InformationWeek – Privacy: FTC Examining Cloud Computing

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“In response to a Federal Communication Commission (FCC) Notice of Inquiry into how broadband and data portability issues relate to cloud computing, identity and privacy — part of the FCC’s effort to formulate a National Broadband Plan — the Federal Trade Commission (FTC) said last month that it is examining the privacy and data security implications of cloud computing for consumers.

“The ability of cloud computing services to collect and centrally store increasing amounts of consumer data, combined with the ease with which such centrally stored data may be shared with others, create a risk that larger amounts of data may be used by entities in ways not originally intended or understood by consumers,” wrote FTC attorney David C. Vladeck in a letter to FCC Secretary Marlene H. Dortch.

Jim Christy, the Director of Futures Exploration at the Department of Defense Cyber Crime Center, talks about the increasing sophistication of attacks that he is starting to see.

Protecting consumer privacy has been one of the FTC’s highest priorities for more than a decade, said Vladeck, noting that the agency has brought over two dozen legal actions since 2001 against businesses that failed to adequately protect consumer privacy.

The FTC’s consumer protection efforts also include scrutiny of authentication and credentialing. The agency has pushed businesses to strengthen the methods they use to authenticate new and existing customers. The agency won a settlement of over $10 million in civil penalties and $5 million in consumer redress from ChoicePoint in 2006 for poor data handling following a breach that affected over 163,000 consumer records.”

Full Story: http://www.informationweek.com/news/government/policy/showArticle.jhtml?articleID=222200380&cid=RSSfeed_IWK_Software