Tag Archives: dataprotection

Bank Card "Master Key" Stolen

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/06/bank_card_maste.html

South Africa’s Postbank experienced a catastrophic security failure. The bank’s master PIN key was stolen, forcing it to cancel and replace 12 million bank cards.

The breach resulted from the printing of the bank’s encrypted master key in plain, unencrypted digital language at the Postbank’s old data centre in the Pretoria city centre.

According to a number of internal Postbank reports, which the Sunday Times obtained, the master key was then stolen by employees.

One of the reports said that the cards would cost about R1bn to replace. The master key, a 36-digit code, allows anyone who has it to gain unfettered access to the bank’s systems, and allows them to read and rewrite account balances, and change information and data on any of the bank’s 12-million cards.

The bank lost $3.2 million in fraudulent transactions before the theft was discovered. Replacing all the cards will cost an estimated $58 million.

Another California Data Privacy Law

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/05/another_califor.html

The California Consumer Privacy Act is a lesson in missed opportunities. It was passed in haste, to stop a ballot initiative that would have been even more restrictive:

In September 2017, Alastair Mactaggart and Mary Ross proposed a statewide ballot initiative entitled the “California Consumer Privacy Act.” Ballot initiatives are a process under California law in which private citizens can propose legislation directly to voters, and pursuant to which such legislation can be enacted through voter approval without any action by the state legislature or the governor. While the proposed privacy initiative was initially met with significant opposition, particularly from large technology companies, some of that opposition faded in the wake of the Cambridge Analytica scandal and Mark Zuckerberg’s April 2018 testimony before Congress. By May 2018, the initiative appeared to have garnered sufficient support to appear on the November 2018 ballot. On June 21, 2018, the sponsors of the ballot initiative and state legislators then struck a deal: in exchange for withdrawing the initiative, the state legislature would pass an agreed version of the California Consumer Privacy Act. The initiative was withdrawn, and the state legislature passed (and the Governor signed) the CCPA on June 28, 2018.

Since then, it was substantially amended — that is, watered down — at the request of various surveillance capitalism companies. Enforcement was supposed to start this year, but we haven’t seen much yet.

And we could have had that ballot initiative.

It looks like Alastair Mactaggart and others are back.

Advocacy group Californians for Consumer Privacy, which started the push for a state-wide data privacy law, announced this week that it has the signatures it needs to get version 2.0 of its privacy rules on the US state’s ballot in November, and submitted its proposal to Sacramento.

This time the goal is to tighten up the rules that its previously ballot measure managed to get into law, despite the determined efforts of internet giants like Google and Facebook to kill it. In return for the legislation being passed, that ballot measure was dropped. Now, it looks like the campaigners are taking their fight to a people’s vote after all.

[…]

The new proposal would add more rights, including the use and sale of sensitive personal information, such as health and financial information, racial or ethnic origin, and precise geolocation. It would also triples existing fines for companies caught breaking the rules surrounding data on children (under 16s) and would require an opt-in to even collect such data.

The proposal would also give Californians the right to know when their information is used to make fundamental decisions about them, such as getting credit or employment offers. And it would require political organizations to divulge when they use similar data for campaigns.

And just to push the tech giants from fury into full-blown meltdown the new ballot measure would require any amendments to the law to require a majority vote in the legislature, effectively stripping their vast lobbying powers and cutting off the multitude of different ways the measures and its enforcement can be watered down within the political process.

I don’t know why they accepted the compromise in the first place. It was obvious that the legislative process would be hijacked by the powerful tech companies. I support getting this onto the ballot this year.

EDITED TO ADD(5/17): It looks like this new ballot initiative isn’t going to be an improvement.

Facebook’s Download-Your-Data Tool Is Incomplete

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/03/facebooks_downl.html

Privacy International has the details:

Key facts:

  • Despite Facebook claim, “Download Your Information” doesn’t provide users with a list of all advertisers who uploaded a list with their personal data.
  • As a user this means you can’t exercise your rights under GDPR because you don’t know which companies have uploaded data to Facebook.
  • Information provided about the advertisers is also very limited (just a name and no contact details), preventing users from effectively exercising their rights.
  • Recently announced Off-Facebook feature comes with similar issues, giving little insight into how advertisers collect your personal data and how to prevent such data collection.

When I teach cybersecurity tech and policy at the Harvard Kennedy School, one of the assignments is to download your Facebook and Google data and look at it. Many are surprised at what the companies know about them.

