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Online advertising firm Phorm is pressing ahead with plans to launch more than a year after it first drew criticism from some privacy advocates. Phorm executives will meet with members of the public on Tuesday, following a similar meeting in 2008. The service has proved controversial for some campaigners who believe it breaks UK data interception laws. The firm received clearance from the Home Office and police closed a file on BT trials of the technology. "We have been supported or endorsed by all of the leading stakeholders," Phorm chief executive Kent Ertugrul told BBC News. "Ofcom, the Information Commissioner's Office, the Home Office, leading privacy advocates like Simon Davies, the advertising industry and publishers have all backed our service," he said. He added: "We are very, very happy with where we are one year on." Trawling websites Phorm's system works by "trawling" websites visited by users whose ISPs have signed up to the service and for whom the technology is switched on, and then matches keywords from the content of the page to an anonymous profile. Users are then targeted with adverts that are more tailored to their interests on partner websites that have signed up to Phorm's technology.

With the Federal Trade Commission (FTC) promising to begin enforcing the "Red Flags Rules" on May 1, the FTC launched on Thursday a website aimed at helping entities adhere to the requirements. The rules, designed to reduce identity theft, requires that creditors and financial institutions create and implement an identity theft prevention program. The website describes the entities covered by the rule and provides information, articles and guidance to help entitles develop ID theft prevention programs, the FTC said in a news release. One of the resources on the site is a how-to guide that provides tips for identifying and stopping ID theft. The rules became effective Nov. 1 but will not be enforced by the FTC until May 1. Last October, the FTC extended the original Nov. 1 enforcement deadline because many companies were not prepared to meet the original requirements, the FTC said. Eduard Goodman, general counsel and chief privacy officer for vendor Identity Theft 911, told SCMagazineUS.com Friday that the FTC has been tight-lipped about how the rule is going to be enforced -- likely because they don't want companies looking for ways to get around it. Goodman said that based on his conversations with those in the industry, the FTC will likely enforce the rule on a case-by-case basis. The FTC maintains a database that tracks all identity theft cases reported to the agency. If they hear of instances of identity theft associated with a company, the FTC may ask for a copy of the company's identity theft prevention program, if any, Goodman said. If the entity has a program in place, the FTC will make a determination of whether it's adequate. The May 1 enforcement deadline extension applies to entities under the FTC's jurisdiction, which includes state-chartered credit unions. The extension did apply to the the majority of the estimated 11 million businesses that must comply with the requirements, Goodman has said

If you've been advertising online for a long time, you may have gone through stages: sticking with banner ads at first, and then going with search engine advertising, and maybe putting your ads on a publisher network belonging to a search engine or an advertising company. Most of the time you probably tried to put your ad in a matching context. That might be the wrong approach. I've written before about behavioral advertising, also known as behavioral targeting. You can read my first article about it here. If the topic of behavioral targeting intrigues you, you might also want to read about behavioral retargeting. Before I plunge into the content and focus of this article, though, let me give you a quick definition. Behavioral advertising is a form of online advertising that follows the user around. For example, a web surfer who has just priced some flights on an airline's website might be shown a travel-related ad when he surfs to the next website in which he's interested, which might be for the local pizza joint. The theory behind behavioral advertising is, in a sense, pretty simple. Most people are bombarded with ads most of the time, especially when web surfing. As a result, we tune them out. Because of the usual advertising practices, we might be better at tuning out ads that are in the same context as the content we're reading. In other words, someone reading content on a web site about where the best ski slopes are just might have completely ignored an ad for your lovely Aspen getaway. To rise above this clamor, it's necessary to hit web surfers with a surprise, something that doesn't fit the normal context. Think about it: aren't you more likely to stare at someone talking into a banana than a cell phone? That's the theory, but it's new enough that researchers and marketers are still doing surveys to prove or disprove it. The most recent one was conducted by BL Labs and released by ad network BlueLithium. You'd probably expect it to

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"Two Kansas men have been charged with making $1m in proceeds by buying computer networking gear in China and passing it off as products from Cisco Systems. Christopher Myers, 40, and Timothy Weatherly, 27, obtained the networking gear from a variety of sources and then slapped phony Cisco labels on them, according to documents filed in federal court in Kansas City. To give the goods the additional air of legitimacy, they put them in purported Cisco boxes and included counterfeit Cisco manuals. Myers also stands accused of obtaining access to a website containing Cisco's confidential serial numbers, so the men could affix them to the gear they sold. Prosecutors said the men sold the equipment on eBay and on private websites. They were charged with one count of conspiracy, 30 counts of trafficking in counterfeit goods and one count of trafficking in counterfeit labels. The government is seeking forfeiture of $1m in proceeds from the alleged crimes. If convicted, the men also face a maximum of fives years in prison and $250,000 in fines. Myers made an initial appearance in court on Thursday. Security experts have warned that counterfeit networking gear could contain back doors that allow spies to conduct industrial espionage on US companies."

