www.ipc.on.ca preserving privacy in a security-centric world ann cavoukian, ph.d. information &...

www.ipc.on.ca

Preserving Privacy in a Preserving Privacy in a Security-Centric WorldSecurity-Centric World

Ann Cavoukian, Ph.D.Information & Privacy Commissioner/Ontario

Canadian Information Processing Society (CIPS)Toronto, Ontario

January 19, 2005

www.ipc.on.cawww.ipc.on.ca

Impetus for Change

Growth of Privacy as a Global Issue

EU Directive on Data Protection

Increasing amounts of personal data collected, consolidated, aggregated

Consumer Backlash; heightened consumer expectations


The New Debate:Privacy After 9/11

It’s business as usual:

• Clear distinction between public safety and business issues – make no mistake

• No reduction in consumer expectations

• Increased value of trusted relationships


Consumer Attitudes

Business is not a beneficiary of the post-9/11 “Trust Mood”

Increased trust in government has not been paralleled by increased trust in business

handling of personal information

Privacy On and Off the Internet: What Consumers Want

Harris Interactive, November 2001

Dr. Alan Westin


Information Privacy Defined

Information Privacy: Data Protection

• Freedom of choice; control; informational self-determination

• Personal control over the collection, use and disclosure of any recorded information about an identifiable individual


What Privacy is Not

Security Privacy


The Foundation of Information Security

The control of information on the part of data holders or their surrogates

Functions:• Authentication• Authorization• Confidentiality• Data Integrity• Non-repudiation• Availability


The Privacy/Security Relationship

Privacy relates to personal control over one’s personal information

Security relates to organizational control over information

These represent two overlapping, but distinct activities


Risk Management

Security Risk Management• Owner of the data is assumed to be trusted • System design is trusted

Privacy Risk Management• Custodian of data not considered trusted• System design not to be trusted

- Eg. CAPPS II


AuthenticationData IntegrityConfidentialityNon-repudiation

Privacy; Data ProtectionFair Information Practices

Privacy and Security: The Difference

Security: Organizational control

of information through information systems


Summary of Fair Information Practices

AccountabilityIdentifying PurposesConsentLimiting CollectionLimiting Use,

Disclosure, RetentionAccuracy

SafeguardsOpennessIndividual AccessChallenging

Compliance


The Bottom Line

Privacy should be viewed as a business strategy, not a

compliance issue


The Promise

Electronic Commerce projected to reach $220 billion by 2001 WTO, 1998

Electronic Commerce projected to reach $133 billion by 2004Wharton Forum on E-Commerce, 1999

Estimates revised downward to reflect lower expectations


The Reality of E-Commerce

United States: e-commerce sales were only 1.6% of total sales -- $54.9 billion in 2003

U.S. Dept. of Commerce, Census Bureau, February 2004

Canada: Online sales were only 0.8% of total revenues -- $18.6 billion in 2003

Statistics Canada, April 2004


Lack of Privacy = Lack of Sales

“Consumer privacy apprehensions continue to plague the Web. These fears will hold back roughly $15 billion in e-commerce revenue.”

Forrester Research, September 2001

“Privacy and security concerns could cost online sellers almost $25 billion by 2006.”

Jupiter Research, May 2002


The Business Case

“Our research shows that 80% of our customers would walk away if we mishandled their personal information.”

CPO, Royal Bank of Canada, 2003

Nearly 90% of online consumers want the right to control how their personal information is used after it is collected.


ISF Highlights Damage done by Privacy Breaches

The Information Security Forum reported that a company’s privacy breaches can cause major damage to brand and reputation:• 25% of companies surveyed experienced some

adverse publicity due to privacy• 1 in 10 had experienced civil litigation, lost

business or broken contracts• Robust privacy policies and staff training were

viewed as keys to avoiding privacy problems

The Information Security Forum, July 7, 2004


It’s all about Trust

“Trust is more important than ever online … Price does not rule the Web …

Trust does.”

Frederick F. Reichheld, Loyalty Rules:

How Today’s Leaders Build Lasting Relationships


The High Road

“When customers DO trust an online vendor, they are much more likely to share personal information. This information then enables the company to form a more intimate relationship with its customers.”

