Privacy & Identity Theft

Attorney General Kamala D. Harris Applauds New Cyber Exploitation Law

September 10, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO -- Attorney General Kamala D. Harris today issued a statement applauding Governor Jerry Brown’s signature of Senate Bill 676 (Cannella, R-Ceres), which she sponsored.

“Cyber exploitation is an insidious crime that is used to humiliate, degrade, and financially exploit innocent people,” said Attorney General Harris. “SB 676 will restore dignity to victims by providing California law enforcement with a powerful tool to seize and destroy cyber exploitation images and prevent future distribution. I commend Senator Cannella for authoring this important legislation and thank Governor Brown for signing it into law.”

“As technology evolves, unfortunately, so does the rate of cyber-crimes such as cyber exploitation,” said Senator Cannella. “I appreciate the work of Attorney General Harris in prosecuting those who commit these crimes and am glad that Governor Brown signed SB 676 into law to provide stronger protection to victims."

In April, Attorney General Harris announced an 18-year sentence for cyber exploitation operator Kevin Bollaert. This case was the first successful prosecution in the country of an operator of a cyber exploitation website. Bollaert operated ugotposted.com, which allowed the anonymous, public posting of private photographs containing nude and explicit images of individuals without their permission.

In addition to SB 676, Attorney General Harris is also sponsoring AB 1310 (Gatto, D-Glendale), which would allow search warrants to be issued for crimes related to cyber exploitation and allow for the prosecution of cyber exploitation cases in the county where the victim resides or in the county where the images were posted.

Attorney General Harris has convened a working group of 50 major technology companies, victim advocates, and legislative and law enforcement leaders to fight cyber exploitation through a public-private partnership. Specifically, the Attorney General’s working group on cyber exploitation is focused on four key areas: developing an industry statement of principles, education and prevention, law enforcement training and collaboration, and legislation and advocacy. The working group includes major tech companies such as Microsoft, Twitter, Google, Facebook, and Instagram.

Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cybercrimes, and other crimes involving the use of technology.

Attorney General Kamala D. Harris Issues Consumer Alert in Response to UCLA Health Data Breach

July 17, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

LOS ANGELES — Attorney General Kamala D. Harris today issued a consumer alert in response to the reported breach of UCLA Health, which has impacted up to 4.5 million people. The reported breach compromised the personally identifiable information and medical records of patients and providers at UCLA Health.

Individuals who believe they may have been impacted can contact UCLA Health at 877-534-5972 or visit http://www.myidcare.com/uclaprotection for more information and options to sign up for free services offered by UCLA.

This breach may pose a risk of sensitive information being compromised, including social security numbers (SSNs), separate health insurance IDs, diagnosis and treatment records, and payment information. Both SSNs and health insurance IDs create the potential for medical identity theft, which is the use of someone’s identity to obtain medical services or products or for financial gain. Medical identity theft can affect both the victim’s finances and medical records. Potentially impacted individuals should closely watch the Explanation of Benefits statements they receive from their health insurer. If the statement includes a service or product you did not receive, contact the insurer and ask for details. For more information, see First Aid for Medical Identity Theft: Tips for Consumers by clicking here. These Tips are also available in Spanish.

The Attorney General’s Breach Help: Tips for Consumers has simple instructions for consumers who have been affected by a breach and includes what to do in response to a Social Security number breach. Breach Help is also available in Spanish.

Steps for Responding to Social Security Number Breach: 

1. PLACE A FRAUD ALERT.

Contact the three major credit bureaus and place a 90 day “fraud alert.” This helps protect you against the possibility of an identity thief opening new credit accounts in your name. When a merchant checks the credit history of someone applying for credit, the merchant gets an “alert” that there may be fraud on the account.

Experian       1-888-397-3742

Equifax         1-800-525-6285

TransUnion  1-800-680-7289

You will reach an automated telephone system. You will also be sent instructions on how to get a free copy of your report from each of the credit bureaus. Order the reports.  

2. REVIEW YOUR CREDIT REPORTS.

Look through each one carefully. Look for accounts you do not recognize, especially accounts opened since December 2014, when the Anthem breach occurred. Follow the instructions in the report for disputing any questionable information.

