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ARTICLE · 22 JANUARY 2014

Data & Privacy Update - 16 January 2014

Research by DataGuidance illustrates how, for the first time, ICO fines on the private sector have exceeded those imposed on the public sector in terms of overall value.

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Private sector fined more by the ICO in 2013 than public sector

Research by DataGuidance illustrates how, for the first time, ICO fines on the private sector have exceeded those imposed on the public sector in terms of overall value. ICO fines in the private sector (50.7% in 2013) have increased sharply since 2012 (20.5%). In 2011, private sector fines made up only 0.2% of the total. The ICO commented that all issues are dealt with on a case-by-case basis.

Care.data privacy publicity campaign underway

The NHS has begun advising patients about the controversial government scheme, which will see confidential patient data sent to a central NHS database, and in some cases passed on to external organisations. All households in England will receive a leaflet informing them of the programme and providing them with details of how to opt out. Due to the complexity of the project, experts believe that despite the publicity campaign, many will fail to fully appreciate its scope.

Government increases focus on cyber security

The government has launched "Cyber Streetwise", an awareness campaign which aims to reduce the risk of cyber attacks on small and medium-sized enterprises, which are increasingly being targeted by hackers. Experts advised that even small steps, such as ensuring that security patches are kept updated and employees know their data security responsibilities, can help prevent a breach. The government has also funded a new department at Imperial College London, which will conduct research into how to counteract and respond to national cyber security threats.

AIG announces 30% increase in cyber insurance take-up since 2012

The insurer's head of professional liability told the FT that they had seen "significant growth". Despite this, statistics suggest that the market is still in its infancy; a report by Experian last year showed that only 31% of US companies have made provision for cyber liability policies.

Target data breach may have affected up to 110 million customers

Forensics reports have revealed that in addition to the 40 million customers who had payment card data stolen, an additional 70 million may have lost personal data, including names, addresses and phone numbers. Target will be contacting those concerned by email, and is offering customers a year of free credit monitoring and identity theft protection. The company is also planning to invest USD 5 million in a cyber security education programme.

Report finds VSATS highly vulnerable to hacks

The IntelCrawler report revealed that thousands of very small aperture terminals (small, satellite dish-based computer systems widely used in the oil, gas and utilities sectors) do not have suitable security mechanisms in place. A large number of VSATS belong to governments or relate to critical infrastructure, and hackers may be able not only to steal sensitive data but also to take control of the satellites.

Google's activities raise further privacy concerns

Google's latest Gmail update introduces a new default feature which users must actively opt out of if they do not wish their accounts to be affected. It will allow users who are members of both Gmail and Google+ to email anyone who they follow on the social network, even if the recipient has never shared their email address.

Google's announcement this week that it is to purchase Nest Labs has also led to worries as to how it intends to use the data collected by Nest Labs' products, which include smart thermostats and smoke alarms. Google has said that it will abide by Nest Labs' privacy policy.

Automotive industry latest to be caught in privacy spotlight

Two US senators are to introduce a bill stipulating that car owners should control the data collected by black boxes, and that the data they collect should only be used for limited purposes. Black boxes, which will become compulsory in the US from September 2014, have already been the focus of various lawsuits involving insurers and insureds.

Numerous concerns also exist over the increasing use of smart technology within automobiles, with the CEO of Ford commenting that legislation will be necessary to protect drivers' privacy. The US Government Accountability Office (GAO) has already found inconsistencies in the way car manufacturers and GPS navigation devices process data.

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