Online Shopping: Do we all pay the same price for the same product?
Written by Eirini Volikou*
On the same day, three people enter a book store looking to buy the book The secrets of the Internet. The book retails for €20 but the price is not indicated. The bookseller charges the first customer to walk in – a well-dressed man holding a leather briefcase and the new iPhone – €25 for the book. A while later a regular customer arrives. The bookseller knows that he is a student with poor finances and sells the book to him for €15. Finally, the third customer shows up; a woman who seems to be in a hurry to make the purchase. She ends up purchasing The secrets of the Internet at the price of €23. None of the customers is aware that each one paid a different price because the bookseller used information he deduced from their “profiles” to deduce their buying power or willingness.
In our capacity as consumers, how would we describe such a practice?
Is it fair or unfair, correct or wrong, lawful or unlawful?
And how would we react were we made aware that it targets us as well?
The above scenario may be completely fictitious but could it materialize in the real world?
In principle, the conditions in “regular” commerce are not such as to allow the materialization of our scenario. The obligation to clearly indicate the prices of products in brick and mortar stores directly and dramatically limits the traders’ freedom in charging prices higher than those indicated based on each individual client. In e-commerce, though, reality can prove to be strikingly similar to our fictitious scenario.
The e-commerce reality aka the “bookseller” is alive
Not infrequently it is observed that the indicated price of a good or a service on e-commerce platforms is not the same for everyone but divergences occur depending on the profile of the future customer.
Our online profiles are composed of information such as gender, age, marital status, type and number of devices we use to connect to the internet, geographical location (country or even neighborhood), nationality, preferences and consumer habits (history of searches or purchases) and so on.
This information is made known to the websites we visit via cookies, our IP address, and our user log-in information and can be used not only to show results and advertisements relevant to us but also to draw conclusions about our purchasing power or willingness. In other words, the role of the fictitious bookseller play algorithms that use our profiles for the purpose of categorizing us and automatically calculating and presenting to us a final price that we would be prepared to pay for the subject of our search.
This price may differ between users or categories of users who are often unaware of such categorisation or of the price they would be asked to pay had the platform had no access to their personal data.
This practice is often referred to as personalised pricing or price discrimination.
It is not to be confused with dynamic pricing in which the price is adjusted based on criteria that are not relevant to any individual customer but based on criteria relevant to the market, such as supply and demand.
The issue of personalized pricing surfaced in the public debate in the early 2000s when regular Amazon users noticed that by deleting or blocking the relevant cookies from their devices – which meant being regarded as new users by the platform – they could purchase DVDs at lower prices. The widespread use of e-commerce in combination with the rampant collection and processing of our personal data online (profiling, data scraping, Big Data) has since paved the way for the facilitation and spread of personalized pricing.
The experiment aka the “bookseller” in action
To put the practice to the test, consecutive searches and price comparisons were conducted on the same day (17/12/2019) for exactly the same room type (a “comfort” double room with one double or two twin beds) with breakfast for 2 travelers at the same hotel in Frankfurt, Germany on 3-5 January 2020. The searches were conducted on two different hotel booking websites and in all instances they reflect the lowest, non-refundable price option. The results are shown below:
Website Α
Device | Browsing method | Website version | Price in € | |
1 | Τablet | Browser | Greek | 159,60 |
2 | Tablet | Browser | German | 167,60 |
3 | Tablet | Application | Greek | 162,46 |
4 | Tablet | Application | German | 159,62 |
Website Β
Device | Browsing method | Website version | Price in € | |
5 | Laptop | Browser | Greek | 169,00 |
6 | Laptop | Incognito browser | Greek | 172,00 |
7 | Smartphone | Browser | Greek | 179,00 |
Search 1
Search 2
Search 3
Search 4
Search 5
Search 6
Search 7
The search results show a range of different prices for the same room on the same dates.
There is a noteworthy price divergence depending on the consumer’s country or location. Even for the same country, though, the prices differ considerably depending on the type of device combined with the browsing method used.
All this information – or even the lack thereof in the case of incognito browsing – appears to play a role in the final price calculation and, hence, in the customized pricing for the users.
How is personalized pricing dealt with?
Personalised pricing, arguably, brings advantages especially for consumers with low purchasing power who benefit from lower prices or discounts and can have access to products or services that they could otherwise not afford. However, consumer categorization and price differentiation give rise to concerns because they are processes mostly unknown to consumers and obscure as to the specific criteria they employ.
At the same time, the use of parameters like the ones that appeared to influence the price in the hotel room experiment, i.e. country/language, device, and browsing method, does not guarantee a classification of purchasing power that corresponds to reality. What is more, research has shown that consumers, when made aware of the application of personalized pricing, reject this practice by a majority as unfair or unacceptable. This is largely true also in the event that personalized pricing would benefit them if they were also made aware that such benefit requires the collection of their data and the monitoring of their online or offline behavior.
When it comes to the legal approach to personalised pricing, different fields of law are concerned by it.
In the framework of data protection law, the General Data Protection Regulation (GDPR) does not explicitly regulate personalized pricing. Nevertheless, it provides that should an undertaking be using personal data (including IP address, location, the cookies stored in a device, etc.) it is obliged to inform about the purposes for which they are being used.
It follows that, if consumer profiles are being used for the calculation of the final price of a good or service, this should, at the very least, be mentioned in the privacy policy of the e-commerce platform.
The GDPR also requires consumer consent if personalized pricing has been based on sensitive personal data or if personal data is used in automated decision-making concerning the consumer.
From a consumer protection law perspective, traders can, in principle, set the prices for their goods or services freely insofar as they duly inform consumers about these prices or the manner in which they have been calculated. Personalized pricing could be prohibited if applied in combination with unfair commercial practices provided for in the text of the relevant Directive 2005/29/EC.
