data security, privacy & trust: the three cornerstones of ...the three cornerstones of digital...
TRANSCRIPT
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MWC19 Shanghai - Data Trust & Security Summit 28 June 2019 | Shanghai, China
Data Security, Privacy & Trust:
The Three Cornerstones of Digital Ecosystem
Stephen Kai-yi Wong, Barrister
Privacy Commissioner for Personal Data, Hong Kong, China
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“Only if you think about jobs, inclusiveness, security and privacy will your company be sustainable and welcome in this century. Otherwise, you’d be out.”
Jack Ma, Alibaba June 2019
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3 Source: Microsoft (April 2019)
• Only 31% of consumers trust organisations offering digital services to protect their personal data
• More than 50% of consumers will switch to another organisation in the event of negative trust experience, such as breach of security and privacy
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Data Security
Data Privacy
Trust Accountability Ethics
Digital Ecosystem
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Publicised data breach 2018 (global)
Source: Risk Based Security
• 6,515 breaches • 5 billion records
Hacking, 4,508
Skimming, 453 Web, 268 Phishing, 177
Virus/Malware, 160
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Top 5 breach types
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Cybersecurity incidents reported to HKCERT 2009-2018
0
2,000
4,000
6,000
8,000
10,000
12,000
1,304 1,153 975 1,189 1,694
3,443
4,928 6,058 6,506
10,081
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: HKCERT
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Distribution of cybersecurity incidents reported to HKCERT in 2018
Source: HKCERT
Botnet; 3,783 ; 37%
Malware; 3,181 ; 32%
Phishing; 2,101 ; 21%
Others; 1,016 ; 10%
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Data breaches reported to PCPD 2013-2018 (voluntary)
0
50
100
150
61 70
98 91 106
129
2013 2014 2015 2016 2017 2018
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Data security – The pressing issues
IT is increasing integrated
into business operations
Increase in sophistication
of hackers
(Hacking as a Service, or
HaaS, emerges)
Cyberattack is not “if” but
“when”
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Background
Case study: Data breach of an airline based in HK affecting 9.4m passengers
• Data breach notification lodged to PCPD on 24 Oct 2018
• Unauthorised access to airlines information systems
• 9.4 million passengers from over 260 countries / jurisdictions / locations affected
• Personal data involved consisted mainly of name, flight number and date, email address, membership number, address, phone number
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PCPD’s investigation and findings
Case study: Data breach of an airline based in HK affecting 9.4m passengers
Investigation focuses
Data security
Data retention period
Contraventions
Various data security failures (see next slides)
Not taking all reasonably practicable steps to erase unnecessary HK Identity Card No. of passengers
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Date security failures include:
• Risk alertness being low
• Vulnerability scanning exercise at a yearly interval (too lax)
• Failure to identify and address the commonly known exploitable vulnerability
• Failure to have an effective personal data inventory
• Failure to apply effective multi-factor authentication to all remote access users
Operational measure failure
Case study: Data breach of an airline based in HK affecting 9.4m passengers
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PCPD’s enforcement action
Case study: Data breach of an airline based in HK affecting 9.4m passengers
Enforcement Notice
Engage independent data security expert to overhaul systems
Implement effective multi-factor authentication for
remote access
Conduct effective vulnerability scans
Engage independent data security expert to review /
tests system security
Devise clear data retention policy, specify retention period(s) and
ensure effective execution
Completely obliterate all unnecessary HKID Card
numbers
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Data security – ‘All practical steps’ approach
Data processor assessment & management
Comprehensive corporate policy
Adequate manpower & training
Proper risk assessment
Adequate technical and operational security measures
No data security
No privacy
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Data privacy – The pressing issues
Big data analytics & AI
• Re-identification
• Lack of transparency
• Bias & discrimination
• Loss of control by individuals
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Data privacy – Emerging regulatory responses
Expanded scope of
personal data
Increased obligations
and sanctions of data users
Enhanced rights of
individuals
Accountability & ethics
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Data privacy – What is ‘personal data’?