New Research on the Adtech Industry

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/02/new_research_on.html

The Norwegian Consumer Council has published an extensive report about how the adtech industry violates consumer privacy. At the same time, it is filing three legal complaints against six companies in this space. From a Twitter summary:

1. [thread] We are filing legal complaints against six companies based on our research, revealing systematic breaches to privacy, by shadowy #OutOfControl #adtech companies gathering & sharing heaps of personal data. https://forbrukerradet.no/out-of-control/#GDPR… #privacy

2. We observed how ten apps transmitted user data to at least 135 different third parties involved in advertising and/or behavioural profiling, exposing (yet again) a vast network of companies monetizing user data and using it for their own purposes.

3. Dating app @Grindr shared detailed user data with a large number of third parties. Data included the fact that you are using the app (clear indication of sexual orientation), IP address (personal data), Advertising ID, GPS location (very revealing), age, and gender.

From a news article:

The researchers also reported that the OkCupid app sent a user’s ethnicity and answers to personal profile questions — like “Have you used psychedelic drugs?” — to a firm that helps companies tailor marketing messages to users. The Times found that the OkCupid site had recently posted a list of more than 300 advertising and analytics “partners” with which it may share users’ information.

This is really good research exposing the inner workings of a very secretive industry.

Customer Tracking at Ralphs Grocery Store

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/01/customer_tracki.html

To comply with California’s new data privacy law, companies that collect information on consumers and users are forced to be more transparent about it. Sometimes the results are creepy. Here’s an article about Ralphs, a California supermarket chain owned by Kroger:

…the form proceeds to state that, as part of signing up for a rewards card, Ralphs “may collect” information such as “your level of education, type of employment, information about your health and information about insurance coverage you might carry.”

It says Ralphs may pry into “financial and payment information like your bank account, credit and debit card numbers, and your credit history.”

Wait, it gets even better.

Ralphs says it’s gathering “behavioral information” such as “your purchase and transaction histories” and “geolocation data,” which could mean the specific Ralphs aisles you browse or could mean the places you go when not shopping for groceries, thanks to the tracking capability of your smartphone.

Ralphs also reserves the right to go after “information about what you do online” and says it will make “inferences” about your interests “based on analysis of other information we have collected.”

Other information? This can include files from “consumer research firms” ­– read: professional data brokers ­– and “public databases,” such as property records and bankruptcy filings.

The reaction from John Votava, a Ralphs spokesman:

“I can understand why it raises eyebrows,” he said. We may need to change the wording on the form.”

That’s the company’s solution. Don’t spy on people less, just change the wording so they don’t realize it.

More consumer protection laws will be required.

USB Cable Kill Switch for Laptops

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/01/usb_cable_kill_.html

BusKill is designed to wipe your laptop (Linux only) if it is snatched from you in a public place:

The idea is to connect the BusKill cable to your Linux laptop on one end, and to your belt, on the other end. When someone yanks your laptop from your lap or table, the USB cable disconnects from the laptop and triggers a udev script [1, 2, 3] that executes a series of preset operations.

These can be something as simple as activating your screensaver or shutting down your device (forcing the thief to bypass your laptop’s authentication mechanism before accessing any data), but the script can also be configured to wipe the device or delete certain folders (to prevent thieves from retrieving any sensitive data or accessing secure business backends).

Clever idea, but I — and my guess is most people — would be much more likely to stand up from the table, forgetting that the cable was attached, and yanking it out. My problem with pretty much all systems like this is the likelihood of false alarms.

Slashdot article.

EDITED TO ADD (1/14): There are Bluetooth devices that will automatically encrypt a laptop when the device isn’t in proximity. That’s a much better interface than a cable.

Spanish Soccer League App Spies on Fans

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/06/spanish_soccer_.html

The Spanish Soccer League’s smartphone app spies on fans in order to find bars that are illegally streaming its games. The app listens with the microphone for the broadcasts, and then uses geolocation to figure out where the phone is.

The Spanish data protection agency has ordered the league to stop doing this. Not because it’s creepy spying, but because the terms of service — which no one reads anyway — weren’t clear.

First American Financial Corp. Data Records Leak

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/05/first_american_.html

Krebs on Security is reporting a massive data leak by the real estate title insurance company First American Financial Corp.

“The title insurance agency collects all kinds of documents from both the buyer and seller, including Social Security numbers, drivers licenses, account statements, and even internal corporate documents if you’re a small business. You give them all kinds of private information and you expect that to stay private.”

Shoval shared a document link he’d been given by First American from a recent transaction, which referenced a record number that was nine digits long and dated April 2019. Modifying the document number in his link by numbers in either direction yielded other peoples’ records before or after the same date and time, indicating the document numbers may have been issued sequentially.

The earliest document number available on the site — 000000075 — referenced a real estate transaction from 2003. From there, the dates on the documents get closer to real time with each forward increment in the record number.

This is not an uncommon vulnerability: documents without security, just “protected” by a unique serial number that ends up being easily guessable.

