CIPP Information Privacy & Security News

In court papers filed Wednesday, former federal prosecutor Richard Convertino called reporter David Ashenfelter's invocation of the Fifth Amendment, in an attempt to keep from having to reveal his confidential sources, both "speculative" and "unreasonable." Convertino urged the federal district court in Michigan to sanction Ashenfelter and to require him to present further evidence as to why he should not be held in contempt for his refusal at a December deposition to reveal the confidential sources. For the past two years, Convertino has been seeking Ashenfelter's testimony in hopes of boosting his Privacy Act lawsuit against the Department of Justice. Convertino claims DOJ violated the law by leaking to the press details of an investigation into Convertino's conduct during a terrorism trial. At a deposition in December, after Judge Robert Cleland in the Eastern District of Michigan ruled twice that Ashenfelter is not protected by a First Amendment reporter's privilege, the reporter invoked the Fifth Amendment right against self-incrimination.

Government Computer News presents Pat Howard, chief information security officer of the Nuclear Regulatory Commission, and Ari Schwartz, vice president and chief operating officer of the Center for Democracy and Technology, in an eSeminar recoreded at 2 p.m. Wednesday, Nov. 19, where they discuss personally identifiable information in the government. Federal IT officials must continually balance competing demands to share information while also complying with various mandates to protect the privacy of PII within federal information systems and programs. During the presentation, Mr. Howard discusses: * How IT and program managers are adapting to these challenges; * The latest laws and guidance on PII; * Measures taken by the NRC to strengthen PII protections; and * New demands concerning privacy in the federal marketplace. A question-and-answer session follows the presentation. GCN Editor in Chief Wyatt Kash moderates.

Salesmen and parents know the technique well. It's called the takeaway, and as far as Keith Mularski is concerned, it's the reason he kept his job as administrator of online fraud site DarkMarket. DarkMarket was what's known as a "carder" site. Like an eBay for criminals, it was where identity thieves could buy and sell stolen credit card numbers, online identities and the tools to make fake credit cards. In late 2006, Mularski, who had risen through the ranks using the name Master Splynter, had just been made administrator of the site. Mularski not only had control over the technical data available there, but he had the power to make or break up-and-coming identity thieves by granting them access to the site. And not everybody was happy with the arrangement. A hacker named Iceman -- authorities say he was actually San Francisco resident Max Butler -- who ran a competing Web site, was saying that Mularski wasn't the Polish spammer he claimed to be. According to Iceman, Master Splynter was really an agent for the U.S. Federal Bureau of Investigation. Iceman had some evidence to back up his claim but couldn't prove anything conclusively. At the time, every other administrator on the site was being accused of being a federal agent, and Iceman had credibility problems of his own. He had just hacked DarkMarket and three other carder forums in an aggressive play at seizing control of the entire black market for stolen credit card information. ....In the end they would regret that decision. Iceman was right

Exactly one week after the Heartland Payment Systems (HPY) breach was first announced to the public, the first lawsuit has been filed against the payments processor. The class action lawsuit filed Tuesday by Chimicles & Tilellis LLP of Haverford, PA in the U.S. District Court for the District of New Jersey on behalf of Woodbury, MN resident Alicia Cooper, asserts that Heartland "made unreasonably belated and inaccurate statements concerning the breach." The complaint says Heartland does not appear to be offering any credit monitoring services or other relief to consumers affected by the breach. Chimicles & Tilellis' complaint also says in addition to the questionable timing of the announcement of its breach, (Read Heartland Class Action suit PDF) "there are materially misleading statements and omissions in Heartland's public description of the breach and its consequences." Heartland announced the breach in a press release on the same morning of President Barack Obama's inauguration. The law firm says it is suing on behalf of consumers whose sensitive financial information was compromised in the data breach at Heartland. The complaint raises a claim pursuant to the New Jersey Consumer Fraud Act, and asserts causes of action for negligence, breach of implied contract, breach of contracts to which Plaintiffs and Class members were intended third party beneficiaries, breach of fiduciary duty, and negligence. The payments processor did not disclose how many credit card account numbers were compromised as a result of the breach. Heartland is the fifth largest payment processor in the country and handles 100 million transactions per month for more than 250,000 small retailers, gas stations, restaurants and other small and midsized companies. The suit also states that Heartland only became aware of the breach after it was notified of patterns of fraudulent credit card activity by VISA and MasterCard. "Analysts have stated that the fact that Heartland did not detect th

