HOLYTORNADO!

I stumbled upon an interesting article from last October’s Harvard Business Review on privacy which mentioned the research of the privacy expert, Alan F. Westin. He categorised people’s approach to privacy as follows. First there are the Fundamentalist; people who believe we are already living in Orwell’s 1984 and, like most fundamentalist, are strongly lobbying against corporate invasion into our private lives. Then there are the Pragmatist: those who worry about threats to privacy, but believe that reasonable safeguards could be put in place). Finally, we have the Unconcerned; those who give privacy little thought. We’ll call them the Big Brother fans. The unconcerned are essentially those masses who are out there publishing every last detail of their life.

Whenever I read an article on privacy, I realise that the vast majority of writers are always in the first two camps, with even the modern pragmatist leaning further and further into the fundamentalist camp. So I wonder. Are the conspiracy theorist correct and we are living in Arthur C. Clarke and Stephen Baxter’s future where privacy will cease to exist all together? Or perhaps there is a more obvious explanation. Perhaps the pace of change is so fast that even hardcore pragmatist have difficulty keeping up with them. 

The data collecting capability of business is expanding at a phenomenal rate. In a year, business’s will have collected 40 exobytes (4.0 x 10 to the 19th power) of data on us. How much of that data people have agreed to give up is completely unknown. 

And that number will only go up as Google, the mobile operators O2 and 3 Mobile, and handset manufacturers all continue to leverage people’s willingness to surrender data in exchange for better personal service. Google for instance, has now made its social network, Orkut accessible from mobile phones, but added a location service that allows friends to know where each other are, as long as all of one’s friends are on Google and signed up to the service. Likewise, Nokia has countered with a similar service called Friends that links its Maps 3 software with Ovi accounts and your phone book. Then there is Google’s controversial introduction of its Street View service in Google Maps, which caused so many complaints from even the normally “unconcerned” that Google had eliminate the service in some regions.  

The telecoms industry have even more aggressive plans. We have all seen the movies where national security agencies use  wireless triangulation to pinpoint the location of runaway agents. And yes, that’s based on fact as all mobile phones ping the closest wireless access node or receiving station. So by triangulating between three nodes, they can pinpoint you to an area of roughly 10 meters of so (though don’t quote me on that number as it’s probably a lot less). 
 
Now, according to The Guardian, two telecom leaders have increased their data ambitions. Both O2 Media and 3 Mobile want to match location data with customer’s age, gender, web browsing habits, home addresses and buying habits to order to predict your future behaviour, essentially the holy grail of mobile data.  With operators forecasting greater declines in revenue from voice (in part due to the growing use of Skype on mobiles) they are urgently looking for ways to monetize data and to promote different location and time related services. An example of this is a service I mapped out  good decade before all of this existed called location-aware entertainment (or LAES for short). Basically, LAES is a kind of concierge service that literally personalises the entertainment selection you receive depending on where you are, and what you are likely doing at a given time of day. So in your morning commute, the service would send your favourite newspaper. During lunch, maybe the next chapter of a book you are reading. On the commute home, the next episode of a TV program you’ve been following. All without you ever having to enter your preferences, as the service simply learns them as you go along. 

Cloud Computing raises data privacy concerns to a whole new level. The idea behind Cloud Computing is that instead of having applications stored on your own computer, they would reside on the Internet, in much the same was that many blog word processors do today. The goal being that every file you create, you also store on the Internet, just as people currently store huge personal libraries of photos on Flickr. Privacy activist fear that companies will start tracking every keystroke as we work and write; a notion that will convert many of the pragmatist to the fundamentalist camp. In truth, Cloud Computing could be the end of privacy as we know it, as well as a major security risk for users. Imagine what information a hacker could steal by gaining access to every keystroke not only you make, but everybody who uses a popular service such as a Cloud version of Microsoft Office. And let’s face it, they’re server software is known to sometimes look a bit like Swiss Cheese.  

So is this really the end of privacy then? Or will corporations get better at managing and securing data? The answer is, business’ won’t have a choice. Companies are increasingly facing a growing guadmire of legislative, security and reporting requirements that will inflate their cost almost as quickly as they inflate their ability to leverage all that data. Which makes senses given that politicians have the most to lose if corporations leak or misuse data. Because ultimately, politicians are the ones people blame when corporations behave badly. 

Still there are grey areas. Although current EU legislation on data privacy dictate that customer’s have to opt-in for specific uses of data, companies can simply package this opt-in requirement around a “cool new service” that is so generic that it allows them to do whatever they want with the data and even in some cases, share that data with “selected partners” that are made available over the service for your benefit. So customer’s still need to choose carefully before signing up to new services until these loopholes are closed.  

Already now, marketers are constantly debating what can and cannot be done with customer data. And yet, never have I met a marketing manager willing to live in the dodgy grey areas of the law to marginally increase sales. They all fear their legal departments far too much for that. Besides, why bother? Is it really worth the potential political and PR fall-out?  So can company’s be trusted with your personal data? In most cases, yes. But proceed with caution and read the fine print, carefully.

Now if we only had a regulation that controls what the government collects on us.