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Scary Technology (#1) - Tech that should irk you

By | October 14, 2010, 9:17pm PDT

Summary: Halloween is just around the corner and there’s some scary technology out there. In this first of three posts, see how insidious some of this activity really is………

Part 1 of 3
Just because a technology or capability is possible, doesn’t necessarily mean that it should be done.

I wish more technologists and software firms heeded this maxim. Why? I’m seeing too many technologies that take advantage of others – often in ways that users are unaware of or fail to properly understand.

Let’s look at a few examples of technologies that already exist.

Discriminating HR solutions – Suppose you applied for a job but didn’t get it. In your mind, you might imagine a number of reasons why that happened. But, interestingly, you might have been dropped from consideration because the potential employer used a service to vacuum all sorts of data about you on the web. They may have gotten what they thought was your photo off of a social network site. From that picture, they may have decided that you are overweight, participate in dangerous activities, are promiscuous, are of a particular gender, color or sexual preference. The reliance on such information could be unfortunate or discriminatory but you’ll never know as the provider of such information is under no obligation to notify you of what they are sending and sharing with others. They don’t even have to guarantee that this information is even accurate. There are five people in the Chicago area that share my name. Is this firm sure they have the right one of me?

How bad can this be? It can be pretty bad as the data they collect is not verified and it may be out of context. For example, if someone reported that you were a participant in an online support group for Alzheimers, a prospective employer or insurer may decide to not hire or insure you as you may be a sufferer of this disease. In reality, you may be a kind-hearted volunteer helping people with this condition or maybe this is a disease that an in-law is suffering from. Either way, you got burned and you shouldn’t have. Companies that infer your future health from such data may not know that you’re adopted and not prone to the genetically driven diseases of your parents.

Some vendors like to provide others with your Amazon Wish Lists and pages from social network sites. What is on my Wish List also includes things some Internet challenged neighbors and relatives want me to buy for them. How else could I explain that Willie Nelson CD-set? Social networks that let recruiters and others farm their data without disclosing this access to users should be flogged. Yes, people need to expect others will see what they post online but when access to third parties is opened up, shouldn’t users get a period of time to remove prior postings to prevent unintended access?

Many readers may have a PC at home that’s used by many people in the household as well as house guests. Advertising and web-tracking software cannot determine who is actually on the machine at any given time but that doesn’t stop tracking cookie technology from trying to identify consumers in your home. Frankly, anyone trying to make sense of things being viewed from our IP address would be wrong probably 99% of the time. Yet, this data is being sold to advertisers all of the time.

I know information of the web is inaccurate because I leave all sorts of inaccuracies out there. Just the other day, I received an email addressed to a non-existent person who supposedly lives at our home. A web service is scouring public data as well as mailing lists to find out who lives where in America. I laughed when three non-existent people were listed as living in our home. Incidentally, I created these personas just to see if Marketers would sell this information. They did and I should bust them for it.

I’m also aware of firms who trade in the prescription data space. This area is especially gray to me as many insureds have no idea that their prescription data is being sold to third parties unless they actively opt-out of this. Worse, this data can be used by health insurance firms to deny coverage to persons that are mistakenly presumed to have certain diseases. If you have restless leg syndrome, for example, you might take the same medicine for someone with Parkinson’s Disease. A person with Parkinson’s is virtually uninsurable but someone with restless leg syndrome should be eligible. When I first became aware of this practice, I spent a lot of time trying to find out what if anything any of these firms had on me. I still don’t know as these firms, unlike credit reporting agencies, are under no obligation to share with you the information they have on you or to make sure it is accurate.

Recently, I applied for replacement life insurance and was repulsed to learn that virtually every life insurer utilizes a co-operative data sharing organization that stores your medical information. The purpose of this is help insurers prevent you from disclosing a different medical condition story to a different potential insurer. However, you can’t opt out of this. You can’t stop them from putting this information out there and you can’t stop some neer-do-well from hacking their data base.

HIPAA is no help in protecting your health information as virtually any insurer or health care provider discloses that they share your information with all kinds of third parties. Once this data gets to those firms, you have no protection and no recourse. Once it’s out there, it can’t be clawed back.

My good friend Vinnie Mirchandani frequently tells me that privacy is non-existent in the Internet Age and I should get on with it. I would rebut that we only lose our privacy, our rights, etc. when we cease to fight for them.

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Topics

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Biography

Brian Sommer

Brian is in a unique position to diagnosis the winners and the losers in technology and services. He was the longest running (10 years) and most senior director of Andersen Consulting's (now Accenture's) global Software Intelligence unit - a position that required him to pick the best possible software solutions for hundreds of clients globally. He advised the firm on ERP software market forecasts and helped establish manpower planning estimates by vendor for deployment globally.

Brian continues to remain close to technology buyers and sellers. When he left Andersen Consulting, he co-created a dot-com with blogger and former arch-enemy at Price Waterhouse, Vinnie Mirchandani. That firm helped broker efficient services contracts between software buyers and systems integrators. Since then, he's created TechVentive, Inc. - a company that helps technology firms better understand their markets - and Vital Analysis - the research and publishing arm of TechVentive.

Brian still travels the world and publishes an impressive number of articles, research reports and blog posts annually to help software and services buyers make better business decisions. He can be reached at: brian @ vitalanalysis.com

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RE: Scary Technology (#1) - Tech that should irk you
Jim40000 27th Nov 2010
Brain, isn't your overarching theme that data mining at its most pernicious is often not only wrong, but it precludes people from second chances? It also does not accurately tell the story of who a person is.

No one is perfect. In fact the well connected and powerful find can sometimes find ways around our laws.

Situational ethics alone is a murky business. Mining data doesn't very often help. If we're going to preclude talking to people because of what we think we know, we are giving up a great number of chances to meet wonderful people.
Believe you will need!!!!!!

is a very good!

come HTTP://0845/4PC
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Laws are far behind the technology...
Snooki_smoosh_smoosh 15th Oct 2010
And votes are easily bought...
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You meant to say 'lose' instead of 'loose'.
- Eric, the Home School dad
Your quote, "Just because a technology or capability is possible, doesn?t necessarily mean that it should be done.", is not really complete until you add, ".. but it probably will be done, anyway." Human curiosity, if nothing else, will make sure it happens.
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If the items are for someone else, set up separate *gift idea* lists for each recipient.
Tell me guys Does the thought of Soylent Green scare you ???
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Many of the problems you describe are a consequence of the US's lack of a data protection law. In EU countries, there are strict limits to what companies can do with your data.
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wow! brutal story Brian , 'you are 2 cool ' they really sold you the information ? unreal ..
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Too little, too late!
JTF243@... 17th Oct 2010
It almost seems as if those under 35 don't seem to realize just how much info about them is out there. This is especially true of info they either do NOT want to get out (OOOPS! Too late!) or incorrect info, it would scare them out of 20 years growth (or more!).
But they will learn (much to their dismay!).
Brain, isn't your overarching theme that data mining at its most pernicious is often not only wrong, but it precludes people from second chances? It also does not accurately tell the story of who a person is.

No one is perfect. In fact the well connected and powerful find can sometimes find ways around our laws.

Situational ethics alone is a murky business. Mining data doesn't very often help. If we're going to preclude talking to people because of what we think we know, we are giving up a great number of chances to meet wonderful people.

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