By Kendra Srivastava | Fri Jan 06, 2012 3:57 pm |
Privacy and security took a beating on all fronts in 2011, embattled by hackers, government regulations and other pressures, and are likely to remain contentious terrain heading into the new year.
The Year Ahead is a series examining the challenges and opportunities facing the mobile industry and its players in 2012. What forces and trends will impact companies and consumers next year? Look into our crystal ball to find out.Security- and privacy-related issues like location and device tracking and hacking drifted onto government and consumer radars, and scrutiny will only intensify, even as the appetite for connectivity increases. Companies and consumers navigate a delicate balance between safety and convenience. The challenges to security will likely escalate in 2012 as phone usage expands and social networks grow, leaving people with little choice but to use extra caution when using mobile devices or surfing the Internet. Mobile Security Lags Mobile phones now offer users a portal to the Internet, technology that will likely spawn as many new problems for personal privacy as it has solutions for convenience. With more people using smartphones than ever, the devices are proving tempting targets for cyber-criminals, especially since security solutions on phones are still nascent. The push for mobile payments will speed the need for better handset security, especially as e-wallet technology ramps up this year. Smartphones are fast becoming wallets, whether through NFC solutions or credit card reader attachments, leaving some to question whether banking information is safe on mobile devices. Industry initiative NFC Forum now includes hardware makers like HTC and Sharp, besides credit card partners like Isis, making it extremely likely that more smartphones will include NFC payment capabilities. If paying via handset takes off as expected in 2012, phones will likely be targeted by hackers and criminals, especially since defenses for the devices are relatively paltry compared to PCs and servers. Phones are already proven relatively vulnerable, judging from the growing rash of malware proliferating on Android phones. Information-stealing viruses and malware are common on Google's app marketplace, including those like DroidDream and ZeusTrojan that silently transmit sensitive data from users' phones to hackers' databases. As Android's market penetration increases, malware on the OS will likely skyrocket. The ongoing debate over mobile location tracking does not inspire confidence about cell phone users' privacy, either. Apple and Google this spring took flack for their allegedly secretive tracking practices, while police in Michigan faced the ACLU's ire for conducting smartphone and geo-location searches without a warrant. Carrier IQ also faced government scrutiny after allegedly tracking keystrokes and other sensitive information in users' Android phones. Tracking devices and data will likely remain at the forefront of regulators' and consumers' attention, continuing to spark debate and possibly even government regulation, if Congress' interest is any indication. Hackers Lash Out, Cyber-War Defense Ramps Up Hackers last year shattered the illusion of online security at both consumer and business levels, suggesting the entire concept is increasingly an oxymoron. High-profile cyber-attacks hit military systems worldwide, striking nuclear programs in Iran and Japan as well as breaching the security systems of U.S. government contractors like Lockheed Martin and IRC Federal. Cyber-criminals also targeted financial institutions like the IMF and Citigroup, infiltrated Sony and Gmail, and even hacked into the Pentagon, FBI and Congress. The National Security Administration predicts hackers will break into national utilities and infrastructure next, citing worms like Duqu as the next major security threat. Attacks like these are likely to become worse this year, according to NSA officials, who now fear China is backing some of the most sophisticated security breaches. The Pentagon is preparing for cyber-war and now has authority to retaliate with physical force against government-backed hackers, suggesting the future conflicts will include a significant cyber component. Government Interference Government regulations will also likely threaten online privacy in 2012, as legislation and law enforcement increasingly police the Internet. In the U.S., the controversial SOPA bill that aims to prevent copyright piracy may dampen online free speech, according to the ACLU. Whether or not SOPA passes, legislation already exists in Tennessee banning "offensive images" on the web, setting a precedent for other states to attempt to restrict Internet use in a similar manner. Also, the FBI last year demanded data from Google and Twitter pertaining to suspected WikiLeaks supporters, fueling debate over the government's right to collect supposedly private online information without a warrant. The debate will likely continue, especially as courts continue subpoena services like Twitter for evidence. Governmental interference during Arab Spring dampened online privacy as well, affecting protestors in Egypt, Tunisia, Syria and other countries where citizens' Internet access was either cut off or heavily monitored. In Russia, too, rumors persist of government tampering with online networks that protested against Vladimir Putin's party's election. Whistle-blowers and watchdogs will be busy this year making sure worldwide governments do not over-regulate the Internet in their eagerness to tame it, but legal and government bodies will likely continue to target the Internet in the name of safeguarding laws. Social Media Hazards External threats to online privacy like hacks and government regulations, however, are likely to affect individuals less immediately this year than social media difficulties. Facebook, despite attempts to keep out creditors, bullies and predators, still harbors many who take advantage of people by "friending" them and scamming their personal information. The service, with its massive user base, is a tempting target for criminals, and the site was recently hit with a malware worm that exposed 45,000 users' logins. The social network's growth will probably fuel more revenue for Facebook, as well as growing threats of more scams and exploits. Facebook's own methods of guarding privacy may also continue to come under fire. Despite a FTC probe settlement that will audit the company on a regular basis, Facebook continues to receive criticism for its "opt-out" privacy policy, which keeps certain information public until a user changes the settings. Twitter is also potentially dangerous territory for those who hold their privacy dear. High-profile figures like Anthony Weiner and Ashton Kutcher discovered this painful reality in 2011 and will likely be joined by many others in 2012, as users draw fire for loose remarks. Private citizens' remarks fueled firings and intense scrutiny in courts, and free speech on the service will remain a contentious issue as users navigate the increasingly blurred boundaries between private and public information on social services. Google+ recently arrived on the scene promising stricter privacy controls, but if its various glitches in that department are any indication, social networking looks to remain inadvertently public this year.
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