Tag Archives: data breach

General Data Protection Regulation (GDPR): what the public sector needs to consider

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Graphic design image: three padlocks in front of a futuristic city.

By Steven McGinty

In March, the Information Commissioner’s Office (ICO) published the results of a survey into local government information governance as part of their preparations for the General Data Protection Regulation (GDPR), which comes into force on 25 May 2018.

Although the ICO notes that many local authorities have good data protection policies, there are still councils where work needs to be done. The survey findings include:

  • A third of councils do not undertake Privacy Impact Assessments (PIAs)
  • 26% of councils do not have a data protection officer
  • 50% do not require data protection training before accessing systems

Under the new GDPR the above findings could constitute a breach, and result in the ICO taking action against the offending council. Recently, the ICO fined Norfolk County Council £60,000 (under the Data Protection Act) for failing to dispose of social work case files appropriately.

What impact will Brexit have on the GDPR?

The UK Government has finally triggered article 50 of the Lisbon Treaty, starting the process for leaving the European Union (EU). However, this does not mean that the UK will escape the European Commission’s GDPR. Digital minister, Matt Hancock, has confirmed that it is in the UK’s best interests to ensure the ‘uninterrupted and unhindered flow of data’, stating that the GDPR would be fully implemented into UK law, even after we leave the EU.

Is the public sector exempt from the GDPR?

There have been reports that some public sector bodies believe that they are exempt from the GDPR. This assumption is based on the regulation’s special conditions and derogations, which allow member states to restrict the GDPR’s scope to safeguard the public interest (some countries, such as Denmark, already have exemptions for public sector bodies). Additionally, fining a public sector body has also been viewed as making little sense – taking from one public sector budget and placing it in another.

However, both of these assumptions are flawed. As the GDPR has been designed to enhance the rights of EU citizens, it would be against the spirit of the regulation to introduce blanket exemptions for the public sector. And it is certainly not unheard of for regulators to fine public bodies, such as the recent Norfolk County Council case, or the Hampshire County Council case in August 2016, where the council was fined £100,000 by the ICO for leaving social care case files in a disused building.

How does the GDPR differ from the Data Protection Act?

The GDPR has been described ‘as the most important change in data privacy regulation in 20 years’, providing greater rights to citizens and harmonising data privacy laws across Europe. However, to achieve this, new requirements have been placed on organisations. These include:

  • Personal data – Article 4(1) of the GDPR includes a broader definition of ‘personal data’ than previous legislation. It states that any information relating to an individual which can be directly or indirectly used to identify them is personal data. Specifically, it refers to ‘online identifiers’, which suggests that IP addresses and cookies may be considered personal data if they can be easily linked back to the person.
  • Privacy by design – The concept of ‘privacy by design’ is not new, but Article 23 of the GDPR makes this a legal requirement. In essence, it means that public sector bodies will have to consider data protection at the initial design stage of product development. This could involve adopting technical measures such as pseudonymisation – the technique of processing personal data in such a way that it can no longer identify a particular person.
  • Data Protection Impact Assessments (DPIAs) – As the ICO’s research highlights, a third of councils do not undertake any form of privacy impact assessment. From May 2018, public sector organisations will have to carry out DPIA’s for certain activities such as introducing new technologies and when processing presents a high risk to the rights and freedoms of individuals. In the latter case, organisations will need to consult the ICO to confirm they comply with the GDPR.
  • Appointment of a Data Protection Officer (DPO) – Article 35 of the GDPR states that public bodies must have a designated Data Protection Officer. This can be an existing employee, as long as there is no conflict of interest, or a single DPO can represent a group of public sector bodies. As the ICO research suggests (26% of councils do not have a DPO), this is one of the main areas where councils need to improve.
  • Data portability– Public sector organisations must ensure that personal data is stored in a ‘structured, commonly used and machine readable form’, so that individuals can transfer data easily to other organisations. For instance, suitable formats would include CSV files.
  • Strengthening subject access rights– Individuals can now request access to their data for no cost and must be responded to within 30 days (this is a change from the Data Protection Act which requires a £10 fee and there is 40 days to respond). For complex cases, this can be extended by two months. However, individuals must be notified within one month and be provided with an explanation. These requests could prove time consuming and costly for public sector bodies, and as such, supports the case for introducing digital services that allow individuals access to their data.
  • Right to be forgotten – The right to erasure (its official name) allows individuals to ask an organisation to delete all the information held on them – although this would not apply if there was a valid reason to hold that data. This principle was established in the high profile case involving technology giant Google.
  • Failing to comply and breaching the GDPR – When there is a breach, public sector bodies will have an obligation to inform their national regulator (the ICO in England) “without undue delay and, where feasible, not later than 72 hours after having become aware of it.” These requirements could present challenges for public sector bodies, who are often engaged in providing vital public services with limited resources. However, policies will have to be introduced to ensure breaches can be reported promptly, particularly as the new penalties for data breaches are significant, with public sector bodies liable for fines of up to €10,000,000. In addition, individuals also have the right of redress and may seek compensation if they feel their rights have been breached.

What should public sector bodies be focusing on?

