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Chapell Blog: The Chapell view on privacy issues of the day.

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Friday, July 1, 2005

Cable's Big Bet On Hyper-Targeting  BusinessWeek - June 29, 2005

Time Warner will test new software that sends different ads to different viewers Imagine the scene. You're relaxing at home, engrossed in the flickering images on your big-screen TV. Ahhh, nothing like really great programming. Except in this case, it's not a show that's got your attention; it's a 30-second commercial.

 

The Chapell View                              

You really know that behavioral targeting has hit the mainstream when the cable and television people start to use it. I’m a big fan of any technology that promises to increase the relevance of advertising IF it does so in a privacy neutral way. Of course, that’s a big IF. In the context of the Internet, behavioral targeting is generally conducted in a way that is privacy safe. The online folks have learned from the sins of the past, and (thanks to my friend Trevor Hughes and the NAI) have developed a set of principles and best practice standards for online profiling.

 

As I think about using behavioral targeting in the context of cable and network television, a few questions come to mind. For example, how will the cable companies notify their subscribers about this type of program? Will TV viewers have the ability to opt-out from this type of profiling? How is this information stored? Will viewing habits be combined in some way with other offline demographic information – for example, the billing address of the cable subscriber? If a cable subscriber also subscribers to the cable companies’ ISP and phone service, will any of that information be used to augment the targeting database? Ad relevance is wonderful, but if these questions are not adequately addressed on the front end, the burgeoning set-top behavioral industry will be set back several years via consumer backlash, advocacy and perhaps new legislation. This type of targeting was not really envisioned by the drafters of Cable Television Consumer Protection and Competition Act of 1992.

 

In many respects, set-top box behavioral targeting is similar to online behavioral targeting, and will need to address many of the same issues. I’d like the see the NAI Principles expanded to incorporate this and other new vehicles for behavioral targeting.

 

Thursday, June 30, 2005

Grokster: Get Over It  Mediapost - June 30, 2005

BY NOW, EVERYONE IN THE industry knows that the United States Supreme Court ruled earlier this week that file-sharing services could be held liable for copyright infringement by consumers using their services. This is big. It means that companies can no longer operate such services without assuming some liability for how they are used. Many in our industry are disappointed by the decision, concerned that holding the creators of technology liable for any one of a myriad of uses will discourage innovation.

 

The Chapell View                              

I have a tremendous amount of respect for Dave Morgan and Tacoda – sharp guy, great company. Dave revealed a number of his personal and professional biases – except for one. I dunno, maybe he thought it was too obvious to bother mentioning.

 

Tacoda is in direct competition with many of the Adware companies that bundle their software alongside file sharing programs. In other words, the Tacoda network is in many instances vying for the same ad dollars as the Adware companies. And this competition is only going to intensify if/when other Adware players move towards Behaviorlink (behavioral network) type networks. To the extent that Adware company distribution efforts are hurt by the Grokster decision, Tacoda may enjoy a relatively better position in the marketplace.

 

I’m not here to take Dave to task for this – just to make a larger point. One of the most interesting and exciting aspects about the whole Adware / online profiling / behavioral targeting debate is that each group is morally convinced that they are in the right. And it just so happens, that their definition of what’s right seems to line up in near-perfect symmetry with the business goals of their respective companies.

 

Perhaps this is why our friends at Microsoft can simultaneously (and with a straight face, I might add) offer THAT operating system, develop an anti-spyware software program AND contemplate the purchase of Claria. (As an aside, I can remember an episode of the old Batman TV series where the Penguin poisoned the water supply and then tried to charge people for the antidote. Talk about reality imitating art – of course, that assumes you define the Batman series as “art.”)

                                

Thomas Jefferson believed that factions were a good thing for society because they diffused the power of the elite. I wonder if this is what he had in mind?  (:

 

And just for the record - I have and continue to work with some of Tacoda’s competitors, including some in the Adware space.

 

Tuesday, June 28, 2005

Equifax CEO says no easy answers for identity theft  MercuryNews - June 28, 2005

The public's fear of identity theft has led to big profits for Atlanta-based credit-reporting agency Equifax Inc., but the company's outgoing CEO said Monday that he worries whether concerns over data security could eventually stifle consumer spending. "It's an epidemic that worries me to death," said Thomas Chapman, chairman and CEO of Equifax, one of the nation's top three credit-reporting companies, following a speech to about 50 people in attendance at the Commonwealth Club of California, a public affairs forum.

