Tag Archives: eu directive

Data Compliance October Round-up

What’s happening in Europe … and beyond?iStock_000025602036Small

Update 28.10.13

The new date for implementation of a proposed new data protection regulation (DPR) – has been pushed back to “by 2015”, thanks in part to David Cameron’s efforts to protect the interests of UK business.  Germany were also supportive though Merkel’s reasoning was slightly different “… to ensure that it can reconcile the existing rights of its citizens.”


On 21st October, 2013, the European Parliament approved its Compromise Text of the proposed EU General Data Protection Regulation.  Still a long way from being complete, but the latest from Europe is:

1. Pseudonymous data now has its own definition – currently “personal data that cannot be attributed to a specific data subject without the use of additional information, as long as such additional information is kept separately and subject to technical and organisational measures to ensure non-attribution”.

2. Data Protection Officers:  a data controller or processor must appoint a Data Protection Officer when processing personal data relation to over 5,000 data subjects in any consecutive 12-month period.  Also where the core processing activities relate to processing location data, children’s data, sensitive personal data, or employees in large scale filing systems.

3.  A new concept has been introduced – a European Data Protection Seal -a certification process which allows international data transfers outside the EEA to recipients that also hold a Seal.

4.  Right to erasure:  the right of data subjects to have their personal data erased if requested is still in the draft (originally “right to be forgotten”).  And it’s been strengthened – if the data subject asks a controller to erase his data, the company should also forward the request to others where the data is replicated.

Pulling NSA’s teeth …

Spheres of monitors with eyeballs in a curved field of blue digiThe Compromise text had some other changes, including new data protection rules designed to curb America’s spying activities.  The intention is to make US secret court orders powerless, and to force companies based outside the EU, like Google and Facebook, to comply with European data protection laws if they operate in Europe.  Powers to levy fines running into billions of Euros are being made available to discourage violation of the new rules.

For example, if a third country’s court, tribunal or other administrative authority requests a company (such as a social network or cloud provider) to disclose personal data processed in the EU, that company must notify the data protection authority and obtain their authorisation before any such data transfer can be made.

This step is largely due to Edward Snowden’s information about the American companies, platforms and social networking sites which have been forced to share substantial volumes of EU citizens’ personal online data (from emails and phone calls to video chats and web searches) with the National Security Agency (the US intelligence organisation which collects, monitors, decodes, translates and analyses foreign intelligence and counterintelligence information and data).

The third country issue has been ongoing since January 2012, when the proposed reform to the law was dropped after intense US lobbying.  It now seems clear that the EU has had enough, particularly since the revelations that the NSA systems collected – in the single month from February 8th to March 8th – 24.8 billion telephone data and 97.1 billion computer data from across the globe – including UK, Germany and France.

In addition the French are aggrieved that, from December 2012 to January 2013, the NSA were reported to have made 70.3 million recordings of French individuals’ telephone data.

While the NSA is known to collect and store all phone records of all American citizens, their profligate global approach to privacy is clearly unacceptable, and Europe has taken steps to limit their – and other agencies and countries’ – powers.

So now it’s just the simple matter of balancing the need to combat terrorism versus people’s protection of the rights to privacy.  Which makes it hardly surprising that this legislation is taking so long with a record-breaking 4,000 amendments so far.  It is thought that there is a less than 50% chance of the new regulations going through in the time-frame, though final legislation is still anticipated before the European elections in May 2014.

India’s Draft Privacy Protection Bill

Abstract internet security illustrationThe issue of data protection in India has been generated for a number of reasons – not least, Europe’s concerns given the sheer volume of personal data that is transferred to India.  Also, within India itself, there is concern among Indian citizens in relation to the combination of the use of personal identifiers (including biometric data) and extensive individual profiles.

India has been holding a set of roundtable talks since April 2013, with the goal of generating recommendations for a privacy regulatory framework.  The last of those talks was held on October 19th between the Center for Internet and Society, the Federation of Indian Chambers of Commerce and Industry, and the Data Security Council of India. Christopher Graham, the UK Information Commissioner, was among the speakers.

We’ll send more updates as they come through – in the meantime, if you have any concerns over how these or the existing DPA and PECR regulations might affect your business, don’t hesitate to contact us.

Victoria Tuffill
01787 277742
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Michelle Evans
01206 392909

Data Compliance October Round-up UK

Meanwhile, back in the UK …

Telephone iconTelemarketing – Caller identification spoofing …

Earlier this week, Canada, the United States and the United Kingdom issued a joint statement making it clear that they intend to combine their resources to tackle the problem of caller ID spoofing.

Spoofing is a practice conducted by telemarketers who want to conceal their true identity rather than fulfil their legal obligation to identify themselves.  Spoofers provide their caller ID with false information which may be a string of digits, or a random or stolen number belonging to a real person or organisation.   It is on the increase, and makes it particularly difficult for the authorities to track down those responsible for non-compliant or illegal calls.

The various agencies responsible for enforcing telemarketing and privacy laws announced that they will coordinate their efforts through the international law enforcement network of the London Action Plan and the International Do Not Call Network. If they need the telecoms industry to provide help, they will ask those organisations within their respective countries.