Frederick F. Reichheld, Loyalty Rules: How Today’s Leaders

Build Lasting Relationships

www.ipc.on.ca

Translating Privacy Requirements into Technology


Technology and Privacy

“The most effective means to counter technology’s

erosion of privacy is technology itself.”

Alan Greenspan, Federal Reserve Chairman


Hot Topics

CIBC Privacy Breach

Government of Ontario Privacy Breach

Identity Theft


CIBC Privacy Breach

West Virginia scrap yard operator alleges that since 2001, his telephone system has been deluged with confidential CIBC customer data (e.g. SSN, account no., client signature)

Toll-free number was one digit different from an internal bank fax number

Filed a lawsuit against CIBC claiming his business was ruined

CIBC filed a court action accusing him of deliberately leaking customer data


CIBC Privacy Breach (cont’d)

Bank acknowledges reports of the misdirected faxes dating back to February 2002

An e-mail message was sent to staff to check their fax machines

The matter was not otherwise investigated or escalated to senior levels

CIBC issued a formal apology and took remedial action (e.g. notification of individuals; fax number taken out of service)

Federal Privacy Commissioner investigating


Privacy Breach:Government of Ontario

Dec 16, 2004, IPC tabled Special Report to the Legislative Assembly of Ontario on the Disclosure of Personal Information by the Shared Services Bureau, Management Board Secretariat, and the Ministry of Finance

27,258 cheques, mailed under the Ontario Child Care Supplement Program, included the personal information of another recipient

Government has committed to implementing all recommendations made by IPC


Recommendations

Independent end-to-end audit of all functions, operations and privacy practices of the Shared Services Bureau

Discontinue use of the SIN number and create a purpose-specific unique identifier

Trial run printing of several sample cheques and manual examination, before each monthly printing of cheques and stubs


Identity Theft

Identity theft occurs when someone uses your personal information such as your name, Social Insurance Number or credit card number without your permission to commit fraud or other crimes

In 2003, more than 13,000 Canadians reported to Phonebusters that they were victims of identity theft but the actual, unreported numbers are probably much higher

The Canadian Council of Better Business Bureaus estimates that identity theft costs the Canadian economy about $2.5 billion annually


Consumer Education

Businesses must continue to educate consumers about identity theft

A study released by the Ponemon Institute in November 2004 found that:

• 70% of consumers are willing to share their personal information or give the answer to a security question in response to an unsolicited phone call or email

• 61% don’t want to be forced to change their passwords to access their accounts

• 57% don’t want their accounts locked down after three failed attempts


Online Identity Theft:“Phishing”

“Spoofed” emails or pop-up messages are used to lure consumers to fraudulent Web sites which mimic actual banks or credit card companies and attempt to trick them into divulging personal information such as their names, account numbers and passwords

In November 2004, more than 1,500 fraudulent Web sites were reported to the Anti-Phishing Working Group

From July to November 2004, there was a 28% average monthly growth rate in such Web sites


“Phishing” in Canada

Phishers are targeting Canadian financial institutions and consumers but most Canadians are unfamiliar with “phishing”

A survey released by Visa in November 2004 found that:

• Only 16% of Canadians with a personal email account and Internet access were familiar with the term “phishing”

• Nearly 60% admitted that they would likely provide personal information if requested through an email from their bank or credit card company

• 4% reported that they had actually been a victim of phishing


Final Thought

“Anyone today who thinks the privacy issue has peaked is greatly mistaken…we are in the early stages of a sweeping change in attitudes that will fuel political battles and put once-routine business practices under the microscope.”

Forrester Research, March 5, 2001

www.ipc.on.ca

How to Contact Us

Ann Cavoukian, Ph.D.Information & Privacy Commissioner/Ontario

2 Bloor Street East, Suite 1400 Toronto, Ontario M4W 1A8Phone: (416) 326-3333

Web: www.ipc.on.ca

E-mail: [email protected]

www.ipc.on.ca preserving privacy in a security-centric world ann cavoukian, ph.d. information &...

Documents

security privacy slide

information systems

recorded information

line privacy

compliance issue slide

identifiable individual

alan westin slide

change growth of privacy