 

The Chapell View                              

Daddy, where does ID theft come from? I’ve read many articles that outline the connection between ID theft and Spyware, keystroke logging, and other nefarious creatures of the online universe. I’ve also read about the 100 million consumer records that have been breached over the past nine months, and their connection to ID theft. I ALSO looked at the study conducted earlier this year by BBBOnline, which indicated that most ID theft was perpetrated by people who know the victim.

 

My question – does anyone know what the leading cause of ID theft is? Seems to me, that if we want to know how to stop it (or at least do a better job of protecting ourselves from it) we should have a more complete answer to that question.

 

Friday, June 24, 2005

Only YOU Can Prevent … Privacy Concerns?  iMediaConnection - June 23, 2005                    A Chapell Article       

At OMMA-West in San Francisco on June 6th, I heard Bob Garfield opine on the future of advertising. For those of you who didn’t attend Garfield's discussion, he looked 20 years into the future towards a world which, in many ways, resembles that of George Jetson's. In the era of the Jetsons, advertisers will be able to know what consumers want and when they want it. In the era of the Jetsons, advertising won’t be intrusive to consumers, and all consumer privacy issues will be adequately addressed. It will be a wonderful, Utopian society.

 

The only trouble is -- we’re not there yet.

 

Thursday, June 23, 2005

Pentagon Creating Student Database  Washington Post - June 23, 2005

The Defense Department began working yesterday with a private marketing firm to create a database of high school students ages 16 to 18 and all college students to help the military identify potential recruits in a time of dwindling enlistment in some branches. The program is provoking a furor among privacy advocates. The new database will include personal information including birth dates, Social Security numbers, e-mail addresses, grade-point averages, ethnicity and what subjects the students are studying.

 

The Chapell View                              

As the U.S. Government increasingly turns to the private sector as a means to circumvent the spirit of the Privacy Act, it’s difficult to avoid feeling somewhat helpless. While I recognize that the cultural and political pendulum swings to the far right these days, I’d like to think that much of the progress made during the 1960’s & early 70’s isn’t going vanish in the proverbial haze of post 9-11 America. But little by little, our nation is heading towards a type of surveillance society that was unimaginable even ten years ago.

 

Tuesday, June 21, 2005

Gov't Collected Data on Airline Passengers  NY Times June 22, 2005

Air travelers who have been concerned about the government collecting their personal information from airlines now have a second source to worry about: commercial data aggregators. The federal agency in charge of aviation security revealed that it bought and is storing commercial data about some passengers -- even though officials said they wouldn't do it and Congress told them not to. The Transportation Security Administration is testing a terrorist screening program called Secure Flight that uses information about U.S. citizens who flew on commercial airlines in June 2004. ''This is like a secret file that's been compiled,'' said Tim Sparapani, a privacy lawyer with the American Civil Liberties Union. The TSA hopes that successful testing of Secure Flight will allow it to take over from the airlines the responsibility for checking passenger names against terrorist watch lists. But Secure Flight and its predecessor, CAPPS II, have been criticized for secretly obtaining personal information about airline passengers, not doing enough to protect it and then misleading the public about its role in acquiring the data.

 

The Chapell View                              

Congress needs to completely deconstruct the TSA – and I mean completely. Take apart the TSA office buildings a la the Abu Grave prison. Salt the earth like the Ancient Greeks used to do. Let’s just take a mulligan on this one – and start over.

 

Adding to their list of questionable decisions, the TSA has engaged data aggregators to help…

 

Ahh yes, the data aggregators. The same group that disenfranchised votes in Florida a few years ago. The same groups which have come under fire recently for their role in many of the data breaches.

 

Anyway - I have a brand spankin new data aggregator story for you.  Bear with me – I going somewhere with this.

 

A friend of mine works at a large Ivy League Medical Research lab. Her office engaged one of the data aggregators to compile updated information on study subjects. (Ensuring HIPAA compliance, of course.)

 

As you probably know, some of the large data aggregators have recently undergone some significant changes to their methods and procedures in light of the ChoicePoint scandal. About a year ago, ChoicePoint was bamboozled by a group of Nigerian credit card scammers. The scoundrels (the Nigerians, not Choicepoint) had posed as legitimate businesses in order to obtain access to ChoicePoints’ data products.