However, recently adopted Directive (EU) 2019/2161, which aims to achieve the better enforcement and modernization of Union consumer protection rules, will hopefully contribute to limiting consumer uncertainty and improving their position.
With the amendments that this Directive brings about not only is personalized pricing recognized as a practice but also the obligation is established to inform consumers when the price to be paid has been personalized on the basis of automated decision-making so they can take the potential risks into consideration in their purchasing decision (Recital 45 and Article 4(4) of the Directive). The Directive was published in the Official Journal of the EU on 18/12/2019 and the Member States should apply the measures transposing it by 28/5/2022.
It should be noted, albeit, in brief, that personalized pricing is an issue that competition law is also concerned with and, in particular, the possibility of charging higher prices to specific consumer categories for reasons not related to costs or for utilities by firms that hold a dominant position in a market.
In any case, staying protected online is also a personal matter.
At the Roadmap to Safe Navigation (in Greek) issued by Homo Digitalis, there can be found the behaviors we can adopt to protect our personal data while navigating through the Internet.
Consumers can adopt behaviors that help protect their personal data while browsing, such as using a virtual private network (VPN), opting for browsers and search engines that do not track users and using email and chat services that offer end-to-end encryption. To deal with personalized pricing, in particular, thorough market research, price comparison on different websites, or even different language versions of a single website, trying different browsing methods and, if possible, different devices can be a good start. It is important for e-commerce users to stay informed and alert in order to avoid having their profile used as a tool towards charging higher prices.
*Eirini Volikou, LL.M is a lawyer specializing in European and European Competition Law. She has extensive experience in the legal training of professionals on Competition Law, having worked as Deputy Head of the Business Law Section at the Academy of European Law (ERA) in Germany and, currently, as Course Co-ordinator with Jurisnova Association of the NOVA Law School in Lisbon.
SOURCES
1) European Commission – Consumer market study on online market segmentation through personalized pricing/offers in the European Union (2018)
2) Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules
3) Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’)
4) Commission Staff Working Document – Guidance on the implementation/application of Directive 2005/29/EC on unfair commercial practices [SWD(2016) 163 final]
5) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)
6) Poort, J. & Zuiderveen Borgesius, F. J. (2019). Does everyone have a price? Understanding people’s attitude towards online and offline price discrimination. Internet Policy Review, 8(1)
7) OECD, ‘Personalised Pricing in the Digital Era’, Background Note by the Secretariat for the joint meeting between the OECD Competition Committee and the Committee on Consumer Policy on 28 November 2018 [DAF/COMP(2018)13]
8) BEUC, ‘Personalised Pricing in the Digital Era’, Note for the joint meeting between the OECD Competition Committee and the Committee on Consumer Policy on 28 November 2018 [DAF/COMP/WD(2018)129]9) http://news.bbc.co.uk/2/hi/business/914691.stm
Homomorphic Encryption: What is and Known Applications
Written by Anastasios Arampatzis
Every day, organizations handle a lot of sensitive information, such as personal identifiable information (PII) and financial data, that needs to be encrypted both when it is stored (data at rest) and when it is being transmitted (data in transit). Although modern encryption algorithms are virtually unbreakable, at least until the coming of quantum computing, because they require too much processing power too break them that makes the whole process too costly and time-consuming to be feasible, it is also impossible to process the data without first decrypting it. And decrypting data, makes it vulnerable to hackers.
The problem with encrypting data is that sooner or later, you have to decrypt it. You can keep your cloud files cryptographically scrambled using a secret key, but as soon as you want to actually do something with those files, anything from editing a word document or querying a database of financial data, you have to unlock the data and leave it vulnerable. Homomorphic encryption, an advancement in the science of cryptography, could change that.
What is Homomorphic Encryption?
The purpose of homomorphic encryption is to allow computation on encrypted data. Thus data can remain confidential while it is processed, enabling useful tasks to be accomplished with data residing in untrusted environments. In a world of distributed computation and heterogeneous networking this is a hugely valuable capability.
A homomorphic cryptosystem is like other forms of public encryption in that it uses a public key to encrypt data and allows only the individual with the matching private key to access its unencrypted data. However, what sets it apart from other forms of encryption is that it uses an algebraic system to allow you or others to perform a variety of computations (or operations) on the encrypted data.
In mathematics, homomorphic describes the transformation of one data set into another while preserving relationships between elements in both sets. The term is derived from the Greek words for “same structure.” Because the data in a homomorphic encryption scheme retains the same structure, identical mathematical operations, whether they are performed on encrypted or decrypted data, will result in equivalent results.
Finding a general method for computing on encrypted datahad been a goal in cryptography since it was proposed in 1978 by Rivest, Adleman and Dertouzos. Interest in this topic is due to its numerous applications in the real world. The development of fully homomorphic encryption is a revolutionary advance, greatly extending the scope of the computations which can be applied to process encrypted data homomorphically. Since Craig Gentry published his idea in 2009, there has been huge interest in the area, with regard to improving the schemes, implementing them and applying them.
Types of Homomorphic Encryption
There are three types of homomorphic encryption. The primary difference between them is related to the types and frequency of mathematical operations that can be performed on the ciphertext. The three types of homomorphic encryption are:
- Partially Homomorphic Encryption
- Somewhat Homomorphic Encryption
- Fully Homomorphic Encryption
Partially homomorphic encryption (PHE) allows only select mathematical functions to be performed on encrypted values. This means that only one operation, either addition or multiplication, can be performed an unlimited number of times on the ciphertext. Partially homomorphic encryption with multiplicative operations is the foundation for RSA encryption, which is commonly used in establishing secure connections through SSL/TLS.
A somewhat homomorphic encryption (SHE) scheme is one that supports select operation (either addition or multiplication) up to a certain complexity, but these operations can only be performed a set number of times.