Although May 2018 may seem a long time away, the ICO research suggests some local councils (and the wider public sector) need to make several changes to ensure compliance with the GDPR.

Most importantly, organisations need to start reviewing the new regulation and considering how it applies to them. Evidence of a clear strategy – including the appointment of a Data Protection Officer, the use of privacy impact assessments, and staff training – will go a long way towards demonstrating an organisation’s intent to comply with the GDPR.

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General Data Protection Regulation (GDPR): 10 things business needs to know

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European Union flag with a padlock in the centre.

By Steven McGinty

On 25 May 2018, the data protection landscape will experience its biggest change in over 20 years.  This is because the European Union’s (EU) General Data Protection Regulation (GDPR) will come into effect for all member states. The regulation, which has been described as ‘ambitious’ and ‘wide-ranging’, introduces a number of new concepts, including the high profile ‘right to be forgotten’ – a principle established in a case involving technology giant Google.

Below we’ve highlighted ten of the most important points for business.

Directly effective

The GDPR is ‘directly effective’, which means that the regulation becomes law without the need for additional domestic legislation (replacing the Data Protection Act 1998). However, member states have also been given scope to introduce their own legislation on matters such as the processing of personal data. This may result in some EU states having more stringent rules than others.

Sharing data and monitoring

It also seeks to increase the reach of EU data protection law. Not only will EU-based data controllers and processors fall under the scope of the GDPR, but its authority will also extend to any business which either processes personal data or monitors the behaviour of individuals within the EU.

This will impact businesses who transfer data outside the European Economic Area (EEA). It will be their responsibility to ensure that the country the data is being transferred to has adequate levels of data protection. The most prominent example of this issue was the US Safe Harbour scheme, which was intended to protect European individuals whose personal data is transferred between the EEA and the USA. In 2015, the European Court of Justice ruled that this scheme had ceased to provide a valid legal basis for EEA-US transfers of all types of personal data. It has now been replaced by the Privacy Shield.

Transparency and consent

Greater obligations have been placed on business with regard both to seeking consent for use of personal data and providing detailed information to individuals on how their personal data is being used. The GDPR requires that consent notices are ‘unambiguous’ – not assumed from a person’s failure to respond – and that consent is sought for different processing activities. Law firm, Allen and Overy recommends that businesses review their notices to ensure they are fit for purpose.

Personal data/ sensitive data

Article 4(1) of the GDPR includes a broader definition of ‘personal data’ than previous legislation. It states that any information relating to an individual which can be directly or indirectly used to identify them is personal data. Specifically, it refers to ‘online identifiers’, which suggests that IP addresses and cookies may be considered personal data if they can be easily linked back to the person.

Enhanced rights

New rights and the enhancement of existing rights will require some businesses to improve the way their data is stored and managed. These rights include:

  • Data portability – Business must ensure that individuals can have easy access to their personal data in case they want to transfer their data to other systems.
  • Strengthening subject access rights – Individuals can now request access to their data for no cost and it must be responded to within 30 days (this is a change from the current legislation which requires a £10 fee and there is 40 days to respond).
  • Right to be forgotten – Individuals can request that an organisation delete all the information they hold on them (although this would not apply if there was a valid reason to hold that data).
  • Right to object to processing – Individuals have the right to object to the way an organisation is processing their data.
  • Right to restrict processing – Individuals have the right to request that the processing of personal data is temporarily stopped. This may be invoked whilst a right to object request is being investigated.

Personal data breach

Businesses have an obligation to report breaches to their national regulator, such as the Information Commissioners Office (ICO) in England.  The GDPR requires that notice must be provided “without undue delay and, where feasible, not later than 72 hours after having become aware of it.” This may be challenging for some businesses, particularly if the incident is discovered at the end of the working week.

Failure to comply with GDPR

The regulation introduces two levels of fines. Less serious offences under the regulation will be liable for a fine of up to €10,000,000 or 2% of global turnover – depending on which is highest. However, for more serious breaches, such as a breach of an individual’s rights or a breach during international transfers, a business may be held liable for up to €20,000,000 or 4% of global turnover.

In addition, individuals are also given the right of redress, and those who have had their rights violated may seek to receive compensation. This has led digital marketers to suggest that GDPR could be the next PPI – a practice where insurance was mis-sold to customers, which resulted in a large number of successful claims against financial institutions.

Privacy by design

Technology businesses should also consider data protection at the initial design stage of product development. This could involve adopting technical measures such as pseudonymisation – the technique of processing personal data in such a way that it can no longer identify a particular person. Additional measures, such as policies and programmes, would also show a national regulator’s commitment to compliance with the GDPR.

European Data Protection Board (EDPB)

A new body has been created to issue opinions and to arbitrate between disputes that arise with national regulators.  The board will be made up of heads of national regulatory bodies (or their representatives) and the European Data Protection Supervisor (EDPS), who govern the data processing activities of EU institutions. The opinions expressed by this board may have important implications for data protection legislation.

