Q1/2020 - World Economic Forum (WEF)

World Economic Forum, 21 – 24 January 2020

The annual meeting of the World Economic Forum was dominated by the large international political crises. Yet cyber security and digital economy have become core issues on the Forum’s agenda. The 2020 event featured 223 workshops with 824 speakers. 5G, the increase in cyber crime, international negotiations on cyber security with the UNO ecosystem (OEWG/UNGGE), digital tax and digital currencies were the topics discussed most controversially at the event. As many as five of the 19 issue-specific platforms operated by the WEF are discussing Internet governance-related questions:

  • Shaping the Future of Cybersecurity and Digital Trust
  • Shaping the Future of Technology Governance: Blockchain and Distributed Ledger Technologies
  • Shaping the Future of Technology Governance: IoT, Robotics and Smart Cities
  • Shaping the Future of Digital Economy and New Value Creation
  • Shaping the Future of the New Economy and Society

Studies on Facial Recognition, Cyber Security and Authentication, Davos, January 2020

On the occasion of the annual meeting, the Davos World Economic Forum published studies in January 2020 on facial recognition, the role of ISPs in combating cyber crime, and authentication on the Internet.

The study on facial recognition[1] states that the use of facial recognition in the public range is associated with very high risks that are often disproportionate to the expected benefits. Where face recognition is used despite of this, a robust multistakeholder governance framework must be applied that is based on strictest criteria and subject to independent controls. 

The study on the role of ISPs in combating cyber crime identifies ISPs as a crucial link in the chain of cyber security. The study recommends measures to better protect end users. More public awareness of the risks and dangers of cyber attacks must be created. ISPs should work more closely with both hardware and software providers as well as with governments to close security gaps. This was especially true with regard to the “Internet of Things”. The study phrases four principles and makes six recommendations[2].

Another study investigates the future of authentication on the Internet. It argues that password-based authentication bears many risks and that passwords are the first target of attack for many cyber criminals. The study estimates the damage caused to the global economy by cybercrime in 2020 at $2.9 million per minute, and assumes that up to 50 percent of a company's IT budget are allocated to updating and repairing PINs, passwords and other identifier. Therefore, it sees the future in “passwordless authentication”. Such authentication would save time for the user and money for the company. According to the study, the six core elements of passwordless authentication are  a. Security, b. Privacy, c. Sustainability, d. Inclusiveness, e. Scalability and f. User Experience. The study drafts a “framework for future authentication systems” and offers five “key passwordless technologies”, including biometric recognition systems, QR codes and “behavioural authentication”[3].

Consortium for Digital Currency, Davos, 24 January 2020

On 24 January 2020, the WEF announced the foundation of a new Global Consortium for Digital Currency Governance. The consortium will develop proposals for a global regulatory framework based on criteria such as efficiency, interoperability, inclusion and transparency. The consortium is composed of representatives from companies, financial institutions, governments, international organisations, NGOs, civil society, as well as technical and academic experts. The challenges associated with the development of digital currencies can only be met globally and on the basis of a “holistic and multistakeholder approach”, so the opinion of the WEF. The issue of digital currencies has become a political controversy through the Libra project initiated by Facebook. The consortium aims to contribute to finding solutions to exploit the economic potential of digital currencies without neglecting the societal consequences, including the UN's sustainable development goals (SDGs) up to 2030. Many developing countries fear that the introduction of globally available digital currencies could lead to the collapse of their national banking and financial system [4].

