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This document identifies the risks of data breaches for users of publicly available Internet services such as email, social networks and cloud computing, and the possible impacts for them and the European Information Society. It presents the latest technology advances allowing the analysis of user data and their meta-data on a mass scale for surveillance reasons. It identifies technological and organisational measures and the key stakeholders for reducing the risks identified. Finally the study proposes possible policy options, in support of the risk reduction measures identified by the study.