the holdup?

"The U.S. Supreme Court Monday will hear arguments for and against the constitutionality of the oversight board established to monitor public company financial activity as part of the Sarbanes-Oxley regulation. The Sarbanes-Oxley Act was created and enacted into law partly in response to corporate accounting scandals such as Enron and WorldCom. The regulatory standard set out to reduce such fraudulent financial activities and provide an oversight mechanism for public companies. Part of the law includes the establishment of the Public Company Accounting Oversight Board (PCAOB), which consists of five members appointed by the Securities and Exchange Commission (SEC). The arguments to be heard this week relate directly to the PCAOB. While set up to regulate financial accounting at companies, those opposed to the board's powers argue that because its members are not appointed by the president, the board's control is unconstitutional based on the country's tenets of three branches of government. The challengers to the law say that the PCAOB lacks the presidential control required for executive branch agencies because the five members are appointed by the SEC, which doesn't fall under presidential powers. As a private agency in essence, the PCAOB is able to act as a government authority, which the Free Enterprise Fund believes to be unconstitutional. "

"A New York Times article recently charted out Facebook's privacy settings and found 50 settings and over 170 options for managing privacy, she said. The chart also points out that at 5,830 words, Facebook's privacy policy is longer than the 4,543-word count of the United States Constitution ."

Seems more leadership on privacy comes from Canada than D.C.

Cable operators will sit in the hot seat Thursday as Congress reviews their plans to roll out targeted advertising amid fears that consumer privacy could be infringed if the companies were to track and record viewing habits. The House subcommittee on Communications, Technology and the Internet will hold a hearing that will look at new uses for digital set-top boxes, the devices that control channels and perform other tasks on the TV screen. Cable TV companies plan to use such boxes to collect data and direct ads more targeted to individual preferences. "We have recently called on Congress and the Federal Trade Commission to investigate cable's new interactive targeted TV ad system on both antitrust and privacy grounds," said Jeff Chester, executive director of the Center for Digital Democracy. He's concerned about Canoe Ventures, a consortium formed by the nation's six largest cable companies to oversee the rollout of targeted and interactive ads nationally. Chester worries that Canoe will track what consumers do in their homes. Currently, cable companies aim their ads based strictly on geography. Now, cable's goal is to take the Internet's success with targeted ads and transfer that to the TV medium. Thus, a household that watches a lot of Nickelodeon and the Disney Channel eventually could be targeted for theme parks promotions. This type of targeting is something broadcast TV can't do. For starters, Canoe plans to offer ads this summer that consider demographic factors such as age and income. Philadelphia-based Comcast Corp. and Cablevision Systems Corp. of Bethpage, N.Y., also have been testing or rolling out targeted ads outside the consortium. But cable operators are wary about being seen as trampling on consumer privacy and reiterate that they don't plan to target based on any personally identifiable information, such as someone's name and address. Canoe said it doesn't have plans this year to use set-top box data for ads. Instead, the first ads it pl

With the nation's strictest data security law set to take effect Jan. 1 in Massachusetts, mobile phone merchant Dennis Kelly plans to parlay the regulations into a competitive advantage. Kelly will display signs at each point-of-sale device inside 28 Wireless City shops, of which he is co-owner, stating that the company complies with the state's new mandate and that protecting customers' personal information is a company-wide priority. He says that as his business has grown in a few short years, adhering to the new requirements - namely, establishing an official information security policy and deploying more stringent access control solutions - was necessary, regardless of the impending legal obligation. And now he wants to show that investment off. "We can set ourselves apart from competitors by communicating that we take this stuff seriously," he says. "I think we will be somewhat unique in that regard." Kelly's take on the regulations - the first time any state has issued such a comprehensive and prescriptive list of measures that must be taken to protect data - appears to be in direct contrast to most other business owners across the Bay State.

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The US Department of Justice has asked for yet another extension to the judicial oversight of Microsoft's antitrust compliance in order to give the company more time to update its technical documentation. The original judgment had already been extended once to late 2009, but now the DOJ wants it extended again for another 18 months. The sanctions on Microsoft, which were agreed to in 2002 and originally set to expire in November 2007, are aimed at preventing the company from retaliating against hardware vendors that ship computers with alternatives to Microsoft's software products. An additional set of sanctions mandating interoperability API licensing had already been extended for another two years. When it came time for the decree to be lifted, however, Judge Colleen Kollar-Kotelly decided that Microsoft failed to provide protocol specification documents to competitors as required by the agreement. Because of this, she extended the oversight until November of 2009. In a document filed with Judge Colleen Kollar-Kotelly on Thursday, the DOJ requested another extension to her oversight of Microsoft's antitrust settlement, apparently because it feels Microsoft still has a ways to go before meeting the requirements. At the same time, a joint status report from Microsoft and the plaintiffs states that all parties seem to think that things are almost ready. "It is clear to Plaintiffs that Microsoft has made substantial progress in improving the technical documentation over the last two years," reads the report. "While the entire project has taken longer than any of the parties anticipated, the project is nearly complete." The request marks a reversal of the DOJ's previous position that it took in 2007 when it decided not to ask for an extension of the settlement while the attorneys general of ten states (the so-called California and New York Groups) pushed for extensions. At that time, the DOJ stated that it didn't believe that the standard for such an extension had b