Krebs has no evidence that anyone harvested all this data, but that’s not the point. The company said this in a statement: “At First American, security, privacy and confidentiality are of the highest priority and we are committed to protecting our customers’ information.” That’s obviously not true; security and privacy are probably pretty low priorities for the company. This is basic stuff, and companies like First America Corp. should be held liable for their poor security practices.

The Concept of "Return on Data"

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/05/the_concept_of_.html

This law review article by Noam Kolt, titled “Return on Data,” proposes an interesting new way of thinking of privacy law.

Abstract: Consumers routinely supply personal data to technology companies in exchange for services. Yet, the relationship between the utility (U) consumers gain and the data (D) they supply — “return on data” (ROD) — remains largely unexplored. Expressed as a ratio, ROD = U / D. While lawmakers strongly advocate protecting consumer privacy, they tend to overlook ROD. Are the benefits of the services enjoyed by consumers, such as social networking and predictive search, commensurate with the value of the data extracted from them? How can consumers compare competing data-for-services deals? Currently, the legal frameworks regulating these transactions, including privacy law, aim primarily to protect personal data. They treat data protection as a standalone issue, distinct from the benefits which consumers receive. This article suggests that privacy concerns should not be viewed in isolation, but as part of ROD. Just as companies can quantify return on investment (ROI) to optimize investment decisions, consumers should be able to assess ROD in order to better spend and invest personal data. Making data-for-services transactions more transparent will enable consumers to evaluate the merits of these deals, negotiate their terms and make more informed decisions. Pivoting from the privacy paradigm to ROD will both incentivize data-driven service providers to offer consumers higher ROD, as well as create opportunities for new market entrants.

California Passes New Privacy Law

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/07/california_pass.html

The California legislature unanimously passed the strongest data privacy law in the nation. This is great news, but I have a lot of reservations. The Internet tech companies pressed to get this law passed out of self-defense. A ballot initiative was already going to be voted on in November, one with even stronger data privacy protections. The author of that initiative agreed to pull it if the legislature passed something similar, and that’s why it did. This law doesn’t take effect until 2020, and that gives the legislature a lot of time to amend the law before it actually protects anyone’s privacy. And a conventional law is much easier to amend than a ballot initiative. Just as the California legislature gutted its net neutrality law in committee at the behest of the telcos, I expect it to do the same with this law at the behest of the Internet giants.

So: tentative hooray, I guess.

New Data Privacy Regulations

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/06/new_data_privac.html

When Marc Zuckerberg testified before both the House and the Senate last month, it became immediately obvious that few US lawmakers had any appetite to regulate the pervasive surveillance taking place on the Internet.

Right now, the only way we can force these companies to take our privacy more seriously is through the market. But the market is broken. First, none of us do business directly with these data brokers. Equifax might have lost my personal data in 2017, but I can’t fire them because I’m not their customer or even their user. I could complain to the companies I do business with who sell my data to Equifax, but I don’t know who they are. Markets require voluntary exchange to work properly. If consumers don’t even know where these data brokers are getting their data from and what they’re doing with it, they can’t make intelligent buying choices.

This is starting to change, thanks to a new law in Vermont and another in Europe. And more legislation is coming.

Vermont first. At the moment, we don’t know how many data brokers collect data on Americans. Credible estimates range from 2,500 to 4,000 different companies. Last week, Vermont passed a law that will change that.

The law does several things to improve the security of Vermonters’ data, but several provisions matter to all of us. First, the law requires data brokers that trade in Vermonters’ data to register annually. And while there are many small local data brokers, the larger companies collect data nationally and even internationally. This will help us get a more accurate look at who’s in this business. The companies also have to disclose what opt-out options they offer, and how people can request to opt out. Again, this information is useful to all of us, regardless of the state we live in. And finally, the companies have to disclose the number of security breaches they’ve suffered each year, and how many individuals were affected.

Admittedly, the regulations imposed by the Vermont law are modest. Earlier drafts of the law included a provision requiring data brokers to disclose how many individuals’ data it has in its databases, what sorts of data it collects and where the data came from, but those were removed as the bill negotiated its way into law. A more comprehensive law would allow individuals to demand to exactly what information they have about them­ — and maybe allow individuals to correct and even delete data. But it’s a start, and the first statewide law of its kind to be passed in the face of strong industry opposition.

Vermont isn’t the first to attempt this, though. On the other side of the country, Representative Norma Smith of Washington introduced a similar bill in both 2017 and 2018. It goes further, requiring disclosure of what kinds of data the broker collects. So far, the bill has stalled in the state’s legislature, but she believes it will have a much better chance of passing when she introduces it again in 2019. I am optimistic that this is a trend, and that many states will start passing bills forcing data brokers to be increasingly more transparent in their activities. And while their laws will be tailored to residents of those states, all of us will benefit from the information.