 

In order to ensure that their company doesn’t succumb to a similar fate, the data aggregator put the Ivy League Research Lab through three months of hoops – requesting copies of the university’s charter, photos of the building, etc. – in order to ascertain that the university is, in fact, a legitimate entity. Seems like a bit much for me given that the University is pretty much a household name, but whatever – rules are rules. And ensuring privacy is a priority, right?

 

Once satisfied, the data aggregator accepts the University’s data file, and begins work.  After a few weeks, the data aggregator returns a file that “they’re pretty sure was encrypted.” Again – great idea – ensuring privacy is a priority, right? Unfortunately, the data company must have done too good a job encrypting the data, as it was completely unreadable to the University staff.

 

When the University complained, the data company sent over another file to the University. The good news is that the file was completely readable. The bad news is that it was the wrong file. The new file included some other company’s data – including names, addresses, phone #, and private health information.

 

By now you’re probably wondering – is there a point to this story? I have two:

 

1.      All the planning and due diligence in the world can sometime be undone by one careless mistake.

2.      Data is becoming more burdensome to obtain. And it will only get more bureaucratic as additional privacy legislation is ushered in.

 

Friday, June 17, 2005

Marketers Seek To Make Cookies More Palatable WSJ – June 17, 2005

Online marketers are scrambling to protect one of the key tools of their trade: the cookie. Faced with reports showing that more and more computer users regularly delete the tracking files automatically downloaded by Web browsers, marketers and Web site publishers are launching a "cookies can be good for you" campaign. They argue that cookies -- small files that Web sites use to identify users and to serve up targeted ads -- don't deserve their bad reputation and shouldn't be lumped together with such Web scourges as spyware and viruses.

"There is a culture of fear in the marketplace" when it comes to consumer attitudes toward cookies, says Nick Nyhan, president of New York-based Dynamic Logic Inc., which uses cookies to measure the impact of online ads for companies such as General Motors Corp., PepsiCo Inc. and Yahoo Inc. "The industry needs to respond to that fear."

 

The Chapell View                              

I’m a big fan of SafeCount, and absolutely support their mission.

 

On a side note, I am extremely concerned about the use of Flash technology to “replicate” the tracking functionality. Using flash to track consumer movements is a bad idea:

1.      Consumers are already concerned about having their online movements tracked.

2.      Cookies can be removed, while it’s unclear how do disable the Flash functionality. In fact, I’m not even sure that Macromedia places the flash program in the add/remove.

3.      The average Internet user would have no idea that Flash was being used to track their movements.

4.      This would seem contrary to the mission of SafeCount, which seeks to reach out and educate consumers.

5.      We’re playing into the hands of the anti-spyware companies, who will eventually be able to detect the presence of the flash technology (if they can’t already) and remove it from consumer desktops.

 

I’ve heard members of the advocacy community refer to cookies as Spyware. I don’t agree with that characterization. Having said that, if your organization begins to use Flash (or any other downloadable program) to track consumers, and you don’t tell them about it, and there’s no reliable way of removing the program from the desktop --- don’t know about you, but that’s starting to sound a lot like Spyware to me.

 

 

What Will Erode Confidence in Online Next? Try Click Fraud MediaPost.com – June 17, 2005

Let's see now...consumers are so dismayed and frustrated with how online marketers track them around the internet, they download programs to sweep their hard drives of any programs they're unfamiliar with, including the harmless cookies that we use to quantify our campaigns, and their results. That's bad enough - but the real darling of interactive for the past two years has been Search, of course. And Search is quantified on clicks - not cookies. Search - or SEM, more precisely - has been responsible for the lion's share of the increase in online ad spending during the past two years, no matter how you slice it.

 

The Chapell View

Mark Naples is a smart guy and a good friend. I would take his argument a few steps further, though. Our industry is just beginning to address Adware/Spyware and click fraud, and it’s time to admit that these are merely the tip of the iceberg. Yes, we need to devise a process for advertisers to monitor Adware companies, and Adware companies to their distribution partners. We also need a process for the Leviathan otherwise known as affiliate marketing. Moreover, Ebay is suffering from a loss of consumer confidence as a result of the company’s inability (some might say unwillingness) to effectively police its user base and protect consumers against the nefarious scam artists who are perceived to be running amok these days.

 

Pure, Darwinian market forces are achieving less than stellar results. We as an industry need to do a better job of self-regulating the markets that we’ve created. More on this in the very near future.