A Microsoft-led group set up three years ago has backed away from its original goal of pushing for comprehensive U.S. privacy legislation. Originally, the Consumer Privacy Legislative Forum was set up to bring a diverse array of consumer companies, technology vendors and even advocacy groups together and help drive privacy legislation. But now the group has been renamed the Business Forum for Consumer Privacy and is instead being billed as "an organization focused on fostering innovation in consumer privacy governance," according to the group's new mission statement. The Forum has released a white paper at the International Association of Privacy Professionals conference held in Washington this week. "What the organization is doing is developing the framework that would make new governance possible," said Martin Abrams, an adviser to the Forum who is executive director with the Centre for Information Policy Leadership at Hunton & Williams, an international law firm. Two of the Forum's original members, Symantec and the Center for Democracy and Technology, say they have dropped out. Eastman Kodak has also dropped out, according to Abrams. He was not authorized to say who the current members are, but the group appears to include Microsoft, Hewlett-Packard, eBay and Google. U.S. consumers are covered by a patchwork of state and federal laws that are confusing for companies, and which often force consumers to work hard to protect their own data. Many of the Forum's members would like to change things, but it appears that coming up with legislative proposals was too much.

Google, Microsoft, Yahoo support self-regulation in the UK AOL, Google, Microsoft, NebuAd, Phorm, and Yahoo promise to behave. All of these companies - along with a few others - have volunteered to honor the Internet Advertising Bureau's just-announced set of Good Practice Principles. So on to the guts of the agreement. First, companies are supposed to tell users whenever they're collecting data for the sake of behavioral advertising. They're also expected to make sure users understand what the procedure entails. Then comes the key part: users should get the chance to opt out of the collection process. Ad companies are probably hoping that users will either be too lazy to take action or will actually prefer better-targeted ads. If so, the companies will continue to make money and improve their public image. But since privacy advocates may still complain that data collection isn't an opt-in matter, the issue isn't likely to go away. Mark Howe, the country sales director of Google UK, sidestepped the mess, simply stating, "Google believes in two core principles of transparency and choice when it comes to user privacy. That is why we are supportive of these new, self-regulatory principles for online advertising which will enable consumers to increase their understanding of their web surfing options." IAB described the Principles as "the UK's first self-regulatory guidelines to set good practice for companies that collect and use data for online behavioural advertising purposes." The Principles have been approved by the Information Commissioner's Office, which reports directly to Parliament.

Washington insiders say that the Obama administration will be more aggressive with actions to protect consumers online. Two consumer advocacy groups, the Center for Digital Democracy and the U.S. Public Interest Research Group, have asked the Federal Trade Commission to investigate behavioral targeting practices aimed at mobile phone users. The day the FTC received the request and one week before the Obama administration took office, four marketing and advertising associations announced their intent to create an enhanced set of self-regulatory principles for online behavioral advertising. The American Association of Advertising Agencies, Association of National Advertisers, Direct Marketing Association and Interactive Advertising Bureau are said to be reviewing the areas for self-regulation set forth in the FTC's proposed self-regulatory principles issued in December 2007. As marketers, our boundaries for targeting campaigns continue to widen as technology improves. We collect more information than ever before. This, along with the fear of federal regulation, may create a trend for more marketers to take on a dual role as a privacy professional. The International Association for Privacy Professionals (IAPP, https://www.privacyassociation.org/) provides privacy education and certification for privacy professionals.

