Around 120 Government-owned personal storage devices were lost in the past 12 months, according to the Privacy Commissioner. I don’t know how this ranks with other governments and large companies, but it is probably about average. PSDs will get lost. The question is what controls are in place to protect the data.
Government agencies have generally improved security around ‘portable storage devices’ (PSDs) such as USB memory sticks – but there are still some key agencies that have less than desirable controls
This is based on a survey released this week (PDF, 4 MB) showing that two-thirds of government agencies have “adequate controls” compared to half last year. That there has been improvement is good, but it does raise the question: what are the other third doing? Controls on PSDs are common sense for government agencies, and not massively difficult to implement. There can be no excuse for not having 100% of agencies with measures in place next year.
The report did not cover data loss disclosure – which the Privacy Commissioner had raised last year – but it did note:
In almost all occasions, agencies became aware of the loss or theft of a PSD through staff notification.
However, at yesterday’s Privacy Forum in Wellington Sir Geoffrey Palmer confirmed mandatory data loss disclosure was on the Law Commission’s reform radar. From his speech:
Another subject on which we are contemplating some changes is data breach notification. We have examined closely the merits of introducing a mandatory data breach notification requirement into the Privacy Act. Currently holders of personal information, both public and private sector agencies, are under no legal obligation to notify individuals or the Privacy Commissioner when an individual’s personal information is compromised – if, for example, it is lost or obtained by computer hackers. … This means that agencies are not required to notify individuals whose personal information has been compromised, no matter how sensitive the information and no matter how serious the risk of harm that could be suffered as a result.
This is clearly an unsatisfactory state of affairs. Data disclosure rules are a common feature in the European Union, and the United States (which is sometimes wrongly criticised as having lax rules). The rules apply not only to the public sector, but private companies too. The Law Commission is taking submissions on this subject as part of its ongoing review process.