admin – Page 38 – Cyber Law Watch

ATMs Remain Vulnerable Worldwide

Jul 20 2016

Bank ATMs worldwide remain vulnerable to security hacks according to Bank Info Security®. A recent large theft of cash from dozens of ATMs in Taiwan using malicious software highlights the continuing problem. Investigators suspect two Russian nationals were behind the hack. Three types of malware were reported to have been used, which may have enabled the bad guys to command the machines to dispense large amounts of cash simply by sending a text message.

ATMs are considered vulnerable because of their aging software. According to Kaspersky Lab, about 90% of the world’s ATM machines still run Window XP, the software operating system Microsoft generally stopped supporting in April 2014. Most ATM manufacturers continued to use Windows XP, layering on other security software while trying lock down the operating system to protect account data. In addition to using old software, some ATMs are physically accessed by a single key that opens up an entire fleet of the physical boxes holding the machine’s computer—a triumph of human convenience over security. Finally, ATMs need a network connection in order to communicate with banks, so like all IoT devices and machines, they are vulnerable to remote hacks.

Microsoft welcomes big win against government information requests

Jul 19 2016

By Cameron Abbott and Simon Ly

Last week, the US Court of Appeals for the Second Circuit reversed a previous lower court decision and found in favour of Microsoft in a long running dispute over a government information request.

In 2014, the US government successfully received a warrant for email records sought in connection with a drug case. Microsoft refused to comply with the orders and was subsequently found to be in contempt of court. However, the Court of Appeal has now ruled that the US government could not force Microsoft to hand over customer emails stored in an offshore server in Ireland because, amongst other things, the Stored Communications Act did not intend to legislate to allow for such warrant provisions. This decision comes hot off the heels of the EU-approved Privacy Shield, and it will be interesting to see how a similar decision will be dealt with moving forward in light of this regime.

This represents a big win for Microsoft and the tech sector more broadly as service providers now have a basis for maintaining the position of protecting its users’ privacy. This decision also highlights that legal regimes are territorial notwithstanding the global nature of new technology offerings.

To read Microsoft’s news release following the decision, please see here.

EU-US Privacy Shield certifications to open in August

Jul 14 2016

By Cameron Abbott, Simon Ly and Rowena Baer

As a follow up to our latest blog post, the European Union and European Commission yesterday announced that the Privacy Shield arrangement has been adopted.

Companies wanting to utilise the Privacy Shield for their Trans-Atlantic data transfers are able to apply for certification with the U.S. Department of Commerce from 1 August 2016, with the US and EU to brief companies on the application process later this week.

For a legal perspective and analysis of the Privacy Shield, please see our colleagues’ report here.

To keep up to date and for an overview of the changes, please see here.

EU-US Privacy Shield approved

Jul 12 2016

By Cameron Abbott, Rob Pulham, Simon Ly and Rowena Baer

When the Safe Harbour arrangements were struck down the EU and US worked to create a replacement and flesh out the details of this new arrangement (see our last article on this issue here). We have all been somewhat nervously watching to see if the new ‘Privacy Shield’ would get final approval amid some criticism from some quarters. Good news, last Friday the EU member states on the Article 31 Committee voted to approve a revised Privacy Shield.

The new arrangement provides a welcome measure of certainty for businesses whose Trans-Atlantic data transfers have been left in legal limbo since the European Court of Justice declared the longstanding Safe Harbor Framework invalid in October 2015.

The European Commission has released a statement expressing their confidence in the adoption of the new Privacy Shield, noting that the new pact is “fundamentally different” from its predecessor. The new Privacy Shield imposes “clear and strong obligations on companies handling the data and makes sure that these rules are followed and enforced in practice”.

International tech industry groups have also praised the move as a win for both consumers and businesses as the pact provides robust consumer privacy protections. Voicing their support of the Privacy Shield, Microsoft released a detailed blog post on how the Privacy Shield is progress for privacy rights, declaring that the regime is an “important achievement for the privacy rights of citizens across Europe, and for companies across all industries that rely on international data flows to run their businesses and serve their customers”.

Whilst we are still at the early stages, companies should begin assessing the Privacy Shield’s impact on their existing agreements and also more broadly their data strategy, keeping in mind that the regime relates only to EU-US data transfers. In particular, consideration should be given to the transitional arrangements in the Privacy Shield. Companies should also be aware of the potential challenges to this regime (and related issues post-Brexit) as there is concern about the shelf life of the Privacy Shield.

For more information, please see the EU’s page here and the US’s page here.

Agreed changes to EU-US Privacy Shield strengthens data transfer pact

Jun 28 2016

By Cameron Abbott and Giles Whittaker

The US and the European Union reportedly reached an agreement on the language of a key data transfer pact, including clearer limits on U.S. surveillance and stricter rules for companies holding information of Europeans. The updated EU-US Privacy Shield was sent to EU member states, who are expected to vote on the proposal in July. The revised data transfer pact is said to include stricter cross-border data-handling rules for companies using Europeans’ information for targeted online advertising, and also has detailed the specific condition under which U.S. government intelligence services would collect data in bulk and the safeguards on how the data is used.

