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SCENARIO
WebTracker Limited is a cloud-based online marketing service located in London. Last year, WebTracker migrated its IT infrastructure to the cloud provider AmaZure, which provides SQL Databases and Artificial Intelligence services to WebTracker. The roles and responsibilities between the two companies have been formalized in a standard contract, which includes allocating the role of data controller to WebTracker.
The CEO of WebTracker, Mr. Bond, would like to assess the effectiveness of AmaZure's privacy controls, and he recently decided to hire you as an independent auditor. The scope of the engagement is limited only to the marketing services provided by WebTracker, you will not be evaluating any internal data processing activity, such as HR or Payroll.
This ad-hoc audit was triggered due to a future partnership between WebTracker and SmartHome --- a partnership that will not require any data sharing. SmartHome is based in the USA, and most recently has dedicated substantial resources to developing smart refrigerators that can suggest the recommended daily calorie intake based on DNA information. This and other personal data is collected by WebTracker.
To get an idea of the scope of work involved, you have decided to start reviewing the company's documentation and interviewing key staff to understand potential privacy risks.
The results of this initial work include the following notes:
There are several typos in the current privacy notice of WebTracker, and you were not able to find the privacy notice for SmartHome.
You were unable to identify all the sub-processors working for SmartHome. No subcontractor is indicated in the cloud agreement with AmaZure, which is responsible for the support and maintenance of the cloud infrastructure.
There are data flows representing personal data being collected from the internal employees of WebTracker, including an interface from the HR system.
Part of the DNA data collected by WebTracker was from employees, as this was a prototype approved by the CEO of WebTracker.
All the WebTracker and SmartHome customers are based in USA and Canada.
Which of the following issues is most likely to require an investigation by the Chief Privacy Officer (CPO) of WebTracker?
In the given scenario, WebTracker Limited is migrating its IT infrastructure to the cloud provider AmaZure. As part of this, it is crucial to understand the privacy and security implications associated with AmaZure's role as the data processor while WebTracker remains the data controller. The issues highlighted in the scenario provide a comprehensive understanding of the privacy risks and responsibilities involved.
The key issues identified include:
Typos in the privacy notice of WebTracker.
Missing privacy notice for SmartHome.
Unidentified sub-processors working for SmartHome.
Internal data flows from HR systems collecting employee data.
DNA data collected from employees for prototyping.
Among these issues, the most likely to require an investigation by the Chief Privacy Officer (CPO) of WebTracker is the one involving AmaZure sending newsletters to WebTracker customers (Option B). This activity directly involves customer data and could indicate potential unauthorized processing or misuse of personal data, which is a significant privacy concern.
Detailed Explanation:
Option A (Encryption for Data at Rest): While ensuring data is encrypted at rest is critical, it does not directly indicate a breach of privacy or misuse of personal data. It is more about data security and less about privacy controls.
Option B (AmaZure Sends Newsletter): This involves direct interaction with customer data. If AmaZure is sending newsletters to WebTracker's customers, it implies that customer data is being processed and possibly used for marketing purposes. This requires explicit consent from the data subjects and appropriate contractual agreements between WebTracker and AmaZure. Without proper oversight, this could lead to unauthorized data processing and potential violations of privacy regulations.
Option C (Employees' Personal Data in Cloud HR System): Storing employee personal data in a cloud HR system, while significant, is typically within the scope of internal data processing. This issue is more about ensuring internal compliance with privacy policies rather than an immediate risk requiring CPO investigation.
Option D (File Integrity Monitoring in SQL Servers): File integrity monitoring is a security measure to ensure data integrity and does not directly indicate any privacy risks or misuse of personal data.
GDPR Articles 28 and 29 on the responsibilities of data controllers and processors.
The necessity for explicit consent for data processing (GDPR Article 7).
Contractual obligations for data processors to protect personal data (GDPR Article 28).
Conclusion: The scenario of AmaZure sending newsletters to WebTracker customers (Option B) poses the most immediate and significant risk that requires an investigation by the CPO to ensure compliance with privacy regulations and avoid unauthorized use of customer data.
Which of the following modes of interaction often target both people who personally know and are strangers to the attacker?
Phishing is a mode of interaction that can target both individuals who are known to the attacker and those who are strangers. Phishing attacks involve sending fraudulent messages (often via email) designed to trick recipients into revealing sensitive information or installing malware. This broad targeting method aims to reach as many people as possible, regardless of whether they have any prior relationship with the attacker. The IAPP documents highlight that phishing campaigns are often indiscriminate and wide-ranging, impacting both familiar and unfamiliar recipients.
Which is NOT a suitable action to apply to data when the retention period ends?
When the retention period for data ends, suitable actions typically include deletion, de-identification, or aggregation to ensure that the data is no longer in a form that can be used to identify individuals or is completely removed from systems. Retagging is not a suitable action as it implies merely re-labeling or reclassifying the data rather than properly handling it according to data retention policies. Retagging does not mitigate privacy risks and may result in non-compliance with data protection regulations (IAPP, Certified Information Privacy Technologist (CIPT) materials).
Which of the following is a privacy consideration for NOT sending large-scale SPAM type emails to a database of email addresses?
SCENARIO
Please use the following to answer the next question:
Jordan just joined a fitness-tracker start-up based in California, USA, as its first Information Privacy and Security Officer. The company is quickly growing its business but does not sell any of the fitness trackers itself. Instead, it relies on a distribution network of third-party retailers in all major countries. Despite not having any stores, the company has a 78% market share in the EU. It has a website presenting the company and products, and a member section where customers can access their information. Only the email address and physical address need to be provided as part of the registration process in order to customize the site to the user's region and country. There is also a newsletter sent every month to all members featuring fitness tips, nutrition advice, product spotlights from partner companies based on user behavior and preferences.
Jordan says the General Data Protection Regulation (GDPR) does not apply to the company. He says the company is not established in the EU, nor does it have a processor in the region. Furthermore, it does not do any ''offering goods or services'' in the EU since it does not do any marketing there, nor sell to consumers directly. Jordan argues that it is the customers who chose to buy the products on their own initiative and there is no ''offering'' from the company.
The fitness trackers incorporate advanced features such as sleep tracking, GPS tracking, heart rate monitoring. wireless syncing, calorie-counting and step-tracking. The watch must be paired with either a smartphone or a computer in order to collect data on sleep levels, heart rates, etc. All information from the device must be sent to the company's servers in order to be processed, and then the results are sent to the smartphone or computer. Jordan argues that there is no personal information involved since the company does not collect banking or social security information.
Based on the current features of the fitness watch, what would you recommend be implemented into each device in order to most effectively ensure privacy?
To effectively ensure privacy, implementing a randomized MAC address in each device is recommended. This measure helps prevent tracking and profiling of individuals based on the device's MAC address, thereby enhancing user privacy. A randomized MAC address means that the device's hardware address changes periodically, making it difficult for third parties to track the same device over time. The IAPP supports the use of such privacy-enhancing technologies to protect users' personal information from unauthorized tracking and profiling.
IAPP Certification Textbooks, specifically sections on privacy-enhancing technologies (PETs).
'Enhancing Privacy through PETs,' IAPP White Paper.
