Tuesday, November 3, 2015

Online firms fail on privacy, data protection: survey

Online firms fail on privacy, data protection: survey

[WASHINGTON] The world's biggest Internet and telecom companies are falling short in protecting privacy and online freedom of expression, a study released Tuesday showed.
The Ranking Digital Rights project's first corporate accountability index based on more than two years of research gave a poor rating to most of the major online firms.
The study rated eight major Internet firms and eight large telecom providers on their commitment to privacy and freedom of expression, transparency and protection of user data.
"When we put the rankings in perspective, it's clear there are no winners," said Rebecca MacKinnon, director of the project which is housed at the New America Foundation, a Washington think tank.
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"Our hope is that the index will lead to greater corporate transparency, which can empower users to make more informed decisions about how they use technology." With firms ranked on a scale of zero to 100, Google got the highest score among the 16 companies at 65 per cent.
Among other Internet firms, Yahoo came in second with a score of 58 percent, followed by Microsoft (56 per cent) and Twitter (50 per cent). The lowest scores were Russia's Mail.ru at 13 per cent and China's Tencent at 16 per cent.
Among the telecoms, Britain's Vodafone did best with a score of 54 per cent, followed by US-based AT&T at 50 per cent.
Lowest were Middle East-based Etisalat Group at 14 per cent and Malaysia's Axiata at 16 per cent.
Only six companies scored at least 50 per cent of the total possible points and seven scored less than 25 per cent, "showing a serious deficit of respect for users' freedom of expression and privacy," the report said.
It stated that most of the companies fell short in disclosures about collection, use, sharing and retention of user information.
"Even companies that make efforts to publish such information still fail to communicate clearly with users about what is collected about them, with whom it is shared, under what circumstances, and how long the information is kept," the report stated.
Few companies disclose data about private third-party requests to remove or restrict content or to share user information, even when requests come from a court order or subpoena.
The report noted that some laws and regulations make it more difficult for companies to respect freedom of expression and privacy.
All of the ranked companies face some legal or regulatory requirements that hinder their performance on certain indicators.
But the researchers said many of the firms could improve their scores under current laws, even in countries such as Russia and China where companies are required to work closely with authorities.
On the positive side, the report noted that "each of the companies in the index is doing something well" with at least some practices or policies in place that help to protect freedom of expression or privacy.
The index "can serve as a valuable tool for engaging with companies on digital rights and freedom of expression issues," said Michael Jantzi, chief executive of the Dutch-based corporate government firm Sustainalytics, which collaborated on the research.
AFP

Internet firms must store usage data for one year: UK surveillance bill

Internet firms must store usage data for one year: UK surveillance bill

[LONDON] Internet companies will have to store customer usage data for up to a year according to a new bill the British government will present to parliament on Wednesday, local newspapers reported.
Britain's Investigatory Powers Bill, a renewed attempt to give security agencies powers to track online communications, will also tackle criticism from privacy campaigners by including assurances that any access of so-called Internet connection records would need judicial authorisation, the Guardian said.
A debate about how to protect privacy while giving agencies the powers they need in the digital age has raged since former US intelligence contractor Edward Snowden leaked details about mass surveillance by British and US spies in 2013.
Britain's security chiefs argue they are facing a capability gap because of technological advances, and say that their work has been severely hampered by Snowden's disclosures.
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But rights campaigners say that Snowden's disclosures showed the authorities were not respecting people's entitlement to privacy.
A spokeswoman for David Cameron said on Tuesday the British prime minister saw the bill as "one of the most important pieces of legislation during this parliament because it goes ... to the heart of the government's duty to keep the British public safe."
"The prime minister underlined that this is about maintaining the agencies' current capabilities, that this is about the powers they need to keep us safe and about increasing public confidence in what they do and the process."
On Sunday, Interior Minister Theresa May said the new bill was "quite different" from earlier plans to give police greater powers to monitor communications and web activities that opponents dubbed a "snoopers' charter".
She said the Investigatory Powers Bill would not include automatic powers to go through people's browsing history and any"intrusive" actions would be subject of "strong oversight arrangements".
One sticking point has been who gives that authorisation - the minister or an independent judge.
The Guardian reported that May would try to strengthen the oversight regime by replacing the current system of three commissioners with a single "investigatory powers commissioner"- a senior judge appointed by the prime minister.
The Telegraph newspaper said the bill would also retain ministers' power to sign off on warrants for "instrusive surveillance" - which may anger civil rights groups.
REUTERS

