Privacy Concepts

• Aspects of Information Privacy

• Information privacy has three aspects:

• sensitive data

• affected parties and

• controlled disclosure.

• In fact, these aspects are similar to the three elements of access control: subject,
object, and access rights.

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 Controlled Disclosure
• What is privacy?
• A good working definition is that privacy is the right to control who knows certain
aspects about you, your communications, and your activities. In other words, you
voluntarily choose who can know which things about you.
• People may ask you for your telephone number: your auto mechanic, a shop clerk, your
tax authority, a new business contact, or a new friend.
• In each case, you consider why the person wants the number and then decide whether
to give it out.
• But the key point is that you decide. So privacy is something over which you can have
considerable influence.
• Privacy is the right to control who knows certain things about you.

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 Controlled Disclosure
• You do not have complete control, however. Once you give your number to a person or a system,
your control is diminished because it depends in part on what the person or system does with
that information.
• In giving out your number, you are transferring control to someone or something else. You may
say “don’t give my number to anyone else,” “use discretion,” or “I am sensitive about my privacy,”
but you do not control the other person or system.
• You have to trust the person or system to comply with your wishes, whether you state those
wishes explicitly or not.
• This problem is similar to the propagation problem of computer security: Anyone who has access
to an object can copy, transfer, or propagate that object or its content to others without
restriction.
• And even if you specify that the object should be deleted or destroyed after a certain period of
time, you have no way to verify that the system or person really does destroy the content.

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 Sensitive Data
• Someone asks you for your shoe size. You might answer, “I’m a very private person and
cannot imagine why you would want to know such an intimate detail” or you could say
“10C”; some people find that data item more sensitive than others.
• Some information is usually considered sensitive, such as financial status, certain health data,
unsavory events in someone’s past, and the like.
• So if you learn something you consider sensitive about someone, you are likely to keep it
quiet, unless there is a compelling argument for revealing it.
• But most of us are not too sensitive about our shoe size, so we don’t normally protect that
information if asked, or if we learn it about someone else.
• In most cases, we respect requests to protect someone’s sensitive information.

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 Sensitive Data
• Here are examples (in no particular order) of types of data many people consider private.
• Identity: name, identifying information, the ownership of private data and ability to
control its disclosure
• Finances: credit rating and status, bank details, outstanding loans, payment records, tax
information
• Legal: criminal records, marriage history, civil suits
• Health: medical conditions, drug use, DNA, genetic predisposition to illnesses
• Opinions, preferences, and membership: voting records, expressed opinions,
membership in advocacy organizations, religion, political party, reading habits, web
browsing, favorite pastimes, close friends
• Biometrics: physical characteristics, polygraph results, fingerprints
• Documentary evidence: surface mail, diaries, poems, correspondence, recorded
thoughts
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 Sensitive Data
• Here are examples (in no particular order) of types of data many people consider private.
• Privileged communications: with professionals such as lawyers, accountants, doctors,
counselors, and clergy
• Academic and employment information: school records, employment ratings
• Location data: general travel plans, current location, travel patterns
• Digital footprint: email, telephone calls, spam, instant messages, tweets, and other
forms of electronic interaction, social networking history

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 Sensitive Data
• Privacy is also affected by who you are.
• When you are in a room with people you don’t know, perhaps at a reception, someone
may come up to you and say “So you are the man who baked the beautiful cake over
there; I really appreciate your skills as a pastry chef.” It feels nice to get that kind of
recognition.
• Conversely, if you are a news broadcaster on local television each night, you may prefer
to have dinner at home instead of going to a restaurant; you may tire of having strangers
rush up to say, “I see you all the time on TV.”
• Culture also influences what people consider sensitive; for example, discussing sexual
encounters or salary information may be permissible in one culture but not in another.
• What one person considers private is that person’s decision: There is no universal
standard of what is private.
• In general, a person’s privacy expectations depend on context: who is affected, how that
person feels about publicity, and what the prevailing norm of privacy is.
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 Affected Subject
• Individuals, groups, companies, organizations, and governments all have data they consider
sensitive.
• We use terms such as “subject” and “owner” to distinguish between the person or entity being
described by data and the person or entity that holds the data.
• But public and private organizations are interested in privacy, too. Companies may have data
they consider private or sensitive: product plans, key customers, profit margins, and newly
discovered technologies, as examples.
• For private enterprise, privacy usually relates to gaining and maintaining an edge over the
competition. Other organizations, such as schools, hospitals, or charities, may need to protect
personal data about their students, patients, or donors.
• Many organizations protect information related to their reputation, too; they may want to
control negative news or time the release of information that could affect stock price or a legal
decision.
• Most governments consider military and diplomatic matters sensitive, but they also recognize
their responsibilities to provide information that informs national discourse.
• At the same time, governments have a responsibility to protect and keep confidential the data
they collect from citizens, such as tax information.
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 Affected Subject
• Privacy is an aspect of confidentiality.
• For example, if you choose not to have your telephone number published in a directory,
then some people may not be able to reach you by telephone.
• Or refusing to reveal personal data to a shop may prevent you from receiving a frequent-
shopper discount. So it is important to consider privacy not only as a way to protect
information but also as a possible obstacle to other important, positive goals.
• Privacy and confidentiality relate in that confidentiality is a means of protecting what one
person considers private.

