Rogue employees pose risk to privacy compliance, corporate info

November 18, 2009

The U.K.’s Huffington Post is reporting that a rogue employee of a major mobile phone company has illegally sold millions of customer records to rival companies.  Apparently, customers’ personal information (including contract expiry dates) was sold to several rivals, which then used the material to cold-call customers to offer them an alternative deal.

As I’ve previously written, information really is the most valuable corporate asset. And for this reason, businesses of all sizes should take steps to protect corporate information regardless of whether it is stored online or off-line. Whether it’s customer or supplier lists, intellectual property or employees’ personal information, it’s information that needs safekeeping. 

This case should serve as a reminder that corporate safekeeping practices must include protecting data from rogue employees.


Summer is over but “phishing” continues

October 6, 2009

Fishing 8BBC News is reporting that thousands of Hotmail accounts have been compromised in a phishing attack, which has reportedly affected at least 10,000 individuals.

Phishing involves identity thieves attempting to obtain personal information, such as user names, passwords and financial information, by pretending to be trustworthy organizations in need of such data.

Coincidentally, the Privacy Commissioner of Canada released her annual report today, which stresses the importance of making informed choices when sharing personal information online. The Privacy Commissioner reminds Canadians that there is a risk that unguarded personal information could be exploited by identity thieves. The Hotmail phishing attack, as well as the Privacy Commissioner’s annual report, should also remind businesses to remain vigilant in protecting their brands – or online reputations – from being damaged by identity thieves that use phishing attacks to exploit the well-earned trust that such businesses have built with their customers.


Laptop Encryption: “I don’t know what we have to do to drive this message home” says Commissioner

September 10, 2009

Laptop 11A summer incident involving sensitive personal information on stolen laptops has brought the issue of data protection once again into the crosshairs of Frank Work, the Alberta Information and Privacy Commissioner

In a press release, the Commissioner expressed shock and disappointment with the fact that the stolen laptops, which contained the personal health information of more 300,000 individuals, were not encrypted. “This is shocking for me…I don’t know what we have to do to drive this message home” said the Commissioner. “The standard in Alberta for storing personal or health information on portable devices is encryption. I can’t accept anything less.” The Alberta incident is strikingly similar to an incident that occurred in Ontario back in 2007.  The Ontario incident also involved the theft of a non-encrypted laptop containing personal health information.  A review of the incident by Ann Cavoukian, Ontario’s Information and Privacy Commissioner, produced an order for information of this type to be encrypted. 

These incidents demonstrate how easily sensitive data can be compromised when stored on laptops.  Encryption is a relatively easy way to improve the security of such information.  But, where do you start? There are numerous encryption options available.  Choices range from free open source encryption software like TrueCrypt to full information security consultations from companies that offer comprehensive data protection services like Seccuris. Regardless of which course you choose, one fact remains the same, encrypting laptops significantly improves security and that’s just smart business.


The conflict between mobile devices and privacy: can’t we all just get along?

August 24, 2009

HeadacheThe sound of ringing telephones has caused migraines for millions ever since Alexander Graham Bell placed the first call to Mr. Watson in 1876. But thanks to some newly released technology, that’s about to change. Got a headache? There is, to borrow a phrase from a successful ad campaign, an app for that. Bellaire, Texas med-web company BetterQOL is rolling out iHeadache, an iPhone application that purports to “classify” and assist with diagnosing a user’s headache. iHeadache is one of many cutting edge applications available for use with smartphones. Don’t expect this trend to stop any time soon: thanks to programs like Apple’s iPhone Developer (only $99 for the standard edition), it’s becoming even easier for technology-savvy businesses to create their own apps.

Still not convinced? Consider this list of impressive apps for today’s traveler: Pocket Express, an app that acts as a mobile concierge; Stanza, an app that allows a user to load magazines and books to their smartphone; and GoodFood, which helps a user pick and locate a restaurant based on an array of dining preferences. It’s a good time to be a smartphone user, but perhaps even a better time to be an entrepreneur. Smartphones are increasingly offering businesses a direct window into the hearts, minds and, yes, wallets of potential customers.

