A debit or credit card with an RFID chip? Not a good idea! Watch the video below:
The practices of advertising companies such as Google and Facebook often give rise to discussions about data protection and privacy. The operations of secret services and similar organizations such as the Dutch National Coordinator for Counterterrorism and Security (NCTV) equally draw attention and criticism.
There is a growing trend – remaining largely under the radar – towards general financial surveillance, whereby a number of large companies can follow citizens and organizations in detail on the basis of payment data. This is encouraged by public authorities and is spreading throughout society for all sorts of reasons, causing major data protection risks for citizens.
Privacy First would like to pay more attention to what it calls financial privacy in the period ahead.
What is financial privacy?
Financial privacy relates to the following:
- Detailed personal financial data in the hands of banks and other large parties. Nowadays, payments are made digitally for the most part; cash payments are becoming ever less common. As a result, parties involved in processing payments (banks, payment service providers and account information service providers) have detailed information about all their customers, including consumers, companies and various sorts of organizations. This means that these parties know a great deal about their customers. Financial data are becoming more and more detailed for all kinds of reasons and ever more companies can access these data. iDEAL 2.0, for example, is expected to cause further proliferation of personal financial data. In the past, banks have tried to monetize the financial data of customers, in the way that American advertising companies do, think of the ING affair in the Netherlands. This was stopped at the time, but could come back.
- New PSD2 services. The European Payment Services Directive 2 (PSD2) was intended to allow new services to be developed around the financial data of customers of payment institutions, including account information services. However, insufficient thought has been given to data protection, putting citizens at risk. Privacy First has been working on a campaign called Don’t-PSD2-me for several years now.
- Cash payments are disappearing, and so is this method of last resort to evade being tracked by banks from hour to hour. The European digital currency that is being developed is unlikely to be completely anonymous to enable crime fighting.
B. Privatization of crime fighting and the provision of services to public authorities
- Crime fighting duties of banks and other financial institutions (‘anti-money laundering’). These duties result in the collection of additional personal data of citizens. This concerns not only the identification of natural persons, but also the collection of data on and from natural persons involved in organizations. This may include directors and representatives of legal entities as well as the ultimate stakeholders. Customers often find themselves having to share confidential data with financial institutions in an insecure way. Please note that this is not only about crimes that can harm the customer or the financial institution. Institutions must actively check whether their own customers are holding criminal money and must report any suspicions of crime (‘unusual transactions’) to a section of the Dutch police: the Financial Intelligence Unit (FIU). The EU is currently working on a set of regulations, also known as the Anti-Money Laundering (AML) package, which will radically change the way in which companies combat crime. As a result of new regulations, more and more financial data will be transfered by companies to public authorities.
- Identification through biometrics among other ways. Banks and other financial institutions have to identify their customers, first and foremost to find out (under private law) with whom they are entering into an agreement, and secondly because anti-money laundering rules require it. There is some fuss about identification efforts, partly because banks now want to ‘re-identify’ existing customers, sometimes requiring biometric data in the process.
- UBO Register. Part of the crime-fighting duties of banks and designated enterprises, is that they must identify the ultimate beneficial owners (UBOs) of their customers and verify the accuracy of their customers’ registration with the UBO Register. Privacy First has litigated against the UBO Register and is now awaiting the outcome of similar cases pending before the European Court of Justice.
- Black lists. As part of crime fighting efforts and in order to protect financial interests, blacklists of ‘suspicious’ and convicted customers are created in the financial sector. There are two such lists, known as the internal referral register (Dutch abbreviation: ‘IVR’) and the external referral register (‘EVR’). The rules for these registers are laid out in ‘PIFI’, the Protocol Incident Warning System for Financial Institutions. Insurers have a complete overview of all claims that insurees have submitted to them. Increasingly, other companies with crime-fighting duties also want to create blacklists.