Meanwhile, U.S. Chamber of Commerce Executive Vice President and Head of International Affairs Myron Brilliant urged the EU’s member states to quickly sign off on the updated version, saying that the new framework for trans-Atlantic data transfer is critical for companies on both sides of the pond.

Further information regarding the report by Reuters can be read here.

Report finds average cost of data breach reaches $4 million

Jun 20 2016

By Cameron Abbott and Giles Whittaker

A report sponsored by IBM and conducted by the Ponemon Institute found that the average cost of a data breach has grown to $4 million, up 29% from 2013. The survey also found cybersecurity incidents continued to witness growth in both volume and sophistication, with 64% more security incidents reported in 2015 than the preceding year. According to the study, the companies lose $158 per compromised record. Also not surprisingly, breaches in highly regulated industries were even more costly. For instance, healthcare breaches reached $355 per record – a full $100 more than in 2013.

Read the full report conducted by the Ponemon Institute here.

European Data Protection Supervisor less than impressed with EU-US Privacy Shield

Jun 05 2016

By Cameron Abbott, Rob Pulham and Giles Whittaker

The EU-US Privacy Shield data-sharing agreement has come under scrutiny from the European Data Protection Supervisor Giovanni Buttarelli. Mr Buttarelli has expressed concerns that the Privacy Shield, which will outline how data (including personal information) should be handled in foreign jurisdictions, is “not robust enough to withstand future legal scrutiny”.

While Mr Buttarelli said he “appreciates” the efforts made to develop a solution to replace Safe Harbour, he emphasised that “significant improvements are needed should the European Commission wish to adopt an adequacy decision, to respect…the key data protection principles” which are afforded in Europe with particular regard to “necessity, proportionality and redress mechanisms”.

Giovanni Buttarelli’s statement regarding the Privacy Shield can be found here.

OAIC releases draft guide for conducting big data activities

Jun 03 2016

By Cameron Abbott and Simon Ly

Last week the OAIC released their consultation draft Guide to big data and the Australian Privacy Principles, with feedback on the Guide open until 26 July 2016.

The main purpose of the Guide is to facilitate big data activities while protecting personal information (being information or an opinion about an identified individual, or an individual who is reasonably identifiable). The Guide addresses issues such as notice and consent, retention minimisation and use limitation in regards to such data. Whilst not legally binding, the Guide will be referred to by the Privacy Commissioner in undertaking its functions under the Privacy Act.

One of the key aspects dealt with in the Guide is that entities should consider undertaking big data activities on an anonymised manner by de-identifying personal information. If so, this has the favourable outcome that such data will not be considered personal information so accordingly less onerous obligations apply under the Privacy Act to such data. Of course, if this is the case it also lessens the chance that personal information will be compromised should a data breach occur (speaking of which, we note OAIC’s April 2016 guide to deal with data breaches). However, in our experience most of our clients want to analyse and then drill down to take actions or campaigns in relation to a then identified group of customers.

The Guide also highlights how big data interacts with the APPs as well as discussing other related concepts, such as “privacy by design” frameworks. For more information, you can access the OAIC’s consultation draft Guide here.

Yes it can cost you your job…even if you are the boss!

May 31 2016

By Cameron Abbott and Giles Whittaker

The CEO of Austrian aerospace parts maker FACC, has been fired following a cyber fraud that cost the company 42 million euros (AUD $65 million). FACC also fired their CFO in February soon after the cyber fraud.

Executives are being held responsible for business’ cybersecurity measures, and while FACC declined to comment on the details of Walter Stephan’s shortcomings, their supervisory board concluded that Walter Stephan had “severely violate his duties, in particular in relation to the fake president incident”. It is likely that this violation is in reference to a lack of adequate cybersecurity procedures or protections, which would be considered essential for most businesses in this technologically integrated era.

So how was it done? The technique used to deceive FACC into handing over their money is known as a ‘fake president incident’. To put it simply, the hackers sent an email to an employee posing as the CEO, and requested that funds be transferred to a specified account for a fake acquisition project. It would appear the board figured it shouldn’t have been that easy.

More information about this cyber fraud can be found in an article by reuters.

Were you a LinkedIn member in 2012?

May 19 2016

By Cameron Abbott and Simon Ly

Following on from the well-publicised 2012 data breach, LinkedIn today announced that a data set relating to that hack containing over 100 million LinkedIn emails and passwords has now been released to the public. It appears at this stage that the hacker is trying to sell the emails and passwords on a dark web illegal marketplace.

At the time of the 2012 data breach, LinkedIn informed members to change their passwords. If you did and your details are part of the 100 million member details released, this is less problematic for you. However, the major caveat is that if you have been using that stolen password for your many other online accounts, it could open a can of worms for the hacking of more valuable accounts that you might hold.

For more updates, see LinkedIn’s official release here.

Author - admin