Impact of Brexit

Evidence suggests some businesses may be delaying taking action until they see the results of the Brexit negotiations. This possibly explains the research by cloud security firm, Netskope, which found that 63% of UK workers have never heard of the GDPR. Similarly, research by Veritas Technologies, a leading information management firm, has found that 54% of organisations have not ensured they will comply with the new GDPR.

However, it would be very surprising if the UK did not ‘mirror’ the protections offered by the regulation, particularly considering the UK’s significant input to the new legislation. Digital minister Matt Hancock has also confirmed that the UK government intends to fully implement the GDPR.

Final thoughts

If businesses already have policy and procedures in place to meet the requirements of the Data Protection Act, then they should have a solid foundation to comply with the GDPR. In many ways, the new regulation simply provides a clear framework for delivering good practice in data protection.

However, all businesses will need to take action to ensure compliance with the GDPR. Otherwise, the financial penalties (as well as reputational damage) of a breach could have serious consequences for their business. And this is not just an IT issue. The whole organisation, starting from board level, must show a willingness to understand the legislation and implement procedures that protect the fundamental rights of individuals.

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Counting the cost of data protection failures in local government

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By Steven McGinty

In August, Hampshire County Council were fined £100,000 by the Information Commissioner’s Office (ICO) after social care files and 45 bags of confidential waste were found in a building, previously occupied by the council’s adults’ and children’s services team.

Steve Eckersley, the ICO’s head of enforcement, explained that this data protection breach affected over 100 people, with much of the information “highly sensitive” and about adults and children in vulnerable circumstances.  In his view:

“The council’s failure to look after this information was irresponsible. It not only broke the law, but put vulnerable people at risk.”

A widespread problem

In 2015, Big Brother Watch, an organisation which encourages more control over personal data, published a report highlighting that local authorities commit four data breaches every day. It found that between April 2011 and April 2014 there were at least 4,236 data breaches. This included, at least:

  • 401 instances of data loss or theft
  • 159 examples of data being shared with a third party
  • 99 cases of unauthorised people accessing or disclosing data
  • 658 instances of children’s personal data being breached

In the past year, local authorities have reported a 14% increase from the previous year in security breaches to the ICO. The figures show that 64% of all reported breaches involved accidentally disclosing data. This supports research which suggests that human error is a major cause of data protection breaches.

These statistics are both positive and negative for the ICO. Peter Woollacott, CEO of Huntsman Security, suggests that it could show that local government is becoming better at identifying security breaches. However, he also acknowledges that most organisations are subject to multiple attacks, with only some being detected.

Areas for improvement

In 2014, the ICO conducted nine advisory visits and four audits of social housing organisations. It found that improvements could be made in ten areas, including:

  • Data sharing – organisations regularly share personal data but few have formal policies and procedures to govern this sharing.
  • Data retention – few organisations have data retention schedules for personal data, which provide details on when records should be disposed of, although most only extend to physical records. Data protection legislation sets out that data must not be stored for ‘longer than necessary’.
  • Monitoring – there is little evidence that organisations monitor their compliance with data protection policies.
  • Homeworking – where organisations allow staff to work flexibly, it often wasn’t formalised.
  • Training – there are varying levels of data protection training found in organisations.

Public confidence

Unsurprisingly, high-profile data breaches, such as the loss of 25,000,000 child benefit claimants’ details in the post by HM Revenue and Customs (HMRC), have left the public concerned about their data.

In October, a YouGov poll showed that 57% of people believed that government departments could not share personal data securely. And 78% of people didn’t believe or didn’t know whether the government had the resources and technology to stop cyber-attacks.

A poll by Ipsos Mori has also shown that 60% of the public are more concerned about online privacy than a year ago. The three main reasons given were: private companies sharing data; private companies tracking data; and the reporting of government surveillance programmes.

The cost of data protection failures   

The implications of failing to protect the public’s data are serious. Not only could local government be heavily fined by the ICO, but it could also have an emotional or economic impact on individuals if their data enters the wrong hands and is used maliciously (e.g. to commit an act of fraud).  However, there are wider issues for government.

At the moment, both local and central government are undergoing digital transformation programmes, digitising their own operations and moving public services online. Examples include social workers using electronic social care records and the public paying council tax or booking appointments through their local council’s website.

If the public buy into ‘digital by default’ (the policy of ensuring online is the most convenient way of interacting with government), then services could be delivered a lot more efficiently, resulting in significant savings. However, if the public are concerned over the security of their personal data, they may be less willing to consent to its use by government.

We’ve already seen this in some areas. In 2014, the Scottish Government announced plans to expand an NHS register to cover all residents and share access with more than 100 public bodies, including HMRC. This year, the Scottish Government attempted to bring into effect the ‘Named Person Scheme’, where every child in Scotland would be assigned a state guardian, such as a teacher or health visitor.

With both of these schemes concerns have been raised over privacy, including from the ICO in Scotland. The Supreme Court has also ruled against the Named Person Scheme, over the data sharing proposals.

Final thoughts

Local government needs to be robust in ensuring compliance with data protection legislation. The financial costs could be great for local government, but the bigger concern should be public trust. If councils fail to meet their legal obligations, they may find it challenging to implement policies that use public data, even if it brings the public benefits.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other data related articles.