 

 

Wednesday, June 15, 2005

Senate Takes up Data Security Law  InternetNews.com – June 15, 2005

With growing evidence that Americans want new data privacy laws, the U.S. Senate opens a series of hearing today on legislative solutions to data breaches and identity theft. Thursday's full Senate Commerce Committee hearing will not specifically address any of the several bills introduced in the 109th Congress, which combat identity theft and force data brokers to disclose breaches of personal information to consumers.

 

The Chapell View                              

Not much new information here. Consumers are drawing a connection between ID theft and Internet usage – and in some cases are curtailing their use of the Internet as a result. While Spyware and online scams certainly have played a part in ID theft, most of the ID theft cases of any significance over the past six months are a result of offline data breaches. The Choicepoint scandal had nothing to do with the Internet – neither did the recent MasterCard data breach. 

 

Monday, June 13, 2005

Cash-Strapped Airlines Try In-Flight Advertising MSNBC – June 7, 2005

On a recent Alaska Airlines flight, passengers were told to remain buckled and seated for the last 30 minutes before landing at Reagan National Airport. It was a standard security measure for flights heading into restricted airspace over Washington. It also turned a planeful of passengers into captive customers who were then pitched a Bank of America Visa card -- with little chance of tuning it out. Over the intercom, a flight attendant encouraged passengers to sign up for the Bank of America credit card. Then other flight attendants went down the aisle handing out applications.

 

The Chapell View

Sooner or later, I’m going to be on one of these airplanes. I’ll be heading out to make some big presentation – which, by the way, I won’t have even begun writing until I get onto the plane. I’ll feel particularly lucky as the infant in the seat behind me has fallen back to sleep. And then just as the plane reaches the 20,000 feet mark and the captain has OK’d the use of my laptop, I’ll hear some voice come over the PA – telling me about the wonderful new “mile-high” card from Visa. And I won’t be able to silence the voice. That DAMN voice. Hitting the “stewardess service” button above won’t make it stop…. AAAARRGGGGG!

 

When are advertisers going to stop focusing on intrusion, and start focusing on relevance?

 

Thursday, June 9, 2005

Symantec Sues Hotbar.com in Adware Case MSNBC – June 7, 2005

Symantec Corp., which makes Internet security software, on Tuesday said it filed a lawsuit against an Internet company Hotbar.com to seek the right to label some of its program files as adware. The company said it is not seeking monetary damages as part of the lawsuit filed in U.S. District Court in San Jose, Calif. Instead, Symantec said it wants to be able to help its customers remove adware programs from their computers that are linked to Hotbar.com's products. A spokesman for Hotbar.com could not be immediately reached for comment. The New York-based company develops a variety of products aimed at Internet users, including e-mail tools and desktop toolbars.

 

The Chapell View

Is this a case of man bites dog – or dog bites man?

 

The Scarlet “A” --- “Adware” is now so politically charged that companies are actually taking legal measures to avoid having the term applied to their company. Any way you look at it, the term “adware” is not meaningfully different than “spyware” – and certainly not in the mind of the consumer.

 

Tuesday, June 7, 2005

Citi notifies 3.9 million customers of lost data MSNBC – June 7, 2005

CitiFinancial, the consumer finance division of Citigroup Inc., said Monday it has begun notifying some 3.9 million U.S. customers that computer tapes containing their personal data had been lost. New York-based Citigroup said the tapes were in a box shipped in May via UPS Inc. from a Citigroup facility in Weehawken, N.J. to an Experian credit bureau facility in Allen, Texas. Data on the tapes included account information, payment histories and Social Security numbers.

 

The Chapell View

I shudder every time another data breach is announced. It seems like we hear about another one almost every week. And it occurs to me that the NUMBER of breaches has not changed, just the DUTY to disclose. I wonder how many of these breaches have occurred over the past five years? And how many people’s lives have been ruined by ID theft as a result of a breach.

 

Ironically, up until now, Citicorp has done a pretty good job using privacy as a marketing tool. Will claims that Citicorp is a privacy safe organization continue to resonate with consumers after this incident? We’ll see.

 

Btw, offering three months of credit protection is an insult to customer intelligence.

