PRIVACY + SECURITY BLOG

News, Developments, and Insights

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The Hidden Force That Will Drive GDPR Privacy Compliance

GDPR Compliance

 

The clock is ticking on getting ready to comply with the EU General Data Protection Regulation (GDPR). EU regulators will start enforcing it on May 25, 2018.

GDPR is less than a year away, and it’s quite a challenge to get ready for. Becoming compliant is not something that can be achieved overnight, or in a week, or in a month, or even in quarter.  A lot of privacy and security controls must be put into place or adapted to satisfy new EU standards and rights.

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Privacy and Security in Health Tech: Improving Transparency About Practices

Many app developers overlook privacy and security by failing to do one of the most basic first steps of data protection – informing consumers of their practices. For example, in a study published in 2016 in the Journal of the American Medical Association, 80% of diabetes apps surveyed didn’t have a notice informing consumers about privacy practices.  Another recent study of thousands of apps involving all topics revealed that nearly 50% lacked a privacy notice. A study by the Future of Privacy Forum in 2016 revealed that “only 70% of top health and fitness apps had a privacy policy.”

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Preparing for GDPR: A Year to Batten Down the Hatches

GDPR Cartoon by Daniel J Solove

The General Data Protection Regulation (GDPR) will go into effect on May 25, 2018.  The GDPR strengthens privacy protections in the EU and includes a number of additional rights and responsibilities.

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A Guide to Grading Exams

 

This post is a reprise of a post I wrote many years ago that has remained popular.  I thought I’d repost it now, during exam grading season, to help professors who want to learn the science and art of grading exams. 

It’s that time of year again. Students have taken their finals, and now it is time to grade them. It is something professors have been looking forward to all semester. Exactness in grading is a well-honed skill, taking considerable expertise and years of practice to master. The purpose of this post is to serve as a guide to young professors about how to perfect their grading skills and as a way for students to learn the mysterious science of how their grades are determined.

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Ransomware The Horror Grows

As the FBI warned, ransomware has proven to be a formidable threat costing businesses over $1 billion in 2016, averaging 4,000 attacks per day. Ransomware forces victims to choose between losing access to their files or paying a fee that can range between hundreds and thousands of dollars. Ransomware has already made headlines in the first quarter of 2017.

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The U.S. Congress Is Not the Leader in Privacy or Data Security Law

Capitol Sinking 01

A common myth is that the U.S. Congress is a leader in creating privacy and data security law.  But this has not been true for quite some time.  Congress isn’t leading, and even the policies and practices of US companies are increasingly built around the law of the European Union (EU) or the states.

In the 1970s through the end of the 1990s, the US Congress passed a large number of important privacy laws.  Here are some of the most prominent of these statutes:

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Congress’s Attempt to Repeal the FCC Internet Privacy Rules: The Void Will Be Filled

FCC Privacy Rules Repealed

Recently, Congress voted to overturn new FCC rules that regulated the privacy of broadband Internet Service Providers (ISPs).  The rules implemented the Communications Act, 47 U.S.C. § 222 to ISPs, requiring opt in for sharing sensitive customer data, opt out for sharing non-sensitive customer data, as well as transparency requirements.  Sensitive data includes precise geo-location, children’s information, health information, financial information, Social Security Numbers, Web browsing history, app usage history, and the contents of communications.  The rules required reasonable data security protections as well as data breach notification.

FCC LogoThis development is a setback in Internet privacy protection, but it doesn’t mean that Internet privacy is doomed.  There are many other regulators and sources of privacy law to fill the void.

Pro-industry advocates often decry much privacy regulation and cheer the death of rules such as the FCC rules.  They advocate for rolling back the jurisdiction and power of regulatory agencies like the FCC and FTC.

Ironically, efforts to weaken the FTC and FCC probably won’t lead to more freedom for industry.  In the short term after regulation is weakened or killed, there is a void, so this seems like a nice freer zone for companies..  But nature abhors a vacuum.  Other regulators will fill the void, and typically it is regulators who are most passionate about protecting privacy such as California and the EU.  They are far more likely to regulate privacy even more stringently than the FCC or FTC.

In the absence of federal regulation, many states pass laws that create a complicated patchwork of inconsistent regulation.  This is what happened with data security regulation and data breach notification.  Way back in 2005, after the ChoicePoint breach captured national headlines, Congress was considering enacting a law.  But it failed to act.  Instead, the vast majority of states passed data breach notification statutes, and many states passed data security laws.  Instead of having to comply with one law, companies must navigate laws in many states.  The most common strategy for companies operating in all states  is to try to follow the strictest state law,  Thus, the de facto rule is the law of the state with the most strict protections.

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2017 HIPAA Enforcement

 

Art E.V.Pavlov_by_Repin

The first quarter of 2017 is not yet over and the OCR has already released details of four HIPAA enforcement penalties totaling over $11 million.  2016 set a record with $20 million in fines for the year, with $5.2 million of that coming in the first quarter.  In just the first 2 months of 2017, the fines have been more than half what the entire amount for 2016 was.  Here are details about enforcement actions in 2017 thus far:

  1. Illinois health care network, Presence Health, was fined $475,000 for failing to notify patients of a breach within the 60-day period. The incident took place over 3 years ago.  In October 2013,  operating room schedules that were written on paper and contained PHI of 836 individuals went missing.   Patients were not notified of the breach until February of 2014.  This represents the first enforcement related to the timeliness of breach notification.
  1. An insurance company, MAPFRE, was fined $2.2 million for failure to safeguard portable devices and poor risk assessment and risk management.  OCR found that MAPFRE did not have an adequate security awareness training program in place for their workforce.   In 2011, an unsecured USB device containing the ePHI of 2,209 individuals was stolen from the company’s IT department.  Despite the corrective measures MAPFRE indicated it would take, it did not actually start securing portable devices until 3 years after the incident.
  1. Children’s Medical Center of Dallas received a $3.2 million fine for multiple incidents where devices with unsecured ePHI were stolen. In 2010 an unencrypted Blackberry was stolen with the ePHI of 3,800 individuals.  In 2013, an unencrypted laptop was stolen with ePHI of 2,463 individuals.  The OCR investigation discovered that the hospital did not begin to secure and safeguard workstations and portable devices until 2013 despite being aware of the risks for many years.
  1. Florida corporation, Memorial Healthcare System, agreed to pay a fine of $5.5 million. This ties Advocate Health Care Network’s fine in August of 2016 for the record of highest penalty.  In this incident, the PHI of 115,143 patients was improperly accessed and disclosed.   Memorial Healthcare failed to terminate a former employee’s log-in credentials which was then used to access 80,000 records with PHI over the course of an entire year.  The company also neglected to review the activity within the system that would have identified that the records were being improperly accessed.   Memorial discovered the breach while investigating two employees who were stealing patient information to file fake tax returns.

Not too long ago, I posted an overview of OCR’s enforcement in 2016.  OCR continues to be active in its enforcement, at its highest level to date.  This is a great opportunity for privacy and security officials to point out to upper management the need for greater resources and attention to HIPAA compliance.

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