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 Computer Related Privacy Problems
• Rezgui et al. [REZ03] list eight dimensions of privacy (specifically related to the web,
although the definitions carry over naturally to other types of computing).
• Information collection: Data are collected only with knowledge and explicit consent.
• Information usage: Data are used only for certain specified purposes.
• Information retention: Data are retained for only a set period of time.
• Information disclosure: Data are disclosed to only an authorized set of people.
• Information security: Appropriate mechanisms are used to ensure the protection of the
data.
• Access control: All modes of access to all forms of collected data are controlled.
• Monitoring: Logs are maintained showing all accesses to data.
• Policy changes: Less restrictive policies are never applied after-the-fact to already
obtained data.
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 Computer Related Privacy Problems
• Here are the privacy issues that have come about through the use of computers

• Data collection

• Notice and Consent

• Control and Ownership of Data

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 Data Collection
• The ability to store data is growing, so is the amount of data we want to be able to store.
IBM tells us that 2.5 exabytes of new data are created every day.

• That statistic is stunning; it means “that 90% of the data in the world today has been
created in the last two years alone.”

• Capacities of computer storage devices continue to grow, driving the cost per byte
down.

• Availability of massive, inexpensive storage encourages (or does not discourage)

collecting and saving data.

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 Notice and Consent
• Where do all these bytes come from?
• Although some are from public and commercial sources (such as newspapers,
web pages, digital audio, and video recordings) and others are from intentional
data transfers (for example, tax returns, a statement to the police after an
accident, readers’ survey forms, school papers), still others are collected without
announcement.
• Telephone companies record the date, time, duration, source, and destination of
each telephone call. ISPs track sites visited. Some sites keep the IP address of
each visitor to the site (although IP address is usually not unique to a specific
individual).
• The user is not necessarily aware of this third category of data collection and thus
cannot be said to have given informed consent to the collection.

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 Notice and Consent
• We can be informed about data collection and use in many ways. For example, entry
into a website may require an acknowledgment of “terms of use,” which describe what
is collected, why, and what recourse you have if you prefer not to have something
collected.
• The terms of use can also tell you what you can do if you find an error or discrepancy in
collecting, storing, or using your data.
• Similarly, when you use apps on your mobile devices, you may be told that some data
items, such as your location or your contacts list, will be used by the apps in performing
some task.
• In addition to notification, consent is sometimes required. That is, you are explicitly
asked for permission to collect and use information.
• For example, a mapping program or app may ask your permission to automatically
collect your location; if you refuse, either you cannot proceed with using the program, or
you must enter your location each time you want a map or set of directions.

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 Control and Ownership of Data
• In many instances, you are asked to provide data (with proper notice) and you consent to do so,
explicitly or implicitly. But what happens when the data are transferred to the requesting person
or system?
• Having collected data with your permission, others may keep the data you give them; you have
ceded control (and sometimes ownership, depending on the law in your region) of that copy of
the data to them. For example, when you order merchandise online, you know you have just
released your name, address, payment data, and a description of the items you purchased.
• Similarly, when you use a customer loyalty card at a store or online, you know the merchant can
associate your identity with the things you browse or buy. Having captured your data, a merchant
can then hold the data indefinitely, as well as redistribute the data to other people or systems.
• Your browsing habits, purchase practices, and preferences for hotel brand, type of hotel room,
airline or travel agent could be sold to other hotels. You have little control over dissemination (or
redissemination) of your data. And once the data are gone, you cannot get them back.
• Disseminated data are almost impossible to get back.