A former Fannie Mae IT contractor has been indicted for planting a virus that would have nuked the mortgage agency's computers, caused millions of dollars in damages and even shut down operations. How'd this happen? The contractor was terminated, but his server privileges were not. Rajendrasinh Makwana was indicted on Tuesday in the U.S. District Court for Maryland (press report, complaint and indictment PDFs). From early 2006 to Oct. 24, Makwana was a contractor for Fannie Mae. According to the indictment, Makwana allegedly targeted Fannie Mae's network after he was terminated. The goal was to "cause damage to Fannie Mae's computer network by entering malicious code that was intended to execute on January 31, 2009." And given Fannie Mae-along with Freddie Mac-was nationalized in an effort to stabilize the mortgate market Makwana could caused a good bit of havoc. Makwana worked at Fannie Mae's data center in Urbana, MD as a Unix engineer as a contractor with a firm called OmniTech. He had root access to all Fannie Mae servers. The tale of Makwana malware bomb plot is a warning shot to all security teams and IT departments. Given the level of layoffs we've seen lately the ranks of disgruntled former employees is likely to grow. Is there any company NOT lopping off a big chunk of its workforce? And some of these workers may even have Makwana's access privileges and knowledge of the corporate network.

The Office of the Privacy Commissioner of Canada (OPC) has developed these guidelines to explain how the Personal Information Protection and Electronic Documents Act (PIPEDA) applies to transfers of personal information to a third party, including a third party operating outside of Canada, for processing. As the legislation itself states, PIPEDA is intended to "support and promote electronic commerce by protecting personal information that is collected, used or disclosed in certain circumstances…" This acknowledges that proper protection of personal information both facilitates and promotes commerce by building consumer confidence. Today's globally interdependent economy relies on international flows of information. These cross-border transfers do raise some legitimate concerns about where personal information is going as well as what happens to it while in transit and after it arrives at some foreign destination. Consumer confidence will be enhanced, and trust will be fostered, if consumers know that transfers of their personal information are governed by clear and transparent rules. There are different approaches to protecting personal information that is being transferred for processing. European Union member states have passed laws prohibiting the transfer of personal information to another jurisdiction unless the European Commission has determined that the other jurisdiction offers "adequate" protection for personal information.

A quick rant from me to you, dear readers. Yesterday I received an unsolicited email from a woman who was pitching me a service - one totally irrelevant to my life. In her signature, in which she included what she considers her credentials, she had the statement, "More than 2,000 followers on Twitter." I gasped, somewhat in horror. I laughed, full of humor. Twitter is fun and a great networking tool and business opportunities can stem from Twitter. I won't reiterate all of the ways because there are tons of existing resources. Yet as big as Twitter has become it's still not massively adopted. Using such a tagline in your credentials does one of two things: 1) makes schooled Twitter users laugh and 2) makes those unfamiliar with Twitter roll their eyes. For instance, HubSpot, a really cool inbound marketing firm, runs Twitter Grader, a way that Twitter users grade the reach of their feeds and profiles based on HubSpot's super secret algorithms. It's a fun tool - but it only measures folks against about a million or so other users (I think that's because it can only grade you against other folks who have graded themselves). It's also not the end all, be all of measuring Twitter influence.

Feds would spend $20 billion on health IT if Senate and House agree in coming weeks. The House-passed version of the economic stimulus bill includes about $20 billion in spending for health IT. The bill, known as H.R. 1 or the American Recovery and Reinvestment Act of 2009, would make Medicare and Medicaid providers and hospitals eligible for incentive payments for using certified e-health records technology. It also supports health information exchanges, standards development and conformance testing, a chief privacy officer for health IT and other aspects of health IT. The portion of the bill called the Health Information Technology for Economic and Clinical Health Act -- the Hitech Act, for short -- and health IT spending provisions passed largely unchanged from the bills introduced earlier this month. The Senate is expected to take up a similar bill in the first week of February. The Senate bill now calls for $23 billion in health IT spending. Once it is passed, a House-Senate conference will need to resolve differences between the bills. Congressional leaders aim to send President Barack Obama the bill by mid-February.