Fully Homomorphic Encryption
Fully homomorphic encryption (FHE), while still in the development stage, has a lot of potential for making functionality consistent with privacy by helping to keep information secure and accessible at the same time. It was developed from the somewhat homomorphic encryption scheme, FHE is capable of using both addition and multiplication, any number of times and makes secure multi-party computation more efficient. Unlike other forms of homomorphic encryption, it can handle arbitrary computations on your ciphertexts.
The goal behind fully homomorphic encryption is to allow anyone to use encrypted data to perform useful operations without access to the encryption key. In particular, this concept has applications for improving cloud computing security. If you want to store encrypted, sensitive data in the cloud but don’t want to run the risk of a hacker breaking in your cloud account, it provides you with a way to pull, search, and manipulate your data without having to allow the cloud provider access to your data.
Applications of Fully Homomorphic Encryption
Craig Gentry mentioned in his graduation thesis that “Fully homomorphic encryption has numerous applications. For example, it enables private queries to a search engine – the user submits an encrypted query and the search engine computes a succinct encrypted answer without ever looking at the query in the clear. It also enables searching on encrypted data – a user stores encrypted files on a remote file server and can later have the server retrieve only files that (when decrypted) satisfy some boolean constraint, even though the server cannot decrypt the files on its own. More broadly, fully homomorphic encryption improves the efficiency of secure multi party computation.”
Researchers have already identified several practical applications of FHE, some of which are discussed herein:
- Securing Data Stored in the Cloud. Using homomorphic encryption, you can secure the data that you store in the cloud while also retaining the ability to calculate and search ciphered information that you can later decrypt without compromising the integrity of the data as a whole.
- Enabling Data Analytics in Regulated Industries. Homomorphic encryption allows data to be encrypted and outsourced to commercial cloud environments for research and data-sharing purposes while protecting user or patient data privacy. It can be used for businesses and organizations across a variety of industries including financial services, retail, information technology, and healthcare to allow people to use data without seeing its unencrypted values. Examples include predictive analysis of medical data without putting data privacy at risk, preserving customer privacy in personalized advertising, financial privacy for functions like stock price prediction algorithms, and forensic image recognition.
- Improving Election Security and Transparency. Researchers are working on how to use homomorphic encryption to make democratic elections more secure and transparent. For example, the Paillier encryption scheme, which uses addition operations, would be best suited for voting-related applications because it allows users to add up various values in an unbiased way while keeping their values private. This technology could not only protect data from manipulation, it could allow it to be independently verified by authorized third parties
Limitations of Fully Homomorphic Encryption
There are currently two known limitations of FHE. The first limitation is support for multiple users. Suppose there are many users of the same system (which relies on an internal database that is used in computations), and who wish to protect their personal data from the provider. One solution would be for the provider to have a separate database for every user, encrypted under that user’s public key. If this database is very large and there are many users, this would quickly become infeasible.
Next, there are limitations for applications that involve running very large and complex algorithms homomorphically. All fully homomorphic encryption schemes today have a large computational overhead, which describes the ratio of computation time in the encrypted version versus computation time in the clear. Although polynomial in size, this overhead tends to be a rather large polynomial, which increases runtimes substantially and makes homomorphic computation of complex functions impractical.
Implementations of Fully Homomorphic Encryption
Some of the world’s largest technology companies have initiated programs to advance homomorphic encryption to make it more universally available and user-friendly.
Microsoft, for instance, has created SEAL (Simple Encrypted Arithmetic Library), a set of encryption libraries that allow computations to be performed directly on encrypted data. Powered by open-source homomorphic encryption technology, Microsoft’s SEAL team is partnering with companies like IXUP to build end-to-end encrypted data storage and computation services. Companies can use SEAL to create platforms to perform data analytics on information while it’s still encrypted, and the owners of the data never have to share their encryption key with anyone else. The goal, Microsoft says, is to “put our library in the hands of every developer, so we can work together for more secure, private, and trustworthy computing.”
Google also announced its backing for homomorphic encryption by unveiling its open-source cryptographic tool, Private Join and Compute. Google’s tool is focused on analyzing data in its encrypted form, with only the insights derived from the analysis visible, and not the underlying data itself.
Finally, with the goal of making homomorphic encryption widespread, IBM released its first version of its HElib C++ library in 2016, but it reportedly “ran 100 trillion times slower than plaintext operations.” Since that time, IBM has continued working to combat this issue and have come up with a version that is 75 times faster, but it is still lagging behind plaintext operations.
Conclusion
In an era when the focus on privacy is increased, mostly because of regulations such as GDPR, the concept of homomorphic encryption is one with a lot of promise for real-world applications across a variety of industries. The opportunities arising from homomorphic encryption are almost endless. And perhaps one of the most exciting aspects is how it combines the need to protect privacy with the need to provide more detailed analysis. Homomorphic encryption has transformed an Achilles heel into a gift from the gods.
This article was originally published on the Venafi blog at: https://www.venafi.com/blog/homomorphic-encryption-what-it-and-how-it-used.
Reparations for immaterial damage under the GDPR: A new context
Written by Giorgos Arsenis*
A court in Austria sentenced a company to 800 Euros of compensation-payment towards a data-subject, for reasons of immaterial (emotional) harm, according to article 82 of the GDPR (General Data Protection Regulation). The verdict is not in force yet, since both parties have appealed the decision, but in case the verdict will remain unchanged in the second instance, then the company might be facing a mass lawsuit, where about 2 million data-subjects are involved.
The case has gained momentum since its outcome will constitute a legal paradigm, upon which future cases will be based. But let’s take a step back and have a broader look at this verdict and the consequences this application of article 82 might have towards the justice systems of other members of the European Union.
Profiling
The fact that a Post Office gathers and saves personal data of its customers is nothing new. But after a data-subject’s request, it was revealed that Austria’s Post, allegedly, evaluated and stored data that concerned the political preferences of approximately 2 million of its clients.