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 Threats to Personal Data Privacy
Data Breaches:
• Data breaches occur when unauthorized individuals or entities gain access to sensitive personal
information stored by organizations.
• These breaches can occur due to cyberattacks, hacking incidents, or internal security
vulnerabilities. Once personal data is compromised, it can be exploited for identity theft,
financial fraud, or other malicious activities.
• High-profile data breaches at major corporations have underscored the vulnerability of personal
data and the need for robust cybersecurity measures to safeguard it.
Surveillance and Monitoring:
• The explosion of surveillance technologies, both by governments and private entities, poses a
significant threat to personal data privacy.
• Mass surveillance programs, electronic monitoring systems, and the widespread use of
surveillance cameras can intrude upon individuals' rights to privacy and secrecy.
• Moreover, digital surveillance tools and algorithms employed by online platforms can track users'
online activities, preferences, and behavior, leading to concerns about pervasive surveillance
and the erosion of privacy rights.
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 Threats to Personal Data Privacy
Data Mining and Profiling:
• Data mining refers to the process of extracting insights and patterns from large datasets, often
for marketing, advertising, or predictive analysis purposes.
• However, the extensive collection and analysis of personal data raise concerns about privacy
infringement and intrusive profiling.
• Companies and advertisers may control personal data to create detailed profiles of individuals,
including their preferences, interests, and behavior, which can be used to target them with
personalized advertisements or influence their decisions without their consent.
Third-Party Data Sharing:
• Many online services and platforms rely on third-party data sharing arrangements to monetize
user data and enhance their services.
• While these partnerships may offer benefits such as enhanced functionality or personalized
recommendations, they also entail risks to personal data privacy.
• Users may inadvertently consent to the sharing of their personal information with third parties,
leading to concerns about data leakage, unauthorized access, and exploitation by untrusted
entities.
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 Threats to Personal Data Privacy
Regulatory and Legal Challenges:
• The regulatory landscape governing personal data privacy is complex and
continually evolving, posing challenges for individuals and organizations seeking
to protect sensitive information.
• Inconsistencies in data protection laws across jurisdictions, ambiguous privacy
policies, and gaps in regulatory enforcement contribute to the vulnerability of
personal data.
• Moreover, emerging technologies such as artificial intelligence and biometrics
present novel privacy concerns that existing regulations may not adequately
address.

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 Mitigating Threats to Personal Data Privacy
• Addressing the multifaceted threats to personal data privacy requires a concerted effort from
various stakeholders, including governments, regulatory bodies, technology companies, and
individuals.
• Robust data protection laws and regulations, such as the General Data Protection Regulation
(GDPR) in the European Union, play a crucial role in safeguarding personal data rights and holding
organizations accountable for data breaches and privacy violations.
• Additionally, organizations must prioritize cybersecurity measures, implement encryption and
access controls, and conduct regular audits to identify and mitigate security risks.
• Individuals can also take proactive steps to protect their personal data privacy, such as exercising
caution when sharing sensitive information online, using strong and unique passwords, regularly
updating privacy settings on digital platforms, and being mindful of data collection practices by
companies and advertisers.
• Educating oneself about privacy rights and advocating for stronger privacy protections can
empower individuals to assert greater control over their personal data and mitigate the risks
posed by emerging threats to privacy in the digital age.

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 Mitigating Threats to Personal Data Privacy
• In conclusion, the proliferation of digital technologies and the increasing reliance on data-driven
services have brought about unprecedented challenges to personal data privacy.

• From data breaches and surveillance to data mining and regulatory challenges, the threats to
privacy are diverse and multifaceted.

• Addressing these threats requires a collaborative and proactive approach from governments,
organizations, and individuals to uphold privacy rights, strengthen data protection measures, and
preserve individual autonomy in the digital era.

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 People based Privacy Concerns
• Social Media Oversharing
• Social media platforms have revolutionized how individuals connect, share, and interact
online. However, the culture of oversharing on social media poses significant privacy risks.
• From personal photos and status updates to location check-ins and relationship statuses,
users often disclose sensitive information without fully understanding the implications.
• Oversharing not only exposes individuals to potential identity theft, stalking, or harassment
but also contributes to the commodification of personal data by social media companies for
targeted advertising and algorithmic profiling.

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 People based Privacy Concerns
• Online Tracking and Behavioral Profiling:
• The pervasive tracking mechanisms employed by online platforms and advertisers raise
concerns about invasive behavioral profiling and targeted advertising.
• Through cookies, tracking pixels, and device fingerprinting, companies can monitor users'
online activities, preferences, and behavior, creating detailed profiles for targeted
marketing purposes.
• This practice not only erodes individual privacy but also exacerbates concerns about
algorithmic bias, manipulation, and the erosion of autonomy in digital spaces.

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 People based Privacy Concerns
• Biometric Data Collection:
• The proliferation of biometric technologies, such as facial recognition, fingerprint
scanning, and voice authentication, presents novel privacy challenges related to the
collection and storage of sensitive personal data.
• Biometric data, once compromised, cannot be changed like passwords or credit
card numbers, making it particularly vulnerable to abuse and identity theft.
• Moreover, the deployment of biometric surveillance systems by governments and
private entities raises concerns about mass surveillance, civil liberties, and the
erosion of privacy rights.

