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Recent unauthorized access to British Columbia Institute
of Technology's computer network, which contained personal
medical information of approximately 12,680 individuals, is yet
another reminder of risks of exposure to data breaches. That none
of the data on BCIT's computer network was compromised or
misused is reflective of a low-profile non-hacker intrusion, and of
the ease with which computer networks can be infiltrated. Indeed, a
sophisticated hacker would know better than to leave massive
amounts of data, rightly labeled by some as the "oil" of
the 21stcentury,
uncompromised. More curious than uncompromised data, however, is
BCIT's notification in the absence of an actual data breach,
and mandatory breach notification provisions under B.C. privacy
law.
We live in a global knowledge economy. Virtually every service
industry sector (financial, insurance, legal, medical, publishing,
educational, etc.) is heavily reliant upon information. As early as
1983, CEOs of large banks were labeling data as the new oil of
modern day economies. The value of information is not the
information itself but what it enables its controller to do on a
larger scale. Consider this next example. In 1970, the U.S.,
through data gathered on a fleet of satellites, became aware of
Brazil's coffee crop failure before Brazilians knew. Had
Brazilians not become aware of their crop failure in time, foreign
speculators would have bought up coffee futures at a far lower
price based on the coffee shortage, with disastrous effects on the
Brazilian economy. As the awareness of the value of data continues
to grow, privacy and data are increasingly threatened, and
companies are increasingly faced with the prospect of massive and
costly data breaches.
On a micro scale, one website estimates a user's web browser
history to be worth $USD57, digital communication history at
$USD57.00, a social security number at $240.00, and an
individual's health history (medical records, diet, health
routines) at $USD38 (hence the term "data-banks"). These
figures provide some indication as to why Google is worth
approximately 111.5 billion dollars, and Facebook 85.35 billion
dollars, but also why BCIT averted itself a potentially hefty class
action suit such as the one experienced in 2009 Durham Ontario
after a nurse misplaced a USB containing the information of over
83,000 patients.
Aside from Ontario, New Brunswick, and Newfoundland and
Labrador, which have breach notification provisions in health care
related privacy laws, Alberta is the only province to have a
blanket breach notification provision under its privacy law. That
BCIT provided notification despite there being no mandatory breach
notification requirement under B.C. law demonstrates a growing
sense of accountability by organizations and businesses towards
Canadians. At the Federal level, this growing sense of
accountability is manufacturing support for Bill C-12: An Act to
Amend the Personal Information and Electronic Documents Act, which
would impose a mandatory breach notification requirement across
Canada. Thus, in the future, organizations and businesses that fail
to maintain secure computer networks and that encounter
sophisticated hackers may face not only costly class action
lawsuits, but may also see their reputation, a principle asset in
dealing with consumers, clients, citizens, and patients,
significantly affected by mandatory breach notification
requirements.
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