3. CONSIDER A SECURITY FREEZE.

Placing a security freeze on your credit files offers longer-term protection. For information on how to do this, see “How to Freeze Your Credit Files” at www.oag.ca.gov/privacy/info-sheets

4. BE WARY OF PHISHING ATTEMPTS.

If you get an email or call from someone claiming to be from Anthem and asking for your personal information, do not provide it. Scammers often take advantage of breaches by offering to help and actually seeking to steal your information. Check with Anthem through the phone number you usually use or one from the phone book, if you want to confirm that such a contact is legitimate.

 

More consumer information from the Attorney General:

First Aid for Medical Identity Theft: Tips for Consumers
https://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis_16_med_id_theft.pdf

En Español: Primeros auxilios para el robo de identidad médica: Consejos para los consumidores
http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis_16_med_id_theft_sp.pdf

Breach Help: Tips for Consumers
www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis-17-breach-help.pdf?

En Español:  Ayuda en caso de robo de datos confidenciales
www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/sp-cis-17-breach-help.pdf?

How to Order Your Free Credit Reports
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_11_free_annual_doj...

En Español:  Cómo encargar sus informes de crédito gratuitos
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis11spanish.pdf?

How to "Freeze" Your Credit Files
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_10_credit_freeze_d...

Identity Theft Victim Checklist
http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/CIS_3_victim_checkl...

En Español: Lo que deben hacer las víctimas de robo de identidad

Top 10 Tips for Identity Theft Protection
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj.pdf?

En Español:  Los 10 consejos para protegerse contra el robo de identidad 
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj_s...
 

Attorney General Kamala D. Harris Announces Guilty Plea of Hacker Involved in Cyber Exploitation Scheme

June 17, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO — Attorney General Kamala D. Harris today announced that the operator of a cyber exploitation hacking scheme, who coordinated the hacking of over 300 email accounts, pled guilty to disruption of computer access in San Francisco Superior Court. Charles Evens, 26, will be sentenced on August 19, 2015.

“Evens is being held accountable for stealing victims’ most private and intimate images and profiting from this illegal activity,” said Attorney General Harris. “This case builds on our continued focus to prosecute perpetrators of cyber exploitation and to send a clear message that hiding behind a computer screen will not shield offenders from the full extent of the law.”  

An investigation conducted by Attorney General Harris’ eCrime Unit found that Evens utilized a social engineering scheme in which he tricked Gmail account holders into providing the recovery code – which is provided as an additional security measure to Gmail users – for their accounts to him by posing as a Facebook friend. Once in possession of the recovery code, Evens would then change the recovery email to one of three email accounts under his control, gaining access to the victim’s Gmail account and any other accounts associated with that Gmail account. According to public statements, Evens used this unauthorized access to steal intimate images and access other personal content, which he then sold to Hunter Moore to post on his cyber exploitation website for amounts up to $900.

Once in control of a victim’s Gmail account, he reached out to new victims through linked Facebook accounts, stating that he had lost control of his account and needed to receive a Google reset verification code to unlock it. Shortly after providing Evens with the information, each new victim found that they no longer had access to their own Google accounts. One victim found that Evens had changed her Facebook password and contacted 15 of the victim’s friends using the same scheme.

Evens is also currently pending trial on multiple federal charges of identity theft, computer fraud and abuse, and conspiracy for his role as an accomplice to Hunter Moore, the operator of the cyber exploitation website IsAnyoneUp.com. The federal case alleges that Moore instructed Evens to gain unauthorized access to victim’s email accounts in order to gain additional nude and explicit images for his site. Evens stole intimate images from those accounts and subsequently sold them to Hunter Moore to post on his cyber exploitation website for amounts up to $900.

Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cybercrimes and other crimes involving the use of technology.

In April, Attorney General Harris announced an 18-year sentence for cyber exploitation operator Kevin Bollaert. Bollaert operated ugotposted.com, which allowed the anonymous, public posting of private photographs containing nude and explicit images of individuals without their permission. This case was the first prosecution in the country of an operator of a cyber exploitation website. 

Earlier this month, Attorney General Harris announced a three-year jail sentence for Casey E. Meyering, 28, of Tulsa, Oklahoma, who operated a cyber exploitation website WinByState.com and the associated website TakedownHammer. He pleaded no contest to one count of extortion, three counts of attempted extortion, and one count of conspiracy and was sentenced on June 8, 2015 to three years in jail.

