Information Commissioner speaks his mind about = government losing data=85 :: PublicTechnology.net :: e-Government & = public sector IT news + job vacancies:

"Sadly, 2008 = has=20 undoubtedly been the year of data = breaches and=20 data losses" said Information = Commissioner=20 Richard Thomas at a speech to the RSA = Conference=20 Europe about data breaches.
This = is the=20 text of his speech:

= "Data losses did not start with = the loss=20 of 25 million child benefit records by = HMRC=20 nearly a year ago. We had been warning = of the=20 problems for some time before then, but = that was=20 the case that undoubtedly catapulted the = issue=20 close to the top of the public and = political=20 agenda. Since then many other cases have = hit the=20 headlines. I can reveal today that the = number of=20 data breaches reported to my office has = soared=20 to 277 since November 2007. =

There have=20 been 28 breaches by central government; = 75=20 within the NHS and other health bodies; = with 80=20 reported in the private sector. We are = currently=20 investigating 30 of the most serious = cases. We=20 have already taken enforcement action = against=20 HMRC, the Ministry of Defence, the = Department of=20 Health, the Foreign and Commonwealth = Office,=20 Virgin Media Ltd, Skipton Financial = Services,=20 Carphone Warehouse, Talk Talk, and = Orange=20 Personal Communications Services = Ltd.

The=20 number of breaches brought to our = attention is=20 serious and worrying. I recognise that = some=20 breaches are being discovered because of = improved checks and audits as a welcome = result=20 of taking data security more seriously. = But the=20 number notified to us must still be well = short=20 of the total.

How many PCs and = laptops=20 are junked with live data? How many = staff do not=20 tell their managers when they have lost = a memory=20 stick, laptop or disc? How many = organisations=20 decide not to tell us? Many losses are = simply=20 undetected.

Much more worrying = is where=20 =96 in an age of ever increasing = cyber-crime,=20 illegal access and identity theft =96=20 organisations are not even aware that = personal=20 information which they hold has been = stolen,=20 obtained by fraud or otherwise fallen = into the=20 wrong hands. Worse still, there are = still=20 organisations which are not aware of the = risks=20 that they face with any collection of = data and=20 have not taken adequate steps to deal = with those=20 risks. Worst of all, are those = organisations who=20 have simply failed to understand just = how much=20 personal information they are = accumulating=20 through more and more and ever-cheaper=20 technology. Much is said and written = about=20 information being a valuable asset. It = is also a=20 toxic liability.

Personal = information is=20 now the lifeblood of government and = business and=20 is central to our work, family and = leisure time.=20 The reality of the 21st Century is=20 ever-increasing flows of digital data, = revealing=20 and recording almost everything we do, = every=20 transaction we undertake, our = preferences and=20 sometimes even our innermost hopes, = worries and=20 fears. Used properly and intelligently, = personal=20 information leads to better customer = service,=20 improved efficiency, more effective law=20 enforcement and protection of the = vulnerable and=20 a better quality of life for=20 everyone.

But this means that = respecting=20 and protecting people=92s privacy and = personal=20 information =96 data protection =96 has = never been=20 more important. As government, public, = private=20 and third sectors harness new technology = to=20 collect vast amounts of personal = information,=20 the risks of information being abused = increases.=20 It is time for the penny to drop. The = more=20 databases that are set up and the more=20 information exchanged from one placed to = another, the greater the risk of things = going=20 wrong.

The more you centralise = data=20 collection, the greater the risk of = multiple=20 records going missing or wrong decisions = about=20 real people being made. The more you = lose the=20 trust and confidence of customers and = the=20 public, the more your prosperity and = standing=20 will suffer. Put simply, holding huge=20 collections of personal data brings = significant=20 risks.

It is therefore alarming = that =96=20 despite high profile data losses, the = threat of=20 enforcement action, a plethora of = reports on=20 data handling and clear ICO guidance =96 = the flow=20 of data breaches and sloppy information = handling=20 continues. Of course it is important to=20 recognise that incidents vary from = regrettable=20 one-off and probably unavoidable = accidents to=20 wholesale and systematic failure to take = information security seriously. =

But=20 everyone must also recognise that data = breaches=20 can cause harm, distress and hassle for = the=20 individuals affected, can lead to = serious=20 financial losses and can seriously = affect the=20 reputation of organisations. We have = already=20 seen examples where data loss or abuse=20 (sometimes linked to identity theft) has = led to=20 fake credit card transactions, witnesses = at risk=20 of physical harm or intimidation, = offenders at=20 risk from vigilantes, fake applications = for tax=20 credits, falsified Land Registry records = and=20 mortgage fraud and exposure of the = addresses of=20 service personnel, police and prison = officers=20 and battered women. Sometime lives may = be at=20 risk. There have already been cases for = example=20 where prison staff have had to be = relocated=20 because of security = concerns.

There must=20 be a wake-up call each time there are = headlines=20 about unencrypted laptops which have = gone=20 missing, health or financial records = found in=20 the streets or memory sticks or hard = drives=20 which cannot be accounted for. But are = there=20 still too many people asleep at the=20 helm?

