Tech firms react to netizens’ digital privacy concerns

Co-founder of Own Your Data Foundation and former business development director for Cambridge Analytica Brittany Kaiser (L) and Founder and CEO of the privacy protecting transaction platform Elixxir David Chaum (R) hold a conference on the impact of tech on our privacy, during the Web Summit in Lisbon. (AFP)
Updated 08 November 2019

Tech firms react to netizens’ digital privacy concerns

  • Tech entrepreneurs are bidding to turn growing consciousness of privacy into a money-making industry
  • Brittany Kaiser: “I believe there is an entire new industry around digital identity, data ownership, data management and data monetisation for yourself”

LISBON: Whistleblowers and digital pioneers have long been sounding the alarm about abuses of our privacy online.

Now, a slew of tech entrepreneurs are bidding to turn growing consciousness about the problem into a money-making industry and many showcased their skills at this week’s Web Summit in Lisbon.

“Undeniably, with the new tensions that exist, obviously there is a movement among people to regain their right to privacy,” organiser Paddy Cosgrave told AFP.

“Providing personalised encryption at the level of the device, so that any key stroke on your device is unreadable by a third party ... is booming. There are many companies trying to make progress in this space,” Cosgrave said.

“I believe there is an entire new industry around digital identity, data ownership, data management and data monetisation for yourself,” said American Brittany Kaiser who helped lift the lid on data abuses at Cambridge Analytica which last year found itself embroiled in a scandal involving the misuse of Facebook data.

Kaiser’s work at Cambridge Analytica is also a subject of a Netflix documentary, “The Great Hack”.

Kaiser co-created a foundation “Own your data” in order to “blow the whistle on the whole industry” and denounce abuses of companies harvesting data without web users’ explicit knowledge.

She warned that “it’s going to be hard to get to the point of mass adoption” of products and services designed to allay privacy fears but sees a “wave of momentum” after a year-and-a-half of campaigning.

Brendan Eich, founder of the Brave browser, as well as Mozilla and Firefox and the man behind JavaScript, observed “small minorities can move markets, and that’s happening”.

The way ahead is “privacy by default,” said Eich, touting data protection and adblock capabilities as key Brave attributes.

Eich hopes Brave will have 10 million users by year’s end, although he said that would have to double or even triple before it could generate revenues from opt-in online ads.

US “godfather of crypto” currencies, David Chaum, meanwhile said he believed the digital world has reached a key juncture.

“This is like a kind of a historic moment. I think if you look at smartphones, the killer app is clearly messaging integrated with payments.

Chaum is behind Elixxir, which seeks to offer digital privacy by deploying a mobile messaging app partnered with a virtual payment vehicle along the lines of Chinese behemoth Tencent’s We Chat platform, securing communications through blockchain protection.

Briton David Chance also wants to take digital privacy to another level having left Google to launch a startup, yourself.online, offering retrieval of data which has remained in the public sphere without user consent.

“The most shocking thing is the scale of the problem,” says Chance. “We find personal data for about 80 percent of the people that sign up for our service. That could be a phone number, an email address or a date of birth.

“Companies are gathering up information that we kind of left as our online footprints and are using this to determine whether somebody gets a job, credit or a mortgage.”

Following criticism for not doing enough to secure user data, Facebook recently promised to bring end-to-end encryption to its Messenger platform, as is already the case with WhatsApp.

Jay Sullivan, whom Facebook recruited earlier this year as Messenger’s director of product management and privacy and integrity issues, says data protection is now a basic reqirement, a decade after Facebook founder Mark Zuckerberg suggested privacy was no longer a “social norm” or indeed to be expected.

Eich said consent is key.

“People don’t like (being tracked). They think, ‘I feel like some creeper is stalking me. I feel abused’,” he said.


Commerzbank slapped with fine for deals with defunct Cypriot bank

Updated 05 July 2020

Commerzbank slapped with fine for deals with defunct Cypriot bank

  • Laiki, once Cyprus’s second-largest bank, was taken into administration and wound down in March 2013

FRANKFURT: Cyprus’s securities regulator has imposed a €650,000 ($730,800) fine on Germany’s Commerzbank for its role in transactions carried out by a local bank that collapsed during the country’s 2013 financial crisis.

The country’s CySEC commission said Commerzbank had been sanctioned over investment operations conducted by the now-defunct Laiki — also known as Cyprus Popular Bank — in 2011, following Laiki’s merger with Greece’s Marfin-Egnatia Bank.

Commerzbank declined to comment on the case, which followed an eight-year probe by Cypriot authorities.

The investigation, which was launched following calls by left-wing AKEL lawmaker Irene Charalambides, looked into whether the Cypriot deals may have broken laws prohibiting a company from buying its own stock.

CySEC said Laiki invested in two structured products issued by Commerzbank in 2008. Marfin-Egnatia, which was at that time a Laiki subsidiary, was an index sponsor responsible for the composition of the portfolio.

As a result of the 2011 merger between Laiki and Marfin-Egnatia, Laiki became the index sponsor, creating a conflict of interest, CySEC said.

It said Laiki and Commerzbank acted in “concert” to manipulate the market in relation to Laiki shares on several occasions in April and May 2011.

CySEC said it had not fined Laiki because it is in administration and did not want to put an additional burden on former depositors, bond holders and shareholders.

Laiki, once Cyprus’s second-largest bank, was taken into administration and wound down under terms of a €10 billion international financial assistance package to Cyprus in March 2013.

Some €4.3 billion in uninsured deposits exceeding the EU threshold of 100,000 were wiped out, and thousands of people lost their life savings.

Charalambides said she felt vindicated by the result of the investigation.

“The resolution authority should consider the possibility of civil lawsuits against Commerzbank to ensure that the funds channelled to these structured bonds, with the objective of manipulating shares, be returned, and given to depositors whose funds were subjected to a haircut,” she said in a statement.