Attorney General Harris also reminds users of e-mail and social networking sites to never give out account information unless you can verify the identity of the person asking for this information. Always remember that legitimate companies and government agencies will never ask you for your password or other confidential information online or over the phone. Visit a company’s website directly to access your account information, rather than trusting an email or text message claiming to provide information about the status of your account, and don’t response to messages with a link suggesting your account will be closed or suspended if you fail to respond. 

A copy of the complaint submitted to the court can be found here. Please note that a complaint contains only allegations against a person and, as with all defendants, Charles Evens must be presumed innocent unless and until proven guilty.

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Alerta al consumidor: Protéjase contra el robo de identidad para la temporada de impuestos 2015

March 6, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov
En la Semana Nacional de Protección al Consumidor, la procuradora general Kamala D. Harris está alertando a los californianos acerca de la amenaza del robo de identidad relacionado con los impuestos, y publicando consejos sobre cómo los consumidores pueden protegerse durante el proceso de declaración de impuestos.

Comúnmente, el robo de identidad relacionado con los impuestos ocurre cuando los ladrones envían mensajes electrónicos de "phishing" que parecen llegar del Internal Revenue Service (IRS, por sus siglas en inglés) o de la Franchise Tax Board (FTB, por sus siglas en inglés) preguntando por información personal o incluyendo enlaces a páginas web que parecen oficiales. Los ladrones pueden también usar información personal robada para declarar impuestos en el nombre de otro para obtener un reembolso.

Consejos de seguridad para la temporada de impuestos

  • Tenga cuidado con las llamadas de teléfono, correos electrónicos, o mensajes de texto no solicitados, que vengan de alguien diciendo que son del IRS o de la FTB de California. Si tiene dudas, contacte con la agencia usando la información de contacto que se encuentra debajo en la sección de Recursos.  
  • No abra nunca un correo electrónico o mensaje de texto que diga que viene del IRS o de la FTB; éstos son siempre fraudulentos. Las agencias de impuestos federales y del estado nunca inician contactos con los contribuyentes por e-mail, mensaje de texto, o redes sociales, para pedir información personal o financiera, o para enviar notificaciones acerca de auditorías o reembolsos.
  • Si piensa que tiene un problema de robo de identidad para impuestos, o si recibe una carta del IRS o FTB diciendo que alguien ya declaró sus impuestos usando su información, contacte con la agencia. Vea la información de contacto debajo en la sección de Recursos.
  • Cuando prepare su declaración de impuestos para enviar electrónicamente, asegúrese de utilizar una contraseña única y fuerte para sus cuentas de declaración online. Una contraseña fuerte tiene ocho o más caracteres, incluyendo letras, números, y símbolos. Use una contraseña única para cada cuenta de declaración de impuestos.
  • Piense mas allá de la contraseña. Para más seguridad, puede obtener un número de identificación personal para protección de la identidad (IP PIN) para su cuenta electrónica con el IRS. El IRS le proporciona un nuevo PIN cada año. Vea la sección de Recursos para mas información.
  • Verifique la disponibilidad de autenticación en dos pasos para proteger sus cuentas de declaración de impuestos (y otras cuentas online que contienen información sensible, como su e-mail y cuentas de redes sociales). La autenticación en dos pasos ofrece una protección más robusta que usar solo una contraseña y nombre de usuario. El proceso (también llamado aprobación para conectarse, o autenticación multi-factor) añade un segundo factor, como por ejemplo un código de un solo uso que se le envía a usted por e-mail, teléfono, o mensaje de texto. Usted entra ese código, conjuntamente con su nombre de usuario y contraseña, para acceder a su cuenta. Para mas información acerca de la autenticación en dos pasos, vea la sección de Recursos debajo.