The said company used statistical methods such as profiling, aiming to estimate the level of affinity of a person towards an Austrian political party (e.g. significant possibility of affinity for party A, insignificant possibility of affinity for party B). According to media, it appears that none of the customers had provided their consent for this processing activity and in certain cases that information was acquired by further entities.
Immaterial harm has a price
The local court of Feldkirch in Voralberg, a confederate state of Austria bordering with Lichtenstein, where the hearing took place in the first instance, ruled that the sheer feeling of distress sensed by the claimant due to the profiling he was subjected to without his consent, constitutes immaterial harm. Therefore, the accuser was awarded 800 Euros, from the 2.500 Euros he claimed initially.
The court acknowledged that the political beliefs of a person are a special category of personal data, according to article 9 of GDPR. However, it also acknowledged that every situation perceived as unfavorable treatment, cannot give rise for compensation claims based on moral damages. Nevertheless, the court concluded that in this case, fundamental rights of the data-subject had been violated.
The calculation of the compensation was based on a method that applies in Austria. In line with that method, the court took two main elements into account: (1) that political opinions are an especially sensitive category of personal data and (2) that the processing activity was conducted without the awareness of the data-subject.
And now?
The verdict is no surprise. Article 82 § 1 of the GDPR clearly foresees compensation payment for immaterial harm. However, with 2,2 million data-subjects affected from this processing activity and simply by doing the math, what derives is the amount of 1,7 billion Euros. Certain is, that if the court of appeal confirms the decision, there will be a plethora of similar cases for litigation. This is the reason why already, in neighbouring Germany, many companies specialize in cases like this.
The Independent Authority
After the decision of the local court in Feldkirch in the beginning of October 2019, towards the end of the same month (29.10.2019) the Austrian Data Protection Authority (Österreichische Datenschutzbehörde), announced that an administrative sanction of 18 million Euros was imposed to the Austrian Postal Service. Beyond political beliefs, the independent authority detected more violations. Via further processing, evidence about the frequency of package deliveries or residence change were obtained, which were used as means for direct-marketing advertisement. The Austrian Postal Service, which by half belongs to the state, reported that it will take legal action against this administrative measure and justified the purpose of the processing activities as legitimate market analysis.
What makes the verdict distinctive
The verdict in Feldkirch shows that the courts are able to impose fines for certain “adversities” caused by real or hypothetical violations of personal data.
Unlike the independent authority, that imposed the administrative sanction due to multiple violations of the GDPR-clauses, the local court in Feldkirch focused on the ‘disturbance’ sensed by the complainant.
The complainant simply stated that he ‘felt disturbed’ for what happened, i.e. without pleading a moral damage resulting from the processing activity, such as defamation, copyright abuse or harassment by phone calls or emails. The moral damage was induced by the fact that a company is processing personal data in an unlawful manner.
You can find the decision here.
* Giorgos Arsenis is an IT Consultant και DPO. He has long-standing experience in IT Systems Implementation & Maintenance, in a number of countries in Europe. He has been active for agencies and institutions of the EU and in the private sector. He is qualified in servers, networks, scientific modelling and virtual machine environments. Freelancer, specializes on Information Security Management Systems and Personal Data Protection.
Digital Sources:
Interview with the Senior Director Government Affairs of Symantec, Ilias Chantzos
His title merely impresses: “Senior Director Government Affairs EMEA and APJ, Global CIP and Privacy Advisor” for Symantec, a leader company in the Cybersecurity sector.
In other words, Mr Ilias Chantzos is the person responsible for the intergovernmental relations of Symantec for almost every state of the globe (apart from America), regarding Cybersecurity and data protection issues. Symantec, is one of the leading companies of Cyber Security software worldwide, with hundreds of millions users.
After all, who is not familiar with ‘Norton Internet Security’, Symantec’s most popular and No 1 product for customer protection?
Our first contact was at Data Privacy & Protection Conference where he vividly presented the topic of security breaches and the notification of such breaches. We kindly asked him to share his views on the contemporary developments on the sector as well as the role of NGOs. Despite his busy schedule, he ardently accepted our invitation. We thank him thus, for this extremely interesting interview.
In Greece, entire generations have been brought up in the framework of ‘Rightsism’ and ‘politically correctness’ Τhe crisis we experience is both economical as well as moral.
– HD:The implementation of GDPR and NIS renders Europe as a pioneer in the creation of an integrated, prescriptive setting for Cybersecurity and data protection. What are the next steps?
IC: Initially, the first step is the full implementation of GDPR. And this will become viable through the adaptation of individual rules, such as the guidelines set by the European Data Protection Board (EBPB), the imposition of fines functioning as impediments to the non abidant organisations and through solving issues arising from data transmission, especially to America. The latter acting as a sticking point to mutual interests of great, private companies.Then, adequacy decision with other countries, such as Korea will follow, which will eventually create a great secure flow space and, of course, the final decisions regarding e-privacy Regulation.
-HD: On that occasion, let me ask you about the efforts and the enormous funds that are allegedly spent within lobbying settings from giants in the technology sector such as Google and Apple on favorable e-privacy conformation towards them.
ΙC: Well, isn’t it reasonable for the companies to be interested about rules that concern and directly regulate them? The industry’s interests are not common, rather than different and dissenter. If, for example, a regulatory context is favorable for company X, the same context will be less favorable for company Y which operates in a similar but not the same sector. The same happens with e-privacy.
Companies are ‘fighting’ each other because their interests are not common. Ιn Greece there is neither the conscience nor the full picture of the entrepreneurship interest due to the demonising of profit and entrepreneurship that emerges from the past’s ideological stiffness. We should not face the industry as a caricature of a bad capitalist, but realistically through the prism of complicated relations and existing interests. Τhis is the only way that bodies will perform correctly. Let’s give an example that everyone in Greece will easily understand. The legislature regarding dual tanks in sea-going tankers is supposed to protect the environment from oil leaks. This type of legislature is supported by environmental NGOs and shipyards (an industry that mostly pollutes. . . Can you spot the paradox already?) because it can be translated into brand new orders. Ιt will be supported by the coastal states of European Union but it is not useful to Greece (which has the greatest coastline and tremendous tourism), which has mostly sea-going shipping since it augments its costs while having zero income from its shipping.
