Smart Security for a Smart Age

By+yin+pumin

The release of the iPhone 6 on September 10 triggered a new round of Apple-mania for smartphone users around the world. However， while many are thrilled with the larger screen and updated technology， some consumers are questioning a different aspect of the new phone—whether or not they should buy it while their personal information is at risk of being leaked.

Security concerns

On August 17， Apple Inc. confirmed that it has begun keeping the personal data of some Chinese users on servers on the Chinese mainland， marking the first time the tech giant has stored user data on Chinese soil. Apple said in a statement that the move was part of an effort to improve the speed and reliability of its iCloud service. Positioning data centers as close to customers as possible allows for faster service.

Experts commented that although Apples move was ultimately a business decision， it was also a smart public relations tactic by the company， which has come under fire in China on a number of fronts over the past months for some of its local business practices.

In July， a China Central Television （CCTV） program criticized the location-based services（LBS） on the iPhone as a breach of privacy， in particular the “frequent locations” function that can track and record the location of a users movements.

According to Ma Ding， Director of the Institute for Security of the Internet at the Peoples Public Security University of China， the frequent locations function could produce a specific and complete record of the users behavior. Even if the owner turns off the function， the back end system still collects data， he noted.

“This is extremely sensitive data，” said Ma.“If the data were accessed， it could even reveal state secrets.”

In response， Apple claimed that locationbased data saved onto the iPhone is all local and encrypted， meaning the information isnt available to Apple or any third party. The company stated that there is no backdoor to any of Apples products or services.

However， CCTv argued that although users have the option to turn on or turn off LBS functions at the initial setup of the phone， the default setting is “on” and the function is buried deep within the settings menu of the iPhone， leaving many users unaware of its existence. Of the 60 iPhone users CCTv selected at random in cities such as Beijing and Qingdao， just five said they were aware of the function.

Against this backdrop， the media publicized the removal of 10 of Apples products， including the iPad， iPad mini， MacBook Air and MacBook Pro， from Chinas government procurement list， which was released in late July. It was reported that these products failed to be listed because Apple Inc. had not offered the necessary documents to the authorities before the deadline. Whatever the exact reason， security looms larger than ever when it comes to government procurement.

In 2013， the leaks from former U.S. National Security Agency contractor Edward Snowden raised alarms about the threat of U.S. surveillance faced in countries all over the world. Data shows that cyber attacks on Chinas key organizations in sectors such as the military， scientific research and finance have mainly come from the United States.

According to Mei Xinyu， a trade expert from the Ministry of Commerce， many countries have become wary of foreign IT products since the Snowden revelations.

In May， Chinas State Internet Information Office announced that it would start security vetting of major IT products and services used by national security and public entities. In the same month， China prohibited use of Microsofts Windows 8 operating system on all desktops， laptops and tablet PCs purchased by Central Government organizations in a bid to ensure computer security.

Recent exposures of loopholes in iPhone have raised more concerns about information security in China.

Fang Xingdong， founder of Chinas leading hi-tech think tank Chinalabs.com， wrote a commentary in the Beijing-based Global Times in late July， calling for a ban on civil servants using iPhones.

Fang said that the Chinese Governments recent security concerns are normal for any country. “Some countries impose even stricter controls than China does，” he said， adding that foreign companies may see more limitations in sensitive areas， including the finance and transportation sectors， in the future.

The possible ban may cause government departments and state-owned companies to decide to purchase homegrown products instead of foreign-invested ones， which is likely to influence the foreign companies performance in the Chinese market， said Fang.

A good chance

The Apple incident has sparked fear among Chinese smartphone users， especially those who work in the government， where security is their top concern.

A mobile industry insider said there has been an increase in the amount of encrypted smartphone orders civil servants have placed to local manufacturers since July.

“About 500 to 1，000 such phones are purchased from Shenzhen to be sent to Shanghai in a single order every time Shanghai is out of stock，” the insider told the Shanghai Morning Post.

A Shanghai government official told the newspaper that he had switched to a domestically produced phone with encryption because of his need for better security.

“I often access internal documents and sensitive economic data at work，” said the official. “If my phone is tapped or the data is leaked through security backdoors， it may lead to the stealing of information.”

Apple is not the only mobile phone company losing popularity. Samsungs China smartphone sales decreased to 13.2 million units from 15.5 million a year earlier during the April-June period， according to a market investigation.

Local brands have benefited from the decline. Xiaomi became Chinas top-selling smartphone brand in the second quarter this year， selling 15 million smartphones in China， surpassing foreign mobile giants， according to market research company Canalys.

Coolpad recently launched the first batch of 4G smartphones that come with encryption approved by the government.

“Our main customers are corporate leaders and government officials，” said Xiang Fei， General Manager of the Shanghai Branch Company of Coolpad Group Limited.

According to Xiang， his company has provided 4，000 encrypted smartphones for officials in different departments of the Shanghai local government recently. Police departments in Hunan Province and the Aviation Industry Corporation of China are also using smartphones with an encryption service， he added.

A civil servant in Shanghai said that all staff members in his department switched to domestic encrypted phones in 2011.

“With more leaks of sensitive information in recent years， I believe the promotion of encrypted smartphones among civil servants will increase，” said Zhu Lijia， a professor with the Chinese Academy of Governance.

Wang yanhui， General Secretary of the Mobile China Alliance， said the trend implies a crisis of confidence toward foreign brands.

“The technology and operating systems used by domestic and foreign phones are very similar， but what puts the foreign brands at a disadvantage is a lack of trust by the government，” Wang said. “Domestic phone companies are stronger in terms of understanding and catering to the governments needs in terms of security.”