Data Privacy Awareness
The Equifax hack news of the day seems unbelievable. After all the beating that the company and its ex-CEO has taken, you’d expect that it would have its act together by now. Right? Not so fast… On closer inspection, today’s news is predictable-–once you understand that problems will continue for Equifax as long as it has the same corporate mindset that led to the mammoth breaches of May-July 2017.
A closer look at the latest hack…
The problem starts from the fact that Equifax apparently uses a 3rd party, FireClick, as its provider for hosted application service. The purpose of using FireClick is to collect and store Web analytics re usage and data for its clients, like Equifax.
BTW: If you try to visit FireClick’s site right now, don’t bother. It’s apparently a defunct company still listed as a wholly owned subsidiary of Digital River:
The issue stems from how Digital River/FireClick integrated its ad network, including bad adware (i.e., Adware.Eorezo) in tracking, collecting and reporting Equifax’s site activity. To boil this down to the most basic terms:
- The unsuspecting consumers visit Equifax’s site
- When wanting to get details on Equifax’s Credit Report Assistance,
- The visitors are prompted to complete a form on a separate page—NOT on the original Equifax website. This is where the third party ad network comes into play. This is why Equifax is crying, “Not our system!”
- Of course, most unsuspecting visitors will proceed to fill this out and then get a prompt to download Adobe Flash Player.
- Once downloading this malware, voila! The website visitor’s machine is the happy new home of the newly acquired malicious program(s) (e.g., spyware, ransomware, etc.)
As with the Equifax breaches, one can always point to a third party (Apache struts for the May – July 2017 breaches). But the brutal fact is that the buck needs to stop with Equifax. For those naysayers who want to say that class actions don’t help, I will direct them to the Anthem Data Breach settlement terms, which requires Anthem to spend tens of millions of dollars and subject itself to security audits for years. As a class action attorney, you can bet that one of my major goals is to have Equifax (and hopefully all credit reporting agencies) subjected to external, rigorous security standards. And, as with my other data breach cases, I will fight for my clients tooth and nail (they’ll speak to you, if you are still incredulous).
A key takeaway for consumers for now (& especially for my many Equifax clients) – you are wise to steer clear of websites that Equifax and its competitors direct you to for now.
P.S. Check out Digital River’s site below. Yep – they claim that they are the “Industry Leading (sic) Fraud Prevention.” #Irony
A Seattle law firm is announcing a class action lawsuit against Equifax after a data breach exposed information of 143 million customers.
Posted by KING 5 on Tuesday, September 12, 2017
The Equifax data breach has sent shock waves like we’ve never seen before. Some consumers are only now starting to realize the lasting damage and harm that this breach will have on their lives. Thank you for all of your calls and emails. Please continue to send concerned family, friends, co-workers to us at Equifax@Stritmatter.com. Yes – we have heard from folks from New York, Florida, Virginia, Arizona, California, etc.– a former employee of Equifax, data privacy experts, and reporters who are trying to separate fact from fiction.
I promise to write more soon, as I continue to try to respond personally to as many emails/calls as I can. But please let me address one pesky fiction that occasionally rears its head on corporate-leaning media outlets and individual’s social media posts: A class action against Equifax will address a deep-rooted systemic problem that puts all of us at risk. I cannot speak for all lawyers. But please think twice before rushing to judgement against those of us who are committed to advancing consumer rights. I will point to our work in the massive Anthem data breach litigation: Significantly, as a result of the Anthem settlement, a team of us have helped all affected from the breach by holding Anthem accountable. The agreement includes a court enforced term that will hold Anthem to a more rigorous standard in its safeguarding of Personally Identifiable Information (PII). Anthem will have to spend at least $90 million annually on beefing up its cybersecurity practices for the coming years. At minimum, my clients will get awarded between $5K -$15K each. Then, there are dozens of attorneys like myself who have invested countless hours and dollars (yes – pursuing class actions costs money) and we will not want to retire anytime soon because we love fighting for consumers. BTW: note that federal law has a strict limit on attorneys’ fees.
Thanks to all of you who have contacted us with your stories, questions and concerns. As with our many other clients, we want to help give you a voice and make sure that you recover from this historic data breach.
For the last several months, I have gone mostly dark on this website. Not purposely. But I’ll admit that the absence of posts here was in large part a reaction to two events–one involving my personal life and the other involving our body politic.
All of us should not give up in the face of the breathtaking insolence of leaders beholden to corporations. I refer not only to Congress’ onslaught against consumer privacy and consumer class actions, but also to the daily (sometimes hourly) blitz on individual rights. Admittedly, it’s difficult to keep track as the battles grow more frequent.
In the end, I urge all of you to tune out the immediate noise. Please know that there are attorneys such as myself who are dedicated to the long-term fight for each consumer’s privacy rights. Always remember that our privacy rights are inextricably entwined with my fight to protect the consumer. Yes, each of us love the convenience that Google, Amazon, Apple, and other major corporations offer us. And, some of these corporations are doing a decent job to protect individual privacy rights. But each of us must remain diligent.
Please stay tuned for the following new blog posts:
- Think that a data breach won’t hurt you? Thank again. – I will share with you some eye opening stories of a client, whose personal data was compromised as the result of a massive healthcare data breach. To this day, she continues to deal with identity fraud.
