Data Protection Consulting Newsletter

ssue 16         January 26, 2007

Smart data protection solutions for business  

 In this issue

Guest article: How to use  pro-active communication to protect your reputation

Recent laptop thefts highlight the risks not only of  accessing customer data via portable computer devices, but also of putting  your head in the sand if the worst happens.  ...more...

Phishing and  identity fraud

Online banking fraud statistics were quoted by the  FSA and Apacs  ...more...

What price  privacy now? 

The Information Commissioner took the step of naming  and shaming...more...

Five  top tips for 2007

Five useful tips to help you maintain  data protection compliance...more...

Copyright and legal notice

email: enquiries@dp-smart.co.uk

Mandy Webster's new book is available from the  ICSA.  Full details available here.

How to use pro-active communication to protect your reputation

Recent laptop thefts highlight the risks not only of accessing customer data via portable computer devices, but also of putting your head in the sand if the worst happens.

News of the Nationwide Building Society laptop theft raised concerns about how seriously organisations take their obligation to protect confidential data. However, the fact that Nationwide took three months to come clean was what resulted in loss of confidence among customers who no longer felt able to trust their professional advisor. Companies should take note and act quickly to include communication guidelines in their data protection policies and procedures to safeguard their reputation.

The power of today’s laptops and memory sticks means employees can work with huge volumes of customer data while on the move. The convenience of working anywhere, any time may be irresistible, but the Data Protection Act requires that no-one have remote access to confidential data unless - and only when - they absolutely need to. The onus is on the employee and the company to make this decision for every situation and every trip.

Many companies have a long way to go to make their data protection policies specific and comprehensive enough, and even more are failing to understand how important it is to ensure compliance with those policies. What smart companies have already realised is that making policies and procedures work for them helps maintain consumer trust and protect future business, and that effective communication to employees and clients is an essential part of this challenge.  

Internal Communication Guidelines

The nub of the issue is this: assuming you have the right safeguards, how do you use communication to make them work on a daily basis, in a dispersed workforce? Here are some ideas:

  Make sure policies  are published in those company media most widely used by employees, and  that they are clearly articulated. Consider links on the intranet homepage, client management pages and even on frequently used HR space.

  If you have not yet  developed an intranet to cover the full extent of your company’s  activities, consider doing so. The most effective intranet will combine  product and service updates, internal and external news articles and all  personnel processes. Take communication or marketing advice as well as  technical advice during development.

  Don’t rely  solely on policies printed in official printed HR or compliance files  – these will never be noticed. Do, however, consider including data  protection targets in annual performance targets and management reports.

  Introduce procedures  which encourage or obligate employees to include judgements which protect  consumer data into their daily routine. These could include help-sheets  attached to laptops, reminders in project briefing documents and  requirement to confirm compliance with policies as part of the log on procedure  to access data.

 Client Communication Guidelines

UK law does not currently require companies to inform customers when their data is compromised and some choose to conceal such losses. Companies are advised to consider whether their reputations would be better protected by more open and honest communication:

  The sooner you are  seen to care about putting right what has happened, the more likely  customers are to believe what you are saying and the better the chances of keeping their trust. This is the principle behind all crisis management  best practice.

  If you already have  active and effective policies to keep customer data safe, make sure these  are clearly displayed and explained on customer websites and in frequently  asked Q&A. The more customers know about what you are doing to protect  them, the less likely they are to jump to damaging conclusions.

  In the event of  customer data being compromised, make sure website information is promptly and regularly updated to relieve potentially overloaded call centres and  help-lines.

  Give customer facing  staff sufficient guidance and materials to help them communicate with  those affected by a compromise, keep their information updated, and make  sure it is consistent with what you are saying in other media.

  It is essential that  customers feel you have communicated with them directly before they hear  anything in the press or on TV, but external media can provide an opportunity to show what you are doing to put things right. Think very  carefully about how to handle external interest.  

 Staying Ahead in a Business Where Trust is Everything  

When coupled with respect for and active commitment to the principles within The Data Protection Act, effective internal and external communication can help you protect your reputation as well as your customers. Those who realise this can develop practices and establish a culture to build public confidence, customer trust and business success.  Back to top.

 

Caris Stoller at www.clearlycommunication.co.uk 

 

 Phishing and identity fraud

Online banking fraud statistics were quoted by the FSA and Apacs (UK payments association) when they gave evidence to a House of Lords science and technology committee in the autumn of2006. They stated: an increase of 8,000% in incidents over the last two years. Also: during 2006 approximately £45 million was stolen through phishing.

 Still the regulator and the industry reject calls for consumers to be notified each time a bank suffers a security breach which impacts on the security of customer details, which is currently the law in many US States.

 It also emerged that the FSA will open discussions with the Information Commissioner's Office shortly about the handling of personal data by institutions involved in internet banking.

Meanwhile, the Fraud Act 2006 introduces a general offence of fraud by false representation. This is a new initiative to deal with phishing which is currently handled as a deception offence and it closes loopholes so that steps preparatory to a phishing exercise, such as sending bulk emails in the guise of a financial institution, will be a criminal offence.  Back to top... 

 What price privacy now?

The Information Commissioner took the step of naming and shaming organisations that encourage the illegal trade in personal data in his update to a report he laid before parliament in May 2006.   Notably the Commissioner used his initial report, "What price privacy?" to ask for custodial sentences to be introduced for certain data protection offences, namely those involving the illegal obtaining and disclosure of personal data. In December 2006 the Commissioner followed up the eport with "What price privacy now?" 

 In this latest report Richard Thomas warns businesses that they should only use personal information that they can be confident was collected lawfully. Although those involved in the illegal trade in personal information are (almost without exception) private investigators, the Commissioner has long recognised that they are acting for clients in other industries such as insurance companies, law firms and journalists.   Significantly he decided to make public the ames of some of those who he can prove have been involved in the illegal trade in personal information. The May 2006 report showed that he had evidence against some 305 journalists, the December 2006 report 'names and shames' their employers.

 "What price privacy now?" advocates a right to privacy quoting cases involving celebrities and public figures. While he recognises that these individuals require protection from intrusion in to their private lives, the Commissioner also says that individuals not in the public eye may be ffected by the trade in personal information. He notes that government initiatives are set to increase the amount of personal information collected and shared centrally and he records that sponsors of such government initiatives have openly stated their approval of the recommendations made in the May 2006 report.   The report can be found at www.ico.gov.uk  Back to top...

 

 Five top tips to help you maintain data protection compliance in 2007

  Use Adobe Acrobat to  write procedures that can only be amended by Editor access.  This  will revent business users from changing procedures without asking.

  Sign up for the free newsletter from  the Information Commissioner's website at www.ico.gov.uk.

  Check your website, or have it  checked, for compliance with e-commerce and DDA requirements.   Research shows that 75%+ of corporate websites are non-compliant.

  Update physical security policies and  procedures to include up to the minute examples like Blackberry, palm-tops  and mobile phones.

  Record the time you spend reading  this ezine as CPD hours.

  Back to top.

 

 Copyright and legal notice

The information in this newsletter is correct at 26 January 2007.  

The newsletter is intended to be a guide to the latest developments. Data Protection Consulting takes no responsibility for individual companies’ data protection compliance activity based on this newsletter as individual circumstances may vary.  

From time to time the newsletter may include details of products and services offered by DPC Services Limited. It may also include guest articles written by experts in other areas.  

If you do not wish to receive this information you may unsubscribe to this newsletter by email to enquiries@dp-smart.co.uk  

Data Protection Consulting is a trading name of DPC Services Limited..

Copyright Mandy P Webster 2007.  Back to top...