But it’s not all good news, privacy advocates remind us. Many smartphone apps guzzle fuel like your Dad’s ’70 GTO, except they’re eating personal user information instead of gasoline. For example, your app may record your location, gender and birth year before it spits out the location of that perfect sale you’ve been looking for. A sizeable amount of personal information is in play, but, fortunately, Ontario’s Office of the Information and Privacy Commissioner (“IPC”) has been ahead of the curve with its call for “Privacy by Design“. Initially unveiled over 10 years ago, the concept of Privacy by Design combines privacy and security measures at the design specification stage of a project. Instead of waiting until privacy problems pop up to deal with them, Privacy by Design contemplates a proactive approach toward potential privacy issues. This methodology uses Privacy Enhancing Technology such as encryption to provide both maximum security and privacy protection. It is, as the IPC bills it, a “win-win” situation. Other examples of Privacy by Design include anonymous billing systems and depersonalization software.

It’s an exciting time to be a technologically-inclined entrepreneur, but the privacy consequences of smartphone apps cannot (and should not) be ignored. Any business that is considering creating or otherwise implementing an app should consider the privacy implications of doing so, preferably at the early stages of project development.


Palm Pre phone secretly used GPS to report user’s location to company: Los Angeles Times

August 17, 2009

Palm preThe Los Angeles Times is reporting that the Palm Pre phone secretly uses GPS to report users’ locations to the company.

It is an interesting story because it illustrates the importance of having clear and understandable privacy policies that customers can understand. It is also an interesting story because it (once again) demonstrates the attention that the media place on privacy matters and the potentially explosive reaction that customers can have if they feel their privacy isn’t being respected.


Who are the identity thieves?

August 4, 2009

StealHeadline after headline these days talk about the growing incidences of identity theft.  But who really are these identity thieves?  Do they work alone or for KAOS (Get Smart fans will understand this joke)?  To answer this timely question, there is a recent post on the Office of the Privacy Commissioner of Canada’s blog entitled “Who are these identity thieves?“ 

The post cites an earlier survey by the Privacy Commissioner that shows that one Canadian out of six has been the victim of some form of identity theft and that more than 90% of Canadians report that they are concerned about identity theft. The Privacy Commissioner’s post also cites a report by Benoit Dupont, the Canada Research Chair in Security, Identity and Technology at l’Université de Montréal, and his colleague Guillaume Louis, which offers an illuminating profile of identity thieves. Here are some highlights:

  • 1.7 million Canadians were affected by identity theft in 2008.
  • More than 45% of cases of identity theft involve Internet use. However, the way “offenders” use the Internet is not as significant as we might think in terms of acquiring the victim’s personal information. On the contrary, it plays a greater role in actually committing fraud.
  • “Women account for nearly 40% of offenders. We believe that this strong presence can be attributed to the absence of violence inherent to this sort of crime and the possibility of committing the crime without help from an accomplice.”
  • “Identity thieves are relatively older than other offenders; the average age is 33 years.”
  • “Offenders acted alone in the majority of cases (64.6%), which seems to contradict the theory of extensive involvement by organized crime in this type of offence.”

The Privacy Commissioner’s post also cites a 2008 report released by the McMaster eBusiness Research Centre that showed that victims spent more than 20 million hours and $150 million resolving problems associated with these crimes.  If you’d like to read more about identity theft, please click on the “Identity theft” link under this blog’s Tags.


Raitt tape release highlights murky rules of privacy law

June 11, 2009

Today’s National Post story about a Nova Scotia judge’s decision to allow the publication of a private conversation between Natural Resources Minister Lisa Raitt and her former aide casts a spotlight on a murky area of privacy law. 

As reported by the National Post, the unusual case raises questions about what constitutes a “reasonable expectation” of privacy in a world where digital recorders and handheld wireless devices are omnipresent. As I’m quoted in the story, “[researchers] said some years ago that new privacy rules were going to put existing business practices under a microscope. I think what we’re seeing now is technologies are putting existing legal principles under a microscope.” Fellow blogger Dan Michaluk  is also quoted.

Read the full story here


Information & Ideas team speaks out on slaw.ca

May 29, 2009

It’s been a thrilling week for my colleagues at Pitblado LLP as it was announced earlier this week that we were to be the 1st Canadian law firm to be a guest blogger on the must-read slaw.ca.  Yours truly, three of my colleagues from our firm’s Information & Ideas Practice Group as well as our firm’s librarian each contributed one post a day this week to slaw.ca on cutting edge legal topics.  Here’s what we covered…

On Monday, I posted “What Would Happen If One of your Employees Posted a Video of an Irate Customer on YouTube?”, which I cross posted on my blog earlier this week.  The post highlights a YouTube video of an irrate customer as a reminder to Canadian businesses of the powers of new technologies such as YouTube and the corresponding need to protect against the dissemination of this type of video through employee privacy training and the adoption and enforcement of privacy and procedures.