COVID-19 Initiative, Geneva, 24 March 2020

On 27 March 2020, the World Economic Forum in Davos reported of a multistakeholder coalition of cyber security experts from the (white) hacker scene that had been established to protect the Internet (COVID-19 CTI League for Cyberthreat Intelligence)[5]. The Coronavirus crisis had led to an unprecedented global scale of hacker attacks on medical institutions and home offices and to an enormous increase in phishing attacks. Phishing mails requested Internet users to disclose passwords or other sensitive data in exchange to COVID-19 information, which then allowed criminals access to personal accounts of the user, including bank accounts[6]. “I’ve never seen this volume of phishing. I am literally seeing phishing messages in every language known to man,“ said Marc Rogers, Head of Information Security of the annual white hacker conference DefCon in Las Vegas and initiator of the new coalition. More than 400 white hackers from 40 countries, including leading technical experts from Microsoft and Amazon, have expressed their willingness to work in the coalition. The aim of the coalition is to fend off cyber attacks on medical institutions, detect weaknesses in users' hardware and software and block malware. The coalition cooperates closely with Interpol and national law enforcement agencies.

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Q1/2020WEF
  1. [1] A Framework for Responsible Limits on Facial Recognition Use Case: Flow Management, World Economic Forum, Geneva, 2 March 2020, „Conclusion: Considering the sensitivity of biometric data, the use of facial recognition is intrinsically risky. This is true even when its use may provide recognized benefits to individuals and communities. Therefore, there is a pressing need for the creation of a robust governance framework to mitigate these risks. Designing such a framework requires drafting achievable principles, testing them on site and using the results of a policy pilot to review them. This process will ensure that the governance framework is reliable, protective and endorsed by various stakeholders. To achieve this goal, we have built a multistakeholder community and applied a method structured around four main steps: (1) define principles for action; (2) design a set of best practices to support the application of these principles; (3) assess, thanks to an assessment questionnaire, if organizations are compliant with them; and (4) validate these principles through an independent audit. These four steps should not only help inform the design of responsible systems for flow management use cases but also ensure that their designers and users are effectively compliant with these achievable principles. We strongly believe that to ensure the effective adoption of these Principles for Action, they must be embedded at the core of business operations and thus product teams should be able to put them into operation. Yet completing this journey requires strong cooperation between industry actors, policy-makers, academics and civil society representatives. If we manage to build a sustainable collaboration between these stakeholders, we will lay the foundations for the development of truly human-centred technology. The next step of this project is to test our policy framework on site, assess its relevance and review it based on the observed results. This policy pilot will enable AFNOR Certification to test its associated audit framework and pave the way for the design of a standard for the responsible application of facial recognition. Once the pilot project is completed, we will build a multistakeholder coalition of actors committed to respecting and promoting this governance framework. Considering our open and experimental approach, we encourage industry players, public actors, civil society representatives, policy-makers and academics to join us on this journey to strengthen our governance framework and ensure its impact.“ In: https://www.weforum.org/whitepapers/a-framework-for-responsible-limits-on-facial-recognition-use-case-flow-management
  2. [2] Cybercrime Prevention Principles for Internet Service Providers, World Economic Forum, Davos, 23 January 2020: „Executive Summary: 1. Protect consumers by default from widespread cyberattacks and act collectively with peers to identify and respond to known threats 2. Take action to raise awareness and understanding of threats and support consumers in protecting themselves and their networks 3. Work more closely with manufacturers and vendors of hardware, software and infrastructure to increase minimum levels of security 4. Take action to shore up the security of routing and signalling to reinforce effective defence against attacks The intention here is not to provid.“, in: https://www.weforum.org/reports/cybercrime-prevention-principles-for-internet-service-providers>