- Provision of data to public authorities (data reporting). Financial institutions, employers and, in the future, platforms too are required to provide data to public authorities. Within the framework of the obligation to provide information, many confidential data are collected from customers. One particular example is the obligation of financial institutions to collect customer data for the purpose of taxation by other countries. In this respect, the Foreign Account Tax Compliance Act (FATCA) is well known. It’s the US law that requires financial institutions around the world to provide free services to the US tax authorities, which relates not only to tax residents of the US and persons with property in or income from the US, but also anyone who has US citizenship (even if these people are without any real ties to the country, so-called ‘accidental Americans’). The Netherlands has entered into a FATCA treaty with the US and also participates in the ‘Common Reporting Standard’ (CRS), that many (EU) countries have implemented.
- Merchants in financial (personal) data. A number of very large and little-known parties are active on behalf of financial institutions, collecting financial and other data on both consumers and the natural persons involved in various organizations. These data are sold to financial institutions, among others, as credit information and as anti-money laundering information. Although these merchants must comply with the General Data Protection Regulation, they usually don’t, so the people whose data are being sold are not aware of the presence of their data with those merchants, nor can they verify whether the data are accurate and whether they were obtained lawfully. In other words, these people cannot exercise their GDPR rights. According to Privacy First, these merchants should be required to be licensed, just as financial institutions are, with a strong regulator and a strict review of executives.
- The Dutch Credit Registration Office (Bureau Kredietregistratie, BKR). This is a foundation recognized by the government and established by the financial sector to register data for the benefit of that sector.
What will Privacy First be doing?
Financial privacy covers a wide and complex area, which makes it difficult to tackle the issues surrounding this topic. In recent years, Privacy First has been active on the following subtopics:
- The UBO Register;
- The preservation of cash and anonymous means of payment.
 See for example https://ellentimmer.com/2015/12/23/gegevensuitwisseling/ (in Dutch).
The world is hit exceptionally hard by the coronavirus. This pandemic is not only a health hazard, but can also lead to a human rights crisis, endangering privacy among other rights.
The right to privacy includes the protection of everyone’s private life, personal data, confidential communication, home inviolability and physical integrity. Privacy First was founded to protect and promote these rights. Not only in times of peace and prosperity, but also in times of crisis.
Now more than ever, it is vital to stand up for our social freedom and privacy. Fear should not play a role in this. However, various countries have introduced draconian laws, measures and infrastructures. Much is at stake here, namely preserving everyone’s freedom, autonomy and human dignity.
Privacy First monitors these developments and reacts proactively as soon as governments are about to take measures that are not strictly necessary and proportionate. In this respect, Privacy First holds that the following measures are in essence illegitimate:
- Mass surveillance
- Forced inspections in the home
- Abolition of anonymous or cash payments
- Secret use of camera surveillance and biometrics
- Every form of infringement on medical confidentiality.
Privacy First will see to it that justified measures will only apply temporarily and will be lifted as soon as the Corona crisis is over. It should be ensured that no new, structural and permanent emergency legislation is introduced. While the measures are in place, effective legal means should remain available and privacy supervisory bodies should remain critical.
Moreover, in order to control the coronavirus effectively, we should rely on the individual responsibility of citizens. Much is possible on the basis of voluntariness and individual, fully informed, specific and prior consent.
As always, Privacy First is prepared to assist in the development of privacy-friendly policies and any solutions based on privacy by design, preferably in collaboration with relevant organizations and experts. Especially in these times, the Netherlands (and the European Union) can become an international point of reference when it comes to fighting a pandemic while preserving democratic values and the right to privacy. This is the only way that the Corona crisis will not be able to weaken our world lastingly, and instead, we will emerge stronger together.
Writing a New Year’s Column about the state of affairs concerning the protection of everyone’s privacy weighs me down this year. With the exception of a few bright spots, privacy in the Netherlands and the rest of the world has greatly deteriorated. For a while it seemed that the revelations of Edward Snowden in 2013 about secret services tracking everyone’s online behavior would be a rude wake-up call for the world. It was thought that an increasing number of data breaches and a rising number of governments and companies getting hacked, would make people realize that large amounts of data stored centrally is not the solution. The Arab Spring in 2015 would bring about major change through the unprecedented use of (social) media.
