Global Data & Privacy Update - 19 March 2015

New US Data Security legislation heard

The USA's draft Data Security and Breach Notification Act of 2015 was heard by the House Energy & Commerce committee on 18 March 2015. The bill aims to replace the plethora of piecemeal federal data security and breach notification laws and to enhance data security standards. The bill would implement stringent breach notification requirements, but has received criticism for not proposing strong enough enforcement provisions and requiring sufficiently robust processes to safeguard data.

Yahoo announces controversial on-demand password

On Monday 16 March, Yahoo announced the launch of its on-demand password service which allows account holders to link their account security to their mobile phone. When a user attempts to access their account, a one-time password will be sent to their phone via SMS. This removes the need for a password to enter the account. The move shows innovation within the security industry but it has been met with much controversy as it adds an extra stage in the verification process and opens new security concerns around the use of malware to intercept SMS messages.

UK ICO raid on PPI cold calling company

The ICO has carried out a raid on a UK company offering to claim back mis-sold Payment Protection Insurance (PPI). Automated dialling has been used to contact over 90 million phone numbers with no ability for the recipients of the calls to opt out of receiving the automated messages. The raid highlights the tough stance taken by the UK's data protection authority on cold calling

Data Protection Regulation "One-Stop Shop" provision weakened

The proposal in the EU's Draft Data Protection Regulation that companies would be able to deal with a single national data protection authority has been drastically limited. On 13 March, the Council communicated an internal agreement to limit the use of the "One-Stop Shop" to narrow circumstances, removing the expectation that companies would be able to receive a consistent approach from one body.

German alliance in 'Internet of Things' market

German companies have formed an alliance...