- Experian rubs salt in the wounds of 143+ million breach victims – Don’t accept offers for “free credit monitoring,” from Equifax. In addition to giving up your valuable Personal Information, you will also give you your right to sue Equifax. If you think that arbitration sounds fair enough, you are in for a rude awakening.
In Joan Longenecker-Wells v. Benecard Services, Inc., plaintiffs were employees who learned that their personal information, including date of birth, social security number, addresses, etc. which resulted in fraudulently filed tax returns. The Third Circuit dismissed the Plaintiff’s claims, stating that their negligence claims were barred by the economic loss doctrine. The Third Circuit explains:
The District Court held that because Plaintiffs’ negligence claim sounds only in economic loss resulting from the fraudulent tax returns filed with their information, the economic loss doctrine bars their claim. We agree.
Food for thought. Can we say that a plaintiff, who experiences this grave injustice of losing the benefit of a 5 figure tax return is only sustaining economic loss? The real harm and the risk of ongoing identity fraud is more than economically and emotionally harmful. We must focus on the deeper rooted issue that lies at the heart of data intrusion cases. The fundamental right to privacy that has deep roots in our history now extends to our digital privacy.
In contrast, we have Taylor v. Spherion Staffing LLC, et al. No. 3:15-cv-2299 (N.D. Ohio 2015), Ernst v. Dish Network, LLC, et al. No. 1:12-cv-8794 (S.D.N.Y May 27, 2016); Hillson et al. v. Kelly Services, No. 2:15-cv-10803 (E.D. Mich. June 8, 2016). These cases settled and involved allegations of statutory violations. Keep in mind that Spokeo left open the possibility that a statutory violation may involve a real risk of harm to satisfy the concreteness requirement. Thus, settlement may have presented a more attractive alternative than extended litigation about the sufficiency of alleged harms.
Why do people not care about Privacy? Some will offhandedly claim, “I have nothing to hide.” Others will say that big data and government surveillance should not concern those who are law abiding and innocent of wrongdoing. But the problem with this response is that it reveals a lack of understanding regarding the value of privacy. Privacy is not a mere shield or wall to hide certain details about us from others. The concept is not reducible to single acts of intrusion or violation of one’s personal sphere. To think about Privacy in terms of someone peering into your window to watch you with your family is to focus on only one tiny strand of tapestry or one grain of sand in a beach.
Think of the value of Privacy this way: If you drank one glass of lead-laden water from Flint, would you see a quick path to cancer or any other potentially deadly disease? Probably not. But the problem for those in Flint was that they drank water contaminated with lead for years. The cumulative effect, the acts taken in the aggregate were what caused so many in Flint to suffer irreversible health problems.
This is the same way the Privacy violations harm each of us and our society as a whole. The information collection, aggregation, insecurity, increased accessibility and decisional inferences/interference (“decisional interference” was coined by Prof. Daniel Solove).
While nebulous, Privacy is important because it affords individuals a basic amount of autonomy and control over facts and details that make each unique. In the aggregate, “big data” seems harmless. But as we have seen, there are many ways to hack and identify personally identifiable information (PII). When the PII and/or valuable data sets of individuals get in the wrong hands, one loses control over their finances and their digital existence. One of my data breach clients suffered and continues to see fraudsters obtain lines of credit, obtain a Washington State driver’s license, and so on. Folks: This is NOT Privacy Paranoia. It is a well informed fact that we need to care about how our PII is disclosed and safeguarded.
Most people do not realize how their data is getting sold in myriad forms either legally or illegally. I will talk about this more in future posts. That private data has value in virtually every imaginable industry. If it matters to others, it certainly should matter to you. At the very least, to value your Privacy is to value control over the information that is accessible about you. If you don’t care about having that minimal amount of control, then feel free to broadcast your SSN along with all of your family’s SSNs and dates of birth.
An increasingly common and relatively easy way for hackers to access sensitive data is through “phishing,” where unwitting recipients of email or texts (SMS phishing or “smishing”) trust the sender with the sought after information. According to Verizon’s new 2016 Data Breach Investigations Report, about 90% of security incidents stem from some form of phishing. Verizon reports that phishing continues to trend upward and is found in the most opportunistic attacks as well as “sophisticated nation-state tomfoolery.” But president of the Olympia School District chuckles (yes, that’s right, chuckles) at its recent breach resulting from phishing because, according to what he told MyNorthwest reporter, Sara Lerner:
“It happens…it’s an opportunity to have that conversation and move forward with it. You could call it a teachable moment if you want to,” he said, with a chuckle.
That kind of cavalier attitude is exactly the problem that we have with so many school districts and government agencies. One cannot be careless, when it comes to sensitive data, whether it is at a school district or at the Health Care Authority/Apple Health Data Breach, where an employee’s mishandling and HCA’s insufficient privacy protocols allowed the medical records of 91,000 individuals to get sent to an unauthorized recipient
As we continue our class action litigation regarding the Anthem data breach as well as the Amerigroup Washington data breach, I learn more about how stolen protected health information (PHI) is marketed on the dark net. To those who want to toss caution to the wind, feel free to do so with your own data. Just not everyone else’s.
BTW: If you were one of those who received a data breach notification from HCA or the Olympia School District, please contact me at Catherine@Stritmatter.com or 206.448.1777. I would like to learn your perspective and story, as well as share the details of how we’re trying to hold these organizations accountable to prevent future data breaches.