 

Recursos

Internal Revenue Service

Robo de identidad:  www.irs.gov/Individuals/Identity-Protection, www.irs.gov/Individuals/Indications-your-identity-may-have-been-stolen-and-how-to-report-it-to-us. 1-800-908-4490

Estafas de impuestos: www.irs.gov/uac/Tax-Scams-Consumer-Alerts 

Número de identificación personal (PIN) para la protección de la identidad: www.irs.gov/Individuals/Get-An-Identity-Protection-PIN

 

California Franchise Tax Board

Robo de identidad: www.ftb.ca.gov/individuals/id_theft.shtml  

Información en la Web para el Coordinador de Resoluciones de Robo de Identidad: 916-845-3669

 

Procuradora General de California

Protección contra el robo de identidad y primeros auxilios: www.oag.ca.gov/idtheft  

 

Autenticación en dos pasos 

www.stopthinkconnect.org/campaigns/details/?id=460

 

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Consumer Alert: Protecting Against Identity Theft During the 2015 Tax Season

March 3, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

As part of National Consumer Protection Week, Attorney General Kamala D. Harris is alerting Californians to the threat of tax-related identity theft and issuing tips on how consumers can protect themselves during the tax filing process.

Tax-related identity theft commonly occurs when thieves send phishing emails that appear to be from the Internal Revenue Service (IRS) or the Franchise Tax Board (FTB), asking for personal information or including links to official-looking web sites.  Thieves may also use stolen personal information to file tax returns in someone else’s name in order to obtain a refund.

Tax Season Safety Tips

  • Beware of unsolicited phone calls, emails or texts from anyone claiming to be from the IRS or the California Franchise Tax Board. If in doubt, contact the agency using the contact information in the Resources section below.  
  • Never open an email or a text message that says it is from the IRS or the Franchise Tax Board; they are always fraudulent. State and federal tax agencies never initiate contact with taxpayers by email, text message or social media to request personal or financial information or to send notice regarding audits or refunds.
  • If you think you have a tax identity theft problem or receive a letter from the IRS or the FTB stating that someone has already filed using your information, contact the agency. See the contact information in the Resources section below.
  • When preparing your tax return for electronic filing, be sure to use a unique strong password on your online filing accounts. A strong password is eight or more characters, including letters, numbers and symbols. Use a unique password for each of your tax filing accounts.
  • Think beyond the password. For greater security, you can get an Identity Protection PIN (IP PIN) for your e-filing account with the IRS. A new PIN is provided each year by the IRS. See the Resources section for more information.
  • Check on the availability of two-step authentication to protect your tax filing accounts (and other online accounts containing sensitive information, such as your email and social media accounts). Two-step authentication offers stronger protection than just a password and username. The process (also called login approval or multi-factor authentication) adds a second factor, such as a one-time use code that is sent to you by email, phone or text. You enter that code, along with your username and password, to get access to your account. For more on two-step authentication, see the Resources section below.

 

Resources

Internal Revenue Service

Identity theft:  www.irs.gov/Individuals/Identity-Protection, www.irs.gov/Individuals/Indications-your-identity-may-have-been-stolen-and-how-to-report-it-to-us. 1-800-908-4490

Tax scams: www.irs.gov/uac/Tax-Scams-Consumer-Alerts 

Identity Protection PIN: www.irs.gov/Individuals/Get-An-Identity-Protection-PIN

 

California Franchise Tax Board

Identity theft: www.ftb.ca.gov/individuals/id_theft.shtml  

ID Theft Resolution Coordinator Web information: 916-845-3669

 

California Attorney General

Identity Theft Protection and First Aid: www.oag.ca.gov/idtheft  

 

Two-Step Authentication 

www.stopthinkconnect.org/campaigns/details/?id=460

Attorney General Kamala D. Harris Issues Consumer Alert in Response to Anthem Data Breach

February 5, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO  Attorney General Kamala D. Harris today issued a consumer alert in response to the reported Anthem Inc. data breach, which has impacted up to 80 million people.

The Attorney General’s Breach Help: Tips for Consumers has simple instructions for consumers who have been affected by a breach and includes what to do in response to a Social Security number breach. Breach Help is also available in Spanish.


Steps for Responding to Social Security Number Breach: 

1. PLACE A FRAUD ALERT.

Contact the three major credit bureaus and place a 90 day “fraud alert.” This helps protect you against the possibility of an identity thief opening new credit accounts in your name. When a merchant checks the credit history of someone applying for credit, the merchant gets an “alert” that there may be fraud on the account.