This is a central challenge = for=20 those who lead all private and public=20 organisations. The custodians of our = data must=20 earn and retain our trust and = confidence. They=20 have the responsibility to ensure that = it is=20 kept safely and in line with the = requirements of=20 the Data Protection Act. This is not = just a=20 matter of security. It will never be = possible to=20 eliminate losses and data breaches = entirely.=20 This simply emphasises the importance of = data=20 minimisation; collect, use and store no = more=20 personal information than is necessary = and keep=20 it for no longer than = necessary.

All of=20 this must ultimately be a matter of good = governance and accountability. =

There is=20 no single magic bullet, but there will = always be=20 three key elements:
=95 Clear = thinking and=20 paperwork =96 Ensuring the right = policies,=20 procedures, contracts, compliance = arrangements=20 etc.
=95 Getting the technology right = =96=20 Awareness of the power of technology, = the risks=20 of ever-cheaper storage and mobile data = and=20 looking to use technology to minimise = risks -=20 =93Privacy by Design=94.
=95 = Focussing on people=20 and behaviour =96 Recognising that the = challenge=20 is cultural and psychological - and must = be led=20 from the top =96 with the right = approaches to=20 awareness programmes training, = managements, and=20 supervision.

Those at the top of=20 organisations =96 chief executives, = permanent=20 secretaries and so on =96 must be = certain that the=20 right framework is in place to address = the risks=20 of personal information and must be = certain that=20 responsibilities are clear. There must = be=20 complete clarity on who, inside each=20 organisation, has responsibility for=20 safeguarding each set of personal data. = This is=20 equally important where data is shared,=20 sometimes amongst several sources, and = where=20 processing is outsourced to=20 contractors.

Given the levels of = risk,=20 there is also a role here =96 as we = elaborated in=20 the Thomas/Walport Report on Data = Sharing =96 for=20 reassurance to be provided through Audit = Committees and Statements of Internal = Control in=20 annual reports. This should be = enlightened=20 self-interest and bodies such as the CBI = can=20 help to ensure adequate controls and=20 disclosures. But the Financial Reporting = Council=20 and others will need to intervene if = high-level=20 accountability is not achieved in=20 practice.

There is also an = important role=20 for my Office as the regulatory body, = with a=20 role to educate, scrutinise and police. = As=20 approaches to regulation become less=20 light-touch, the law plays an = increasingly=20 important symbolic and substantive role = in=20 showing that data protection must be = taken=20 seriously. I have already mentioned that = we have=20 taken enforcement action in suitable = cases, but=20 the current law has limited impact. We = (and many=20 others) have long argued that our = powers,=20 sanctions and resources =96 fixed in = another era =96=20 are now wholly inadequate.

The = ICO has=20 made clear for some time that a stronger = approach is required to help prevent=20 unacceptable information handling. At = last there=20 is movement. Earlier this year = Parliament=20 decided that the ICO should have the = power to=20 impose substantial penalties for = deliberate or=20 reckless breaches. I understand that the = government is working to ensure this = measure is=20 implemented as soon as possible. The = threat and=20 reality of substantial penalties will=20 concentrate minds and act as a real = deterrent.=20 The notification fee for the largest=20 organisations needs to be increased to = give the=20 ICO the resources we need to do our job=20 properly. We are also looking forward to = new=20 powers to undertake inspections and = audits of=20 data controllers.

It is = unfortunate that=20 it has taken calamity to convince the = government=20 that we need stronger powers, resources = and=20 sanctions, but we must also take care = not to=20 overreact. We do not need laws for their = own=20 sake or ill-considered laws. I am very = sceptical=20 about the value or viability of laws = requiring=20 individuals to be notified when there is = a=20 breach. When personal information has = been lost,=20 stolen or otherwise compromised, the = immediate=20 priority is to manage the security = breach and=20 take all necessary steps to reduce the = risks to=20 individuals and to the integrity of the=20 organisation=92s operations.

As = a matter=20 of good practice, the ICO should be = contacted=20 immediately when any significant breach = is=20 discovered and, with the benefit of risk = assessments applying to the particular=20 situation, we can ensure that = individuals who=20 are affected are being told where that = is=20 necessary or genuinely useful. But I do = not=20 favour placing a statutory duty on = organisations=20 to notify people directly whenever a = breach=20 occurs and I am doubtful that a = satisfactory law=20 could satisfactorily distinguish in = advance=20 between situations where notification is = needed=20 and those where it is not.

Each = breach=20 carries different levels of risk and,=20 consequently, requires a different = response.=20 Unless written and interpreted with very = great=20 care, a mandatory notification = requirement would=20 add a significant extra burden for = organisations=20 and, more worryingly, could produce = =91breach=20 fatigue=92 if it were to result in = frequent and=20 unnecessary notifications of minor = incidents.=20 This carries the very real danger that = people=20 will ultimately ignore notifications = when there=20 is, in fact, significant risk of harm.=20

Notifying people, when there is = often=20 not much they can do about the situation = wrongly=20 shifts responsibility from the = organisation to=20 the individual and diverts attention and = resources away from prevention. Put = simply,=20 where the risks posed by security = breaches are=20 serious, a notification requirement = would be too=20 timid. If they are not, it would be=20 excessive."

Related links to = this=20 article:
Information=20 = Commissioner

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