"The number of fraudulent IRS websites taken down in 2008 soared to 3,030, up more than 240 percent from 2007, according to a GAO analysis of Internal Revenue Service data, suggesting a sharp increase by criminals to draw unassuming taxpayers to faux tax agency websites to steal identities and money. In a Government Accountability Office audit, made public Thursday, the GAO credited the IRS for implementing programs to prevent, detect and resolve identity theft, but said the tax agency needs to do a better job in assessing the effectiveness of its initiatives. And, as it relates to potential online abuse, the IRS should be more consistent in enforcing security controls. "

Individuals have been at risk of having their personal information stolen and used to commit identity-related crimes long before the emergence of the Internet. What the Information Age has changed, however, is the method by which identity thieves can access and exploit the personal information of others. One method in particular leaves hundreds of thousands, and in some cases tens of millions, of individuals at risk for identity theft: large scale data breaches by skilled hackers. In this method, criminals remotely access the computer systems of government agencies, universities, merchants, financial institutions, credit card companies, and data processors, and steal large volumes of personal information on individuals. Such large scale data breaches have revolutionized the identity theft landscape as it relates to fraud on existing accounts through the use of compromised credit and debit card account information. Large scale data breaches would be of no more concern than small scale identity thefts if criminals were unable to quickly and widely distribute the stolen information for subsequent fraudulent use (assuming, of course, that the breach would be quickly detected). Such wide-scale global distribution of stolen information has been made possible for criminals with the advent of criminal websites, known as "carding forums," dedicated to the sale of stolen personal and financial information. These websites allow criminals to quickly sell the fruits of their ill-gotten gains to thousands of eager fraudsters

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Three out of four Americans believe that individuals are responsible for protecting their own privacy online. That's the bottom line of a new survey conducted by TRUSTe, a company that certifies the compliance of websites with privacy standards and statements. Nonetheless, The New York Times reports that the Federal Trade Commission is trying to put more responsibility on website operators: Last month, the F.T.C. revised its suggestions for behavioral advertising rules for the industry, proposing, among other measures, that sites disclose when they are participating in behavioral advertising and obtain consumers' permission to do so. One F.T.C. commissioner, Jon Leibowitz, warned that if the industry did not respond, intervention would be next. "Put simply, this could be the last clear chance to show that self-regulation can -- and will -- effectively protect consumers' privacy," [FTC commissioner Jon] Leibowitz said, or else "it will certainly invite legislation by Congress and a more regulatory approach by our commission." Behavioral advertising, which records individual users' Web usage by inserting cookies into their browsers and keeping a log of where they go and what they do, is the most high-profile privacy issue today. Google-owned DoubleClick is tracks Web users across many sites, combining them into one profile at DoubleClick's end to be used for ad targeting. Some survey respondents use cookie-deleting browsers and anonymizing software to thwart tracking systems. Privacy advocates, TRUSTe, and the FTC all strongly encourage companies to post meticulous privacy statements for online visitors, and to follow them to the letter. Still, only 15 percent of TRUSTe's survey respondents said they actually read privacy statements.

Is it a violation of privacy that should be banned or a tool necessary to keep the internet running? Canada's privacy commissioner has opened an online discussion on deep packet inspection, a technology that allows internet service providers and other organizations to intercept and examine packets of information as they are being sent over the internet. "We realized about a year ago that technologies involving network management were increasingly affecting how personal information of Canadians was being handled," said Colin McKay, director of research, education and outreach for the commissioner's office. The office decided to research those technologies, especially after receiving several complaints, and realized it was an opportunity to inform Canadians about the privacy implications. Over the weekend, the privacy commissioner launched a website where the public can discuss a series of essays on the technology written by 14 experts. The experts range from the privacy officer of a deep-packet inspection service vendor to technology law and internet security researchers. The website also offers an overview of the technology, which it describes as having the potential to provide "widespread access to vast amounts of personal information sent over the internet" for uses such as: * Targeted advertising based on users' behaviour. * Scanning for unlawful content such as copyright or obscene materials. * Intercepting data as part of surveillance for national security and crime investigations. * Monitoring traffic to measure network performance.