Experian       1-888-397-3742

Equifax         1-800-525-6285

TransUnion  1-800-680-7289

You will reach an automated telephone system. You will also be sent instructions on how to get a free copy of your report from each of the credit bureaus. Order the reports.  

2. REVIEW YOUR CREDIT REPORTS.

Look through each one carefully. Look for accounts you do not recognize, especially accounts opened since December 2014, when the Anthem breach occurred. Follow the instructions in the report for disputing any questionable information.

3. CONSIDER A SECURITY FREEZE.

Placing a security freeze on your credit files offers longer term protection. For information on how to do this, see “How to Freeze Your Credit Files” at www.oag.ca.gov/privacy/info-sheets.

4. BE WARY OF PHISHING ATTEMPTS.

If you get an email or call from someone claiming to be from Anthem and asking for your personal information, do not provide it. Scammers often take advantage of breaches by offering to help and actually seeking to steal your information. Check with Anthem through the phone number you usually use or one from the phone book, if you want to confirm that such a contact is legitimate.


More consumer information from the Attorney General:

Breach Help: Tips for Consumers

www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis-17-breach-help.pdf

En Español:  Ayuda en caso de robo de datos confidenciales

www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/sp-cis-17-breach-help.pdf?

How to Order Your Free Credit Reports

www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_11_free_annual_doj...

En Español:  Cómo encargar sus informes de crédito gratuitos

www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis11spanish.pdf?

How to "Freeze" Your Credit Files

www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_10_credit_freeze_d...? 

Identity Theft Victim Checklist

http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/CIS_3_victim_checkl...?

En Español: Lo que deben hacer las víctimas de robo de identidad

www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/sp_cis_3_vtm_checklist...?

Top 10 Tips for Identity Theft Protection

www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj.pdf?

En Español:  Los 10 consejos para protegerse contra el robo de identidad www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj_s...?

UPDATE: The breach may pose a risk of medical identity theft, which is the use of someone’s identity to obtain medical services or products or for financial gain. Affected individuals should closely watch the Explanation of Benefits statements they receive from their health insurer. If the statement includes a service or product you did not receive, contact the insurer and ask for details. For more information, see First Aid for Medical identity Theft: Tips for Consumershttps://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis_16_med_id_theft.pdf

Anthem has stated that it is not calling members regarding the incident and is not asking for credit card information or social security numbers over the phone. Anthem will contact current and former members via mail delivered by the U.S. Postal Service with specific information on how to enroll in credit monitoring. Affected members will receive free credit monitoring and ID protection services.  For Anthem’s updates on the incident, go to www.anthemfacts.com/faqor call (877) 263-7995

Attorney General Kamala D. Harris Issues Consumer Alert on Location Services Used by Mobile Apps

December 22, 2014
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO – California Attorney General Kamala D. Harris today issued a consumer alert on location services used by mobile applications (apps).

With a tap on your smartphone or tablet, you can get a list of nearby restaurants, directions to a friend’s home or a local weather forecast.  Location services on your device make a variety of convenient apps work. Location services take your geographic information from satellites (GPS), WiFi and cell-tower networks. What you may not realize is that some apps can access your location all the time, even when you’re not using them. Your location might be “always on.”  

Broadcasting your location can sometimes expose you and your family to risk of theft or physical harm. For instance, you may be unknowingly revealing your location if your phone is “geo-tagging” your photos. When you take a photo, the location where it was taken may be inserted into the image file, along with the date/time stamp. If you post the photo online, you are revealing your location at a point in time. Sharing a “selfie” without disabling geo-tagging can be dangerous,  especially for victims of stalking or domestic abuse.

How mobile location services work may be technical, but you do not have to be an engineer to have more control. By adjusting the settings on your mobile device, you can control location services to  protect your  privacy on today’s “always on” frontier.

Android Phones and Devices

  • Go to Settings, then Location and uncheck the boxes. When an app asks for access to your location, you can chose to grant it or not.
  • To disable geo-tagging of photos, open the camera and then click on the gear icon and set location to “No.” You may have to click the gear icon on several screen layers.
  • You can also choose how accurate you want your location reporting to be, whether it is determined based on GPS plus WiFi and cellular networks or just one or the other. The higher degree of accuracy uses more of your battery, so protecting your privacy will protect your battery life too. 

iPhones and iPads (iOS 6 and later)

  • Go to Settings, then Privacy, then Location Services. You can turn it off. Or you can choose which functions and apps to give access to your location.
  • To disable geo-tagging of photos, deny location access to the camera, in Location Services.
  • You may get notifications from apps asking to use your location in the background. For privacy, select “Don’t Allow.”