Can you spot how many contradictions there are in one simple example and we haven’t even discussed about local communities that have suffered sea contamination and the tourism industry.
-HD: You mentioned fine imposition earlier. Recently, we watched huge companies such as Google, British Airways and Marriott being imposed tremendous fines leaving everyone believing that no one is immune within the Cybersecurity and protection of privacy sector. Thus, if the ultimate protection and secure processing of personal data is impossible, then what is at stake here? Why all this is happening?
IC: In the companies that you mentioned, fines were imposed for different reasons. Regarding the Google case, fines were imposed for lawfulness of data processing , and more specifically their collection and processing, whereas in Marriott and British Airlines cases fines were imposed due to restricted data protection measures. There is no absolute security to anything in life, the same stands for security. The authorities though, did evaluate that those companies should have protected data much more attentively. Unfortunately, that was not applied this way and this is the reason that fines were imposed, indicating that privacy protection is a top priority.
-HD: In Greece, why do you believe that fines are not equally high?
IC:There are many factors implicated.Up to date greek companies invested in highly essentials. In state of economic crisis you do what is necessary to ensure smooth operation. Current fines are calling for the national companies which want to sell products and services abroad to answer a critical question that every foreign client will ask: “ Can you protect my personal data effectively? ”. Ι understand that small and medium sized enterprises comprehend security mainly as a cost. It is like car insurance which you may never use.
Nevertheless, security can become a competitive advantage. Even if we are kind of left behind, middle sized enterprise should keep up and improve its products and services quality. Quality will make you competitive. I understand that this quality might increase your cost but you belong in the European Union. You have to play according to these rules!
-HD: How do you perceive the NGOs role in this sector? What would you advise an organisation such as Homo Digitalis in order to make their action more effective?
Do not act as ‘rightsists’. In Greece, entire generations have been brought up in the framework of ‘Rightsism’ and ‘politically correctness’ Τhe crisis we experience is both economical as well as moral.This, of course, does not mean we have to stop fighting for our rights. We ought though, with every enquiry that we make to be well informed of its losses and its gains.Which are the consequences of our choices. Not blindly ask just because we can.
It’s the so called ‘occassional cost’. Namely, you should be informed as far as possible which are the other options, that you rejected, before the finally chosen. It is not possible, for example, based on the current business model, to ask for free internet without accepting advertisements (it should be noted that I do not like them).
You don’t like advertisements? No problem, can you afford to pay for the service you receive or to ensure the share of privacy you want? Ιt’s not enough to ask. You also have obligations. Unfortunately, we are victims of the trend “I need X at all costs”, without having thought what we lose or what we accept. It is indicator of maturity and resistance to populism to be able to distinguish easy rightsism from the one that is really in our interest. This is the biggest challenge in my opinion for all NGOs.
Getting closer to the vote on the proposed European Directive on Copyright
Next week is very important for the future of the internet; particularly for freedom of expression and information and the protection of privacy.
On Tuesday 26th of March, the European Parliament will vote on the proposed European Directive on Copyright. In the past we have hosted on our website detailed articles on this specific legislative reformation.
This proposed Directive introduces certain provisions which have a positive nature. However, some other of its provisions raise significant problems; the most important is Article 13, which, during the vote will constitute Article 17, as the text has been renumbered.
Article 13 is supposed to be set up to improve the existing situation and help the creators enjoy intellectual property rights on their works. However, it fails to achieve its scope and mostly assists the interests of major record, publishing and film companies and the interests of companies, which develop software for content control (content-control / filtering software).
Article 13 also does not eliminate, in any case, the serious pathogenesis of the existing regime. Specifically, it lacks a specific provision for combating false claims related to intellectual property rights, while its general, badly written and unclear provisions would lead to a slew of preliminary rulings to the Court of Justice of the European Union.
Article 13 causes new problems and is unable to ensure a reasonable balance between, on the one hand, the right to the protection of intellectual property and on the other hand the rights to freedom of expression, information and respect of personal privacy. Each type of material, which users of the internet upload on platforms of content exchange, as photos, texts, personal messages, videos, etc. will be subject to control and will not be published to the effect that the filtering software deems that there is an infringement.
Numerous experts have been sounding the alarm about the consequences of Article 13 and the uploading filters for Freedom of Expression and Information on the Internet and its diversity:
– The United Nations Special Rapporteur on Freedom of Expression and Information, David Kaye, has substantially expressed his contradiction to Article 13.
– The Federal Commissioner for Personal Data Protection of Germany, Ulrich Kelber, has clearly stressed that Article 13 leads to a tremendous growth of giants of online services and creates challenges for the protection of privacy on the Internet.
– The Minister for Justice and Citizen’s Protection of Germany, Katerina Barley, has invited German Members of the European Parliament to vote down Article 13.
– 169 specialised and prominent academics in the field of intellectual property, have underlined that the provisions of Article 13 are misleading.
Furthermore, the number of Members of the European Parliament committing to vote down article 13 in the vote of Tuesday is constantly rising!
MEPs, which are independent or represent European political parties from every political field, as the Greens/European Free Alliance (GREENS/EFA), the European United Left (GUE/NGL), the European People’s Party (EPP), the Progressive Alliance of Socialists and Democrats (S&D) and the Alliance of Liberals and Democrats (ALDE) have already openly expressed their opposition to Article 13.
Finally, many people are expressing their dissatisfaction with Article 13 and its very serious effects. More than 100,000 people have participated in the demonstrations that took place in many European countries on Saturday 23 March.
Call your representatives in the few days left!
Ask them to vote down Article 13!
Free and open Internet needs you!