  3. [3] Passwordless Authentication The next breakthrough in secure digital transformation, Davos, 24 January 2020, „Authentication solutions to date have been predominantly knowledge-based, single-factor and have resulted in countless issues from customer and reputation loss to high costs in help-desk staffing and data breaches. For companies eager to transition into the new digital era, moving beyond passwords should be a short-term objective. Enterprises seeking to capitalize on the platform economy opportunity are recognizing that authentication is one of the first steps to take. As the first contact with customers, it is a key to experience, and the competitive differentiator in the Fourth Industrial Revolution. But user experience is not all that passwordless authentication has to offer. New internet standards are giving platform businesses ubiquitous authentication at a fraction of the cost, allowing for cross-platform interoperability and multinational expansion, all while faring much better on the security front. If passwordless authentication is indeed the next step, it is not an end unto itself. Criminals adapt and security controls tend to be short lived. This is why a sound authentication system should build upon a long-term vision to foster security, privacy, sustainability, user experience, scalability and inclusiveness. The future of authentication will lead take many paths, some that we are only starting to explore like blockchain-based self-sovereign identities and zero trust networks. But the immediate journey for platform businesses to embark on leaves passwords behind.“, in: https://www.weforum.org/whitepapers/passwordless-authentication-the-next-breakthrough-in-secure-digital-transformation>
  4. [4] Governing the Coin: World Economic Forum Announces Global Consortium for Digital Currency Governance, Davos, 24 January 2020, „This is the first initiative to bring together leading companies, financial institutions, government representatives, technical experts, academics, international organizations, NGOs and members of the Forum’s communities on a global level. To tackle the challenge ahead, an international, multistakeholder approach with the public and private sectors working alongside civil society is needed. This consortium will focus on solutions for a fragmented regulatory system. Efficiency, speed, inter-operability, inclusivity and transparency will be at the heart of this initiative. It will call for innovative regulatory approaches to achieve these goals and build trust. A set of guiding principles will be co-designed to support public and private actors exploring the opportunities that digital currencies present. “Digital currency, a cross-cutting topic that requires input across sectors, functions, and geographies, is a key area of interest for the Forum,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. “Building on our long history of public-private cooperation, we hope that hosting this consortium will catalyse the conversations necessary to inform a robust framework of governance for global digital currencies.” “Any evaluation of digital currencies should consider both policy and business objectives, as well as the unique circumstances that face different economies around the world, in order to fully evaluate their risks and benefits,” said Lesetja Kganyago, Governor of the South African Reserve Bank. “Bringing together diverse perspectives through this consortium will allow for this holistic review. In order to achieve this, we need the public and private sector to collaborate.” “While digital currencies offer wide possibilities, these have to be assessed against the fundamental objectives of economic advancement and shared prosperity,” said Patrick Ngugi Njoroge, Governor of the Central Bank of Kenya. “Global governance of the diverse initiatives provides greater assurance of this outcome.” “Governance is the core pillar of any form of digital currency,” said Mark Carney, Governor of the Bank of England. “It is critical that any framework on digital currencies ensures security, efficiency and legitimacy of payments while ensuring fair and open competition. We welcome the World Economic Forum’s platform to help develop a robust governance framework for inclusion through digital currencies.” “We are exploring the potential that properly-regulated digital currencies hold for cheaper and faster cross-border payments, financial inclusion, and rooting out illicit finance,” said Tharman Shanmugaratnam, Senior Minister, Singapore and Chairman, Monetary Authority of Singapore. “This dialogue between public and private sector players is now essential, so we find the right roles for each in realizing this potential.” “We are watching closely as digital currencies increasingly become an area of focus around the world,” said Eric Parrado, Chief Economist, Inter-American Development Bank. “They may unlock new opportunities for efficiency and inclusion, but this can only happen with the appropriate infrastructure and guardrails.”, “The release of digital currencies will have far-reaching implications, from domestic financial stability to international trade,” said Rania A. Al-Mashat, Minister of International Cooperation, Egypt. “As such, it is imperative that efforts to regulate digital currencies are well-informed, collaborative, and global in nature.” in: https://www.weforum.org/press/2020/01/governing-the-coin-world-economic-forum-announces-global-consortium-for-digital-currency-governance/>
  5. [5] Cybersecurity experts come together to fight coronavirus-related hacking, World Economic Forum, Geneva, 27 March 2020, in: https://www.weforum.org/agenda/2020/03/cybersecurity-coronavirus-hacking-pandemic-covid19-health-technology/>
  6. [6] See: Coronavirus Cybercrime, 27 March 2020, in: https://news.netcraft.com/archives/2020/03/27/coronavirus-cybercrime.html>