A group of U.S. companies, led by technology giants Microsoft, Hewlett-Packard and eBay, is set to outline recommendations for new federal data-privacy legislation that could make life easier for consumers and lead to a standard federal breach-notification law. The recommendations, which were developed by a group of industry players called the Consumer Privacy Legislative Forum, are set to be released at an upcoming privacy conference six weeks from now, according to Peter Cullen, Microsoft's chief privacy officer. The companies have been working for the past three years to encourage the adoption of federal consumer data-privacy laws and to answer the question of what federal legislation should look like, Cullen said in an interview. Other forum members include Google, Oracle, Procter & Gamble and Eli Lilly. One idea is that laws should make it easier for consumers to understand what they're getting into when they share their personal data with Web sites, Cullen said. "The whole focus on consent really puts an unfair burden on the consumer," he said. "My mom doesn't know what an IP address is." The recommendations will cover rules around data use and the ability of consumers to correct inaccurate data. And they will cover data breach notification, which is now covered by a patchwork of state laws. Simplifying breach-notification laws by creating a single federal standard is important, Cullen said Wednesday while speaking at a discussion of privacy policy in San Francisco. "It's not that there is no privacy law. There's actually too much privacy law," he said. "If you think about data-breach notification laws just as an example, there are 38 state laws, many of them very different." "We need to think about much more of a framework approach." Congress has passed some laws covering consumer data privacy, such as the 1996 Health Insurance Portability and Accountability Act (HIPAA), but existing laws do not comprehensively cover consumer privacy in general.

Web sites that strip personally identifiable information about their users and then share that data may be compromising their users' privacy, according to researchers at the University of Texas at Austin. They took a close look at the way anonymous data can be analyzed and have come to some troubling conclusions. In a paper set to be delivered at an upcoming security conference, they showed how they were able to map out the connections on public social networks such as Twitter and Flickr. They were then able to identify people who were on both networks by looking at the many connections surrounding their network of friends. The technique isn't 100 percent effective, but it may make some users uncomfortable about whether they should allow their data to be shared in an anonymous format. Web site operators often share data about users with partners and advertisers after stripping it of any personally identifiable information such as names, addresses or birth dates. Arvind Narayanan and fellow researcher Vitaly Shmatikov found that by analyzing these "anonymized" data sets, they could identify Flickr users who were also on Twitter about two-thirds of the time, depending on how much information they have to work with. "A lot of the time people will share information online and they'll expect that they are anonymous," Narayanan said in an interview. But if their identity can be ascertained on one social network, its possible to find out who they are on some other network, or at least make a "strong guess," he said.

Ask a room full of security practitioners for a list of security settings that'll make Internet Explorer (IE) safe to use and you'll either hear laughter or advice to get a new browser like Mozilla Firefox, Opera, Safari or Google Chrome. Even as Microsoft has worked diligently to improve security in its troubled browser, especially in IE7 and the newly-released IE8, security pros simply don't trust it. Most have turned to alternative browsers, especially Firefox. [See: Microsoft Releases IE8, Stresses Security] But the intoxication security pros find in Firefox and the other alternatives comes with a big hangover. When one wakes up from an evening of online adventuring on one of the alternative browsers, the painful reality is that they will never be able to get away from IE completely. The obvious reason is that IE is so tightly integrated into the Windows operating system, though some industry voices have called on Microsoft to divorce it from the OS. [See: Security Expert: Microsoft Should Sever IE from Windows] "We aren't going to be able to get away from IE in the corporate world anytime soon," said Christopher Mendlik, a threat analyst at Wachovia. Besides the tight integration with Windows, there's the simple reality that some business applications will only work when used in IE. At CSOonline and other media outlets, for example, the programs used to post content online tend to be allergic to non-IE browsers. Those who have no choice but to use IE have turned to a number of coping mechanisms.

Industry Insiders Discuss HIT and HIPAA Issues March 30, 2009 by Astrid Fiano, Writer A significant part of President Obama's health care reform agenda is the push for implementing more health care technology. In the health care field privacy is always a major concern, and was the impetus of the Health Insurance Portability and Accountability Act of 1996--protecting the privacy of individually identifiable health information in all formats, and the confidentiality provisions of the Patient Safety Act--protecting identifiable information being used to analyze patient safety events. So those in the health care industry now wonder will the Administration's focus on health IT (HIT) present more challenges to privacy concerns? As part of a continuing focus on HIT issues, DOTmed interviewed industry expert Kirk J. Nahra, a partner in the Washington D.C. legal firm of Wiley Rein LLP, specializing in privacy and information security for the health care and insurance industries, and named an expert practitioner by the Guide to the Leading U.S. Healthcare Lawyers. DOTmed also interviewed Lise Rauzi, Vice President, Training Development, for Health Care Compliance Strategies (HCCS). HCCS provides online training compliance for employees. Nahra notes that regardless of the rising concern over privacy and the new HIT legislation, there have already been formal HIPAA security rules on electronic information in place for several years--the health care industry compliance has just been inconsistent. The problem -- to the extent there is one -- is that HIPAA rules are process-oriented, Nahra explained. The rules don't tell an entity what to do, but rather what to evaluate--a standard set of questions, but without a standard set of answers. For example, a covered entity has to have an internal audit, but the rules do not tell the entity how best to carry out that internal audit. Not surprisingly, different businesses have different ideas on how to implement their HIPAA evaluations