There are two days left until the last vote in the European Parliament (possibly on 26.03.2019), which will be crucial for the future of the Internet. More than one hundred Members of the European Parliament (of which the only Greeks are Ms. Sophia Sakorafa and Mr. Nikolaos Chountis) have already committed to vote down Article 13, while citizens in more than 23 cities in Member States of the European Union raise their voices in demonstrations against Article 13.
Many European citizens have participated until now in the campaign Pledge 2019. Since the end of February, when the campaign started, more than 1200 calls and 72 hours of discussion have been carried out. The specific numbers are unprecedented for such a short period of time and conclusively prove people’s active interest and their will to be part of the political debate, when the step is given. Also, citizens in this way express their disappointment about unfounded accusations that many emails and tweets sent the previous period to MEPs have been actions of fake automated accounts!
Numerous experts have been sounding the alarm about the consequences of Article 13 and the uploading filters for Freedom of Expression and Information on the Internet and its diversity:
– The United Nations Special Rapporteur on Freedom of Expression and Information, David Kaye, has substantially expressed his contradiction to Article 13.
– The Federal Commissioner for Personal Data Protection of Germany, Ulrich Kelber, has clearly stressed that Article 13 leads to a tremendous growth of giants of online services and creates challenges for the protection of privacy on the Internet.
– The Minister for Justice and Citizen’s Protection of Germany, Katerina Barley, has invited German Members of the European Parliament to vote down Article 13.
– 169 specialised and prominent academics in the field of intellectual property, have underlined that the provisions of Article 13 are misleading.
– The International Federation of Journalists (IFJ) has invited European legislators to improve the provisions and put the necessary balance between the Protection of Intellectual Property and the Protection of Freedom of the Expression and Information.
– Sir Tim (Tim Berners-Lee), one of the creators of World Wide Web has openly expressed his contradiction to Article 13 and the risks caused to open Internet.
Nobody can claim that he/she didn’t know the significant negative effects of Article 13! We should act and persuade MEP’s to set aside the several political interests and defend European citizens’ rights!
Finally, many people are expressing their dissatisfaction with Article 13 and its very serious effects. More than 100,000 people have participated in the demonstrations that took place in many European countries on Saturday 23 March.
Call your representatives in the few days left!
Ask them to vote down Article 13!
The interview of Irene Kamara
Irene Kamara is a PhD researcher at TILT and affiliate researcher at the Vrije Universiteit Brussel (LSTS). She follows a joint doctorate track supported by the Tilburg University and the Vrije Universiteit Brussel. Her PhD topic examines the interplay between standardisation and the regulation of the right to protection of personal data.
Prior to joining academia, Irene had been working as an attorney at law before the Court of Appeal in Athens. She also did traineeships at the European Data Protection Supervisor and the European Standardisation Organisations CEN and CENELEC. In 2016, she collaborated with the European Commission as external expert evaluator of H2020 proposals on societal security.
Irene is selected as a member of the ENISA Experts List for assisting in the implementation of the Annual ENISA Work Programme. In 2015, Irene received a best paper award and a young author recognition certificate from the International Telecommunications Union (ITU), the United Nations Agency for standardisation.
– Even though you had a great start at your professional career as a lawyer, you decided to follow a PhD. Your dedication to academic research has led to a successful path with many interesting publications. Looking back, how hard was to make this decision though, and what advice would you give to people facing this dilemma?
Indeed, I was working for several years as an attorney at law before the Court of Appeals in Athens. Legal practice offered me valuable lessons, among others how different law in the books from law on the ground is, working efficiently under pressure, contact with clients, and task prioritisation. Those are lessons I still carry with me in my academic career.
I was always fascinated by data protection, privacy, confidentiality of information in electronic communications and I decided to take a career break for a year and follow the TILT’s master program on law and technology. I feel that as a practicing lawyer you always need to learn and evolve. Tilburg’s Law & Tech master program, as you know, offers courses on privacy & data protection, intellectual property, regulation of technologies, e-commerce and gives the student the opportunity to become an expert in cutting-edge topics. After the master, I was offered a researcher position at the Vrije Universiteit Brussel under the mentorship of prof. Paul De Hert. At VUB, I decided I wanted to do a PhD. I realised that via research you have the opportunity to reach out to a bigger audience than merely your clients as a legal practitioner, and adopt a pro-active approach to problem solving, than a re-active one which is often the case in legal practice. Of course what weighed in my decision was also the quality of the working environment and conditions and the high standards in research. Both TILT/Tilburg University and LSTS/VUB have been wonderful homes, allowing me to evolve and progress as a professional, by actively encouraging independent thinking and inter-disciplinary research. To colleagues facing such dilemma, I would say dare to take a risk and leave your comfort zone. Test yourself with a research visit at an institution, writing an academic paper and presenting it at a conference. And keep in mind that academic life is not an easy one, either. And my advice is to choose an academic institution and a mentor that recognises and appreciates your hard work. |
– You have participated as a speaker in panels at top level conferences and events all around the world. The Computers, Privacy, and Data Protection Conference at Brussels, and the IGLP Conference at Harvard Law School are some of them. How did all these experiences shape your research and why is it important for researchers to exchange thoughts with other experts in a global level?
I believe that participation in conferences is a necessary component for every scholar. Not only for sharing and exchanging knowledge, but also for validating and enriching your research results, cross-fertilising ideas. I am against the old-school approach of researchers, especially PhDs, isolated in an office and writing up articles. While there is probably scientific theoretical value in the outcomes of such research as well, the result will most likely lack societal impact.
