Privacy

Articles and publications written by the CCC about Privacy.

MoH urged take immediate recommendations in the AG’s Report on MySejahtera data leak

KUALA LUMPUR: The Malaysia Consumer Choice Center (MCCC) urges the Ministry of Health (MoH) to implement immediate security measures to prevent the continued theft of personal data from the MySejahtera application.

This follows the Auditor General’s Report 2021 Series 2, which revealed that the super-admin account downloaded three million Malaysians’ personal data in the MySejahtera application from October 28 to October 31, 2021.

MCCC representative Tarmizi Anuwar urged the MoH to improve security measures to ensure the safety of consumers and that such incidents do not happen again.

“The MoH needs to act immediately to tighten the data security management system and the MySejahtera application as recommended by the Auditor General’s Report to prevent the intrusion of consumer data again.

Read the full text here

Kenapa KKM gagal kenal pasti data MySejahtera dimuat turun ‘Super Admin’, soal kumpulan pengguna

Wakilnya menggesa KKM segera bertindak memperketatkan sistem pengurusan keselamatan data dan aplikasi tersebut.

PETALING JAYA: Pusat Pilihan Pengguna (CCC) mengecam kerajaan kerana masih tidak mengenal pasti medan data peribadi yang dimuat turun daripada akaun “Super Admin” menerusi aplikasi MySejahtera, selepas lebih setahun laporan polis dibuat.

Wakilnya, Tarmizi Anuwar, menggesa Kementerian Kesihatan (KKM) mempertingkatkan langkah keselamatan bagi memastikan keselamatan data pengguna terjamin.

“KKM perlu segera bertindak memperketatkan sistem pengurusan keselamatan data dan aplikasi MySejahtera seperti disarankan laporan ketua audit negara bagi mengelakkan pencerobohan data berulang.

“Tindakan ini perlu diambil secepat mungkin kerana selepas satu tahun tiga bulan (laporan dibuat), kementerian masih tidak dapat mengenal pasti medan data peribadi telah dimuat turun.

“Hal ini sangat membimbangkan kerana lebih tiga juta data pengguna berisiko disalah guna pihak berkenaan,” katanya dalam kenyataan.

Read the full text here

The Ministry of Health Needs to Immediately Take the Recommendations of the Auditor General’s Report

KUALA LUMPUR, 20th February 2023 – The Malaysia Consumer Choice Center (CCC) urges the Ministry of Health of Malaysia to immediately present security measures to protect against the theft of personal data of the MySejahtera application from continuing. 

This follows the Auditor General’s Report 2021 Series 2 which revealed that 3 million Malaysians’ personal data in the MySejahtera application had been downloaded by the super-admin account on 28 October to 31 October 2021. 

According to the representative of the Malaysian Consumer Choice Center, Tarmizi Anuwar urged the Ministry of Health to improve security measures to ensure the safety of consumers and things like this do not happen again.

“The Ministry of Health needs to act immediately to tighten the data security management system and the MySejahtera application as recommended by the Auditor General’s Report to prevent the intrusion of consumer data again. This is important to ensure that consumers are safe,” he said. 

Based on the report, after one year and three months of the police report being made, the government has yet to identify the data fields that have been downloaded and are still under investigation by the authorities.

“The Ministry of Health needs to immediately take this action because after one year and three months, the Ministry still does not know or identify the personal data fields that have been downloaded. This is very worrying because more than 3 million user data is at risk of being misused by those who have downloaded it,” he added. 

According to Tarmizi, the Ministry of Health also needs to take seriously the questionnaire conducted by the audit department regarding the perception of consumers of the MySejahtera application. Based on the survey, a total of 2,699 responses or 49.8 percent disagree that personal data is stored in the My Sejahtera application database. While only 1,168 responses or 21.8 percent agreed and the rest were neutral. 

“Based on the survey conducted by the audit department, consumers are not confident about the level of security of the MySejahtera application and have concerns if their information or personal data is invaded by irresponsible parties.” 

