Looking AheadLooking AheadPrivacy, Laws, & Privacy, Laws, &

TechnologyTechnology

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J. Trevor HughesJ. Trevor HughesInternational Association of Privacy ProfessionalsInternational Association of Privacy Professionals

Emerging Regulatory IssuesEmerging Regulatory Issues

PrivacyPrivacy ID TheftID Theft SSNs SSNs SpamSpam TelemarketingTelemarketing GLBAGLBA FCRAFCRA HIPAAHIPAA Patriot ActPatriot Act

SecuritySecurity The Ugly StepchildThe Ugly Stepchild

A Look AheadA Look Ahead Emerging TechnologyEmerging Technology BiometricsBiometrics Data FluidityData Fluidity Data AggregationData Aggregation

The Privacy StrataThe Privacy Strata

Technology Standards

Self Regulatory Standards

US Government

SSNs GLB HIPPA

The States (Legislatures, DOIs and AGs)

The Rest of the

World

The Rest of the

World

EUROPE EUROPE Canada Canada

Show me the harm...Show me the harm...

Marketing Telemarketing SPAM Identity Theft

Harm to Public

Identity TheftIdentity Theft

FTC Complaints:FTC Complaints: 2000: 31,0002000: 31,000 2001: 86,0002001: 86,000 2002: 162,0002002: 162,000 Top consumer fraud Top consumer fraud

complaint in 2002complaint in 2002 30% growth predicted 30% growth predicted

going forwardgoing forward

Average impact:Average impact: $1500$1500 175 hours of clean up175 hours of clean up credit disruptionscredit disruptions

42% of complaints 42% of complaints involve credit card involve credit card fraudfraud

Identity theft coverage now availableIdentity theft coverage now available

Social Security NumbersSocial Security Numbers

California:California: Correspondence to residential addresses cannot Correspondence to residential addresses cannot

include a SSNinclude a SSN (Simitian bill) employers cannot use SSN for purposes (Simitian bill) employers cannot use SSN for purposes

other than taxesother than taxes

Feds:Feds: Proposals to limit use as college IDProposals to limit use as college ID

Looking ahead:Looking ahead: Restrictions on the use of SSNs as internal identifiersRestrictions on the use of SSNs as internal identifiers

May be used for verification of identity, accessing medical May be used for verification of identity, accessing medical files and credit reportsfiles and credit reportsMay not be used as an account numberMay not be used as an account number

SPAMSPAM

Hotmail – 80% unsolicited Hotmail – 80% unsolicited bulk emailbulk email31 billion per day (2002)31 billion per day (2002)60 billion per day(2006)60 billion per day(2006)Dial up concerns (EU Dial up concerns (EU local call problems)local call problems)Work productivity/liability Work productivity/liability concernsconcernsDeliverability concernsDeliverability concernsChannel viability Channel viability concerns (the “900” concerns (the “900” phenomenon)phenomenon)

Killing the Killer App?Killing the Killer App?

Legal Responses:Legal Responses: 26 states with anti-26 states with anti-

spam legislationspam legislation Can Spam Act in Can Spam Act in

SenateSenate Commerce/Judiciary Commerce/Judiciary

efforts in Houseefforts in House EU opt-in EU opt-in

requirementsrequirements

Tech ResponsesTech Responses BlacklistsBlacklists Filtering by ISPsFiltering by ISPs Solution providersSolution providers

HabeusHabeus

Trusted SenderTrusted Sender

IronPortIronPort

BrightmailBrightmail

Aggressive filtering results in “false positives”(legitimate email being blocked)

The Value of EmailThe Value of Email

Spam

Value to R

ecipient PermissionAcquisition

PermissionRetention

Relational Messages:Transactional, personal, paid service,

permission-based non-marketing

ISPs and False PositivesISPs and False Positives

NetZ

ero 27%

Yahoo 22%

AO

L 18%

Com

puserve 14%

Hotm

ail 8%

Mall.com

MS

N

US

A.net

Earthlink

BellS

outh

Average Non-Delivery for Top ISPs: 15%

Assurance Systems, Feb. 2003

Employee PrivacyEmployee Privacy

Blurring of work/home Blurring of work/home boundariesboundaries30% of ecommerce sales 30% of ecommerce sales generated from the generated from the workplaceworkplaceExtensive use of Extensive use of company email for company email for personal usepersonal useIssue: employer Issue: employer monitoring?monitoring?European v. US European v. US approachesapproaches