The European Union successfully voted against the exchange of data relating to travel movements, paved the way for the current General Data Protection Regulation and seemed to become the shining alternative example under the guidance of Germany, a country known for its vigilance when it comes to privacy. Unfortunately, things turned out differently. Under the Obama administration, Snowden was shunned as a traitor and other whistleblowers were clamped down on harder than ever before. Julian Assange was forced into exile while murdering people with the use of drones and without any form of trial was implemented on a large scale. Extrajudicial killings with collateral damage... While the discussion was about waterboarding... Discussions on such ‘secondary topics’ have by now become commonplace in politics, and so has the framing and blaming of opponents in the polarized public debate (the focus is usually on the person rather than on the argument itself).
Looking back on 2018, Privacy First identifies a great number of areas where the breakdown of privacy is evident:
Government & privacy
In March, an advisory referendum in the Netherlands was held on the introduction of the so-called Tapping law. Immediately after that, the referendum was abrogated. This happened in a time of unprecedented technological possibilities to organize referendums in various ways in a shared democracy. That’s outrageous. The outcome of the referendum was not taken into account and the Tapping law was introduced just like that. Moreover, it turned out that all along, the Dutch Minister of the Interior had withheld an important report on the functioning of the Dutch General Intelligence and Security Service.
Apparently this was nothing to worry about and occurred without any consequences. The recent report by the Dutch State Commission on the (re)introduction of referendums will likely end up in a drawer, not to be looked at again.
Fear of losing one’s role and the political mood of the day are all too important in a culture in which ‘professional politicians’ are afraid to make mistakes, but which is full of incidents nonetheless. One’s job or profession comes first, representing citizens comes second. Invariably, incidents are put under a magnifying glass in order to push through binding legislation with a broad scope. Without the review of compliance with guiding principles such as necessity, purpose limitation, subsidiarity and proportionality. There is an ever wider gap between government and citizens, who are not trusted but are expected to be fully transparent towards that self-same government. A government that time and again appears to be concealing matters from citizens. A government that is required by law to protect and promote privacy, but is itself still the most prominent privacy-violator.
The medical establishment & privacy
In this area things got really out of hand in 2018. Through various coordinated media offensives, the EU and the member states are trying to make us believe in the advantages of relinquishing our right to physical integrity and our humanity. Sharing biometric data with the United States continues unabatedly. We saw the police calling for compulsory DNA databases, compulsory vaccination programs, the use of smart medicines with microchips and the phasing out of alternative therapies. Furthermore, health insurance companies cautiously started to cover genetic testing and increasingly doing away with medical confidentiality, the Organ Donation Act was introduced and microchips implanted in humans (the cyborg as the highest ideal in Silicon Valley propaganda) became ever more popular.
How long before microchips become compulsory for all citizens? All (domestic) animals in the EU have already preceded us. And then there’s the Electronic Health Record, which was first rejected in the Dutch Senate but has reappeared on the minister’s agenda via a detour. Driven by commercial interests, it is being rammed down the throats of general practitioners while alternatives such as Whitebox are not taken seriously. The influence of Big Pharma through lobbying with government bodies and participating in government working groups is particularly acute. They closely cooperate with a few IT companies to realize their ideal of large and centralized networks and systems. It’s their year-end bonus and growth at the expense of our freedom and well-being.
Media & privacy
Naturally, we cannot overlook ‘fake news’. One of the premises for having privacy is being able to form your own opinion and respect and learn from the opinions of others. Furthermore, independent left and right-wing media are essential in a democratic constitutional State. It's their task to monitor the functioning of elected and unelected representatives in politics and in government. Journalists should be able to penetrate into the capillaries of society in order to produce local, national and global news.
Ever since free news gathering came about, it has been a challenge to obtain news based on facts. It’s not always easy to distinguish a press service, PR and propaganda from one another. In times of rapid technological changes and new opportunities, they should be continuously reviewed according to the principles of journalism. That’s nothing new. What is new, however, is that the European Union and our own Minister for the Interior, Kajsa Ollongren, feel they’re doing the right thing by outsourcing censorship to social media companies that are active on a global scale and have proven to be unreliable.