“Although it has entered the endemic phase and this application is not used as before but the consumer’s personal data is still stored in this application.” 

“Therefore, the Ministry of Health needs to take immediate action and explain to public the steps that will be taken to deal with this matter seriously and be responsible in ensuring that this won’t happen again.”

The Great Danger of CBDCs

Kaleidoscopic Banknotes Collage

There have been numerous announcements of central banks starting to explore the idea of introducing Central Bank Digital Currencies (CBDC).

From e-naira, a CBDC issued by the central bank of Nigeria, to the digital yuan in China to the European central bank exploring the idea of the digital euro. In fact, according to the Bank For International Settlements research, 90% out of 81 central banks surveyed have been in some shape or form investigating the idea of introducing a central bank digital currency.

According to the same survey, an increasing number of countries are adjusting the legal authority of central banks giving them provisions that allow for a launch of digital currencies.

These central banks argue that CBDCs will help with financial inclusion by providing more access to financial services for underbanked and unbanked, they would lead to a significant reduction in fraud and money laundering, and they would improve efficiency and ultimately allow for a better and more efficient monetary policy through more control over the money supply.

CBDCs are often thought of in terms of the government’s response to crypto, the way that central banks are trying to get with the times and digitize money. However, except for utilizing similar technologies, they are fundamentally different from Bitcoin and many other cryptocurrencies.

The most significant difference between CBDCs and Bitcoin lies in the level of centralization and control. While Bitcoin is a fully decentralized currency operating on a decentralized ledger that not one person or organization can control, CBDCs are issued and fully controlled by the central bank that controls its supply, issuances, and use.

Bitcoin was created as a decentralized alternative to traditional fiat currencies and as a response to the monetary policies of central banks creating uncertainty and being responsible for the devaluation of money with ripple effects throughout the economy. CBDCs would equip governments with tools providing fast and easy total control over monetary policy to the extent of targeting businesses, organizations, and individuals. 

The level of control that a government would have over every transaction and the ability to apply transaction censorship over anyone would give leaders a level of control unprecedented in history, a tool that any totalitarian leader from a few decades ago could have only dreamed of. 

One could argue that most money already is digital, an endless collection of 0s and 1s. However, the crucial distinction is that no single database can track and oversee every transaction that exists. There are a number of laws and regulations in place that allow law enforcement to request access to records of interest where courts are required to give approval for such actions.

Forgoing these checks and balances currently in place and allowing one-click access to accounts of citizens would give not only an unprecedented power in terms of privacy violations but also an opportunity to monitor or deactivate undesirable accounts based on any perceived or real violation.

Taking away all of one’s ability to sustain themselves by locking their accounts is equivalent to jailing them. Giving officials the option to freeze or ban certain accounts without due process could seriously damage the principles of rule of law on which our society rests.

The potential for any elected or appointed officials to affect a citizen’s livelihood in such a way could lead to serious consequences, such as endangering the ability of citizens to use their right to free expression in fear of their lives being ruined in a single click. It is not hard to imagine many possible ways that any malicious actor could use this centralized power. Many other unintended consequences could be possible and some could create immense levels of social distrust.

Then there is privacy. Transactions made using CBDCs may be recorded on a public blockchain, making it possible for others to track and analyze financial data. Having citizens using a tool that could fundamentally affect their privacy on an unimaginable scale thus far in human history would be a grand violation of rights to privacy and would, without a doubt, lead to additional problems.

You thought your browsing history could be turned against you? Anyone having access to any monetary transaction you have made would definitely not be fun either and it is easy to imagine dozens of ways that bad actors could exploit access to that kind of information.