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 People based Privacy Concerns
• Data Breaches and Security Vulnerabilities:
• Data breaches and security vulnerabilities pose significant threats to people-based
privacy, exposing individuals' personal information to unauthorized access, theft,
or exploitation.
• Whether through cyberattacks, hacking incidents, or internal security lapses, data
breaches can result in financial fraud, identity theft, reputational damage, and
emotional distress for affected individuals.
• Moreover, the increasing interconnectedness of digital systems and the proliferation
of Internet-of-Things (IoT) devices exacerbate the risk of data breaches, underscoring
the importance of robust cybersecurity measures and data protection protocols.

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 People based Privacy Concerns
• Regulatory and Ethical Considerations:
• The regulatory landscape governing people-based privacy is complex and continually
evolving, posing challenges for individuals, organizations, and policymakers alike.
• While regulations such as the General Data Protection Regulation (GDPR) and the
California Consumer Privacy Act (CCPA) aim to protect individuals' privacy rights and
hold organizations accountable for data breaches and privacy violations,
enforcement and compliance remain ongoing challenges.
• Moreover, ethical considerations surrounding data collection, consent, and
transparency require careful deliberation to ensure that technological advancements
do not come at the expense of individual privacy and autonomy.

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 Mitigating People-Based Privacy Concerns
• Addressing the multifaceted challenges posed by people-based privacy concerns requires a holistic
approach encompassing legal, technical, and ethical dimensions.

• Governments and regulatory bodies must enact robust privacy regulations and enforcement mechanisms to
safeguard individuals' rights and hold organizations accountable for privacy violations.

• Technology companies must prioritize user privacy and implement privacy-by-design principles, such as
data minimization, encryption, and transparent data practices.

• Moreover, individuals must be empowered to assert greater control over their personal data through
informed consent mechanisms, privacy-enhancing technologies, and digital literacy initiatives.

• By raising awareness about privacy risks and promoting responsible data stewardship practices, individuals
can mitigate the threats posed by social media oversharing, online tracking, biometric data collection, and
data breaches.

• Ultimately, fostering a culture of privacy-consciousness and respecting individuals' autonomy in digital

spaces are essential steps towards navigating people-based privacy concerns in the digital age.

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 Mitigating People-Based Privacy Concerns
• In conclusion, the evolving landscape of people-based privacy concerns presents complex challenges and
ethical dilemmas in the digital age.

• From social media oversharing and online tracking to biometric data collection and regulatory
considerations, the preservation of privacy rights requires collective action and interdisciplinary
collaboration.

• By advocating for privacy-enhancing technologies, enacting robust regulations, and promoting digital
literacy, stakeholders can uphold the principles of privacy, autonomy, and human dignity in an increasingly
interconnected world.

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 Fair Information Practices
• Collection limitation. Data should be obtained lawfully and fairly.
• Data quality. Data should be relevant to their purposes, accurate, complete and up to date.
• Purpose specification. The purposes for which data will be used should be identified and the data
destroyed if no longer necessary to serve that purpose.
• Use limitation. Use for purposes other than those specified is authorized only with consent of the
data subject or by authority of law.
• Security safeguards. Procedures to guard against loss, corruption, destruction, or misuse of data
should be established.
• Openness. It should be possible to acquire information about the collection, storage, and use of
personal data systems.
• Individual participation. The data subjects normally have a right to access and to challenge data
relating to them.
• Accountability. A data controller should be designated and accountable for complying with the
measures to effect the principles.
• These principles describe the rights of individuals, not requirements on collectors; that is, the
principles do not require protection of the data collected.
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 Fair Information Practices
• Fair information principles describe privacy rights of individuals to sensitive data.

• Four ways to protect stored data:

1. Reduce exposure by limiting the amount of data maintained, asking for only what is
necessary and using random samples instead of complete populations.

2. Reduce data sensitivity by interchanging data items or adding subtle errors to the
data (and warning recipients that the data have been altered).