While Facebook and Google have to defend themselves in court for spreading fake news and censoring accounts, the governments hand over the monitoring task to them. The privacy violators and fake news distributors as the guardians of our privacy and journalism. That’s the world upside down. By so doing, this minister and this government undermine the constitutional State and show disdain for intelligent citizens. It’s time for a structural change in our media system, based on new technologies such as blockchain and the founding of a government media office whose task is to fund all media outlets through citizens’ contributions, taking into account the media’s scope and number of members. So that concerns all media, including the so-called alternative media, which should not be censored.
Finance & privacy
The erosion of one’s privacy increasingly manifests itself at a financial level too. The fact of the matter is, that the tax authorities already know in detail what the spending pattern of all companies and citizens looks like. Thanks to the Tapping Law, they can now pass on this information in real-time to the secret services (the General Intelligence and Security Service is watching along). Furthermore, a well-intended initiative such as PSD2 is being introduced in a wholly improvident and privacy-unfriendly way: basic conditions relating to the ownership of bank details (of citizens, account holders) are devoid of substance. Simple features such as selective sharing of banking details, for example according to the type of payment or time period, are not available. What’s more, payment details of third parties who have not given their consent, are sent along.
In the meantime, the ‘cash = criminal’ campaign goes on relentlessly. The right to cash and anonymous payment disappears, despite even the Dutch Central Bank now warning that the role of cash is crucial to our society. Privacy First has raised its opinion on this topic already in 2016 during a public debate. The latest development in this regard is the further linking of information through Big Data and profiling by debt-collecting agencies and public authorities. Excluding citizens from the electronic monetary system as a new form of punishment instead of letting them pay fines is a not so distant prospect. In this regard, a lot of experimentation is going on in China and there have been calls in Europe to move in the same direction, supposedly in order to fight terrorism. In other words, in the future it will become increasingly difficult to raise your voice and organize against abuse of power by governments and companies: from on high it takes only the press of a button and you may no longer be able to withdraw cash, travel or carry out online activities. In which case you have become an electronic outcast, banished from society.
Public domain & privacy
In 2018, privacy in public space has all but improved. Whereas 20 years ago, the Netherlands was deemed too small to require everyone out on the streets to be able to identify themselves, by now, all governments and municipalities in Europe are developing ‘smart city’ concepts. If you ask what the benefits and use of a smart city are (beyond the permanent supervision of citizens), proponents will say something vague about traffic problems and that the 'killer applications' will become visible only once the network of beacons is in place. In other words, there are absolutely no solid figures which would justify the necessity, subsidiarity and proportionality of smart cities. And that’s not even taking basic civil rights such as privacy into consideration.
Just to give a few examples:
- ANPR legislation applies from 1 January 2019 (all travel movements on public roads will be stored in a centralized police database for four weeks)
- A database consisting of all travel movements and stays of European citizens and toll rates as per 2023
- Emergency chips in every vehicle with a two-way communication feature (better known as spyware) as per 1 January 2019
- Cameras and two-way communication in public space, built into the lampposts among other objects as part of smart city projects
- A decision to introduce additional cameras in public transport as per 2019
- The introduction of Smart Cities and the introduction of unlimited beacons (doesn’t it sound so much better than electronic concentration camp posts?)
- Linking together all traffic centers and control rooms (including those of security companies operating on the private market)
- Citizens are permanently monitored by invisible and unknown eyes.
Private domain & privacy
It’s well known that governments and companies are keen to take a peek in our homes, but the extent to which this was being advanced last year, was outside of all proportion. Let’s start with energy companies, who foist compulsory smart meters on citizens. By way of ‘appointment to install a smart meter’, which you didn’t ask for, it’s almost impossible to stay clear of red tape. After several cancellations on my part and phone calls to energy provider Nuon, they simply continued to push forward. I still don’t have a smart meter and it will stay like that.
