DATA ANALYSIS AND PROFILING

Software is getting better and better at slicing and dicing and
turning data into information. Databases can help companies
build profiles of user behavior based on billions of statistically
analyzed data points. Data fusion is also a popular way of adding
value to data by combining two or more data sources. Your shopping
history could be compared with your medical records to
reveal a statistical correlation between your rising weight and
your purchases of ice cream and snack foods. Processing the
records of others with similar histories could result in a profile
that companies could use against you. Imagine, while in line at
the checkout counter, you happen to get a wireless email from
your health insurance provider threatening to cancel your coverage
unless you put the Ben & Jerry’s back where you found it!

The very fact that Wireless Internet use will create another
source of consumer data is troubling when we look at the
money that is going into creating this system. The cost of new
networks and services can be at least partially alleviated with
revenue gained from selling this personalized data to companies
that are experts in data fusion and profiling and that specialize
in processing and selling consumer information.
Wonder why more consumers haven’t revolted and refused
to participate or even understand what is happening to their
data? We’ve been bought off with the convenience and savings
that these loyalty programs and electronic systems offer. Until
consumer awareness of the potential dangers increases most
will likely continue to sign away bits and pieces of personal data.
We believe it will take a series of high profile abuses of personal
data before many consumers will trade off that grocery store
loyalty card 20 percent discount on soda and chips in exchange
for greater privacy. 189

DATA STORAGE

The next stage in the possible invasion of privacy is data storage.
Data storage is becoming cheaper and cheaper. This is a great
thing when consumers want to store personal content like digital
pictures, tax records, and other accounting info. The bad
news is that data storage has become so cheap that there is little
incentive to throw data away. The majority of these systems
are built to collect and aggregate data automatically, without
much emphasis on error checking or data correction.
Data, both correct and incorrect, can now live on forever—
errors in credit reports, medical histories, purchases, and travel
records can all be accessed long after you have forgotten or
even knew of them. Trails and histories of what actions took
place and what content was accessed or requested become
almost permanent. The digital world is unlike the physical
world in that it doesn’t forget the past until told to erase it. In
the physical world one can be reasonably assured that eventually
nobody will remember you ever visited that “unique” store
or alternative nightclub back in college. Now, however, there is
a digital trail back to those questionable Web sites that lives
practically forever. (Or until someone deletes it, which could
take even longer.)

DATA COLLECTION

Often the first stage of an intrusion of privacy is data collection.
If the information doesn’t exist it’s hard to violate one’s
privacy. Whereas most individuals wouldn’t bother to go out
and gather this information, companies do this all the time,
often with our help. Grocery store loyalty programs are a good
example—we willingly sell our name and other personal info
along with a complete record of what we purchase and when.
There are many automated forms of data collection today—frequent
flyer cards, toll tags, credit cards, and phone bills. The
Wireless Internet will increase the amount of data that can be
collected. Initially this data will not be very personal—stock
quotes, news, weather—but as devices and networks evolve to
enable more sophisticated applications and services, security
will become an important concern and impact the growth of
the Wireless Internet.

PRIVACY VERSUS ANONYMITY

PRIVACY VERSUS ANONYMITY. Privacy has historically been
something that a consumer could control to a great degree by
simply choosing to whom to reveal information. Even the act of
leaving your home to go shopping presented a situation where
you could control who you greeted and gave your name or other
personal information to. Even the time of day you chose to go
shopping impacted who you might run into—going to the grocery
store late at night limits the type of people who would be
likely to see you. I once knew a teacher who would go shopping
late at night so that she could avoid having any of her students
observe her buying beer and cigarettes: She protected her privacy
by controlling her actions.
This attempt at privacy didn’t render my friend anonymous;
privacy and anonymity are often confused because their
purposes overlap considerably. Dictionary.com defines them as
follows:
• Privacy. 1a. The quality or condition of being secluded from
the presence or view of others. 1b. The state of being free
from unsanctioned intrusion: a person’s right to privacy. 2.
The state of being concealed; secrecy.
• Anonymity. The quality or state of being unknown or unacknowledged.
One that is unknown or unacknowledged.
Anonymity can be used to reinforce privacy, however both
are actually very difficult to achieve in today’s society. Even
those of us that are not movie stars or well-known celebrities
place a high value on our privacy and ability to occasionally be
unknown to those around us.

SECURITY AND PRIVACY

Technology and the evolution of communications networks
have been phenomenal—truly the kind of advancement that
can leave users gasping in astonishment. Unfortunately, not all
of the amazement is positive. Users are increasingly shocked
and concerned about the lack of privacy and security in our
increasingly digital world.
Whereas the majority of users are essentially unconcerned
about privacy, a growing number of consumers and pro-privacy
organizations are pushing for protection. In most cases it’s individuals
who want privacy and companies, governments, and
other large organizations that want to violate it—even though
this is typically done in the name of marketing, law enforcement,
or even customer service. Most consumers are unconcerned
because they feel they have nothing to hide—as long as
there is nobody walking in the front door with a camera crew
people feel they have nothing much to worry about.

M-COMMERCE—SECURITY PAYS OFF

Providing secure payments and protecting the privacy of an
individual’s personal data is critical to the growth of mobile ecommerce,
also known as m-commerce. M-commerce may
someday provide a true alternative to cash and make purchasing
items as easy as hitting a few keys on the keypad of your
Wireless Internet device.
One of the most important issues to overcome in the area
of m-commerce is fraud. It’s easy enough to prove payment in
the physical world—cash works well and credit cards have
sophisticated protection schemes to protect both the holder
and the merchant from unauthorized use. Over the Internet,
it’s quite a bit harder to confirm the identity of the entity that
is attempting to complete a purchase—merchants are unable
to ask for a photo ID or some other proof that the identity of
the person requesting the purchase is correct.

One solution may be biometric identification. Biometrics
involve the use of technology that can identify unique attributes
of an individual, such as a fingerprint or a scan of the
face, to be presented as proof of identity. The user might
have a fingerprint scanner built into their Wireless Internet
device. This scanned image would be transmitted to the merchant,
who would check it against a secure database of fingerprints.
If the user has registered in this database, and the
information matches, the merchant would allow the purchase
to proceed.

M-COMMERCE—SECURITY PAYS OFF

Providing secure payments and protecting the privacy of an
individual’s personal data is critical to the growth of mobile ecommerce,
also known as m-commerce. M-commerce may
someday provide a true alternative to cash and make purchasing
items as easy as hitting a few keys on the keypad of your
Wireless Internet device.
One of the most important issues to overcome in the area
of m-commerce is fraud. It’s easy enough to prove payment in
the physical world—cash works well and credit cards have
sophisticated protection schemes to protect both the holder
and the merchant from unauthorized use. Over the Internet,
it’s quite a bit harder to confirm the identity of the entity that
is attempting to complete a purchase—merchants are unable
to ask for a photo ID or some other proof that the identity of
the person requesting the purchase is correct.