TelemarketingTelemarketing

The “must have” The “must have” legislation for every up-legislation for every up-and-coming AGand-coming AG

TCPA – allows for single TCPA – allows for single vendor opt-outvendor opt-out

FTC’s gift to consumers: FTC’s gift to consumers: a national do not call a national do not call registry (just signed)registry (just signed)

Telemarketing will Telemarketing will diminish as a sales diminish as a sales vehiclevehicle

Fair Credit Reporting ActFair Credit Reporting Act

Reauthorization in 2003Reauthorization in 2003

Big issues:Big issues: Expand consumer privacy protections?Expand consumer privacy protections? Sunset state preemption?Sunset state preemption?

NAAG says “YES!”NAAG says “YES!”

Business community says “please, no!”Business community says “please, no!”

For insurers: beware of scope creep in FCRA For insurers: beware of scope creep in FCRA reauthorization (Sen. Shelby – GLBA did not go reauthorization (Sen. Shelby – GLBA did not go far enough; wants opt in for third party transfers)far enough; wants opt in for third party transfers)

Layered Privacy NoticesLayered Privacy Notices

3 2

The Technology Policy MachineThe Technology Policy Machine

New, Little Understood, Technology Introduced

Policy and Standards Vacuum

Self Reg, New Technology and Education Create Trust 1

CookiesCookies

Small strings of code written to a special Small strings of code written to a special file on your hard drivefile on your hard drive

Usually anonymous, may be associated Usually anonymous, may be associated with PIIwith PII

The NAI PrinciplesThe NAI Principles

Members will:Members will: Never profile on sensitive data (financial, Never profile on sensitive data (financial,

medical, sexual)medical, sexual) For PII:For PII:

Never merge PII with previously collected Never merge PII with previously collected clickstream without affirmative consent clickstream without affirmative consent Provide consumers with robust notice and choice Provide consumers with robust notice and choice (opt-out) for the merger of PII with prospective (opt-out) for the merger of PII with prospective clickstreamclickstream

For Non-PII:For Non-PII:Provide clear and conspicuous notice and choice Provide clear and conspicuous notice and choice (opt-out) (opt-out)

P3P with Cookie ManagementP3P with Cookie Management

WEB SITE

P3P HEADER

BROWSER

P3P AgreementP3P Setting

Cookie

Cookie

Cookie

P3P Agreement

If Richard Smith Says it is Okay, it If Richard Smith Says it is Okay, it MUST Be Okay...MUST Be Okay...

““My first reaction was, ‘Oh, they’re terrible!’ My first reaction was, ‘Oh, they’re terrible!’ Over the last year and a half as I’ve Over the last year and a half as I’ve looked at the Internet and how it works, it looked at the Internet and how it works, it would be very difficult to have the Internet would be very difficult to have the Internet without them (cookies).”without them (cookies).” NY Times; Sept. 4, 2001NY Times; Sept. 4, 2001

SecuritySecurity

The Ugly Stepchild of PrivacyThe Ugly Stepchild of Privacy

SecuritySecurity

Security AuditSecurity Audit Quickest, easiest way to get a snapshot of your security Quickest, easiest way to get a snapshot of your security

issuesissues

Develop a “Security Portfolio”Develop a “Security Portfolio” Internet/Acceptable use policiesInternet/Acceptable use policies E-mail policiesE-mail policies Remote access policiesRemote access policies Special access policiesSpecial access policies Data protection policiesData protection policies Firewall management policiesFirewall management policies Cost sensitive, appropriate architectureCost sensitive, appropriate architecture

Reassess, Audit, ReviseReassess, Audit, Revise

DefenseIn

Depth!

SecuritySecurity

Protect Internally and Protect Internally and ExternallyExternally IIS Survey (2000) – IIS Survey (2000) –

68% of attacks are 68% of attacks are internalinternal

Protect Network AND Protect Network AND DataData Data is usually the Data is usually the

target of an attack, not target of an attack, not the “network”the “network”

Security – What to do?Security – What to do?