3. Anonymize the data by removing or modifying identifying data items.

4. Encrypt the data.

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 Individual Actions to Protect Privacy
• There are actions you can take as an individual to protect your own privacy. One way is to guard
your identity. Not every context requires each of us to reveal our identity, and there are ways for
some people to wear a form of electronic mask.
• Anonymity
• Sometimes people may want to do things anonymously. For example, a rock star buying a
beach house might want to avoid unwanted attention from neighbors, or someone posting to
a dating list might want to view replies before making a date.
• Some people like web anonymity because it reduces fears of discrimination. Fairness in
housing, employment, and association are easier to ensure when the basis for potential
discrimination is hidden.
• Anonymity, while having benefits, can also create problems.
• If you are trying to be anonymous, how do you pay for something? You might use a trusted
third party (for example, a real estate agent or a lawyer) to complete the sale and preserve
your anonymity.
• But then the third party knows who you are. David Chaum studied this problem and devised
a set of protocols by which such payments could occur without revealing the buyer to the
seller.
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 Individual Actions to Protect Privacy
• Multiple Identities-Linked or Not
• Most people already have multiple identities. To your bank, you are your account
number.
• To your motor vehicles bureau, you are your driver’s license number.
• And to your credit card company, you are your credit card number. For particular
purposes, these numbers are your identity; the fact that each may (or may not) be
held in your name is irrelevant.
• The name becomes important if it is used as a way to link these numbers and their
associated records.
• How many people share your name? Can (or should) there be a key value to link
these separate databases? And what complications arise when we consider
misspellings and multiple valid forms of your name (with and without middle initial,
with full middle name, with one of two middle names if you have two, and so forth)?

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 Individual Actions to Protect Privacy
• Pseudonymity
• Sometimes, we don’t want full anonymity. You may want to order flower bulbs but not
be placed on numerous mailing lists for gardening supplies.
• But you also want to be able to place similar orders again, asking for the same color
tulips as before. This situation calls for pseudonyms, unique identifiers that can be used
to link records in a server’s database but that cannot be used to trace back to a real
identity.
• Multiple identities can also be convenient; for example, you may have a professional
email account and a social one.
• Similarly, disposable identities (that you use for a while and then stop using) can be
convenient. When you sign up for something and you know your email address will
subsequently be sold many times, you might get a new email address to use only until
the unsolicited email becomes oppressive.
• These uses, called pseudonymity, protect our privacy because we do not have to divulge
what we consider sensitive data.
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 Individual Actions to Protect Privacy
• Pseudonymity
• The Swiss bank account provides a classic example of pseudonymity.
• Each customer has only a number to identify and access the account, and only a few
selected bank employees are allowed to know your identity; all other employees see
only your account number.
• On account statements, no name appears: Only the account number or a pseudonym is
printed. “Only in case of a criminal investigation for drug offenses, financing terrorism or
another heavy crime, the identity of the beneficial owner will be disclosed to the
authorities … You are protected by Swiss bank secrecy law.”

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 Governments and Privacy
• Governments gather and store data on citizens, residents, and visitors.
• At the same time, governments also facilitate and regulate commerce and oversee
personal activities such as healthcare, employment, education, and banking.
• In those roles, the government is an enabler or regulator of privacy as well as a user of
private data. Next, we focus on some of the implications of government access to private
data.

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 Governments and Privacy
• Authentication
• Government plays a complex role in personal authentication.
• Many government agencies (such as the motor vehicles bureau) use identifiers to
perform their work: authenticating who you are (for instance, with a passport or
residency document) and issuing related authenticating documents (such as a
driver’s license).
• The government may also regulate the businesses that use identification and
authentication materials. And sometimes the government obtains data based on
those materials from others (for example, the government may buy credit report
information from private companies to help with screening airline passenger lists for
terrorists).
• In these multiple roles, there is always a potential for the government to misuse data
and violate privacy rights.

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 Governments and Privacy
• Data Access Risks
• Among the recognized risks when government acquires data from other parties are
these:
• data error: ranges from transcription errors to incorrect analysis
• inaccurate linking: two or more data items are correct but are incorrectly linked by a
presumed common element
• difference of form and content: precision, accuracy, format, and semantic errors
• purposely wrong: collected from a source that intentionally provides incorrect data,
such as a forged identity card or a false address given to mislead
• false accusation: an incorrect or out-of-date conclusion that the government has no
data to verify or reject, for example, delinquency in paying state taxes
• mission creep: data acquired for one purpose that leads to a broader use because
the data will support that mission
• poorly protected: data of questionable integrity because of the way they have been
managed and handled
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 Governments and Privacy
• Steps to protect against privacy loss
• Data minimization. Obtain the least data necessary for the task. For example, if the
goal is to study the spread of a disease, only the condition, date, and vague location
(city or county) may suffice; the name or contact information of the patient may be
unnecessary.
• Data anonymization. Where possible, replace identifying information with
untraceable codes (such as a record number). But make sure those codes cannot be
linked to another database that reveals sensitive data.
• Auditing. Record who has accessed data and when, both to help identify responsible
parties in the event of a breach and to document the extent of damage.
• Security and controlled access. Adequately protect and control access to sensitive
data.
• Training. Ensure that people accessing data understand what to protect and how to
do so.
• Quality. Take into account the purpose for which data were collected, how they were
stored, their age, and similar factors to determine the usefulness of the data.
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 Governments and Privacy
• Steps to protect against privacy loss
• Restricted usage. As distinct from controlling access, review all proposed uses of the
data to determine if those uses are consistent with the purpose for which the data
were collected and the manner in which they were handled (validated, stored,
controlled).
• Data left in place. If possible, leave data with the original owner or collector. This
step helps guard against possible misuses of the data from expanded mission just
because the data are available.
• Policy. Establish a clear policy for data privacy. Discourage violation of privacy
policies.
• These steps would significantly help ensure protection of privacy.