Another often overlooked potential consequence of introducing Central Bank Digital Currency is the digital monetary competition. If we see a rise in digital currencies issued by central banks, it is likely that they will enter a race with other country issued currencies as well as private or decentralized ones, such as Bitcoin. Having this sort of competition would potentially open up unknowing citizens to currency fluctuations which cannot be foreseen and create even larger instability with some national currencies. The ways this could affect purchasing power and lead to potential civil unrest is evident.

This is only a few ways that adoption of Central Bank Digital Currencies could affect life as we know it. It is easy to see how an extremely centralized, highly controlled and surveilled currency would be an end of many of the freedoms that our societies enjoy and shows why in contrast, Bitcoin, a highly decentralized, secure and censorship resistant currency is immensely important and represents one of the most potent tools humanity has today.

Aleksandar Kokotović is the crypto fellow at the Consumer Choice Center.

Memperkasa Akta Perlindungan Data Peribadi

Maklumat-maklumat penting pelanggan seperti nama, alamat, e-mel, nombor telefon, maklumat kesihatan atau butiran bank – semuanya harus disimpan dan dilindungi dengan teliti. 

Namun hampir setiap hari kita mendengar pelbagai kes baru mengenai kecurian identiti, jenayah kewangan atau serangan yang berbentuk pencerobohan data peribadi. 

Kebocoran atau pencerobohan data peribadi perlu diberikan perhatian kerana pengguna terdedah kepada aktiviti penipuan, penggodaman, pancingan data dan kecurian identiti.

Jika maklumat sedemikian sampai ke tangan yang salah, ia boleh menjejaskan keselamatan pengguna dalam pelbagai bentuk, termasuk integriti peribadi, keselamatan fizikal dan keselamatan kewangan.

Maklumat yang dicuri juga boleh digunakan untuk membuat profil palsu dan melakukan penipuan.

Firma keselamatan siber Surfshark menyatakan pada suku ketiga 2022 saja sebanyak 108.9 juta kebocoran maklumat berlaku di peringkat global. 

Kebocoran itu menunjukkan peningkatan sebanyak 70 peratus berbanding suku kedua tahun yang sama.

Menurut Menteri Komunikasi dan Digital, Fahmi Fadzil, pula sejak 2017 sehingga 2022 kira-kira 100 juta set data yang peribadi diceroboh dan dicuri.

Pada 2022 terdapat beberapa laporan insiden kebocoran data yang melibatkan maklumat peribadi berjuta-juta rakyat Malaysia yang didakwa berasal dari pangkalan data agensi kerajaan. 

Antaranya senarai daftar pemilih Suruhanjaya Pilihan Raya, data e-slip gaji kakitangan awam dan data kelahiran di Malaysia dari 1940 hingga 2004 milik Jabatan Pendaftaran Negara.

Read the full text here

Where is the FTC’s privacy report?

Data privacy is a fundamental liberal democratic principle for citizens + consumers.

In December 2020, the Federal Trade Commission ordered security and privacy data from Big Tech firms to inform potential future rules that would impact all consumers.

It’s nearly November 2022 but we still have NO report. Why?

We know that our interactions with companies and government involve privacy trade-offs that we must weigh individually. That’s what informed consumer choice is all about, and why we fight for smart data and privacy rules

Enough with data leaks/hacks!

We need smart data and privacy rules that can:
💡Champion Innovation
🛡Defend Portability
📲Allow Interoperability
👨‍💻Embrace Technological Neutrality
👩‍⚖️Avoid patchwork legislation
🔒Promote strong encryption

Learn more! 👇

Originally tweeted by Consumer Choice Center (@ConsumerChoiceC) on April 21, 2021.

The FTC began its 2020 investigation into data practices from major tech companies to try to understand their algorithms, data collection, and monetization. Tech firms provided this within 45 days.

But still no FTC report.

In August 2022, FTC called for public comments on commercial data practices and surveillance by tech firms, presumably informed by the data they collected and analyzed in their report.

But still no FTC report.

Maybe that’s why the deadline was pushed from October 20 to November 21, the week of Thanksgiving…

By then, will American consumers and citizens have access to the FCC report?