A nationwide ATM heist late last year netted thieves $9 million in cash in one day, according to published reports. The coordinated attack stemmed from a computer intrusion at payment processor RBS WorldPay. Atlanta-based RBS WorldPay announced on Dec. 23 that hackers had broken into its database and made off with personal and financial data on 1.5 million customers of its payroll cards business. Some companies use payroll cards in lieu of paychecks by depositing employee salaries or hourly wages directly into payroll card accounts, which can then be used as debit cards at ATMs. RBS said that thieves also might also have accessed Social Security numbers of 1.1 million customers. New York's Fox 5 cites FBI sources as saying that thieves used the stolen payroll cards recently to withdraw $9 million from ATMs from 49 cities, including Atlanta, Chicago, New York, Montreal, Moscow, and Hong Kong. Steve Lazarus, a spokesman for the FBI's Atlanta field office, said the withdrawals were carried out by a small army of so-called "cashers," or people who work with cyber thieves and fabricated cards to pull money out of compromised accounts. From the Fox piece: "Shortly after midnight Eastern Time on November 8, the FBI believes that dozens of the so-called cashers were used in a coordinated attack of ATM machines around the world."

"Identity theft can happen to anyone," is the frequent refrain of government and advocacy groups warning consumers about bank fraud. What they don't add: The crime is far more likely when that "anyone" is a woman. A study released Monday by the fraud-tracking firm Javelin Research showed that women are 26% more likely than men to be the victims of identity theft. While 3.8% of men had their banking details stolen and used for fraud in the last year, 4.8% of women were victimized. And women took far longer on average to discover their financial identities had been compromised, leading to far greater risk of repeat fraud: Women took 83 days to detect they'd been targeted, compared with 45 days for men. The growing reason behind this disparity, argues Javelin President James Van Dyke, is an often-misunderstood trend: Digital commerce is making identity theft harder, rather than easier. Because men are statistically more likely than women to adopt newer technologies such as online banking and shopping, they more often have the benefit of high-tech safeguards, Van Dyke says. Women, because of their lesser use of Web banking and sales, suffer from more old-fashioned fraud caused by stolen credit cards or retail employees, he says. Fifty-eight percent of women, for instance, have never banked online, compared with 55% of men, according to Javelin's study. That means women are less likely to sign up for fraud protection programs like text message or e-mail alerts that warn of abnormal transactions. Twenty-three percent of men use e-mail alerts, compared with 15% of women; 8% of men receive text message warnings, compared with just 3% of women.

In a move that could reshape the federal government's cybersecurity efforts, President Obama on Monday said a former Booz Allen consultant would conduct an immediate two-month review of all related agency activities. The announcement indicates that the White House's National Security Council may wrest significant authority away from the U.S. Department of Homeland Security, which weathered withering criticism last fall for its lackluster efforts. Obama selected Melissa Hathaway, who worked for the director of national intelligence in the Bush administration and was director of an multi-agency "Cyber Task Force," to conduct the review with an eye to ensuring that cybersecurity efforts are well-integrated and competently managed. "The president is confident that we can protect our nation's critical cyber infrastructure while at the same time adhering to the rule of law and safeguarding privacy rights and civil liberties," said John Brennan, the president's homeland security adviser. Hathaway's appointment comes as Obama plans to overhaul the National Security Council, expanding its membership and effectively centralizing more decision-making in the White House staff. That would vest more authority in a staff run by James L. Jones, a former Marine Corps commandant who warned at a speech in Munich over the weekend that terrorists could use "cyber-technologies" to cause catastrophic damage. During a panel discussion that CNET News wrote about last fall, Hathaway defended Homeland Security's efforts to develop what it called a National Cyber Security Initiative, saying there was "unprecedented bipartisan support" for it. "Over the past year cyber exploitation has grown more sophisticated, more targeted, and we expect these trends to continue," she added. "Our cybersecurity approach to date has not kept up with the threats we've seen."

