The US Federal Trade Commission is evaluating the security and privacy implications of Cloud Computing as part of a wider initiative to investigate a range of digital privacy issues.
In a recent filing with the Federal Communications Commission (FTC), which has joint responsibility for broadband-related matters, said it recognised that Cloud had the potential to provide cost savings.
But David Vladeck, who heads up the organisation’s Consumer Protection Bureau, also indicated in the posting that the storage of data on remote computers may “raise privacy and security concerns” for users.
One of the worries centres on the fact that, while the use of Cloud services was likely to see increasing amounts of consumer data being collected and stored centrally, it could also potentially be shared easily with others. As a result, there was a risk that “larger amounts of data may be used by entities not originally intended or understood by consumers”.
The FTC also said that it was exploring the potential of identity management systems to better protect citizen’s privacy by providing them with a means of authenticating their identity when logging onto web sites.
The organisation plans to hold a roundtable on 28 January to discuss the challenges raised by Cloud Computing, identity management, mobile systems and social networking.
Last year the European Union IT security body Enisa cast doubt on the safety of Cloud Computing. Enisa (The European Network and Information Security Agency) doesn't dismiss Cloud Computing as a no go option, but did recommend that close attention needs to be paid to certain critical aspects, such as privacy.
The report cited loss of control over data, difficulties proving compliance, and additional legal risks as data moves from one legal jurisdiction to another. Other areas of concern are vendor lock-in, failure of mechanisms separating different companies, management interfaces that get accessed by hackers, data not deleted properly and malicious insiders.
