Data Protection Ombudsman fears spread of identity theft to Finland

Reijo Aarnio urges companies to upgrade data security systems

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Data Protection Ombudsman Reijo Aarnio fears that the practice of identity theft is likely to become increasingly common in Finland.
      In the United States, for instance, identity theft is one of the fastest-growing forms of crime. The personal data of an estimated nine million Americans is commandeered for criminal purposes each year, at a cost of tens of millions of dollars annually.
     
There has also been a steady increase in identity theft in Finland. Most cases are relatively low-tech - stealing someone's bank debit card and buying something with it.
      "If companies do not develop the way that their remote services identify users, it will be just a matter of time here in Finland as well. The greatest problem is that in Finland there are many services where identifying a user is based on information such social insurance numbers, addresses, or telephone numbers", Aarnio says.
      For instance, last year a Helsinki man in his 20s used the information of an elderly couple to borrow tens of thousands of euros.
     
The Data Protection Ombudsman won something of a victory this week, when the Data Protection Board ruled that the manner in which companies that offer instant approval of small loans, often by text message, are in violation of the law on personal data.
      The companies in question grant loans of about EUR 200 on the basis of a telephone number and a bank account number alone. Aarnio says that an acceptable form of identification would be codes used in online banking, or an electronic identification card.
     
Various telecommunications companies have long asked to be given access to the information contained in the electronic identity card system maintained by the Population Register Centre. Aarnio says that doing so could make things worse.
      "A quarter of the turnover of the Finnish telecommunications branch comes from foreign players. We cannot know what kinds of shady companies will come to Finland in the future", Aarnio says.
      "If the identification information gets into the wrong hands, the result will be that forged identity cards can appear around the world."
     
"There is a huge gap in know-how in this matter in Finland. Even in data protection, there is no sense in placing all the eggs in the same basket."
      Aarnio says that there will be a great market in the field in the future, with plenty for Finns to do, as the amount of data moving electronically continues to grow.
      "Many people are suspicious about doing business on the Internet. The fear is partly justified."
      On a very ordinary level, problems surrounding data protection in Finland do not take place on the Internet. Examples are when officials mislay papers containing personal information. However, Aarnio is not calling for more stringent rules on the handling of patient information.
      "Cholera was not conquered by passing laws", he says. "Instead, people were taught to wash their hands."


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  Data Protection Ombudsman

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