Late last month, the House passed an economic recovery package containing $20 billion for health information technology, which would require the Department of Health and Human Services to develop standards by 2010 for a nationwide system to exchange health data electronically. The version of the recovery package passed by the Senate yesterday contains slightly less funding for health information technology ("health IT"). But as Congress moves to reconcile the two stimulus packages, conservatives have begun attacking the health IT provisions, falsely claiming that they would lead to the government "telling the doctors what they can't and cannot treat, and on whom they can and cannot treat." The conservative misinformation campaign began on Monday with a Bloomberg "commentary" by Hudson Institute fellow Betsy McCaughey, which claimed that the legislation will have the government "monitor treatments" in order to "'guide' your doctor's decisions." McCaughey's imaginative misreading was quickly trumpeted by Rush Limbaugh and the Drudge Report, eventually ending up on Fox News, where McCaughey's opinion column was described as "a report." In one of the many Fox segments focused on the column, hosts Megyn Kelly and Bill Hemmer blindsided Sens. Arlen Specter (R-PA) and Jon Tester (D-MT) with McCaughey's false interpretation, causing them to promise that they would "get this provision clarified." On his radio show yesterday, Limbaugh credited himself for injecting the false story into the stimulus debate, saying that he "detailed it and now it's all over mainstream media."

Prop 8 maps, a mashup of Google Maps and Prop 8 Donors, shows the names of those who contributed money to the passage of California's Proposition 8, which prohibits same-sex marriage. The mashup also shows the streets where these people live. This kind of mashup is useful, but to some, it's also intrusive and scary. While these contribution records are public record, the idea that your name and mapped street are online could be considered unnecessarily invasive. The mashup offers great information, but is the backlash and privacy invasion worth it? This particular mashup, while not on a news site, raises questions about when and how journalists should use this type of online application.

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

Banks and financial firms are placing more emphasis on internal threats to cut the flow of data leakage as a result of employee mistakes or workers disgruntled with layoffs and downsizing during the economic crisis, according to a recent survey. The report, "Protecting What Matters: The Sixth Annual Global Security Survey," is based on a Deloitte survey of 250 CISOs in the financial-services industry. It found that 36% of respondents believe the internal threat represents the greatest risk to organizations, compared to 13% who said external threats are the biggest concern. Mark Steinhoff, head of Deloitte's financial services security and privacy practices, said an organization's biggest mistake would be to let its guard down. While the number of security breaches may have declined over the last year, cybercriminals are not rationing back their efforts. "The number of breaches that are occurring are really at the hands of insiders and organizations are understanding that there is a real threat of malicious attacks and exposure of personal information by insiders," Steinhoff said. The failing economy may be driving the increased concern over insider threats, Steinoff said. "The climate we're in today causes concerns about disgruntled employees," he said. "We are seeing the layoffs and other forms of downsizing. Frankly with limited budget and less than satisfied employees, it really raises the parameter on that threat." Human error is the leading cause of information systems failure, and is likely to be the main cause of security attacks in the near future, according to 86% of those surveyed. To protect against employee mistakes that lead to a breach, financial firms should focus on risk rather than compliance to protect themselves, Steinhoff said. "[Organizations] need to look at what they want to protect and look at various types of threats internally and evaluate who has access to the data and who has access to which system, and approach it from that persp

The global economic crisis has become the biggest near-term U.S. security concern, sowing instability in a quarter of the world's countries and threatening destructive trade wars, U.S. intelligence agencies reported on Thursday. The director of national intelligence's annual threat assessment also said al Qaeda's leadership had been weakened over the last year. But security in Afghanistan had deteriorated and Pakistan had to gain control over its border areas before the situation could improve. "The financial crisis and global recession are likely to produce a wave of economic crises in emerging market nations over the next year," said the report. A wave of "destructive protectionism" was possible as countries find they cannot export their way out of the slump. "Time is our greatest threat. The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests," the report said. The report represents the findings of all 16 U.S. intelligence agencies and serves as a leading security reference for policymakers and Congress. Besides reviewing adversaries, it also considered this year the security impact of issues including climate change and the economy. It said a quarter of countries have already experienced at least "low-level" instability, such as government changes, linked to the economy.