The FTC is asking for citizen comments on the data practices of tech firms, we deserve to know what’s in the report they’ve been cooking up for nearly 2 years.

As Joel Thayer writes, it’s an absolute failure that a major agency has fallen behind on this task, especially considering their ream of lawsuits and actions against these same tech companies.

If the FTC wants to empower consumers and provide a framework that we can debate, it needs to prove it. While data and consumer privacy are vital for consumers and innovators, we know this FTC chair has an agenda that will have sweeping ramifications.

FTC Chair Lina Khan has aimed to stop mergers and acquisitions and issued record fines on tech companies against the advice of her own staff. If FTC wants to invoke consumer privacy as another regulatory hammer, consumers deserve a say.

In our view, consumer and data privacy rules must provide balance and protection:

  • Champion Innovation
  • Defend Portability
  • Allow Interoperability
  • Embrace Technological Neutrality
  • Avoid patchwork legislation
  • Promote and allow strong encryption

Anyone who wants to submit a comment to the FTC on their “Trade Regulation Rule on Commercial Surveillance and Data Security” — even without the report — should submit one here.

The fight over Facebook’s content censor button will make all users lose

By Yaël Ossowski

Once the so-called Facebook whistleblower revealed her identity and story, it was clear the narrative about the future of one of the largest social networking sites would soon go off the rails.

What Haugen revealed in her initial leaks to the Wall Street Journal, which they dubbed the “Facebook Files,” were documents and research on how Facebook had made decisions on which accounts to censor, survey data on Instagram use among teens, and the status of the civic integrity team tasked with countering misinformation around political topics.

Many of the revelations are indeed fascinating —and some damning — but they generally point to a company constantly embattled with external and internal demands to censor and shut down accounts and pages that spread “misinformation” and “hateful” content. Who determines what that content is, and what classifies as such, is another point.

Among her allegations in her first public interview on 60 Minutes, she posited that the disbanding of the civic integrity team, of which she was a part, was directly responsible for the January 6th riot at the Capitol building. 

In the days since, Haugen has become a hero to critics of the social media giant on both the right and the left, animating these arguments before a Senate subcommittee on consumer protection on Tuesday. 

It created the perfect Two Minutes Hate session in Washington and on major media, allowing unchecked conjecture, hyperbole, and feverish contempt for a platform that allows ordinary people to post online and small businesses to run ads on their products.

Unusual for DC, Republicans and Democrats are united on confronting Facebook, though they are animated by different reasons. Generally, Democrats say the platform does not censor enough content and want it to do more, evoking the “interference” that led to Donald Trump’s victory in 2016. Republicans, on the other hand, believe the censorship is pointed in the wrong direction, often targeting conservative content creators, and would like to see more even-handedness.

The picture painted by all lawmakers, however, is of a company adding to general societal discord.

“Facebook has caused and aggravated a lot of pain and profited off the spreading of disinformation, misinformation, and sowing hate,” said committee chair Sen. Richard Blumenthal, who days before received ridicule for asking Instagram to ban the “Finsta” program (Finstas are fake Instagram accounts created by teens to avoid the prying eyes of parents).

The comments of Blumenthal and others were indeed hyperbolic, considering the vast majority of Facebook product users post images, videos, and text to their friends and family and can in no way be considered objectionable, but it helps lead to their ultimate aim.

But considering the premise of these hearings and investigations on Capitol Hill is to frame and inform future legislation, it is clear that regulation will soon be directly targeted at social media content and users, not the company itself, will be the ones to suffer.

As much as one would like to castigate the Silicon Valley firm with tens of thousands of employees and a stock ticker, it derives its power and influence as a platform for billions of individuals with something to say. A select number of the posts on Facebook may be atrocious or wrong, and they deserved to be called out, but they still are the posts of individuals and groups. Users have the option to flag posts for inappropriate content.

