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8 February 2008
Lords committee to re-open data security inquiry
Rebecca Thomson, Computer Weekly
An influential House of Lords committee is to re-open an inquiry
into e-crime and the security of personal data on the internet after
members of the committee branded the government's reactions to its
recommendations as "vacuous, idle and irrelevant".
The Lords Science and Technology Committee called for new laws
to require businesses to encrypt personal data, report security
breaches to their customers and to to make suppliers liable for
damage caused by flaws in their software, in a controversial report
in August.
But members said the government's "complacent" attitude
to its recommendations, coupled with the recent string of high-profile
data breaches, meant they had no choice but to call civil servants
back for questioning. They plan to grill civil servants on their
"inadequate" response and are threating to summon ministers
to answer questions.
"IT communication and business is going to be at the heart
of commerce for decades to come. We have got to get a grip of it
now. The government's response to our suggestions was vacuous, idle
and irrelevant," said Lord O'Neill, committee member.
The committee says a series of high-profile security breaches have
shown that the government and business need to take action to protect
the publics personal data and to reduce the impact of e-crime.
The HMRC's loss of discs containing the personal details of 15
million people and the loss of laptops containing details of 11,000
children by Nottinghamshire County Teaching Primary Care Trust in
March last year have propelled the security of personal data into
the headlines. Marks & Spencer lost the details of 26,000 staff
after a laptop was stolen in May.
"We want to shake things up so we are not in this position
in a year's time," said Lord Errol.
The committee's 2007 report was an attempt to address the growing
problem of e-crime. It called for more powers for the Information
Commissioner's Office to enforce data protection in businesss and
the public sector, a central, automated system for reporting e-crime,
and banks to be made liable for customers' electronic fraud losses.
But its recomedations have received a mixed response from business.
Jeremy Beale, head of e-business at the Confederation of British
Industry, agreed the issue needs attention but said, "There
are some issues that need to be ironed out. On some of the proposals,
such as a breach of notification law and vendor liability, the committee
had not really grasped how things actually work. What we really
need is a debate."
The government dismissed the reports findings in October. "We
do not accept that the incidence of loss of personal data by companies
is on an upward path and we do not accept that the Government is
indifferent to the problem."
The committee's recommendations include:
• Establish a cross-departmental group and a classification
scheme for recording e-crime
• ISPs to be liable if they know machines on their network
are sending out infected code and fail to take action
• Vendors to be liable for damage caused by faulty code.
• Put incentives in place to persuade businesses to protect
data
• Make banks liable for losses incurred as a result of electronic
fraud
• Begin consultation on a data security breach notification
law
• Urgently examine the ICO's effectiveness in enforcing good
standards of data protection in business
• Provide high-level support to the Get Safe Online initiative
• Raise understanding of internet and e-crime across the
court system
This article first appeared on the web-site of Computer Weekly,
at http://www.computerweekly.com/Articles/2008/02/08/229325/lords-committee-to-re-open-inquiry-into-data-security.htm.
© Reed Business Information 2008.

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