Facebook founder Mark Zuckerberg has responded to the privacy concerns raised in this post by Consumerist. The post pointed out that a change Facebook made to its terms of service left the impression that the social network could keep and use copies of user content (e.g. photos, notes, and personal information) in perpetuity even if users removed the information and closed their accounts. "One of the questions about our new terms of use is whether Facebook can use this information forever," Zuckerberg wrote. But, oddly, he did not answer that question. Instead he opted for a rather roundabout explanation: if you send a friend a message via Facebook's e-mail system, Facebook must create mutliple copies of that message -- one for your "sent" message box and one for your friend's inbox. That way, if you leave Facebook, the copy your friend has would not be deleted. Fair enough. The implication is that, by extension, Facebook also keeps copies of all your other information, too. But the e-mail example has a major hole in it. Copying content makes sense for e-mails, where the medium itself depends on messages being copied. The thing is, Facebook users generally do not 'send' other types of content to one another, including photographs. Rather, they post them on their own profiles for others to stop by and see. There's no obvious reason that Facebook would need to perpetually store multiple copies of photographs -- because, as far as the user is concerned, they appear only in one place. Plus, Zuckerberg seems to underestimate his users' understanding of e-mail. My guess is most Facebook users don't think that if they close an e-mail account that all the e-mails they've ever sent will disappear. Frankly, it's not e-mails that are at issue here; it's this other, more personal category of content -- the stuff that people post within their own digital walls. Zuckerberg goes on to write that despite the presence of "overly formal and protective" language that Facebo

A U.S. appeals court on Friday denied a bid by the cable industry to overrule privacy rules that make it more difficult for them to share subscribers' personal information with other parties. The U.S. Court of Appeals for the District of Columbia Circuit denied a petition by the National Cable and Telecommunications Association, which argued that federal rules on telecom carriers' use of customer data violated free speech rights under the U.S. Constitution, federal law or both. At issue are rules set by the U.S. Federal Communications Commission that mandate telecommunications carriers must get an "opt-in" before disclosing customers' information to a carrier's joint venture business partner or an independent contractor.

Patients' advocates claimed victory in a battle over the privacy of health records as the U.S. Congress approved the economic stimulus bill, which contains $19 billion for health-care information. U.S. House and Senate negotiators' compromise reflects stricter standards that privacy advocates wanted for marketing, selling and disclosing health data. Both houses approved the $787 billion stimulus plan today and sent it to President Barack Obama for his signature. The legislation contains $2 billion in grants to create a national system of computerized health records and $17 billion in higher Medicare and Medicaid reimbursements for doctors and hospitals to adopt the technology. Electronic records will improve care and reduce costs, Obama said. The legislation also will boost the health-records industry, led by Allscripts-Misys Healthcare Solutions Inc., Quality Systems Inc. and Athenahealth Inc. "We've dramatically improved on the status-quo, wholly unregulated system where private patient data was bought and sold like any commodity," Caroline Fredrickson, director of the American Civil Liberties Union's Washington legislative office, said in an interview today.

Update on Feb. 18, 8:33 a.m.: Facebook is backing off changes to its terms of service, informing users on their official blog that they will remain intact. "Over the past couple of days, we received a lot of questions and comments about the changes and what they mean for people and their information," Facebook CEO Mark Zuckerberg writes in the blog. "Based on this feedback, we have decided to return to our previous terms of use while we resolve the issues that people have raised." To learn more, read our original post below. Facebook is having trouble dousing the flames in a firestorm over its trustworthiness. A recent change in its terms of use -- the legalese tacked onto the bottom of most websites -- has sparked concerns that the social networking giant plans to own all users' information forever. Founder and CEO Mark Zuckerberg claimed in a blog post Monday that "on Facebook people own and control their information." But privacy advocates still aren't satisfied. "I think in simple terms it's a tug of war over user data," says Marc Rotenberg, executive director of the Electronic Privacy Information Center (EPIC) in Washington. "People put information on a Facebook page to share with friends. But it's pretty much with the understanding that they're deciding what to post and who has access to it. Facebook, like any other company, is trying to obtain maximum commercial value from its users."