A 2018 California ballot initiative could help. Among its provisions, it gives consumers the right to demand exactly what information a data broker has about them. If it passes in November, once it takes effect, lots of Californians will take the list of data brokers from Vermont’s registration law and demand this information based on their own law. And again, all of us — regardless of the state we live in­ — will benefit from the information.

We will also benefit from another, much more comprehensive, data privacy and security law from the European Union. The General Data Protection Regulation (GDPR) was passed in 2016 and took effect on 25 May. The details of the law are far too complex to explain here, but among other things, it mandates that personal data can only be collected and saved for specific purposes and only with the explicit consent of the user. We’ll learn who is collecting what and why, because companies that collect data are going to have to ask European users and customers for permission. And while this law only applies to EU citizens and people living in EU countries, the disclosure requirements will show all of us how these companies profit off our personal data.

It has already reaped benefits. Over the past couple of weeks, you’ve received many e-mails from companies that have you on their mailing lists. In the coming weeks and months, you’re going to see other companies disclose what they’re doing with your data. One early example is PayPal: in preparation for GDPR, it published a list of the over 600 companies it shares your personal data with. Expect a lot more like this.

Surveillance is the business model of the Internet. It’s not just the big companies like Facebook and Google watching everything we do online and selling advertising based on our behaviors; there’s also a large and largely unregulated industry of data brokers that collect, correlate and then sell intimate personal data about our behaviors. If we make the reasonable assumption that Congress is not going to regulate these companies, then we’re left with the market and consumer choice. The first step in that process is transparency. These new laws, and the ones that will follow, are slowly shining a light on this secretive industry.

This essay originally appeared in the Guardian.

TSB Bank Disaster

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/04/tsb_bank_disast.html

This seems like an absolute disaster:

The very short version is that a UK bank, TSB, which had been merged into and then many years later was spun out of Lloyds Bank, was bought by the Spanish bank Banco Sabadell in 2015. Lloyds had continued to run the TSB systems and was to transfer them over to Sabadell over the weekend. It’s turned out to be an epic failure, and it’s not clear if and when this can be straightened out.

It is bad enough that bank IT problem had been so severe and protracted a major newspaper, The Guardian, created a live blog for it that has now been running for two days.

The more serious issue is the fact that customers still can’t access online accounts and even more disconcerting, are sometimes being allowed into other people’s accounts, says there are massive problems with data integrity. That’s a nightmare to sort out.

Even worse, the fact that this situation has persisted strongly suggests that Lloyds went ahead with the migration without allowing for a rollback.

This seems to be a mistake, and not enemy action.

Yacht Security

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/05/yacht_security.html

Turns out, multi-million dollar yachts are no more secure than anything else out there:

The ease with which ocean-going oligarchs or other billionaires can be hijacked on the high seas was revealed at a superyacht conference held in a private members club in central London this week.

[…]

Murray, a cybercrime expert at BlackBerry, was demonstrating how criminal gangs could exploit lax data security on superyachts to steal their owners’ financial information, private photos ­ and even force the yacht off course.

I’m sure it was a surprise to the yacht owners.

New Rules on Data Privacy for Non-US Citizens

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/01/new_rules_on_da.html

Last week, President Trump signed an executive order affecting the privacy rights of non-US citizens with respect to data residing in the US.

Here’s the relevant text:

Privacy Act. Agencies shall, to the extent consistent with applicable law, ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information.

At issue is the EU-US Privacy Shield, which is the voluntary agreement among the US government, US companies, and the EU that makes it possible for US companies to store Europeans’ data without having to follow all EU privacy requirements.

Interpretations of what this means are all over the place: from extremely bad, to more measured, to don’t worry and we still have PPD-28.

This is clearly still in flux. And, like pretty much everything so far in the Trump administration, we have no idea where this is headed.

Indiana’s Voter Registration Data Is Frighteningly Insecure

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2016/10/indianas_voter_.html

You can edit anyone’s information you want:

The question, boiled down, was haunting: Want to see how easy it would be to get into someone’s voter registration and make changes to it? The offer from Steve Klink — a Lafayette-based public consultant who works mainly with Indiana public school districts — was to use my voter registration record as a case study.

Only with my permission, of course.

“I will not require any information from you,” he texted. “Which is the problem.”

Turns out he didn’t need anything from me. He sent screenshots of every step along the way, as he navigated from the “Update My Voter Registration” tab at the Indiana Statewide Voter Registration System maintained since 2010 at www.indianavoters.com to the blank screen that cleared the way for changes to my name, address, age and more.

The only magic involved was my driver’s license number, one of two log-in options to make changes online. And that was contained in a copy of every county’s voter database, a public record already in the hands of political parties, campaigns, media and, according to Indiana open access laws, just about anyone who wants the beefy spreadsheet.