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 Identity Theft
• As the name implies, identity theft means taking or assuming another person’s identity.
• For example, using another person’s credit card without permission is fraud. As of 1998
in the United States, with the Identity Theft and Assumption Deterrence Act, taking out a
new credit card in another person’s name is also a crime: identity theft.
• Identity theft has risen as a problem from a relatively rare issue in the 1970s to one
affecting 1 in 20 consumers today.
• In 2005, the U.S. Federal Trade Commission received over 250,000 complaints of identity
theft.
• But Javelin’s 2014 Identity Fraud Report notes that an identity theft occurs in the United
States every two seconds.

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 Identity Theft
• Identity theft occurs in many ways: unauthorized opening of an account in someone else’s name,
changing account information to enable the thief to take over and use someone else’s account or
service, or perpetration of fraud by obtaining identity documents in the stolen name.
• Most cases of identity theft become apparent a month or two after the data are stolen, when
fraudulent bills or transactions start coming or appearing in the victim’s files.
• By that time, the thief has likely made a profit and has dropped the stolen identity, moving on to a
new victim.
• Having relatively few unique identifying characteristics facilitates identity theft: A thief who gets
one key, such as a national identity number, can use that to get a second, and those two to get a
third. Each key gives access to more data and resources.
• Few companies or agencies are set up to ask truly discriminating authentication questions (such
as the grocery store at which you frequently shop or the city to which you recently bought an
airplane ticket or the third digit on line four of your last tax return).
• Because there are few authentication keys, we are often asked to give out the same key (such as
mother’s maiden name) to many people, some of whom might be part-time accomplices in
identity theft.

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 Privacy on the Web
• The Internet is sometimes viewed as the greatest threat to privacy. The advantage of the
Internet, which is also a disadvantage, is anonymity.
• A user can visit websites, send messages, and interact with applications without
revealing an identity. At least that is what we would like to think. Unfortunately, because
of things like cookies, adware, spybots, and malicious code, the anonymity is superficial
and largely one-sided.
• Sophisticated web applications can know a lot about a user, but the user knows relatively
little about the application.

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 Payments on the Web
• Customers of online merchants must be able to pay online for purchases. There are two basic
approaches: Customers give their credit card information to the merchant or they arrange
payment through an online payment system such as PayPal.
• Credit Card Payments
• With a credit card, the user enters the credit card number, a special number printed on the
card, the expiration date of the card and the billing address of the credit card.
• These protections are all on the side of the merchant: They demonstrate that the merchant
made a best effort to determine that the credit card use was legitimate.
• There is no protection to the customer that the merchant will secure these data.
• Once the customer has given this information to one merchant, that same information is all
that would be required for another merchant to accept a sale charged to the same card.
• Furthermore, these pieces of information provide numerous static keys by which to correlate
databases. As we have seen, names can be difficult to work with because of the risk of
misspelling, variation in presentation, truncation, and the like. Credit card numbers make
excellent keys because they can be presented in only one way and there is even a trivial
check digit to ensure that the card number is a valid sequence.

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 Payments on the Web
• Customers of online merchants must be able to pay online for purchases. There are two basic
approaches: Customers give their credit card information to the merchant or they arrange
payment through an online payment system such as PayPal.
• Credit Card Payments
• With a credit card, the user enters the credit card number, a special number printed on the
card, the expiration date of the card and the billing address of the credit card.
• These protections are all on the side of the merchant: They demonstrate that the merchant
made a best effort to determine that the credit card use was legitimate.
• There is no protection to the customer that the merchant will secure these data.
• Once the customer has given this information to one merchant, that same information is all
that would be required for another merchant to accept a sale charged to the same card.
• Furthermore, these pieces of information provide numerous static keys by which to correlate
databases. As we have seen, names can be difficult to work with because of the risk of
misspelling, variation in presentation, truncation, and the like. Credit card numbers make
excellent keys because they can be presented in only one way and there is even a trivial
check digit to ensure that the card number is a valid sequence.