When the CISO asks to speak to you with that look on his face, you know the news isn't good. We were contacted by one of our third-party vendors, whom we had hired to do analysis on our website traffic. It appears that we have been passing sensitive information to them over the Internet. This sensitive information included data, such as customer names, addresses and credit card information. Because we are a public company, there are many regulatory guidelines that we have to follow like Sarbanes-Oxley (SOX) and the Payment Card Industry's (PCI) data security standard. Fortunately for us, our vendor has retained a copy of everything that we have sent to them. Unfortunately for us, it was six months of information totaling over a terabyte. Since our website is international, the legal department needed to obtain outside council to assist us in this matter. It will be a few days until I receive the data from the vendor.

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.

"Scott Fortnum had put in almost a full day of work at his Markham, Ont., office when he decided to "check in" on Foursquare, a location-based social network where users log the names and co-ordinates of the places they visit with a time stamp. The 44-year-old's check-in was marked with a small coral balloon on an embedded Google Map and instantly viewable by the 12 friends he lists on Foursquare - and millions of others. His check-in found its way onto pleaserobme.com, a recently launched website with a mischievous mandate: "listing all those empty homes out there." With March break approaching, many impending vacationers are installing automatic timers on their lights and putting their newspaper subscriptions on hold to deter burglars. Many are also posting on Twitter about when they're leaving and touting their week-long getaway to Jamaica on Facebook - unwittingly letting the online world know exactly when they're away. Mr. Fortnum's check-in appeared this way on Please Rob Me: @sfortnum left home and checked in 30 minutes ago: I'm at ALS Canada (3000 Steeles Ave. E. #200, DVP & Steeles, Toronto.) http://4sq.com/4MmX51 Many Foursquare users such as Mr. Fortnum cross-post their check-ins to Twitter, where they are easy to find through the search function. With some simple coding, Please Rob Me's creators are able to collect those millions of public tweets on their site in real time, highlighting one of the many security concerns that springs from broadcasting one's whereabouts online. Frank Groeneveld, one of the three students from the Netherlands who designed Please Rob Me, says he co-created the site to give members of social networks a wake-up call."

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"U.S. marketers and consumer advocates are preparing for battle over the rules governing online advertising tailored to individual browsing habits, often tracked and collected without notice or permission. The U.S. Congress is due to intervene in the issue in the coming weeks, with a bill in the House of Representatives that would oblige websites to state explicitly how they use the information and allow those using the site to opt out. A billion-dollar industry and consumer privacy are at stake."

"Sherry Natoli is followed everywhere she goes while shopping online, but she doesn't mind at all. Natoli, who owns a seashell business in Tampa, does all but her grocery shopping on the Internet and even opts in whenever she's asked whether she's willing to have her online movements tracked by websites." Companies have been monitoring our online behavior for almost as long as there's been an Internet, often using our online footsteps (cookies) whenever we search, browse or buy online. Tracking technology has advanced so much that everything from how long we linger over a product description to whether we are searching for sexual-dysfunction drugs can be collected and stored on individual profiles. Our profiles are numeric descriptions, not our real names, but in some cases, it's not hard to determine personal information behind the numbers. Privacy concerns abound, and several privacy and consumer groups are urging Congress to enact laws on what can and can't be collected and for how long.

The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential. EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm (PHOR.L) technology to send subscribers tailor-made advertisements based on websites visited. Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent. "Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said. She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules. Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice. If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)

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Do you know what your data did last night? Almost none of more than 27 million people who took the RealAge quiz realized that their personal health data was sold to drug companies, who in turned used that information for targeted e-mail marketing campaigns. There's a basic consumer protection principle at work here, and it's the concept of "unfair and deceptive" trade practices. Basically, a company shouldn't be able to say one thing and do another: sell used goods as new, lie on ingredients lists, advertise prices that aren't generally available, claim features that don't exist, and so on. RealAge's privacy policy doesn't mention anything about selling data to drug companies, but buried in its 2,400 words, it does say that "we will share your personal data with third parties to fulfill the services that you have asked us to provide to you." They maintain that when you join the website, you consent to receiving pharmaceutical company spam. But since that isn't spelled out, it's not really informed consent. That's deceptive. Cloud computing is another technology where users entrust their data to service providers. Salesforce.com, Gmail, and Google Docs are examples; your data isn't on your computer -- it's out in the "cloud" somewhere -- and you access it from your web browser. Cloud computing has significant benefits for customers and huge profit potential for providers. It's one of the fastest growing IT market segments -- 69% of Americans now use some sort of cloud computing services -- but the business is rife with shady, if not outright deceptive, advertising.