What makes many of the allegations leveled at Facebook interesting — albeit insincere (content designed to elicit an angry response, body image issues, unverified stories, etc.) — is that many of these can also be lobbed at traditional institutions: clickbait partisan journalism, Hollywood and the modeling industry, and tabloids that operate as rumor mills. In the age of social media, however, these are dying breeds.

The fact that many media outlets are openly advocating against social networks, technologies that directly compete with them, also makes this quite conflicted as we have seen in Australia.

When regulations do come to pass, and we can only assume they will, the only significant action will be to restrict what can and cannot be posted on the platform. Whether it is the mandatory hiring of a certain number of moderators, a veto process for third parties, or mandatory ID verification, which advertisers are already subject to, it will mean limiting and censoring the platform. This will harm users and consumers.

While there are many positive reforms that could be invoked in the wake of the Facebook moment — a national privacy and data law, for example — likely it will be the users of these platforms who will ultimately suffer.

The new Internet age has led most of the world to untold levels of growth and prosperity. Being able to connect with friends and family wherever they may be is a public good that we have only begun to understand and appreciate.

If we allow regulators to deploy content censorship buttons and restrict our ability to post and interact online, who is to say that only the “bad guys” will be caught up in the net?

If we believe in free speech and an open Internet, it is our responsibility to push for sane, smart, and effective rules, not those that only seek to punish and restrict what people can say online.

Yaël Ossowski is the deputy director of the Consumer Choice Center.

How Can We Ensure Consumer Privacy?

Each and every week, we hear of new data breaches, hacks, and disclosures of sensitive financial and personal information.

Last month, it was the cyberattack on the Colonial Pipeline in the United States, causing spikes in gas prices and long lines at the pump. Before that, news broke of a data leak affecting half a billion Facebook accounts, a bot that has successfully scraped 500 million LinkedIn accounts, and a hack at Stanford University that exposed thousands of social security numbers and financial details. The cycle is endless.

The sheer number of reports of data leaks, hacks, and scams on affected accounts has now grown so gargantuan that consumers and users are left numb. The more that number grows, the more we grow numb.

But breaches of private data matter. And consumers should be rightly ticked off.

Because for every company screw-up, hacker exploit, and insecure government database, there are thousands of firms and organizations doing it right, keeping users’ data secure, encrypted, and away from prying eyes.

And while individual countries in the European Union have their own privacy and data laws, the more troublesome aspect here is the troubled General Data Protection Regulation (GDPR), which all too often makes it more difficult for legitimate businesses to secure data, not less.

While we should always be vigilant about potentials for leaks and hacks, a chief concern of a smart and common-sense data privacy law or directive should be in championing innovation, which isn’t the case at present.

For every new health data company, logistics firm, or consumer wearable, proper data collection and retention are a core value. The more that rules are uniform, clear, and do not create barriers to entry, the more innovation we will see when it comes to data protection.

We should incentivize firms to adopt interoperability and open data standards to ensure data is portable and easy to access for users. Major social media networks now allow this prevision, and it has been the standard for website data for several years.

If that becomes the standard, consumers will be able to choose the brands and services that best cater to their needs and interests, rather than just companies left standing in the wake of overregulation.

At the same time, if we are to have revised privacy rules in the EU, we should enshrine the principle of technology neutrality, where government avoids decreeing winners and losers. That means that regulating or endorsing various formats of data, algorithms, or technology should be determined by firms and consumers, not government agencies without the knowledge necessary to make good decisions. The EU’s recent attempt to designate the “common phone charger” as the micro-USB connection, at a time when USB-C connections are becoming the industry standard, is an easy example.

This also extends to innovation practices such as targeted advertising, geo-targeting, or personalization, which are key to the consumer experience.

Added to that, we should be wary of all attempts to outlaw encryption for both commercial and personal use.

Pressure has mounted on the European Commission to overhaul encryption by private actors, but that would be a mistake.