On Tuesday, Carol Lynn Schafer posted “Do TOS Have the Final Word on our Fundamental Rights and Freedoms?”, which discusses the controversial effects of Terms of Service on popular websites such as Facebook and Twitter.  As Carol Lynn notes, Terms of Service should be drafted with the bigger picture in mind and can no longer be seen as standard agreements that can be treated with a one size fits all approach.

On Wednesday, Jolin Spencer posted “Whose Property Is It, Anyway?”, which discusses the questions that come into play when employees leave their positions.  For example, what can an employee take, and what must they leave, when they vacate their position? As Jolin points out, no business wants its intellectual property assets walking out the door with a former employee.

On Thursday, our firm’s librarian, Karen Sawatsky, posted “Legal Research Bootcamp – Winnipeg Style”, which discusses her experience collaborating with members of the Manitoba Bar Association and the Law Society of Manitoba to create a CLE for articling students on legal research. The Legal Research Bootcamp is a first for Manitoba students, and aims to bridge the gap between when students start their articles and when CPLED begins in the fall.

And last but not least, today Adam Herstein posted “Manitoba: Innovative Fighter of Child Sexual Exploitation”, which focuses on Manitoba’s recent enactment of The Child and Family Services Amendment Act (Child Pornography Reporting) (Manitoba) and how Manitoba is the first province in Canada to enact legislation that makes it mandatory for a person who encounters child pornography to report it to authorities.  Adam also notes that Canada has a national tipline called Cybertip.ca for reporting the sexual exploitation of children.

Thanks to slaw.ca for the opportunity to contribute!


What would happen if one of your employees posted a video of an irate customer on YouTube?

May 25, 2009

Screaming

The posting of a YouTube video of a woman throwing a tantrum at the Hong Kong International Airport should serve as a reminder to Canadian businesses that employees these days can (and do) easily record and post videos online from their mobile phones.

The three minute video shows a Cathay Pacific customer yelling and flailing her limbs as she lies on the floor after missing her flight from Hong Kong to San Francisco. I’ve been upset at missing a flight before, but the woman in this video takes things to an entirely new level. The video has drawn over five millions views and nearly 21,000 comments, which has resulted in some incredibly cruel and objectionable online commentary about the woman. Since the release of the video, Cathay Pacific has disciplined the gate worker who recorded the video on his mobile phone (although the video was posted on YouTube by a third party) and the company has issued a formal apology to the woman.

The video is noteworthy because it demonstrates the power of new technologies such as YouTube and the corresponding risks to Canadian businesses. Had the video been recorded by an employee of a Canadian business, subject to Canadian privacy laws, the potential privacy complaint and/or lawsuit by the woman in the video could have been substantial. 

Canadian businesses should be reminded of the need to protect against the dissemination of this type of video through employee privacy training and the adoption and enforcement of privacy policies and procedures.

Canadian businesses don’t need to look too far to find examples where more effective employee privacy training may have mitigated, or even prevented, privacy complaints.

Read the rest of this entry »


“Digital footprints”: What’s being left behind in the electronic world?

April 15, 2009

footprints-6Businesses are increasingly being asked to reduce their “carbon footprint”. And while many customers are interested in doing business with organizations that are trying to reduce their carbon footprint, many customers are also concerned about their own “digital footprints“. 

The Discovery Channel has an interesting online tool that allows you to play a simple scenario by conducting your normal transactions as you would on any given day. Doing so shows you how often you provide your personal information to businesses and governments. You can then play the scenario again to try to reduce your digital footprint. Click here to play!

Businesses can help reduce their customer’s digital footprints by ensuring they only collect the personal information of customers necessary for the purposes identified by the organization and required for particular transactions. Additionally, businesses should avoid collecting personal information indiscriminately. As I’ve mentioned in a previous post, reducing the volume of personal information that a business collects (and is then responsible for safeguarding and destroying in accordance with applicable privacy laws) helps customers to reduce their “digital footprints”.  It also helps businesses to comply with privacy laws like PIPEDA and improve customer relations.


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