For more mobile privacy tips, including how to control location information on other mobile platforms, see the California Department of Justice’s information sheets Getting Smart About Smartphones: Tips for Consumers and Getting Smart About Smartphones: Tips for Parents. For tips on safe social networking, see Staying Private in Public: How to Limit Your Exposure on Social Network Sites. All are available online at www.oag.ca.gov/privacy/info-sheets

Attorney General Kamala D. Harris Releases Data Breach Report; 18.5 Million Californians’ Personal Information Put at Risk

October 28, 2014
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

LOS ANGELES – Attorney General Kamala D. Harris today released the second annual report detailing the 167 data breaches reported to the Attorney General’s office in 2013 that impacted18.5 million Californians by putting their personal information at risk. The report is accompanied by recommendations from the Attorney General for consumers, businesses and lawmakers on how to protect against data breaches and prevent them in the future.

“Data breaches pose a serious threat to the privacy, finances and personal security of California consumers,” Attorney General Harris said. “The fight against these kind of cybercrimes requires the use of innovative strategies by government and the private sector to protect our state’s consumers and businesses. I strongly encourage more use of encryption to significantly reduce the risk of data breaches.”

In 2013, the number of reported data breaches increased by 28 percent, from 131 in 2012 to 167 in 201. The number of Californians’ whose records were affected increased by over 600 percent, from 2.5 million in 2012 to 18.5 million in 2013. This increase was largely due to two massive retailer breaches at Target and LivingSocial, each of which put the personal information of approximately 7.5 million Californians at risk.

More than half of the 2013 breaches (53 percent) were caused by computer intrusions, such as malware and hacking. The remaining breaches resulted from physical loss or theft of laptops or other devices containing unencrypted personal information (26 percent), unintentional errors (18 percent) and intentional misuse (four percent).

The report includes specific tips and recommendations to reduce the frequency and impact of future breaches.

            For Consumers:

  • Monitor your credit and debit card accounts for suspi­cious transactions and report any to the card-issuing bank. Ask the bank for online monitor­ing and alerts on the card account.
  • If a data breach notice says your health insurance or health plan number was involved, contact your insurer or plan and ask them to note the breach in their records and to flag your account number.
  • If a data breach notice involves your password or user ID, change both for that account and any other accounts containing the same information.

            For Retailers:

  • Update point-of-sale terminals so that they are chip-enabled and install the necessary software.
  • Implement appropriate encryption solutions to devalue payment card data, including encrypting the data from the point of capture until completion of transaction authorization.
  • Implement appropriate tokenization solutions to devalue payment card data, including online and mobile transactions.
  • Respond promptly to payment card data breaches that occur in retail systems and improve the helpfulness of the “substitute notices” provided via web site and media.

For the Health Care Industry:

  • Use strong encryption to protect medical information on laptops and on other portable devices, and consider encryption for desktop computers.

For the Legislature

  • Consider legislation to amend the breach notice law in order to strengthen the substitute notice procedure; clarify the roles and responsibilities of data owners and data maintainers; and require a final breach report to the Attorney General.
  • Consider legislation to provide funding to support system upgrades for small California retailers.

In 2003, California was the first state to pass a law (AB 700, Simitian) mandating data breach notifications. This law requires businesses and state agencies to notify Californians when their personal information is compromised in a security breach.

In 2012, companies and state agencies subject to the law were also required, for the first time, to report any breach that involved more than 500 Californians to the Attorney General’s Office. (SB 24, Simitian).

Two recommendations from Attorney General Harris’ 2012 data breach report have been enacted as amendments to the AB 700. Attorney General Harris’ 2012 report recommended that, as a result of increased criminal focus on stealing online account credentials, this type of personal information should be included in SB 24. Based on the California Department of Justice’s recommendation, SB 46 of 2013 was enacted to do just that and the law took effect in January 2014.