Companies that track consumer behavior on the Web for targeted advertising without proper consent are near their "last chance" to self-regulate, the head of the U.S. Federal Trade Commission said on Monday. Privacy advocates say regulations on big phone and Internet companies, such as AT&T Inc and Google Inc, are too lax, giving the firms excessive control over consumers' personal information. "From my perspective, the industry is pretty close to its last clear chance to demonstrate" that it can police itself, FTC Chairman Jon Leibowitz told the Reuters Global Financial Regulation Summit in Washington. Earlier this year, the FTC issued new guidance urging websites to tell consumers that data is being collected during their searches and to allow them to opt out. If companies fail to do a better job of making their privacy policies understandable to the average person, momentum will keep building for greater regulation, Leibowitz said. "It's really up to industry."

As more and more teens get their hands on mobile phones there is an increasing number of problems which can result. First is "Cyberbulling" where someone uses text messages, emails, and phone calls to hound and slander another teen. The next one, which has been in the news a lot lately, is "sexting". This is where sexually explicit texts and photos are sent from one teen to another or to a group. Both situations can put parents in the awful position of being forced to help their child to defend charges in court. In some counties prosecutors have begun using child pornography laws to prosecute teenagers who send sexually explicit photos to one another. That's why a new program you can put on your child's phone may be the answer. Security Shield Parental Control Edition works with Symbian, Windows Mobile, and BlackBerry phones. Once setup, parents can then see a log of text messages send by their child as well as calls placed and received. Reports are available through a website. The software is being offered for US$30 a year and that subscription also includes automatic software updates.

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Wikipedia told the controversial U.K. advertising firm Phorm on Thursday not to spy on Wikipedia's users, saying the company's plan to monitor what sites people visit on the net invaded people's privacy. Wikipedia now joins Amazon.co.uk in opting out of the Big-Brother-esque marketing scheme and creating the possibility of a mass opt-out by the net's largest websites. Phorm wants to pay ISPs -- such as British Telecom -- to let it build marketing profiles of its subscribers by installing boxes inside the ISP that monitor every url users visit and every search they run. Using those profiles, Phorm can charge advertisers high rates to serve targeted ads. But in an email sent Thursday, Wikimedia.org told Phorm not to record anything about urls from domains it controls, ranging from Wikiquotes to Wikipedia -- one of the most popular sites on the net. Phorm operates an opt-out system for sites and ISP customers, but it would be virtually impossible to verify if the company actually complied with such requests. "The Wikimedia Foundation requests that our web sites including Wikipedia.org and all related domains be excluded from scanning by the Phorm / BT Webwise system, as we consider the scanning and profiling of our visitors' behavior by a third party to be an infringement on their privacy," the email read, according to a Wikimedia blog post.

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Amazon has opted out of Phorm's controversial targeted advertising technology, delivering a serious blow to the UK-listed company which has already prompted a European commission legal action against the British government. Phorm's technology, which is yet to be launched in the UK, allows ISPs to track their customers' activity on the internet in order to target adverts on pages they subsequently visit. Amazon's absence from Phorm's Webwise system deprives the company of the second most visited destination, after eBay.co.uk, among shopping and classified websites in the UK, according to data from Hitwise. It means Phorm will not have access to crucial information about what Amazon users are interested in. Last month the Open Rights Group, privacy campaigners, sent a letter to nine of the internet's biggest names, including Amazon, Google, Bebo, Facebook and Yahoo, asking them to opt out of Phorm's technology "to protect your users' privacy". Google and Bebo are actively considering whether to opt out and a spokesman for Amazon said the company has now removed all its domain names - including Amazon.com - from Webwise. A spokesman for Phorm said the company does not comment on individual cases but the it is understood to be planning a meeting with Amazon's management to explain the benefits of the Webwise system.

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Cyberspies have penetrated the U.S. electrical grid and left behind software programs that could be used to disrupt the system, the Wall Street Journal reported on Wednesday. The spies came from China, Russia and other countries, and were believed to be on a mission to navigate the U.S. electrical system and its controls, the newspaper said, citing current and former U.S. national security officials. The intruders have not sought to damage the power grid or other key infrastructure but officials said they could try during a crisis or war, the paper said in a report on its website. "The Chinese have attempted to map our infrastructure, such as the electrical grid," a senior intelligence official told the Journal. "So have the Russians." The espionage appeared pervasive across the United States and does not target a particular company or region, said a former Department of Homeland Security official. "There are intrusions, and they are growing," the former official told the paper, referring to electrical systems. "There were a lot last year." The administration of U.S. President Barack Obama was not immediately available for comment on the newspaper report. Authorities investigating the intrusions have found software tools left behind that could be used to destroy infrastructure components, the senior intelligence official said. He added, "If we go to war with them, they will try to turn them on." Officials said water, sewage and other infrastructure systems also were at risk.