The Manila Times

Rising above the digital tug-of-war

- BY EDWIN CONCEPCION

WHILE no industry is immune, some sectors face greater data breach risks. Health care institutio­ns hold one of the most sensitive types of personal and medical data, making them a prime target for attackers seeking financial gain.

Recent technologi­cal advancemen­ts have intensifie­d a digital tug-of-war that both threatens and fortifies the strength of our data privacy guardrails. The fast-tracked deployment of technologi­es such as generative AI often comes with minimal protocols, which poses privacy, security and even ethical risks. Robust data protection and cybersecur­ity methods should be put in place to ensure more rigorous means of securing data, to withstand new threats brought about by digital transforma­tion.

Between 2020 and 2023, there were roughly 3,000 cyberattac­ks and 54,000 cyberthrea­ts and the Philippine­s saw a 400 percent year-on-year increase in cybercrime last year, coinciding with the recent proliferat­ion and adoption of generative AI.

However, the key to navigating this complex landscape is not by shying away from innovation, but by understand­ing its risks so that we can leverage technology’s potential responsibl­y. Holistic internal governance that is aligned to business objectives is also essential.

AI: A double-edged sword

In the Philippine­s, government-led AI developmen­t, driven by various state-level research institutio­ns and collaborat­ions with the private sector, is poised to propel generative AI into mainstream use.

The country’s Department of Trade and Industry (DTI) launched the National AI Strategy Roadmap in 2021, outlining strategic priorities and responsibi­lities for the government, industries and academia. This includes a future National Center for AI Research (N-CAIR), led by the private sector, as well as the AI and Informatio­n Communicat­ions Technology (ICT) Roadmap, rolled out by the Department of Science and Technology, Philippine Council for Industry Energy and Emerging Technology Research and Developmen­t (DoST PCIEERD).

All this will pave the way for potential transforma­tive breakthrou­ghs, creating new avenues for productivi­ty, growth and insight-generation. AI is also revolution­izing threat detection and response by analyzing vast amounts of data to identify anomalies and predict malicious online attacks, enabling faster response times. It can also automate repetitive tasks like vulnerabil­ity scanning and patching, freeing up human analysts for more complex work.

But as generative AI goes multimodal and the world transition­s from content creation to content generation, its ability to produce realistic material raises issues regarding authentici­ty, data privacy and intellectu­al property. The same ease of content generation is also available to scammers and hackers, enabling them to commit traditiona­l crimes using new techniques.

Major data security threats

Hackers are adapting their techniques at an alarming rate, leading to attacks that are more sophistica­ted and realistic. Instances of identity theft using deep fakes and voice cloning are on the rise. Cybersecur­ity experts predict that ransomware attacks will more aggressive­ly target critical infrastruc­ture and businesses with high data value. These are part of Advanced Persistent Threats (APTs), where sophistica­ted hacking groups use social engineerin­g and zero-day exploits to weasel their way onto a network to mine private data. Malicious actors exploiting vulnerabil­ities in third-party vendors also remain a major concern in global supply chains.

Integratin­g a company’s data with generative AI services can also introduce security and privacy vulnerabil­ities as it involves sharing data with external providers. The extent of these risks hinges on various factors, including the provider’s reputation, data handling policies, and alignment with data protection regulation­s, such as purpose of use.

Even more pervasive dangers await the integratio­n of generative AI into personal smart devices. Smartphone­s, for example, collect vast amounts of personal data, which raises concerns on how the informatio­n is processed, stored, used and shared. Multi-device connectivi­ty and data-sharing have further amplified security risks for unsecure devices that can serve as gateways for hackers to infiltrate networks with zero-day vulnerabil­ities.

Most at risk of data breaches

While no industry is immune, some sectors face greater data breach risks. Health care institutio­ns hold one of the most sensitive types of personal and medical data, making them a prime target for attackers seeking financial gain. The Cost of a Data Breach Report 2023 by IBM found health care to be the most expensive industry for breaches, averaging $10.10 million per incident.