I usually select the conferences depending on the audience from which I would like to get feedback for my research. The IGLP Harvard conference last year was a great opportunity to expose my thoughts to a global law audience from literally all around the world. I met so many academics being interested in my research or working on complementary topics. IGLP stands exactly for this: investing in creating a stable network of people eager to exchange their ideas globally and assist each other. Besides such conferences, I am lucky that my home institutions, TILT and LSTS organise the annual CPDP conferences and the bi-annual TILTing conferences, to which I participate. Those are very good examples for broadening one’s research interests. |
– Your PhD topic examines the interplay between standardisation and the regulation of the right to protection of personal data. Tell us more about this field and the projects you are working on.
My current research field is human rights with a focus on data protection and privacy, regulatory instruments such as standards, certifications, and codes of conduct, and new technologies. My PhD looks at how soft law, such as technical standards, interacts with human rights regulation, with a focus on personal data protection. While there is a visible regulatory sphere in regulating data protection, that is the Union’s secondary legislation, there is also a set of rules embedded in technical standards that is not so visible. Such rules might translate legal requirements to technical controls or prescribe a set of policies and behaviors to controllers and processors that go beyond the letter of the law.
I am researching this interplay and the various roles standardisation might play in regulating data protection. Other than my PhD project, an interesting project I have been working on as a principal researcher is the study on certification of Art. 42 and 43 of the General Data Protection Regulation for DG Justice & Consumers of the European Commission. Last year, I also collaborated with ENISA on a study on privacy standards. That was an exciting project. I worked together with standardisation experts, civil society and industry to produce the report. |
– You are member of various important organizations. One of them is the Netherlands Network for Human Rights Research (NNHRR). In the Netherlands, organizations, such as Bits of Freedom, and universities, such as the Tilburg University have an active role as regards the promotion and protection of Human Rights in the digital age. What do you think about the situation in Greece in this field? Can civil society organizations and academia, work together to push for positive outcomes?
Although barely in the spotlight, the role of NGOs and academia is fundamental for defending societal interests.
There are also some exceptions like the recent CNIL fine on Google. As far as I am concerned, so far there hasn’t been a coordinated initiative fighting for digital rights in Greece. I see Homo Digitalis as an initiative aiming to fill this gap, by not only informing the broader audience through awareness raising campaigns but also flagging false and unfair practices, participating in public consultations, strategic litigation. |
– You have joint publications with great academics in the field, such as Paul de Hert and Eleni Kosta. If you could share an advice with young researchers reading this interview, what would that be?
Paul and Eleni are both my PhD supervisors and have been great mentors in my academic career so far. I have certainly learned a lot from collaborating with them.
I would advise new researchers to share and exchange ideas with colleagues, take risks in exploring new fields, set goals and work hard to achieve them. And also very important: don’t be afraid to aim high. |
Social Engineering as a threat to Society
Written by Anastasios Arampatzis*
Social Engineering is defined as the psychological manipulation of human behaviour into people performing actions or divulging confidential information. It is a technique, which exploits our cognitive biases and our basic instincts, such as confidence, for the purpose of information gathering, fraud or system access. Social engineering is the “favourite” tool of cyber criminals and is now primarily used through social networking platforms.
Social Engineering in the context of cyber-security
The conduct of the staff has a significant impact on the level of an organisation’s cyber-security, that by extension means that social engineering is a major threat.
The way we train our staff in cyber-security, affects the cuber-security of our organisation, as such. Recognising staff’s cultural background of our company and planning their training in such a way that responds to various cognitive biases can aid to the establishment of an effective information’s security. The ultimate objective should be the development of a cyber-security culture within the meaning of attitude, notion, cognition and behaviour that contribute to protect sensitive and relevant information of an agency. A substantial part of cyber-security culture is the risk awareness of social engineering. If the officials do not consider themselves as part of this effort, then they disregard the security interest of the organisation.
Cognitive exploitation
The various techniques of social engineering are based on specific characteristics of the human decision-making process, which are known as cognitive biases. These biases are derivatives of the brain and the procedure of finding the easiest way possible to process information and take decisions in a swift. For example, a characteristic feature is the representativeness, the trend namely, to group related items or events. Each time we see a car, we do not have to remember the manufacturer or the colour. Our mind sees the object, the shape, the movement and indicates that this is a “car”. Social engineers exploit this characteristic through sending phishing messages. We receive a message with the logo of Amazon and we do not check if it is false or not. Our mind says that this is coming from Amazon, that we trust it and so we click the link and we give away our personal data, as our card number. Similar attacks aim to interception of confidential information for the staff, as i.e. manipulation, fraud by phone. If any person is not adequately trained to face such attacks, he will not even understand their existence.
Principles of Influence
Social engineering is largely based on the six principles of influence, as outlined in the book of Robert Cialdini “Influence: The Psychology of Persuasion” which briefly are:
-
- Reciprocity: obligation to give when you receive
- Consistency: looking for and asking for commitments that can be made
- Consensus: people will look to the actions of others to determine their own
- Authority: people will follow credible knowledgeable experts
- Liking: people prefer to say yes to those that they like
- Scarcity: people want more of those things there are less of
The scandal of Cambridge Analytica
After the election of the President Trump many media were discussing the possibility that social engineering strategies might have been used to influence public opinion. Revelations for Cambridge Analytica and the data’s use of users of Facebook does not only raise doubts as to data’s privacy and the lack of user’s consensus, but demonstrates the ease with which companies can plan and raise social-engineering campaigns against a whole society.
As for commercial advertisements, it is very important to know your target group, in order to reach your goal with the less possible effort. This is true for every influential campaign and what the scandal of Cambridge Analytica proved is that social engineering is not only a threat to cyber-security of a company or an agency.
Social engineering is a threat to political stability and the free and independent political dialogue. The advertising techniques used in social networking platforms raise many ethical dilemmas. Political manipulation and spreading misinformation and disinformation largely alleviate the existing moral issues.
The threat to Societies
Is it possible for social engineering to trigger a war or social unrest? Is it possible for foreigners to deceive citizens of a state in order to vote against their national interest? If a head of a State (I will not use the word leader) wants to manipulate his/her State’s citizens, can he/she succeed it? The answer to all these questions is yes. Social engineering through digital platforms, which have invaded every social structure is a very serious threat.
