Fine of $1,000,000 imposed on SingHealth and IHiS for breach of Personal Data Protection Act

CNPupdate

 

Fine of $1,000,000 imposed on SingHealth and IHiS for breach of Personal Data Protection Act


A photo of the Parliament building of Singapore



Date Published: 1 February 2019


Authors and Contributors: Stephen Soh and Lorraine Liew.




 

In a Grounds of Decision (“SingHealth-IHiS Decision”) released on 15 January 2019, the Personal Data Protection Commission (“PDPC”) meted out its largest fines to date to Singapore Health Services Pte. Ltd. (“SingHealth”) and Integrated Health Information Systems Pte. Ltd. (“IHiS”), in the amounts of $250,000 and $750,000 respectively for their involvement in the largest data breach incident since the Personal Data Protection Act (“PDPA”) came into force in 2014.

In June-July 2018, personal data of more than 1.5 million of SingHealth’s patients and outpatients were accessed and copied following an attack on its system by unknown perpetrators. IHiS, the central national IT agency for the public healthcare sector, was primarily responsible for cybersecurity of SingHealth’s systems.

The PDPC considered the technical security measures and incident response policies in detail and, having regard to the “highly sensitive and confidential” nature of the medical records that could cause an individual embarrassment if made known, found that both SingHealth and IHiS breached Section 24 of the PDPA in failing to implement reasonable security measures to protect personal data.

The maximum financial penalty the PDPC could have imposed was $1 million on each of SingHealth and IHiS. The PDPC noted that it would have imposed the maximum fine on IHiS instead of $750,000 if not for the mitigating factors that IHiS had voluntarily and unequivocally admitted to liability, cooperated during the investigation, took immediate effective remedial action and that it was a victim of a “skilled and sophisticated threat actor”.

In meting out the $250,000 fine to SingHealth, the PDPC cited the same mitigating factors as it did for IHiS and also noted SingHealth’s constraints since it was a matter of policy that IT functions and capabilities needed to be centralised in IHiS. While the latter factor is unlikely to be relevant in other fact scenarios in the private sector, organisations should be aware of the need to manage data that is held by a data intermediary. The PDPC has stated in various earlier decisions, and reiterated in the SingHealth-IHiS Decision, that there should be a contract setting out “the obligations and responsibilities of a data intermediary to protect the organisation’s personal data and the parties’ respective roles, obligations, and responsibilities to protect the personal data.”[1] It is clear that a data controller’s duty to take reasonable steps to protect personal data from unauthorised use and disclosure is not discharged by merely outsourcing the data to a third-party service provider.

This SingHealth-IHiS Decision reinforces the growing importance and emphasis on cybersecurity, and organisations should carefully consider the strength of their safeguards, technical and otherwise, against unauthorised access to personal data in their care.

 

[1] Paragraph 59, https://www.pdpc.gov.sg/-/media/Files/PDPC/PDF-Files/Commissions-Decisions/Grounds-of-Decision—SingHealth-IHiS—150119.pdf

 

This update is provided to you for general information and should not be relied upon as legal advice.

 

CNPLaw’s Data Protection and Security Lawyers

Stephen Soh Legal Parnter at CNPLaw LLP image

Partner

Stephen heads the firm’s technology, media and entertainment team and co-heads the corporate finance team. He has more than two decades of experience, acquired both in-house and in private practice.




Liew Lorraine is an Associate at CNPLaw LLP

Senior Associate

Lorraine is experienced in advising clients, comprising start-ups and SMEs to multinational firms, on general corporate legal matters, including compliance with applicable laws such as personal data protection and employment/immigration.





With the prevalence of technology and increasing connectivity through the internetcybersecurity and data protection are areas that have grown more important in Singapore.

Since the introduction of the Personal Data Protection Act 2012 (“PDPA), it is mandatory for organisations to comply with data protection rules and we strive to help our clients understand that compliance with the PDPA is no longer an option.

At CNPLaw, we have worked with our clients and helped them navigate through a variety of data protection issues, which include:

  • Reviewing existing policies in order to advise on our client’s compliance with the law
  • Highlighting possible legal risk areas
  • Drafting appropriate documents including personal data protection policies and website terms of use.

We also advise our corporate clients in relation to ad hoc queries on potential breaches of the law and the PDPA, and highlight data protection issues that may arise in the context of employment or HR policies.




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