The reason encryption remains a powerful tool in the arsenal of companies and agencies that handle our data and communications is because it works. We must defend it at any cost.

While there is plenty to be concerned about when it comes to online breaches and hacks, consumers should be able to benefit from an innovative marketplace of products and services, unencumbered by regulations that all too often restrict progress.

This balance is possible and necessary, both if we want to have a more secure online experience, and if we want to continue to have the best technology at our disposal to improve our lives.

Originally published here.

Digital data security poses several challenges

On a Monday, there is a data leak affecting half a billion Facebook accounts. By Tuesday, a bot has scraped 500 million LinkedIn accounts. Then Wednesday, Stanford University announces a hack that exposed thousands of Social Security numbers and financial details. And Thursday, the world’s largest aviation IT company announces 90% of passenger data might have been accessed in a cyberattack. And so on. The cycle is endless.

The sheer number of reports of data leaks, hacks and scams on affected accounts has now grown so gargantuan that consumers and users are left numb. It might as well be the soaring national debt total —the higher the number, the less we care.

But breaches of private data matter. And consumers should be rightly ticked off.

Because for every company screw-up, hacker exploit and insecure government database, there are thousands of firms and organizations doing it right, keeping users’ data secure, encrypted and away from prying eyes.

And although such states as California, Virginia and Vermont have passed privacy and data laws, many of these provisions too closely resemble the European Union’s troubled General Data Protection Regulation (GDPR) in making it more difficult for legitimate businesses to secure data, not less.

When large data breaches occur, consumers who have been legitimately harmed should have their claims heard in court.

But the current regulations across the U.S., including in tech-centric California, place too much of a burden on those who follow the law and do right by their customers. There’s also a risk of creating a patchwork of different rules in different jurisdictions. To avoid this, a national framework on data and consumer privacy will need to take shape.

While we should always be vigilant about potentials for leaks and hacks, a chief concern of a smart and common-sense data privacy bill should be in championing innovation.

For every new health data company, logistics firm or consumer wearable, proper data collection and retention are a core value. The more that rules are uniform, clear and do not create barriers to entry, the more innovation we will see when it comes to data protection.

We should incentivize firms to adopt interoperability and open data standards to ensure data is portable and easy for users to access. Major social media networks now allow this prevision, and it has been the standard for website data for several years.

If that becomes the standard, consumers will be able to choose the brands and services that best cater to their needs and interests, rather than just companies left standing in the wake of overregulation.

At the same time, if we are to have a national privacy bill, we should enshrine the principle of technology neutrality, where government avoids decreeing winners and losers. That means that regulating or endorsing various formats of data, algorithms or technology should be determined by firms and consumers, not government agencies without the knowledge necessary to make good decisions. The EU’s recent attempt to designate the “common phone charger” as the micro-USB connection, at a time when USB-C connections are becoming the industry standard, is an easy example.

This also extends to innovation practices such as targeted advertising, geotargeting or personalization, which are key to the consumer experience.

Added to that, we should be wary of all attempts to outlaw encryption for both commercial and personal use.

In recent weeks, FBI Director Christopher Wray has once again called on Congress to ban the use of encryption, an overreach that would put billions of dollars’ worth of data at risk overnight and leave us vulnerable to foreign hackers.

He is joined in these efforts by Sens. Lindsey Graham, R-S.C.; Tom Cotton, R-Ark.; and Marsha Blackburn, R-Tenn., who introduced a bill that would forever ban this important cryptographic invention, warning it is used by “terrorists and other bad actors to conceal illicit behavior.”

The reason encryption remains a powerful tool in the arsenal of companies and agencies that handle our data and communications is because it works. We must defend it at any cost.

While there is plenty to be concerned about when it comes to online breaches and hacks, consumers should be able to benefit from an innovative marketplace of products and services, unencumbered by regulations that all too often restrict progress.

This balance is possible and necessary, both if we want to have a more secure online experience and if we want to continue to have the best technology at our disposal to improve our lives.