Once again Silicon Valley featured prominently in the news in 2018. Unelected dictatorial executives who are no less powerful than many a nation state, promote their utopias as trendy and modern among citizens. Self-driving cars take the autonomy and joy away from citizens (the number of accidents is very small considering the millions of cars on the road each day), while even children can tell that a hybrid approach is the only option. The implementation of smart speakers by these social media companies is downright spooky. By bringing smart toys onto the market, toy manufacturers equally respond to the needs that we all seem to have. We can all too readily guess what these developments will mean for our privacy. The manipulation of facts and images as well as distortion, will starkly increase.
Children & privacy
Children and youths represent the future and nothing of the above bodes well for them. Screen addiction is sharply on the rise and as children are being raised amidst propaganda and fake news, much more attention should go out to forming one’s own opinion and taking responsibility. Centralized pupil monitoring systems are introduced indifferently in the education system, information is exchanged with parents and not having interactive whiteboards and Ipads in the classroom has become unthinkable. The first thing children see every single day, is a screen with Google on it... Big Brother.
Dependence on the internet and social media results in impulsive behaviour among children, exposes them to the madness of the day and affects their historical awareness and ability to discern underlying links. The way of thinking at universities is becoming increasingly one-sided and undesirable views are marginalized. The causes of problems are not examined, books are not read though there is certainly no lack of opinions. It’s all about making your voice heard within the limits of self-censorship that’s in force in order to prevent becoming the odd one out in the group. The same pattern can be identified when it comes to forming opinions in politics, where discussing various issues based on facts seems no longer possible. Not to mention that the opinions of citizens are considered irrelevant by our politicians. Good quality education focused on forming opinions and on creating self-reflective minds instead of a robot-way of thinking, is essential for the development of a healthy democracy.
Are there any positive developments?
It's no easy task to identify any positive developments in the field of privacy. The fact is that the introduction of the GDPR and the corresponding option to impose fines has brought privacy more sharply into focus among companies and citizens than the revelations of Snowden have been able to do. The danger of the GDPR, however, is that it narrows down privacy to data protection and administrative red tape.
Another positive development is the growing number of (as of yet small) initiatives whereby companies and governments consider privacy protection as a business or PR opportunity. This is proved by the number of participants in the 2019 Dutch Privacy Awards. Recurring themes are means of anonymous communication (email, search engines, browsers), possible alternatives to social networks (messaging services like WhatsApp, Facebook, Instagram and Twitter) on the basis of subscriptions, blockchain technology and privacy by design projects by large organizations and companies.
Privacy First has teamed up with a few top quality pro bono attorneys who are prepared to represent us in court. However, judges are reluctant to go off the beaten track and come up with progressive rulings in cases such as those concerning number plate parking, average speed checks, Automatic Number Plate Recognition, the Tapping Law, etc. For years, Privacy First has been suffering from a lack of funding. Many of those who sympathize with us, find the topic of privacy a bit eerie. They support us morally but don’t dare to make a donation. After all, you draw attention to yourself when you’re concerned with issues such as privacy. That’s how bad things have become; fear and self-censorship... two bad counsellors! It’s high time for a government that seriously deals with privacy issues.
Constitutional reform should urgently be placed on the agenda
Privacy First is a great proponent of constitutional reform (see our 2017 New Year’s column about Shared Democracy), based on the principles of the democratic constitutional State and the European Convention on Human Rights (ECHR). Our democracy is only 150 years old and should be adapted to this current day and age. This means that the structure of the EU should be changed. Citizens should take on a central and active role. Government policies should focus on technological developments in order to reinforce democracy and formulate a response to the concentration of power of multinational companies.
Privacy First argues that the establishment of a Ministry of Technology has the highest priority in order to be able to stay up to date with the rapid developments in this field and produce adequate policies accordingly. It should live up to the standards of the ECHR and the Dutch Constitution and avoid becoming a victim of the increasing lobbying efforts in this sector. Moreover, it is time for a Minister of IT & Privacy who stays up to date on all developments and acts with sufficient powers and in accordance with the review of a Constitutional Court.