Standards Emerge!Standards Emerge! Data encryption to the Data encryption to the

column levelcolumn level Role-based access Role-based access

control to the row levelcontrol to the row level Role-based access for Role-based access for

DBAsDBAs Transaction Transaction

auditabilityauditability

Pay now, or Pay Pay now, or Pay Later!Later!

A look ahead...A look ahead...

Emerging DynamicsEmerging Dynamics

Data FluidityData Fluidity PersonalizationPersonalization Persistent SurveillancePersistent Surveillance BiometricsBiometrics

Data AggregationData Aggregation Targeted messagingTargeted messaging

Geo PrivacyGeo Privacy

Data Friction and FluidityData Friction and Fluidity

FRICTION FLUIDITY

Stone Tablets

Paper

Printing Press

Digital Data

Data Velocity

PersonalizationPersonalization

As data becomes more As data becomes more fluid, personal targeting fluid, personal targeting becomes possiblebecomes possible

Privacy issues prevailPrivacy issues prevail

.NET (Microsoft), Liberty .NET (Microsoft), Liberty Alliance (Sun)Alliance (Sun)

Never entering your name, Never entering your name, password, address and password, address and credit card againcredit card again

Do we really want this?Do we really want this?

The rise of GUIDsThe rise of GUIDs

Personlization TodayPersonlization Today

Hello John Anderton...Hello John Anderton...

Data Fluidity for HealthcareData Fluidity for Healthcare

Smart CardsSmart Cards GenomeGenome Entire Medical RecordEntire Medical Record

HIPAA code setsHIPAA code setsCRM across all CRM across all lines/interaction lines/interaction pointspointsSingle interface Single interface solutions for solutions for customerscustomers

Biometrics EverywhereBiometrics Everywhere

Biometric AttestationsBiometric Attestations Faceprints, eyeprints, Faceprints, eyeprints,

fingerprints, hand fingerprints, hand geometry, voice geometry, voice recognition, vein recognition, vein patterns, gait patterns, gait recognition, odor...recognition, odor...

Face RecognitionFace Recognition

2001 Superbowl2001 Superbowl

AirportsAirports

Urban hot spotsUrban hot spots

Business campusBusiness campus

Iris/Fingerprint RecognitionIris/Fingerprint Recognition

Airports (Vancouver Airports (Vancouver and Toronto)and Toronto)

SignaturesSignatures

High security High security buildingsbuildings

Persistent Persistent SurveillanceSurveillance

““He’s been idented on He’s been idented on the Metro...”the Metro...”

Data AggregationData AggregationData Silos Aggregation

Core Data

Inferred Data

Meta Data

Derivative Data

Personalization and Velocity

Geo PrivacyGeo Privacy

e911e911

Geo Targeted Geo Targeted Wireless ServicesWireless Services ““Smell that coffee? Smell that coffee?

Come in for a cup!”Come in for a cup!”

Lessons to be LearnedLessons to be Learned

Data Becomes Much Data Becomes Much More FluidMore FluidData Management Data Management Becomes Much More Becomes Much More DifficultDifficultData Moves More QuicklyData Moves More QuicklySmart Companies will Smart Companies will Harness the Power of Harness the Power of Data Fluidity to Reduce Data Fluidity to Reduce Costs and Improve Their Costs and Improve Their Value Propositions Value Propositions

The International Association of Privacy Professionalsis the nation’s leading association for privacy and securityprofessionals. It helps its members build and maintain privacyprograms while effectively navigating rapidly changingregulatory and legal environments.

Mission of IAPP

1. To promote privacy programs and safeguards – their introduction, development and maintenance. 

2. To provide a forum for interaction and information exchange for our members.

3. To create high quality educational opportunities for those involved with privacy issues.

Phone: 800-266-6501 www.privacyassociation.org

information@privacyassociation.org

THANKS!THANKS!

J. Trevor HughesJ. Trevor Hughes

jthughes@maine.rr.comjthughes@maine.rr.com

207 351 1500207 351 1500