Two years on, SGX's new CEO seeks to overcome stock-rout fallout

Two years on, SGX's new CEO seeks to overcome stock-rout fallout

[SINGAPORE] Singapore Exchange Ltd Chief Executive Officer Loh Boon Chye says his top priority is to restore confidence in Southeast Asia's biggest stock market, where turnover is yet to recover from a mystery penny-stock crash more than two years ago.
Since taking the helm in July, Mr Loh has been discussing "to- do lists" from investors, brokers and listed companies who want him to revive interest in equities, he said in an interview this week at SGX's headquarters. Mr Loh's predecessor Magnus Bocker drew criticism for focusing on his derivatives business while investors and stockbrokers suffered an unexplained freefall in three commodity companies in 2013 that wiped out $6.9 billion in market value.
"I like challenges," said Mr Loh, a veteran banker who used to run Asia-Pacific global markets for Bank of America Corp. Even though the penny-stock slump happened well before his tenure, he's so aware of the fallout that he has an acronym to describe it: ABL, the initials of the companies that plunged. "These are things that are out there and that clearly has a dent on confidence in trading. We need to overcome that."
The value of shares traded in Singapore increased 11 per cent to a daily average of S$1.16 billion this year from the same part of 2014 as the exchange allowed trading in smaller chunks to attract individual investors. That's still about 25 per cent lower than in 2013 before the penny-stock crash. Partly because of the trading lull, companies have looked elsewhere to list. SGX hosted seven initial public offerings worth S$103.9 million in the September quarter, down from S$1.9 billion a year earlier.
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"Singapore is a small city-state so it's never going to be up there with Wall Street or Shanghai," said Shane Oliver, Sydney-based global strategist at AMP Capital Investors Ltd., which manages about US$112 billion. "It's making sure that the country remains innovative, corporate governance remains high and capital can flow freely. That will keep investors on its side over time." Mr Loh, 51, says SGX is working on a bond-trading platform that will make it a more attractive place for companies to raise money. The facility will allow companies to sell bonds in smaller amounts instead of "multi-hundred million" dollars each time, helping to create efficiencies, he said.
"This was really designed with a steering group - buy side, sell side, existing banks," Mr Loh said. "It's better to have a system to now be embraced by the users, then you have a greater chance of getting the liquidity." Mr Loh also plans to add currency products and last month started a customised index service in a move to help diversify revenue for SGX. The exchange's derivatives and equities business accounted for 41 per cent and 25 per cent of its most recent quarterly revenue, respectively.
"If you want to talk about scale, that's clearly one of our challenges," Mr Loh said. "There's a broader value proposition. Yes, we would like more IPOs but fund raising is also about debt."
Banks and brokers have sued to recover at least US$230 million from the stock rout which led to the city's largest securities-fraud probe. The investigation continues and authorities have said they're "sparing no effort" to bring culprits to justice.
Deutsche Boerse AG and Bats Global Markets Inc are also among bourses challenging the dominance of banks in the global currency market. CME Group Inc. has said its foreign-exchange futures are growing in popularity after banks paid billions of dollars to settle claims of currency rigging.
Mr Bocker, who led SGX for more than five years, didn't seek to extend his contract after a petition signed by more than 500 people sought to remove him as chief. SGX shares slipped 0.4 per cent during his tenure, versus a 21 per cent advance for the benchmark Straits Times Index. Since Mr Loh started, the exchange operator has fallen 11 per cent as the equity gauge sank 9.4 per cent. Analysts tracked by Bloomberg are the most bullish on the stock since 2011.
"I hope to make a difference. It's a high-profile job, I get that," Mr Loh said. "I walked into this job knowing that."
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