The protection of citizens’ privacy should be facilitated and there should be privacy-friendly alternatives for current services by technology companies. For 2019, Privacy First has a few tips for ordinary citizens:
- Watch out for and stay away from ‘smart’ initiatives on the basis of Big Data and profiling!
- Keep an eye on the ‘cash = criminal’ campaign. Make at least 50% of your payments anonymously in cash.
- Be cautious when communicating through Google, Apple, Facebook and Microsoft. Look for or develop new platforms based on Quantum AI encryption and use alternative browsers (TOR), networks (VPN) and search engines (Startpage).
- Be careful when it comes to medical data and physical integrity. Use your right for there to be no exchange of medical data as long as initiatives such as Whitebox are not used.
- Be aware of your right to stay anonymous, at home and in public space. Campaign against toll payment, microchips in number plates, ANPR and number plate parking.
- Be aware of your legal rights to bring lawsuits, for example against personalized waste disposal passes, camera surveillance, etc.
- Watch out for ‘smart’ meters, speakers, toys and other objects in the house connected to the internet. Purchase only privacy by design solutions with privacy enhanced technology!
The Netherlands and Europe as guiding nations in the field of privacy, with groundbreaking initiatives and solutions for apparent contradictions concerning privacy and security issues - that’s Privacy First's aim. There’s still a long way to go, however, and we’re being blown off course ever more. That’s due in part because a comprehensive vision on our society and a democracy 3.0 is lacking. So we continue to drift rudderless, ending up in the big manipulation machine of large companies one step at a time. We need many more yellow vests before things change. Privacy First would like to contribute to shaping and promoting a comprehensive, positive vision for the future. A future based on the principles that our society was built on and the need for greater freedom, with all the inevitable restrictions this entails. We will have to do it together. Please support Privacy First actively with a generous donation for your own freedom and that of your children in 2019!
To an open and free society! I wish everyone a lot of privacy in 2019 and beyond!
Bas Filippini, Privacy First chairman
A train passenger has submitted an enforcement request to the Dutch Data Protection Authority, because he argues that Dutch Railways (NS) violates the privacy of train passengers.
In response to three new attempts by Dutch Railways (NS) to violate the privacy of train passengers, NS customer Michiel Jonker has submitted a request for enforcement to the Dutch Data Protection Authority (DPA). It concerns:
- Rejecting the reimbursement of the remaining balance on anonymous public transport chip cards if the holder does not provide his or her name and address data to NS;
- Refusing international train tickets by NS employees at station desks if buyers do not provide their name and address data to NS;
- Charging, since 2 July 2018, additional "service costs" when holders of anonymous public transport chip cards pay in cash for topping up the balance on these cards.
Since July 2014, NS has already launched attacks on the privacy of Dutch train passengers in various ways. It then concerned:
- Discriminating holders of anonymous public transport chip cards in discount hours;
- Requiring de-anonymization of the anonymous public transport chip cards when NS is asked to provide services (for example, reimbursing money in the event of delays);
- Applying two unique card numbers on each anonymous OV chip card, as a result of which the anonymity of these cards is affected.
As a traveler who wants to maintain his privacy, Jonker repeatedly asked the DPA to investigate these violations and to take enforcement measures. Jonker already won several lawsuits against the DPA, which initially refused to even investigate the reports.
The recently adopted General Data Protection Regulation (GDPR) will play an important role in the assessment of the new violations by NS. Another central issue will be the right to pay by cash, which protects privacy.
Jonker: "In all these matters, the question is whether users of Dutch public transport are entitled to a real, effective protection of their privacy. This question is more relevant than ever, when you see how people are treated in situations where privacy is not adequately protected. We don't only think about China with its Social Credit score, or the United States with their "No Fly" lists, but also about European countries where laws have been adopted in recent years that allow the government to spy on travelers who are not even suspected of any punishable or risky behavior. For example France with its permanent state of emergency and the Netherlands with its new Intelligence and Security Act."
In this new case, Jonker is supported by Privacy First and Maatschappij voor Beter OV.
Source: https://www.liberties.eu/en/news/ns-privacy-fight-passenger-privacy/15444, 25 July 2018.