Next steps are exploratory discussions, to be held later this month, to identify options focusing on enforcement, industry compliance and consumer education, technology and regulatory issues with the goal of considering solutions available to stop spoofing and to take action against those responsible.


What a monumental blunder …

iStock_000012526327SmallWe heard yesterday that The Ministry of Justice was on the receiving end of the ICO’s judgement, when it received a fine of £140,000 – after details of ALL the prisoners serving time at HMP Cardiff were emailed to three of the inmates’ families.

The fine goes back to 2011 – when, on 2nd August, the recipients received an email from a prison clerk which included a file containing details of the 1,182 inmates – including names, ethnicity, addresses, length of sentence, release dates, and the offence codes.  Worse yet – this wasn’t the first time such a breach had occurred.  Within the previous four weeks, the same error occurred twice – with details sent to different inmates’ families.

The ICO’s investigation found:

  • Clear lack of management and supervision at the prison, where the clerk concerned was found to have received limited training and experience, though he was left to work unsupervised.
  • Audit trails were lacking and the only reason the breach was identified was because one of the recipients reported receipt of the information to the prison.
  • Problems with the methods used to handle the prisoners’ records, such as the use of unencrypted floppy discs to transfer large volumes of data between networks


The importance of being registered …

handcuffs and money computerIf organisations process personal data, with a very few exceptions, they must register with the ICO and spell out the type of information they process.  Not doing so is a criminal offence – as Hamed Shabani, sole director of payday loan company First Financial, discovered.

After failing to register, he and his company were prosecuted by the ICO and convicted in the Magistrate’s Court. As Director of the company, he was fined a modest £150 and ordered to pay £1,010.66 towards the costs of prosecution and a £20 victims’ surcharge.  In addition, the company itself was fined £500, and also made to pay £1,010.66 towards costs plus a £50 victims’ surcharge.

The total bill of £2,741.32 compares rather unfavourably against the annual £35 notification fee he should have paid.  It is also interesting to note that Hamed Shabani tried to remove his name from the company’s registration at Companies House in an attempt to avoid prosecution.

To quote Stephen Eckersley, ICO Head of Enforcement:

“Pay day loans companies hold important information about some of the most financially vulnerable people in the UK. This makes this company and its director’s decision not to face up to their legal responsibilities all the more concerning.

“Businesses must commit to looking after the information of their customers and this begins with making sure that they are registered. We will continue to use our enforcement powers to safeguard people’s information.”

 The importance of a strong BYOD policy …

mobile commerceBYOD (Bring your own device) continues to be high on the ICO’s priority list – earlier this month, the Royal Veterinary College breached the DPA when a member of staff lost their camera whose memory card held 6 job applicant passport pictures. Unfortunately, the RVC had not briefed staff on how personal information stored for work should be looked after on personal devices.

Nearly half of all UK employees now use their smartphones, tablets, PCs for work purposes, and the number is growing.  As a result, organisations must update their data protection policies to take this into account.

Stephen Eckersley said:

“Organisations must be aware of how people are now storing and using personal information for work and the Royal Veterinary College failed to do this. It is clear that more and more people are now using a personal device, particularly their mobile phones and tablets, for work purposes so its crucial employers are providing guidance and training to staff which covers this use.”

The importance of encryption …

thief stealing laptop from the carIf you are unlucky enough to have a portable device containing personal data stolen, it could cost you much more than simply replacing the device.  As the owner of loans company Jala Transport discovered to his cost.  He stopped his car at a set of traffic lights, only to have his car boot broken into. A hard drive – containing financial details of his 250 customers – was stolen, along with £3,600 cash.

Though the hard drive was password protected, the data within was not encrypted, and it included customers’ names, dates of birth, the payments made, and the identity documents provided to support the loan application.  Because the hard drive had not been encrypted, all those customers were left  wide open to the threat of identity theft.

The penalty could have been £70,000, but was reduced to £5,000 to reflect the limited financial resources of the company and the fact that the breach was reported voluntarily.

Stephen Eckersley said of this case:

“We have continued to warn organisations of all sizes that they must encrypt any personal data stored on portable devices, where the loss of the information could cause clear damage and distress to the customers affected…

 “The penalty will have a real impact on this business and should act as a warning to all businesses owners that they must take adequate steps to keep customers’ information secure.”

Rates of identity fraud continue to rise

Identity fraud is the most significant threat facing the UK, making security a key issue not only for businesses but also for individuals.  Not taking steps to protect personal data just gives fraudsters a license to steal.   This is clearly illustrated by the stats – identity fraud now accounts for over half of all committed fraud and is still growing.  CIFAS confirmed 114,000 frauds in the first half of 201, of which 52% involved impersonation or fake identity details.  An additional 14% of frauds involved account takeover.

All the stories above reflect the importance of being and remaining data compliant and illustrate the penalties that can be imposed by the ICO.  If you would like any advice on how to become and remain compliant, just call us for a no-obligation chat.

Victoria Tuffill
01787 277742
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Michelle Evans
01206 392909