Originally published here.

Are Consumers Getting the Short Stick on Data Privacy?

On a Monday, there is a data leak affecting half a billion Facebook accounts, by Tuesday a bot has scraped 500 million LinkedIn accounts. On Wednesday, Stanford University announces a hack that exposed thousands of social security numbers and financial details. Then Thursday, the world’s largest aviation IT company announces 90 percent of passenger data may have been accessed in a cyber-attack. And so on. The cycle is endless.

The sheer number of reports of data leaks, hacks, and scams on affected accounts has now grown so gargantuan that consumers and users are left numb. It might as well be the soaring national debt total —the higher the number, the less we care.

But breaches of private data matter. And consumers should be rightly ticked off.

Because for every company screw-up, hacker exploit, and insecure government database, there are thousands of firms and organizations doing it right, keeping users’ data secure, encrypted, and away from prying eyes.

And although states like California, Virginia, and Vermont have passed privacy and data laws, many of these provisions too closely resemble the European Union’s troubled General Data Protection Regulation (GDPR) in making it more difficult for legitimate businesses to secure data, not less.

When large data breaches occur, consumers who have been legitimately harmed should have their claims heard in court.

But the current patchwork of regulations across the U.S., including in the tech-centric state of California, place too much of a burden on those who are follow the law and do right by their customers, and risk creating different rules in different jurisdictions. To avoid this, a national framework on data and consumer privacy will need to take shape.

While we should always be vigilant about potentials for leaks and hacks, a chief concern of a smart and common-sense data privacy bill should be in championing innovation.

For every new health data company, logistics firm, or consumer wearable, proper data collection and retention are a core value. The more that rules are uniform, clear, and do not create barriers to entry, the more innovation we will see when it comes to data protection.

We should incentivize firms to adopt interoperability and open data standards to ensure data is portable and easy-to-access for users. Major social media networks now allow this prevision, and it has been the standard for website data for several years.

If that becomes the standard, consumers will be able to choose the brands and services that best cater to their needs and interests, rather than just companies left standing in the wake of overregulation.

At the same time, if we are to have a national privacy bill, we should enshrine the principle of technology neutrality, where government avoids decreeing winners and losers. That means that regulating or endorsing various formats of data, algorithms, or technology should be determined by firms and consumers, not government agencies without the knowledge necessary to make good decisions. The EU’s recent attempt to designate the “common phone charger” as the micro-USB connection, at a time when USB-C connections are becoming the industry standard, is an easy example.

This also extends to innovation practices such as targeted advertising, geo-targeting, or personalization, which are key to the consumer experience.

Added to that, we should be wary of all attempts to outlaw encryption for both commercial and personal use.

In recent weeks, FBI Director Christopher Wray has once again called on Congress to ban the use of encryption, an overreach that would put billions of dollars’ worth of data at risk overnight, and leave us vulnerable to foreign hackers.

He is joined in these efforts by Sens. Lindsey Graham (R-SC), Tom Cotton (R-AR), and Marsha Blackburn (R-TN), who introduced a bill that would forever ban this important cryptographic invention, warning it is used by “terrorists and other bad actors to conceal illicit behavior.”

The reason encryption remains a powerful tool in the arsenal of companies and agencies that handle our data and communications is because it works. We must defend it at any cost.

While there is plenty to be concerned about when it comes to online breaches and hacks, consumers should be able to benefit from an innovative marketplace of products and services, unencumbered by regulations that all-too-often restrict progress.

This balance is possible and necessary, both if we want to have a more secure online experience, and if we want to continue to have the best technology at our disposal to improve our lives.

Originally published here.

Are Consumers Getting the Short Stick on Data Privacy?

