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Print articleData Protection Amendments
October, 2006 - Alison White
The revelations of the intercepted phone messages from Prince Harry and Prince William earlier this year are a reminder of how vulnerable personal data can be.
Proposed changes to the law will mean that those who hold confidential personal information must be even more vigilant about what they do with that data. Most businesses will be familiar with the Data Protection legislation but it is important not to be complacent.
Acquisition and transfer of personal data is big business to some, and the trafficking of personal data is on the rise.
There is a substantial market for personal data, in many cases unlawfully obtained. One private investigation firm was reported to receive £50,000 a month from just one financial firm, for tracking down the new addresses and details of the employers of their debtors.
A recent report from the Information Commissioner entitled, "What Price Privacy" showed that those interested in acquiring information are often organised and very efficient, with knowledge of industry jargon, and even pre-prepared conversation scripts, specifically designed to elicit supposedly confidential information.
Reports like these prompted the Department for Constitutional Affairs to release a consultation earlier this year on increasing the penalties available under the Data Protection Act to include up to a two-year prison sentence. The Department hopes that this will, in some measure, discourage the unlawful trade in personal information, currently only punishable by a fine (Government reports indicated that in most cases the total fine is below £5000).
In conjunction with these proposed changes, the Government has also expressed interest, via another separate consultation, in encouraging sharing personal data among public bodies to help prevent organised crime. More radically, the proposals also include allowing the police and public bodies to 'data-mine' private databases. The possibility that confidential personal data could be required by a public body, and then shared widely across the public sector, might well be cause for alarm.
If the proposals mooted by the Government are brought in to law, then mistaken or accidental disclosure of confidential information could now cause much greater liability. Although the Government claims that custodial sentences will only be applied in clear-cut cases, it remains unsaid that the more sensitive the information that is revealed, the more likely the offence will be deemed serious enough to merit a penal sentence.
If brought into legislation, these two changes would almost certainly put those who deal with personal information into difficult positions. Sensitive financial information is already a prime target for those with an unsavoury interest in personal information. Now public bodies could also consider these businesses their first port of call for trying to root out organised crime. Businesses will therefore have to deal with the conflict of having to give out information to public bodies but keep it secure from others. With increased movement of personal data must come increased risks of interception and accident. And with increased risks comes increased chances of prosecution, which would hold much greater penalties.
Personal data is a valuable commodity. Although these particular consultations may not make it to legislation in their present form, they are part of an ongoing trend that looks set to continue. Indeed it has been reported that the Government wants to allow free sharing of personal data held by public bodies if it is in the public interest.
The Government wants greater access to your data, but it also wants businesses to be much more careful with the personal data they possess. Businesses should start to look now at how they can satisfy both of these requirements.
Proposed changes to the law will mean that those who hold confidential personal information must be even more vigilant about what they do with that data. Most businesses will be familiar with the Data Protection legislation but it is important not to be complacent.
Acquisition and transfer of personal data is big business to some, and the trafficking of personal data is on the rise.
There is a substantial market for personal data, in many cases unlawfully obtained. One private investigation firm was reported to receive £50,000 a month from just one financial firm, for tracking down the new addresses and details of the employers of their debtors.
A recent report from the Information Commissioner entitled, "What Price Privacy" showed that those interested in acquiring information are often organised and very efficient, with knowledge of industry jargon, and even pre-prepared conversation scripts, specifically designed to elicit supposedly confidential information.
Reports like these prompted the Department for Constitutional Affairs to release a consultation earlier this year on increasing the penalties available under the Data Protection Act to include up to a two-year prison sentence. The Department hopes that this will, in some measure, discourage the unlawful trade in personal information, currently only punishable by a fine (Government reports indicated that in most cases the total fine is below £5000).
In conjunction with these proposed changes, the Government has also expressed interest, via another separate consultation, in encouraging sharing personal data among public bodies to help prevent organised crime. More radically, the proposals also include allowing the police and public bodies to 'data-mine' private databases. The possibility that confidential personal data could be required by a public body, and then shared widely across the public sector, might well be cause for alarm.
If the proposals mooted by the Government are brought in to law, then mistaken or accidental disclosure of confidential information could now cause much greater liability. Although the Government claims that custodial sentences will only be applied in clear-cut cases, it remains unsaid that the more sensitive the information that is revealed, the more likely the offence will be deemed serious enough to merit a penal sentence.
If brought into legislation, these two changes would almost certainly put those who deal with personal information into difficult positions. Sensitive financial information is already a prime target for those with an unsavoury interest in personal information. Now public bodies could also consider these businesses their first port of call for trying to root out organised crime. Businesses will therefore have to deal with the conflict of having to give out information to public bodies but keep it secure from others. With increased movement of personal data must come increased risks of interception and accident. And with increased risks comes increased chances of prosecution, which would hold much greater penalties.
Personal data is a valuable commodity. Although these particular consultations may not make it to legislation in their present form, they are part of an ongoing trend that looks set to continue. Indeed it has been reported that the Government wants to allow free sharing of personal data held by public bodies if it is in the public interest.
The Government wants greater access to your data, but it also wants businesses to be much more careful with the personal data they possess. Businesses should start to look now at how they can satisfy both of these requirements.
Footnotes: Alison White is a partner specialising in information management law with law firm Shepherd and Wedderburn. +44 (0)131-473 5313 |