The 2012 report also recommended that companies should offer mitigation products or provide information on the security freeze to victims of breaches of Social Security numbers or driver’s license numbers. In 2014, AB 1710 was enacted, requiring the source of a breach of such data to offer identity theft prevention or mitigation services at no cost to the affected person and for no less than 12 months.  It will take effect in January 2015.

The full Data Breach 2013 report is available here: https://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/2014data_breach_rpt.pdf?

Attorney General Kamala D. Harris Reaches $28.4 Million Settlement With Rental Business over Spyware, Unfair Business Practices

October 13, 2014
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

LOS ANGELES – Attorney General Kamala D. Harris today announced a $28.4 million settlement with Aaron’s, Inc., the second largest rent-to-own business in the nation, to resolve allegations that the company violated California consumer protection and privacy laws.

“Aaron’s concealed its illegal privacy and business practices from customers in a deceptive attempt to avoid California’s robust consumer protection laws and increase its profits,” Attorney General Harris said. “This settlement provides millions of dollars in restitution to consumers and requires Aaron’s to make significant changes to its business practices.”

The settlement requires Aaron’s to refund $25 million to California customers who signed lease agreements between April 1, 2010 and March 31, 2014 and to pay $3.4 million in civil penalties and fees.

Approximately 100,000 California customers will be eligible for restitution.

The complaint alleges that Aaron’s violated California’s Karnette Rental-Purchase Act, which is the strongest rent-to-own law in the country, by charging improper late fees, overcharging customers who paid off contracts early, and omitting important contract disclosures.

In addition, the complaint alleges that Aaron’s violated California state privacy laws by permitting its franchised stores to install spyware on laptop computers rented to its customers. A feature in the spyware program called ‘Detective Mode’, which was installed without consumers’ consent or knowledge, allowed the Aaron’s franchisees to remotely monitor keystrokes, capture screenshots, track the physical location of consumers and even activate the rented computer’s webcam. The installation of this software without customer consent violated California law.

Aaron’s, which is headquartered in Atlanta, GA, rents household merchandise, including furniture, appliances and electronics for a monthly or semi-monthly fee. The company operates approximately 75 stores across California (http://www.aarons.com/storelocator.aspx).

According to a Federal Trade Commission report on the rent-to-own industry, nearly all rent-to-own customers have a household income below $50,000 and the vast majority have attained a high school education or less.

Customers who are eligible for restitution will receive notice at their last known mailing address. Customers who believe they are eligible for restitution can also proactively submit a claim by visiting www.rent-to-own-settlement.com or calling 877-449-8548.

It is expected that restitution notices and payments will be mailed in early 2015 and individual restitution payments will vary based on each consumer’s contract.

As part of a stipulated judgment filed this week in Los Angeles County Superior Court, Aaron’s has agreed to full compliance with the Karnette Act in all respects and is prohibited from using or installing spyware on rented computers.

The Los Angeles County Department of Consumer Affairs provided assistance with the investigation.

Tips for consumers regarding rent-to-own businesses:

  • Know your rights. Under California law, you have many important protections if you enter into a rent-to-own agreement.  For example, you may be entitled to a reduction in the amount of your lease payment if you suffer a hardship like losing your job. For more information: http://www.dca.ca.gov/publications/legal_guides/s-10.shtml.
  • Read your contract carefully before signing. Make sure you understand your obligations under the agreement, including the length of time specified in the contract, and not just the cost of your monthly lease payment.

Copies of the complaint and stipulated judgment are attached to the online version of this release at www.oag.ca.gov/news.

Attorney General Kamala D. Harris Issues Guide on Privacy Policies and Do Not Track Disclosures

May 21, 2014
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a series of recommendations for businesses that directly address recent changes to California privacy law. The guide, Making Your Privacy Practices Public, provides businesses with an up-to-date resource to craft a useful, transparent privacy policy for consumers.   

“California has proven that robust and balanced privacy protections are consistent with a thriving innovation economy,” Attorney General Harris said. “This guide is a tool for businesses to create clear and transparent privacy policies that reflect the state’s privacy laws and allow consumers to make informed decisions.”