On a Monday, there is a data leak affecting half a billion Facebook accounts, by Tuesday a bot has scraped 500 million LinkedIn accounts. On Wednesday, Stanford University announces a hack that exposed thousands of social security numbers and financial details. Then Thursday, the world’s largest aviation IT company announces 90 percent of passenger data may have been accessed in a cyber-attack. And so on. The cycle is endless.

The sheer number of reports of data leaks, hacks, and scams on affected accounts has now grown so gargantuan that consumers and users are left numb. It might as well be the soaring national debt total —the higher the number, the less we care.

But breaches of private data matter. And consumers should be rightly ticked off.

Because for every company screw-up, hacker exploit, and insecure government database, there are thousands of firms and organizations doing it right, keeping users’ data secure, encrypted, and away from prying eyes.

And although states like California, Virginia, and Vermont have passed privacy and data laws, many of these provisions too closely resemble the European Union’s troubled General Data Protection Regulation (GDPR) in making it more difficult for legitimate businesses to secure data, not less.

When large data breaches occur, consumers who have been legitimately harmed should have their claims heard in court.

But the current patchwork of regulations across the U.S., including in the tech-centric state of California, place too much of a burden on those who are follow the law and do right by their customers, and risk creating different rules in different jurisdictions. To avoid this, a national framework on data and consumer privacy will need to take shape.

While we should always be vigilant about potentials for leaks and hacks, a chief concern of a smart and common-sense data privacy bill should be in championing innovation.

For every new health data company, logistics firm, or consumer wearable, proper data collection and retention are a core value. The more that rules are uniform, clear, and do not create barriers to entry, the more innovation we will see when it comes to data protection.

We should incentivize firms to adopt interoperability and open data standards to ensure data is portable and easy-to-access for users. Major social media networks now allow this prevision, and it has been the standard for website data for several years.

If that becomes the standard, consumers will be able to choose the brands and services that best cater to their needs and interests, rather than just companies left standing in the wake of overregulation.

At the same time, if we are to have a national privacy bill, we should enshrine the principle of technology neutrality, where government avoids decreeing winners and losers. That means that regulating or endorsing various formats of data, algorithms, or technology should be determined by firms and consumers, not government agencies without the knowledge necessary to make good decisions. The EU’s recent attempt to designate the “common phone charger” as the micro-USB connection, at a time when USB-C connections are becoming the industry standard, is an easy example.

This also extends to innovation practices such as targeted advertising, geo-targeting, or personalization, which are key to the consumer experience.

Added to that, we should be wary of all attempts to outlaw encryption for both commercial and personal use.

In recent weeks, FBI Director Christopher Wray has once again called on Congress to ban the use of encryption, an overreach that would put billions of dollars’ worth of data at risk overnight, and leave us vulnerable to foreign hackers.

He is joined in these efforts by Sens. Lindsey Graham (R-SC), Tom Cotton (R-AR), and Marsha Blackburn (R-TN), who introduced a bill that would forever ban this important cryptographic invention, warning it is used by “terrorists and other bad actors to conceal illicit behavior.”

The reason encryption remains a powerful tool in the arsenal of companies and agencies that handle our data and communications is because it works. We must defend it at any cost.

While there is plenty to be concerned about when it comes to online breaches and hacks, consumers should be able to benefit from an innovative marketplace of products and services, unencumbered by regulations that all-too-often restrict progress.

This balance is possible and necessary, both if we want to have a more secure online experience, and if we want to continue to have the best technology at our disposal to improve our lives.

Originally published here.

INTERVIEW: Jennifer Huddleston on the Way Forward on Consumer Privacy

INTERVIEW: Jennifer Huddleston (@jrhuddles) on Consumer Choice Radio

-Do we need a federal privacy law?

-There are innovative practices used by private companies. We should celebrate them.

-Why GDPR is so problematic

-The “Techlash” and the bad policy ideas from both left and right

-Data silos and how to maintain consumer privacy and innovation

-Errors of state-level privacy laws

Jennifer Huddleston is the Director of Technology and Innovation Policy at the American Action Forum

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