EU approach • Data
relating to an identifiable individual
• Includes location data & online identifiers
Broadened scope
Stronger privacy
protection
Take into account all possible means likely to be used
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Data privacy – Enhanced rights and obligations in EU (and being replicated in other jurisdictions)
Data users Individuals
• Enhanced right to notice • Right to be forgotten • Right to data portability • Right to object to
automated decision
• Mandatory data breach notification
• Accountability • Administrative sanctions
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Data privacy – Increasing regulation in mainland China
Cyber-security Law (2016)
General Provisions of the Civil Law (2017)
Personal Information Security Specification (2017) (now under revision)
E-Commerce Law (2018)
Data Security Management Measures (2019) (draft)
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Data privacy – Increasing regulations in the world
Source: Graham Greenleaf
1973
1st privacy law enacted in Sweden
1973-2019
On average 2.9 countries enacted privacy laws each
year
April 2019
134 countries / regions with privacy
laws
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Data privacy – Possible reform in Hong Kong
Administrative sanction
Mandatory data breach notification
Direct regulation
on processors
Retention period
Expanding definition of
PD
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Paradigm shift from compliance to accountability
Translates legal requirements into risk-based, verifiable and enforceable corporate practices and controls
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Accountability
Responsibility to put in place adequate policies and measures to ensure and demonstrate compliance
Rationale: Data users are in the best position to identify, assess and address the privacy risks of their activities
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Accountability Examples of jurisdictions with accountability principles or elements of accountability embedded in data protection laws:
Australia Canada China EU Singapore UK
Most comprehensive
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Risk assessment
Policies & procedures
Transparency
Training & awareness
Monitoring & verification
Responses & enforcement Source: CIPL
Leadership oversight Accountability
framework
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Accountability under EU GDPR
Ensure & Demonstrate Compliance
Privacy by Design & by
Default
Data Protection
Officer
DP Impact Assessment
Records of Processing
See GDPR articles 24, 25, 30, 35, 37-39
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PCPD’s Accountability Framework:
Privacy Management Programme (PMP)
https://www.pcpd.org.hk/pmp/index.html
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1.1 Buy-in from the
Top
1.2 Appointment of
DPO
1.3 Establishment of
Reporting Mechanisms
PMP – Main Components
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PMP – Main Components
2.1 Personal Data
Inventory
2.2 Personal Data
Policies
2.3 Risk Assessment
Tools
2.5 Handling of Data Breach
2.4 Training, Education & Promotion
2.7 Communications
2.6 Data Processor Management
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PMP – Main Components
3.2 Assessment & Revision of
Programme Controls
3.1 Development of Oversight &
Review Plan
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“Our customers’ trust means everything to us. We spent decades working to earn that trust.”
Tim Cook, Apple August 2015
“Our data is being weaponised against us.”
Tim Cook, Apple October 2018
Ethics and Trust
Trust deteriorating?
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Data Ethics
2017
2018
2019 Ethics on AI -
1st being discussed at the ICDPPC meeting held in Hong Kong
“Declaration on Ethics and Data Protection in Artificial Intelligence” made by the ICDPPC in Brussels
“Ethical Accountability Framework for Hong Kong, China ” published by PCPD
“Ethics Guidelines for Trustworthy AI” issued by the European Commission ICDPPC Permanent Working Group on
Ethics and Data Protection in AI established (co-chaired by CNIL, EDPS and PCPD/HK)
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Ethics on AI first discussed in Hong Kong (2017)
“Data users need to add value beyond just complying with the regulations. Discussions about “New Digital Ethics”, the relevant ethical standard and stewardship have already begun. Surely the deliberations will go on. In the not far away future, we may come up with an “Equitable Privacy Right” for all stakeholders.”
Stephen Kai-yi Wong Opening speech at 39th ICDPPC (2017)
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Values
Ethical Accountability Framework
Principles & policies
Assessments, procedures, guidelines &
oversights
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Multi-stakeholders Approach – Three Core Values
3 Data Stewardship
Values
2. Beneficial - Identify and assess risks and
benefits to all stakeholders
- Mitigate risks
1. Respectful - Be transparent
- Control by individuals
3. Fair - Avoid bias, discrimination and other inappropriate actions
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2 Assessment
Models
Multi-stakeholders Approach – Two Assessment Models
2. Process Oversight
Evaluate the integrity of organisations’ data stewardship programme
1. Ethical Data Impact Assessment
Assess the impact of data processing activities on all stakeholders
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Step 1: Analyse the business objective and purpose of the data processing activity
Data Ethics - Implementation Privacy by
Design
Ethics by
Design
Step 2: Assess the nature, source, accuracy and governance of the data
Step 3: Conduct impact assessment, i.e. risks and benefits to the individuals, the society and the organisation itself
Step 4: Balance between expected benefits and the mitigated risks to all stakeholders
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ICDPPC Declaration on Ethics and Data Protection in Artificial Intelligence (October 2018):
Six Core Principles Fairness principle
Systems transparency
and intelligibility
Empowerment of every
individual
Reducing biases or
discriminations
Ethics by design
Continued attention
and vigilance
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EU’s “Ethics Guidelines for Trustworthy AI” (2019)
7 key requirements: 1. Human agency and oversight 2. Technical robustness and safety 3. Privacy and data governance 4. Transparency 5. Diversity, non-discrimination and fairness 6. Societal and environmental well-being 7. Accountability
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Compliance
Accountability
Ethics/ Trust/
Respect
Engaging
Incentivising
Privacy-friendly Culture
PCPD’s Roles – Enforcer + Educator + Facilitator
PCPD’s Strategic Focus Fair Enforcement
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A Balancing Exercise
- Individuals’ Right
- Country’s Interest
- Data Protection
- ICT Development
- Economic & Trade Development
- Free Flow of Information
- Use of Data
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Download our publications
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Contact Us Hotline 2827 2827
Fax 2877 7026
Website www.pcpd.org.hk
E-mail [email protected]
Address 1303, 13/F, Sunlight Tower,
248 Queen’s Road East,
Wanchai, HK
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