
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.

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.

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.

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.

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:

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.
This 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.

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:
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.

This cartoon depicts the potential future of the Internet of Things. As more and more devices are connected to the Internet, including ones implanted in people’s bodies, increasing thought must be given to the privacy and security implications. The speed of technological development is moving at a far greater pace than the speed of policy thinking regarding privacy and security.
How will the security of new devices be regulated? The market doesn’t seem to be adequately addressing the security of the Internet of Things. Bad security in devices has externalities beyond the users, as devices can be used as part of botnets to attack other targets.
How will privacy be designed into devices? How will notice and choice work? When privacy is “baked in” to a device, do the engineers have a comprehensive understanding of privacy? How will consumers be able to understand and respond to these design choices?
Should there be special considerations for medical devices or any device that is implantable in a person?
We still await satisfactory answers to these questions . . . but the expansion of the Internet of Things isn’t waiting.
Here’s an earlier cartoon I created regarding the Internet of Things:

Misspelled words and bad grammar are tell-tale signs of phishing. Why don’t phishers learn spelling and grammar? Can’t they afford a copy of Strunk and White?
Phishers don’t need to spell better because their poorly-written schemes still fool enough people. It’s just math for the phishers — a numbers game. If you handle IT security at your organization, don’t assume that people won’t fall for obvious phishing scams — they do. That’s why it is essential to train people — again and again.

My cartoon depicts the discrepancy in the security and privacy budgets at many organizations. Of course, the cartoon is an exaggeration. In an IAPP survey of Chief Privacy Officers at Fortune 1000 companies in 2014, privacy budgets were nearly half of what security budgets were. That’s actually better for privacy than many might expect. Outside the Fortune 1000, I think that privacy budgets are much smaller relative to security.
Fortunately, it does appear that privacy budgets have increased according to the 2016 IAPP-EY Annual Privacy Governance Report which surveyed 600 privacy professionals from around the world. Though the data captured in 2016 has far more details, comparing the charts published by the IAPP in 2015 vs 2016, you can see a significant increase in total privacy spend.