In 2003, California established the landmark California Online Privacy Protection Act, which was the first law in the nation to require operators of commercial websites, including mobile apps, to conspicuously post a privacy policy if they collect personally identifiable information from Californians. In 2013, the Act was amended by Assembly Bill 370, which requires privacy policies to include information on how the operator responds to Do Not Track signals or similar mechanisms. The law also requires privacy policies to state whether third parties can collect personally identifiable information about the site’s users.

In 2012, Attorney General Harris created the Privacy Enforcement and Protection Unit to enforce federal and state privacy laws regulating the collection, retention, disclosure, and destruction of private or sensitive information by individuals, organizations, and the government. The unit also works to educate consumers and recommend best practices to businesses on privacy-related issues.

After receiving requests from the business community regarding privacy policy requirements, Attorney General Harris’ Privacy Enforcement and Protection Unit consulted with numerous stakeholders from the business sector, academia and privacy advocates in developing these recommendations.

The guide is available here: http://bit.ly/RUh7Do

Key recommendations from the guide include:

  • Prominently label the section of your policy regarding online tracking, for example: “California Do Not Track Disclosures.”
  • Describe how you respond to a browser’s Do Not Track signal or similar mechanisms within your privacy policy instead of providing a link to another website.
  • If third parties are or may be collecting personally identifiable information, say so in your privacy policy.
  • Explain your uses of personally identifiable information beyond what is necessary for fulfilling a customer transaction or for the basic functionality of the website or app.
  • Describe what personally identifiable information you collect from users, how you use it and how long you retain it.
  • Describe the choices a consumer has regarding the collection, use and sharing of his or her personal information.
  • Use plain, straightforward language that avoids legal jargon and use a format that makes the policy readable, such as a layered format. Use graphics or icons instead of text.

“HP commends the work of California in establishing expectations-based guidance for privacy as it strikes the right balance between innovation and the protection of legitimate consumer rights,” said Scott Taylor, Vice President and Chief Privacy Officer, Hewlett-Packard.

"I applaud the California Attorney General's publication of best practices for communicating with citizens about privacy. Their common-sense recommendations are clear, readable, useful, and mercifully short.  Companies will understand how to comply with the letter and spirit of California transparency laws. In particular, I am delighted to see a light-touch legislative approach for transparency around Do Not Track," said Aleecia McDonald, Director of Privacy, Center for Internet and Society, Stanford Law School.

"Publication of Making Privacy Practices Public is an important step toward helping consumers understand what companies do with the data they collect about them.  Too many privacy policies are incomprehensible legalese.  The best practices spelled out by the California Attorney General if adopted by companies would put privacy policy statements in straightforward, understandable language,” said John Simpson, Director of Privacy Project, Consumer Watchdog.

Attorney General Harris has been a staunch advocate for policies that both protect consumers’ personal information online and foster the continued growth of California’s robust technology economy.

Most recently, Attorney General Harris issued recommendations to California businesses to help protect against and respond to the increasing threat of malware, data breaches and other cyber risks. The guide, Cybersecurity in the Golden State, provides recommendations focused on small to mid-sized businesses, which are particularly vulnerable to cybercrime and often lack the resources to hire cybersecurity personnel. In 2012, 50% of all cyber attacks were aimed at businesses with fewer than 2,500 employees and 31% were aimed at those with less than 250 employees. (http://bit.ly/1p9DGiA)

In 2013, Attorney General Harris issued a guide, Privacy on the Go: Recommendations for the Mobile Ecosystem, which provided app developers with recommendations to develop strong privacy practices, translate those practices into mobile-friendly policies, and coordinate with industry actors to promote transparency. (http://bit.ly/1lZIZAC

In October 2012, Attorney General Harris sent letters to approximately 100 mobile app developers and companies that were not in compliance with the California Online Privacy Protection Act and gave 30 days to post a conspicuous privacy policy. (http://bit.ly/1lZIEOv) In December of that year, the Attorney General filed the first legal action against Delta Airlines, Inc. for its failure to do so. (http://bit.ly/1k2y6Pb)

In February 2012, Attorney General Harris reached an agreement among the seven leading mobile and social app platforms - Amazon, Apple, Facebook, Google, Hewlett-Packard, Microsoft and Research in Motion (now Blackberry) - which required that mobile apps provide privacy policies that users could find in a consistent location in the platform store and review before downloading an app. (http://bit.ly/1nkfUiF)