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 Payments on the Web
• Payment Schemes
• The other way to make web payments is with an online payment scheme, such as PayPal.
• You pay PayPal a sum of money and receive an account number and a PIN. You can then log in
to the PayPal central site, give an email address and amount to be paid, and PayPal transfers
that amount.
• Because in the United States, PayPal is not regulated under the same banking laws as credit
cards, it offers less consumer protection than does a credit card.
• However, the privacy advantage is that the user’s credit card or financial details are known
only to PayPal, thus reducing the risk of their being stolen.
• Similar schemes, such as Square, use mobile phones to make payments. Other systems, like
Bitcoin, are being established as virtual currency, independent of government issuance.

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 Precautions for Web Surfing
• Some technologies are used to perform the tracking and gathering: cookies and web bugs. These
technologies are frequently used to monitor activities without the user’s knowledge.
• Cookies
• Cookies are files of data put in place by a website. They are really an inexpensive way for a
website owner to transfer its storage need from its website to a user’s computer or phone.
• A cookie is formatted as a text file, stored on the user’s computer, and passed by the user’s
browser to the website when the user goes to that site.
• Each cookie file consists of a pair of data items sent to your web browser by the visited website: a
key and a value. Together, the pair represents the current state of a session between a visiting
user and the visited website. The key is the URL of the site establishing the cookie.
• A cookie’s value can be thought of as six fields: name, persistent data, expiration date, path on
the server to which it is to be delivered, domain of the server to which it is to be delivered, and
the requirement for a secure connection (SSL) by which the cookie is to be delivered.
• The persistent data, which is often encrypted, is something the site owner wants to retain about
the user for future reference.

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 Precautions for Web Surfing
• Cookies
• Once the cookie is placed on the user’s system, the browser continues to use it for subsequent
interaction between the user and that website. Each cookie is supposed to have an expiration
date, but that date can be far in the future—and can be modified later or even ignored.
• A site can set as many cookies as it wants, with as many values as it wants. Some sites use cookies
to avoid a customer’s having to log in on each visit to a site; these cookies contain the user’s ID
and password. But a cookie could also contain, for example, a credit card number, the customer
name and shipping address, the date of the last visit to the site, the number of items purchased
or the dollar volume of purchases.
• Sensitive information, such as credit card number or even name and address, should be
encrypted or otherwise protected in the cookie. It is up to the site to define or determine what
kind of protection it applies to its cookies. The user never knows if or how data are protected.
• The path and domain fields are supposed to protect against one site’s being able to access
another’s cookies.

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 Precautions for Web Surfing
• Third-Party Cookies
• When you visit a site, its server asks your browser to save a cookie. When you visit that
site again, your browser passes that cookie back to the site.
• The general flow is from a server to your browser and later back to the place from which
the cookie came. A web page can also contain cookies for organizations.
• Because these cookies are for organizations other than the web page’s owner, they are
called third-party cookies. A third-party tracking firm receives reports from individual
sites and correlates the data to provide predictive intelligence.
• Third-party cookies permit an aggregator to link information from a user’s visit to
websites of different organizations.

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 Spyware
• Cookies are passive files and the data they can capture is limited.
• They cannot, for example, read a computer’s registry, peruse an email outbox, or capture
the file directory structure.
• Spyware is active code that can do all these things that cookies cannot.
• Generally, spyware can do anything a program can do, because that is what they are:
programs.
• Spyware is code designed to spy on a user, collecting data (including anything the user
types).

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 Keystroke Loggers and Spyware
• A keystroke logger is the computer equivalent of a telephone wiretap.
• It is a program that records every key typed. As you can imagine, keystroke loggers can
seriously compromise privacy by obtaining passwords, bank account numbers, contact
names, and web-search arguments.
• Spyware is the more general term that includes keystroke loggers and also programs that
surreptitiously record user activity and system data, although not necessarily at the level
of each individual keystroke.
• The term ‘spyware’ has been applied to everything from keystroke loggers, to advertising
applications that track users’ web browsing, to web cookies, to programs designed to
help provide security patches directly to users.
• Spyware collects and reports activity by web users.
• The objectives of general spyware can extend to identify theft and other criminal activity.
• Another category of spyware is software that hijacks a program installed for a different
purpose.
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 Adware
• Adware displays selected advertisements in pop-up windows or in the main browser
window.
• The ad’s topics and characteristics are selected according to the user’s preferences,
description, and history, which the browser or an added program gathers by monitoring
the user’s computing use and reporting the information to a home base.
• Adware is usually installed as part of another piece of software without notice.