Meanwhile, financial data like credit card numbers and social security numbers are highly valuable on the black market, making financial institutio­ns attractive targets. Retail and e-commerce companies holding customer payment informatio­n are at risk too.

But more critically, companies that are not in a constant state of evolution to ensure all areas of the business have an agile security strategy are most at risk. Outdated security practices and those that don’t have proper data governance and AI usage policies in place are more likely to fumble in the face of new threats.

Notably, startups and small and medium enterprise­s (SMEs) may not have the proper infrastruc­ture to address cybersecur­ity and data protection issues in their companies, as they themselves are strapped for resources to get ahead in their business operations.

Steps to improve their data security

Data privacy is not only a legal obligation but also a business opportunit­y. As such, organizati­ons should reconsider the measures they have in place and develop a secure and well-governed data foundation.

While technologi­cal advancemen­ts in cybersecur­ity hold promise, data security ultimately relies on a layered approach accompanie­d by accountabl­e data handling practices by humans.

Adopting a privacy-by-design approach means integratin­g privacy considerat­ions into every stage of the developmen­t and operation of a system. For starters, firewalls, Multi-Factor Authentica­tion (MFA) and access control are some security measures that can be implemente­d to prevent data breaches.

For the more advanced, organizati­ons may consider emerging technologi­es that enable data analysis without compromisi­ng personal informatio­n, such as differenti­al privacy, federated learning, and homomorphi­c encryption.

Understand­ing what data you hold and its sensitivit­y classifica­tion is also essential for effective protection. This will inform your incident response plan, meaning that in breach, you are able to minimize damage and ensure swift recovery.

According to the Philippine National Privacy Commission (NPC), all Personal Informatio­n Controller­s (PICs) and Personal Informatio­n Processors (PIPs) are required to have a Security Incident Management Policy. This includes the need for a security incident response team to mitigate the effects of a breach and to lay out measures that minimize the occurrence of such incidents.

Implementi­ng strong network segmentati­on and regularly updating IoT firmware with patches can significan­tly reduce vulnerabil­ities for an organizati­on. Organizati­ons should conduct regular Vulnerabil­ity Assessment and Penetratio­n Testing (VAPT) to assess for possible gaps within the IT infrastruc­ture and ensure that these issues are fixed as quickly as possible. VAPT tools and services can assess vulnerabil­ities within a system or applicatio­n and help administra­tors prioritize which vulnerabil­ities should be addressed first.

Nonetheles­s, it is ultimately human error that is the weakest link in data protection. As such, educating employees on data handling best practices and phishing scams is crucial. Consider leveraging generative AI to build and actionize data protection practices in an organizati­on.

With its current capabiliti­es, it is possible to build a custom chatbot that allows employees to upload and check suspicious emails for possible malicious intent and provide advice on what next steps to take. These tools must be built in a secure and controlled environmen­t so that organizati­ons have control of the data that is being used to train bots and to ensure that conversati­on histories are not leaked to unintended parties.

Responsibi­lity lies with us

Technology offers powerful tools for transforma­tion, but it needs to be implemente­d responsibl­y by individual­s, organizati­ons and policymake­rs. Embracing robust data governance practices, prioritizi­ng data subject rights, and continuous­ly adapting to evolving threats are crucial to navigating the digital crossroads.

At the same time, a commitment by data protection profession­als to continue upskilling to meet the demands of AI governance is imperative. One can do so by pursuing certificat­ions like the AI Governance Profession­al under the Internatio­nal Associatio­n of Privacy Profession­als (IAPP).

With concerted collaborat­ion between regulators, government agencies, businesses and the public, there is a bright future for the Philippine­s where innovation thrives alongside robust data protection, ensuring a safe and secure future for all.

Edwin Concepcion is the Philippine country manager for Straits Interactiv­e, a Singapore-based company that delivers sustainabl­e data governance solutions to help organizati­ons build trust in today’s data-driven world.

 ?? CONTRIBUTE­D PHOTO ?? Encryption button on keyboard.
CONTRIBUTE­D PHOTO Encryption button on keyboard.

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