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Originally Posted by Hayek Personally, don’t care for privacy. The fact is that any social media use (including TBHP) creates digital footprints which will be used to target advertising to you. I find that useful - if I get discount offers from ASICS shoes or accessories for my cars or resorts Is any to stay in, that is great. |
I agree privacy is not an issue. In fact, companies like FB or Google want us to focus on privacy and then feel satisfied when the privacy is addressed by end-to-end encryption. This is what is known as red herring. It works very well.
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Originally Posted by Samurai I have an unusual view on this because of my professional background. Prior to 90s, individuals didn't really have the luxury of encryption. Take telephone system, every government in the world could tap calls according to the laws of the country. There was no technical challenges to it. The very first electronic exchanges (like 1ESS) came with options to tap calls. Other communications like email, fax, telegraph, postal mail or courier system had no encryption either. Even if you did encrypt by hand, the governments always had better cryptographers than individuals. The companies that could afford large computers had access to cryptography, but they were subject to US government restriction too. It was illegal to export encryption software that could use keys bigger than 40bits. If you were downloading a Internet browser in mid 90s from India, you could only download a 40 bit encryption browser.
In 1991, PGP software finally enabled individuals to use 128bit encryption. That means the US government couldn't break it. The author of PGP got into lot of legal trouble with US government.
In other words, individuals got the ability to communicate privately only 18 years ago. But most people started benefiting from it in the last 5 years. We never had it before. Phones are still not encrypted. Most emails are not encrypted. But we are all worried whether the good morning message on whatsapp from aunty is end-to-end encrypted.  |
So, what am I worried about? Something else actually. And I have the benefit of being exposed to this very early when nobody thought there was anything wrong about it.
Somewhere in the 90s, I was an young architect helping the sales team make technical proposals. The customer was a large conglomerate owning dozens of different businesses, including, telephone, mobile, credit card, insurance, internet service, email service, etc. The NDA expired long ago, and the business model discussed there is now the bread-n-butter of companies like FB. They wanted to combine the customer information from dozens of businesses into a single database, so that they can identify unique customers. Without that they were counting the same customer multiple times. For example, a single household was being counted as 9 different customers across their databases. I asked how would you know, since you don't have the integrated database. The customer replied that it was his house, and he and family used 9 different services of his company. The company treated the mobile phones, landline, credit card, car insurance, internet service all as different customer. The company could count 100 million customers, while the reality was... they didn't know. They could only guess, it could be 15-20 million only. So this was a big problem for their marketing team. How to promote new business to their own customer, while not knowing what they already use.
So the privacy thing came up, since US privacy laws are quite strict even those days. The customer told that is not an issue since they won't expose any personal information across their business units. Besides, they already had permission from their customer to send promotional materials via postal mail. I don't know how it is now, but in the 90s and before, every mailbox in US would receive tons of such material.
They had realised that just combining their databases would give them amazing amount of marketing information, to achieve segmentation, efficient targeting of Ads, and also decide how to allocate marketing budget. BTW, this was before AI & ML. But there was something called
data cube, which can give answers to numerous queries just using metadata while not keeping any raw data. It can provide 360 degree views, by knowing all the people you interact with, and places you visit. Generic consumer behavior profiles can be built. You could ask the cube, "give me the list of all customers who are most likely to purchase a mobile service". The cube spit out the answer and they can send the fliers of mobile services to those customers. It all sounded like magic in those days. One person at that time described it as the broom phenomena. Each broomstick is quite useless, just like any personal data. A single broom stick, certain length, width, color, individual blemishes, etc. It has all the details, but not really powerful/useful by itself. If I give you give you a broomstick, you will throw it away soon in the trash. But combine 200 broomsticks, you have a useful broom. It can be used for functions that a single broomstick is utterly incapable of. In fact, the individual properties of broomstick is not at all important or required. The group behavior is way more important and useful than private information, and it lets them target the customer individually without stepping on any privacy laws.
The business model of FB took it to the next level. It has data that can be used for building psychological model of each FB user in every country. And it sells access to this data to any paying customer. The customer can build their own data cube, now even more terrifying because of far advanced AI/ML and faster computing power. They can ask questions like, "which individuals are more susceptible to left or right wing propaganda", and those individuals can be selectively targeted and slowly brainwashed according to customer needs. This has been so successfully done in both Brexit and last two US elections.
Individually, one doesn't have to panic. After all, we all consider ourselves astute and capable of seeing through propaganda. We are broomsticks, and we don't really think about the broom. But companies like FB only see brooms and they sell brooms.