The fundamental idea of democracy is that the power is vested in the people and exercised directly by them. Citizens can express their opinions through an open, protected and free dialogue. Accountability, especially of government officials, but also individuals, is equally an important principle of democracy. Through the mass collection and exploitation of personal data with no accountability, these principles are endangered.
However, at this point it should be noted that it is not only social networking platforms to blame, such as Facebook, for any disinformation campaign or political manipulation. These platforms actually reflect our actions. We create our own sterile world, our “cycle of trust”. Therefore, the threat is not the means by themselves, even if they have a share of responsibility in their way of collecting data and advertising practices. The real threat are the devious ones and how they exploit these platforms.
Large-scale campaigns of social engineering, which are taking advantage of human trust, contaminate public dialogue with misinformation and distort reality and can pull societies back from the brink. The truth is doubted more than ever and political polarisation is increased. Spreading news on social media with no accountability leads to political distortion, lack of confidence in the political system and the election of extreme political parties. In brief, social engineering is a serious threat to social and political stability.
Response to the threat
The key to tackling social engineering, considering that tactics are aiming to lack of knowledge, to our unawareness and our prejudices, is awareness. The approach of raising awareness has dual effect: on the one hand we can develop strategies and good practices to confront social engineering as such, on the other hand we can develop policies to reduce the results of social engineering.
In contrast to what is happening in responding to malicious software, in order to address social engineering we cannot just “install” some kind of software to humans in order to stay safe. As Christopher Hadnagy notes in his book “Social Engineering, The Art of Human Hacking”, social engineering requires an holistic, people-focused approach, which will be focused on the following axes:
-
- Learning to recognise social engineering attacks
- Creation of a personalised program on cyber-security awareness
- Consciousness of the value of information searched by social engineers
- Constantly updated software
- Exercises through a simulation software and “serious” games (gamification)
Confrontation of social engineering should become part of a wider training of our digital security. To combat social engineering on a society level we should be trained for the vulnerability of modern means of communication (i.e. social media), for the reasons, why they can be used for people’s manipulation (i.e personalised advertising, political communication) and for the ways in which they are manipulated (i.e. fake news). Awareness is the key to develop critical thinking against social engineering.
*Anastasios Arampatzis is member of Homo Digitalis, demobilised Officer of Air Force with more than 25 years experience in relevant aspects of security of information. During his time in the Office of Air Force, he was certified NATO evaluator in cyber-security cases and has been honoured for his knowledge and his efficiency. Nowadays, he is a columnist on State of Security of Tripwire firm and for the blog of Venafi. His articles have been published in many well-respected websites.
Facebook and Google know almost everything about you!
Written by Nikodimos Kallideris
“Everyone is guilty of something or has something to conceal. One must only look hard enough to find what that is” (Aleksandr Solzhenitsyn).
Frankly, did you know that according to statistical surveys the account holders on Facebook are more than five million in Greece? Respectively, active accounts on Google are even numerous with intensive growth rates…
Have you noticed that the use of the extremely useful and responsive accommodating services of both platforms is offered without any payment? They are totally free -or not? After all, it seems that they are not! The two platforms, like many others, “fed” on your personal data, that you provide them with during their use. Our personal data have been named the “the oil of the 21st century”. Of course, you have previously given your consent to provide them to the platforms; but really, are you aware of the volume of your personal data, that are stored in their servers?
Let us first look at Facebook:
As a data subject, you have the right to access (GDPR Article 15) according to which you can make a request and get in return from the company (the data controller) everything they have stored that concerns you. You can exercise the right to access following the link: https://www.facebook.com/help/1701730696756992
Having submitted the request and anticipated the necessary time for its processing, you will receive a file, in which you will find: all personal written or audio messages you have sent, the exact time, the place and the device with which you were connected each time in your account, the applications used, your photos and videos and there is no end… All these from the outset of your account’s creation until today!
So, let us come now to Google:
If you have turned on GPS on your smartphone, Google records the history of every location you have been to, in conjunction with the period you stayed at each of them and the duration of the transition from one location to the other. Do you want to find this out on your own? Follow the link: https://www.google.com/maps/timeline?pb
You can also find easily your whole search history from every device even if you have deleted it (https://myactivity.google.com/myactivity) but also your search history on YouTube (https://www.youtube.com/feed/history/search_history).
Seek now to download on your computer every stored data by Google (https://takeout.google.com/settings/takeout). Do not be surprised by the volume of the file, which for that reason will may need several hours to be sent. It is likely to be several gigabytes in size, always depending on the frequency and the type of services’ use. In the file, you will find everything; from the deleted e-mails up to your navigation history in every detail, your calendar, the events you attended, your photos, purchases you made from Google and many others… Besides that, if you are connected in various platforms through your Google account (log in with Google) many of your sensitive personal data are recorded unintentionally, such as the place you are staying at, you are studying or working, the number of your friends on Google Plus, your gender, your name or the languages you speak. Any movement you make on the Internet has left in clear and indelible lettering its digital footprint even if you are not able to remember it right now.
Photo shows the data that a platform of electronic orders learnt for Manos Mandrakis, member of Homo Digitalis, when he connected to it using his Google account.
Having followed the above steps, do you feel slightly numb or terrified? Not surprising at all! You might feel “digitally naked” and that an invisible power, such as Jeremy Bentham’s narratives, is constantly recording your moves and can make extraordinarily important conclusions from them. Against you or for your benefit? It depends on the incentives of your data’s holder. In any event, Facebook and Google possess information that you have never shared even with your family or your best friend.
Bear that in mind! The modern digital world of information offers you improbable facilities but also countless risks. Only you can protect yourself! And if you repeat the familiar and hazardous naive “I have nothing to hide” I would urge you to deepen on the saying written in the upper part of the article.