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 Application of Cryptographic Techniques for
Privacy Preservation
• In an era marked by increasing digitization and data-driven technologies, the preservation of
privacy has become a paramount concern.

• Cryptographic techniques offer powerful tools for safeguarding sensitive information, ensuring
confidentiality, integrity, and authenticity in digital communications and transactions.

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 Application of Cryptographic Techniques for
Privacy Preservation
• Data Encryption:
• Data encryption is a cornerstone of modern cryptography, enabling the secure transmission
and storage of sensitive information.
• By converting plaintext data into ciphertext using encryption algorithms and cryptographic
keys, encryption ensures that only authorized parties can access and decipher the
information.
• In the context of privacy preservation, encryption protects personal data from unauthorized
access, interception, and tampering, thereby safeguarding privacy rights and
confidentiality.
• Example: End-to-end encryption protocols employed by messaging applications like Signal
and WhatsApp ensure that messages exchanged between users remain private and
unreadable to anyone except the intended recipients, including service providers and
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malicious actors. Information Security - BCSE317L 52
 Application of Cryptographic Techniques for
Privacy Preservation
• Public Key Infrastructure (PKI):
• Public Key Infrastructure (PKI) is a framework for managing digital certificates and
cryptographic keys, facilitating secure authentication, data integrity, and non-repudiation in
online communications.
• PKI enables the issuance, distribution, and verification of digital certificates, which serve as
cryptographic credentials to verify the identity of users, devices, or entities in a networked
environment.
• PKI plays a vital role in ensuring the authenticity and trustworthiness of digital transactions,
thereby enhancing privacy and security.
• Example: Secure online transactions, such as e-commerce purchases or banking transactions,
rely on PKI to establish secure communication channels between users and servers, verify the
authenticity of digital signatures, and encrypt sensitive data during transmission.

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 Application of Cryptographic Techniques for
Privacy Preservation
• Homomorphic Encryption:
• Homomorphic encryption is an advanced cryptographic technique that enables
computations to be performed on encrypted data without decrypting it first.
• This allows for privacy-preserving data processing and analysis while maintaining
confidentiality.
• Homomorphic encryption is particularly valuable in scenarios where sensitive data needs to
be outsourced to third-party service providers for analysis or computation, without
compromising privacy.
• Example: Healthcare organizations can use homomorphic encryption to securely outsource
medical data to cloud service providers for analysis without revealing the underlying patient
information, thereby preserving patient privacy while enabling data-driven healthcare
initiatives.

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 Application of Cryptographic Techniques for
Privacy Preservation
• Zero-Knowledge Proofs:
• Zero-knowledge proofs (ZKPs) are cryptographic protocols that enable one party (the prover)
to prove the validity of a statement to another party (the verifier) without revealing any
information beyond the truth of the statement itself.
• ZKPs are useful for privacy-preserving authentication, identity verification, and credential-
based access control, allowing individuals to assert their identity or credentials without
disclosing unnecessary personal information.
• Example: In digital identity systems, zero-knowledge proofs can be used to verify an
individual's age or eligibility for certain services without disclosing their exact birthdate or
other sensitive personal details, thereby preserving privacy while enabling seamless
authentication and access.

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 Application of Cryptographic Techniques for
Privacy Preservation
• Blockchain and Distributed Ledger Technology (DLT):
• Blockchain and Distributed Ledger Technology (DLT) leverage cryptographic techniques such
as cryptographic hashing, digital signatures, and consensus algorithms to create
decentralized, tamper-resistant data repositories. By distributing data across a network of
nodes and ensuring immutability and transparency, blockchain and DLT enhance privacy and
security in various applications, including decentralized finance (DeFi), supply chain
management, and digital identity.
• Example: Privacy-focused blockchain platforms like Monero and Zcash utilize advanced
cryptographic techniques such as ring signatures and zk-SNARKs (zero-knowledge succinct
non-interactive arguments of knowledge) to ensure transaction privacy and anonymity,
thereby protecting users' financial privacy while enabling peer-to-peer transactions.

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 Application of Cryptographic Techniques for
Privacy Preservation
• In conclusion, cryptographic techniques play a crucial role in preserving privacy and
enhancing security in the digital age.

• From data encryption and public key infrastructure to homomorphic encryption, zero-
knowledge proofs, and blockchain technology, cryptographic tools offer powerful
mechanisms for safeguarding sensitive information, ensuring confidentiality, integrity,
and authenticity in digital communications and transactions.

• By leveraging cryptographic techniques effectively, organizations and individuals can

mitigate privacy risks, uphold privacy rights, and foster trust in the digital ecosystem.

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