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Saturday, 19 October 2024

Data protection & cyber security, Oct 2024

Cookies: consent or pay OK in UK? ICO says it's a business decision by the organisation, it holds no info! (FOI).

EU NIS2 Directive: applies from 18 Oct 2024 (news): see Commission implementing regulation on requirements for digital services incl. cloud, CDN, online marketplaces, social networks; too few Member States have transposed it into national law (published Commission list, so far just Belgium, Croatia, Italy, Latvia, Lithuania). Not listed doesn't mean "not implemented": a country might not have notified the Commission yet, or the Commission might not have added it to that list yet. But it's clear some Member States have missed the deadline, like Ireland (draft law heads of Bill). Microsoft has been quick off the mark to tout how Azure can help NIS2 compliance.

EU Cyber Resilience Act (CRA): adopted by the Council in Oct 24, on security requirements for "products with digital elements" (software or hardware products and their remote data processing solutions, including software or hardware components being placed on the market separately). NB "remote data processing" as defined could catch some cloud servces. Applicable 36 months after CRA becomes effective (should be published in OJ in a few weeks), with some transitional provisions.  Views that the CRA is an "accidental European alien torts statute"! Separately, the US CISA/FBI have published for consultation draft guidance on product security bad practices.

Revised EU Product Liability Directive: adopted by the Council in Oct 24, see some previous blog commentary on software/SaaS being caught, and defects including cybersecurity issues. Liability on repairers, compensation claims easier for claimants, importers/EU representatives can be liable for products of non-EU manufacturers. 2-year transposition period after it becomes effective (should be published in the OJ soon).

EU CSAM Regulation: recently revived by the Council's Hungarian presidency which suggested the amended compromise text. Remember, this would catch online service providers, such as providers of hosting services and interpersonal communications services. Currently this would apply 24 months from its effective date. (The previous temporary derogation from the ePrivacy Directive to allow scanning for CSAM was extended to 3 Apr 2026, in Apr 24.)

UK Product & Metrology Bill: the Delegated Powers and Regulatory Reform Committee has reservations, see my previous comments on LinkedIn including that things are mostly left to delegated legislation.

Backdoors?: but, note that any encryption/other backdoors into apps/products/networks, or special keys "only" for government access, will threaten everyone's security (as noted regarding Global Encryption Day, 21 Oct 2024!). Example: it seems Chinese hackers got into US broadband providers' networks and acquired information "from systems the federal government uses for court-authorized wiretapping".

Passkeys: more secure than passwords (see my book & free PDF!), it's great that this "passwordless" option is increasingly being adopted, and increasingly interoperable cross-platform: see passkeys on Windows, and Google's passkey syncing.

Ransomware, sanctions: individuals with links to Russian state and other prolific ransomware groups, including LockBit, have been found and sanctioned. NCA news; history of Evil Corp (not on technical matters)

Software bill of materials (SBOM): more from the US NIST e.g. on framing software component transparency (what's SBOM? CISA FAQ, resources, SBOM in SaaS/cloud, SBOM for assembled group of products. SBOM is explained in my book). I do feel contracts should include SBOM provisions.

IoT:

UK NCSC guidance:

Microsoft, Cybersecurity and Infrastructure Security Agency (CISA) and the National Cybersecurity Alliance (NCA) Be Cybersmart Kit for Cybersecurity Awareness Month (which is October) also focuses on the basics: use strong passwords and consider a password manager; turn on MFA; learn to recognize and report phishing; keep software updated.

Quantum tech: ICO views; UK government response on regulating quantum applications; cybersecurity risks from quantum computing and steps for financial authorities and institutions (see the G7 Cyber Expert Group statement on planning for the opportunities and risks of quantum computing)

US & transfers: Commission's report on the first periodic review of the functioning of the adequacy decision on the EU-US Data Privacy Framework (DPF). Separately, industry body CCIA's comments on digital trade barriers affecting US companies include, for the EU (detailed PDF), data and infrastructure localization mandates and restrictions on cloud services (citing e.g. the EUCS, NIS2, Data Act), and restrictions on cross-border data flows (under not just GDPR but also the Data Act and Data Governance Act)

Other ICO:

  • Levales solicitors reprimand: "A threat actor accessed Levales’ cloud-based server using legitimate credentials and subsequently published data on the dark web". Levales "did not have Multi-Factor Authentication (MFA) in place for the affected domain account. Levales relied on computer prompts for the management and strength of password and did not have a password policy in place at the time of the incident. The threat actor was able to gain access to the administrator level account via compromised account credentials. Levales Solicitors LLP have not been able to confirm how these were obtained." And see above, NCSC and cybersecurity awareness month guidance reiterating the importance of using MFA, especially for cloud!
  • New data protection audit framework launched, including toolkits (on areas like security, personal data breach detection/prevention, AI), framework trackers (similar areas), resources, case studies
  • From 11 Oct 24, businesses must try online resources "Instead of first calling our phone line..." - will the expected increase in the data protection fee change this?
  • Children's data: ICO's further short consultation on its Children's Code (on use of children’s personal information in recommender systems, use of PD of children <13) has closed, sorry I didn't have time to blog it earlier this month
  • Cyber investigations/incidents: latest datasets, for Q1 24/25 published
  • ICO DPIA for its use of Canva - interestingly, here as in some other FOI responses, the ICO redacted internal tech info like, in this case, detailed links: "The disclosure of extended links reveals the ‘make up’ of our SharePoint system. Due to the nature of information this reveals, this information increases our vulnerability to cyber attacks."
    • Is security by obscurity really the best approach here? Previously, when asked for a "list of all the variable names in the database, together with any descriptive/user guides of the variable names in the database list of all the variable names in the database, together with any descriptive/user guides of the variable names in the database" for the ICO's database of data security incident trends, the ICO refused, saying "if disclosed, such information could be used by malicious actors seeking criminal access to our information and systems". It even took the view that "The size of our internal security team is exempt from disclosure to you under section 31(1)(a) of the FOIA, as it could make the ICO more vulnerable to crime".
  • Facial recognition:
  • One court order for winding-up (liquidation) on ICO petition in Q2 24/25, wonder who?

Cyber Security Breaches Survey (UK, annual): how could this be developed and improved? DSIT call for views (survey questions), deadline 23:59, 4 Nov 24. 

Cloud: NIST's A Data Protection Approach for Cloud-Native Applications (note: here "data protection" means protecting all types of data, not just personal data), and see NCSC on MFA and cloud

UN Cybercrime Convention: concerns continue to be raised (see other critiques summarised in my book and free PDF).

Adtech: the IAB has published its Repository of European IAB’s Initiatives for Responsible Digital Advertising with helpful links to its key docs on data protection, DSA etc. It also published, for consultation, a proposed privacy-centric Attribution Data Matching Protocol (ADMaP), a data clean room interoperability protocol for attribution measurement (tech specs) "that enables advertisers and publishers to measure attributions using Privacy Enhancing Technologies (PETs) in a  Data Clean Room (DCR) and protecting their user’s Personal Identifiable Information". 

GDPR non-material damage: CJEU case, reiterating that mere GDPR infringement isn't damage, but an apology could be sufficient compensation if previous position can't be restored, as long as it's full compensation; controller attitude/motivation irrelevant in awarding smaller compensation than the damage suffered. (I'd add, an apology is not full compensation without a binding promise not to do something similar again in future!)

GDPR Procedural Regulation: EDPB statement; the Council's Data Protection Working Party will be discussing the draft Regulation on 24 Oct 24.

Digital identity:

Other EDPB:

  • Adopted a raft of docs including
    • Opinion 22/2024 on certain obligations following from the reliance on processor(s) and sub-processor(s), produced on the Danish SA's request (industry association BSA has raised concerns that these requirements are at odds with market practice, supply chain relationships, etc.)
    • For consultation, Guidelines 1/2024 on processing of personal data based on Article 6(1)(f) GDPR, deadline 20 Nov 24
      • Note: I've not read properly but there's at least one oddity. The cases the EDPB relied on to argue that personalised advertising is "direct marketing" don't actually say that. "However, CJEU case law suggests that personalised advertising could be considered a form of direct marketing" - well no, the para referenced stated processing for direct marketing may be for legitimate interests, not that personalised ads are direct marketing! Similarly, arguments about "communications" being for direct marketing skate over the case cited clearly being about "electronic mail" as defined in the ePrivacy Directive. I think we'd all agree that ads in emails are direct marketing, but the EDPB seems to be arguing that, under that case, all commercial communications like personalised ads are direct marketing. This can't follow from that case, which is clearly confined to "communications covered by Article 13(1)" of the ePrivacy Directive such as email.
    • Work programme 24-25
    • Granting Kosovan Information and Privacy Agency observer status for the EDPB's activities (contrast the polite No post-Brexit to the UK's then Information Commissioner, in a letter whose reference, coincidentally or not, was "OUT2020-0110"!)
    • Next coordinated enforcement action in 2025 will be on erasure (right to be forgotten, RTBF)
  • Final Guidelines 2/2023 on Technical Scope of Art. 5(3) of ePrivacy Directive i.e. "cookie" consent but much more; local processing, like on-device processing for AI/machine learning, is still caught according to the EDPB, if anything is sent to the "entity producing the client-side code". Small AI models that can "fit" on user devices are emerging, and may represent the only way forward for users who want AI applications on their phones, at this rate!
  • Response to the European Commission concerning the EDPB work on the interplay between EU data protection and competition law (DMA etc.: still working on it!)

For amusement value only: ICO FOI response, non!

(See also blog on AI and, just because, UK Attorney-General's speech on the rule of law in an age of populism, Commission webinars on development of model or standard contractual terms for data sharing and switching between data processing services i.e. cloud services under the EU Data Act, and EU Digital Services Act DSA transparency database researchers' workshop)