Saturday, May 6, 2023

2 Key Areas Where The GDPR & The CCPA Fail

 


As American citizens, one of the things that we cherish most is our Constitutional right to privacy.  Unless we are required to by law, we have the right not to reveal any information to anybody, and this is best exemplified under our right to remain silent, especially when it comes to being charged with a crime. 

But back then, nobody even thought of Cybersecurity, much the less computers.  But fast forward at lightning speed to now, and we are in the digital world.

Every little thing that we say or do can come under scrutinization, because of all of the technology and interconnectivity that we rely upon.  Not only that, but even our own Personal Identifiable Information (PII) datasets can be used for unknown marketing purposes by other companies, and heck, even the Cyberattacker loves to target this whenever they are out to get something.

Because of this, many so-called data privacy laws have been passed, in an effort to protect the average, everyday citizen.  Some of the more famous examples of these are the CCCPA and the GDPR.  These mandates require extensive auditing and heavy financial penalties if a company has been found negligent in not safeguarding the data.

While these legislations are good to have, they have been coming at a sheer cost to businesses.  As a Cyber consultant, one of the biggest complaints I keep getting is that it costs too much money to come into compliance with these laws, especially in the way of testing and deploying new controls. 

I can see this viewpoint as well, and the money that was used to come into compliance could be used for other purposes for business growth.

So the main point of contention is are these data privacy laws too excessive?  Here are some reasons why they are being viewed this way:

1)     The laws are too broad:

In other words, this simply means that they are open to too wide swings in interpretation.  Because of this, many businesses feel that they become prey on whim from the regulators and auditors.  Defining if a company has done enough to protect the PII datasets becomes quite murky.  For example, suppose a company is hit with a security breach, and a big chunk of their data sets gets hijacked, then what?  The CISO can always state they took every effort to protect the data, but an auditor from the GDPR can always claim that they did not, without having to show much proof for it.  This is where the huge issue of subjectivity comes into play.  Who is right and who is not?  Is there some middle ground here?  Remember, we are all prone Cyberattacks, no matter how much protection we ensure to mitigate that risk from actually happening.  This is an area that is not clearly spelled out in these data privacy laws.  Another area of huge dispute in this regard is the use of “Cookies” on your web browser.  These are tiny pieces of code left by a website (especially an e-commerce based one) that track your movements on the web.  The premise here is that by knowing where you have been the online store merchant can be in a better position to offer you products and services that better fit your needs. Because these are also considered pieces of PII, they too have become prone to both the GDPR and CCPA.  That is why now you will see on just about every website that you visit you will see notices that cookies are being used on your web browser.  Of course, you can accept or deny the usage of cookies, or just simply move on.  While this is good for the customer or the prospect, it is very bad news for the digital marketing efforts of the various businesses that depend upon this to market their products and services.  As a result, a new tool called the “Unified ID 2.0” has come out.  With this, tracking mechanisms are used that don’t require the explicit permission of the customer or prospect.  More information about this can be seen at the link below:

https://www.thetradedesk.com/us/about-us/industry-initiatives/unified-id-solution-2-0

In fact, all of the major web browsers of today (Edge, Chrome, Safari, Firefox, etc.) now have special features in them that allow them to track the visitation habits without giving away the explicit identity of the end user in question.  Is this bad or good?  Again, this is open to a wide range of interpretations.  This technique is also known technically as a “Fingerprint Alteration Technique”, and the huge downside with this is that this uses stateless bits of data, a web browser now cannot tell who is a legitimate end user and who is not.

2)     The bad and the good:

The last statement that we made now segways into this major part.  If companies start to use this newer, stateless means of tracking people, how do you know who is a good person, and one who is a Cyberattacker?  What are the differentiators here?  If these newer techniques were to be enhanced even more, it could then give away the identity of the customer or prospect, thus defeating its entire purpose all together.  So this brings up another point:  The data privacy laws that were created yesterday are much too slow to adapt to the advances of technology today.  But of course, this is true of any technology law that is created and enforced.

My Thoughts On This:

Unfortunately, in the end, it is the responsibility of each and every company to make sure that they are compliant with the GDPR and the CCPA, no matter how much it may cost.  But there is a silver lining here if you dig deeper.  These laws are now making companies aware of the stewardship of the information and the data that they collect. 

This will hopefully now make them more proactive in maintaining a strong Cyber stance.

But here is also a tiny bit of advice from me:  Companies should always be proactive, no matter if they are bound to by the CCPA/GDPR or now.  Taking a little bit of action everyday on a continual basis will make your lines of defense that much stronger, and in the end cost less when you do have to become compliant with the myriad of data privacy laws.

 

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