 

Monday, June 6, 2005

Phishers get smarter ZDNET UK – June 6, 2005

Phishing attacks are getting harder to spot as cybercriminals become increasingly skilled at disguising their fraudulent Web sites. Phishers are becoming increasingly sophisticated in their attempts to grab user names, passwords and other personal data from users of commercial websites, according to latest industry research. April's report from the Anti-Phishing Working Group, published on Monday, indicates an 11 percent drop in the number of reported attacks using simple IP address domains. The overall number of reports continued their upward trend to reach 14,441 for the month, said the APWG, which compiles its report with the help of WebSense.

 

The Chapell View

Given that the number of phishing emails has reached epic proportions, I am amazed when I receive (or hear of) traditional, legit brands who still send their customers email messages asking them to update their address and/or account information. C’mon folks, consumers are already confused enough. Let’s not muddy the waters further by imitating the bad guys!

Tuesday, May 31, 2005

I.B.M. Software Aims to Provide Security Without Sacrificing Privacy NYTimes – May 24, 2005

International Business Machines is introducing software today that is intended to let companies share and compare information with other companies or government agencies without identifying the people connected to it. Security specialists familiar with the technology say that, if truly effective, it could help tackle many security and privacy problems in handling personal information in fields like health care, financial services and national security. "There is real promise here," said Fred H. Cate, director of the Center for Applied Cybersecurity Research at Indiana University. "But we'll have to see how well it works in all kinds of settings."

The technology for anonymous data-matching has been under development by S.R.D. (Systems Research and Development), a start-up company that I.B.M. acquired this year.

 

The Chapell View

Hurrah for Big Blue!!! While I recognize that this technology is still in development, I like what I see so far. Any time you can enhance an organization’s (in this case Government) use of data while simultaneously decreasing the risk to privacy rights, you’ve got a win/win.

 

Monday, May 30, 2005

After theft, Bank of America tightens online security  InfoWorld – May 26, 2005

Just days after confirming that information on about 60,000 of its customers had been stolen by an identity-theft ring, Bank of America on Thursday announced plans to tighten security for its online banking customers. Beginning next month, the Charlotte, North Carolina, bank will begin offering a new service called SiteKey that will make it harder for thieves to access Bank of America accounts. SiteKey will recognize when a Bank of America account is being accessed via an unknown computer and will generate a predetermined "challenge" question, adding another level of security to the process of logging in. The software also lets users choose a specific image -- a photograph of a dog, for example -- that can then be re-shown to users in order to reassure them that they are actually visiting the Bank of America Web site, and not some other site masquerading as www.bofa.com.

 

The Chapell View

I like the SiteKey program – a lot!!! To date, Citicorp is one of the few banks to actively use privacy and security as differentiators. I hope that Bank of America will use this program as a way to set their company apart from the competition.

 

I do see one problem with SiteKey, however. And this is a similar problem faced by almost all security and authentication programs. Users tend to have trouble remembering their passwords. There’s an inherent difficult when setting up a password or challenge response answer. You want to make it complex enough so that the bad guys don’t get a hold of it, but not so complex that you can remember it. And it would be bad enough if you only had to remember one or two passwords, but many of us have dozens of different passwords to remember. I, for example, have a separate password for:

·         My Computer

·         My Hotmail Account

·         My Yahoo Account

·         My Gmail Account

·         The ChapellAssociates.com Server.

·         My Business Online Banking Account

·         My Personal Online Banking Account

·         My ATM Pin

·         The UID and Password to access my Blackberry.

·         Half of the web sites that I visit regularly…

 

And that’s just off the top of my head.

 

My point being, that in order for me to be smart about my security, I would need to remember a dozen different passwords. Given that I can just about remember my own bank account number, that’s a difficult task.

 

Someone in the technology world needs to come up with a better method of authentication.

 

Friday, May 27, 2005

Assigning a Value to E-Mail Addresses Washington Post – May 25, 2005

E-mail addresses have a shelf life. Nearly a third of them go bad every year. Some e-mail addresses are gold, others are duds, and some only behave the way you want them to at particular times of year. What's a marketer to do? First, you must understand the customers and prospects these addresses represent. Analyze customer spending, behavior, and the acquisition source. Though most marketers associate an e-mail address to an individual, far fewer associate a value with that e-mail address. A Jupiter Research report I wrote last year finds 71 percent of e-mail marketers surveyed didn't associate a value to their e-mail addresses.

 

The Chapell View

A nice piece by Dave Daniels of Jupiter. It’s too bad that so many companies aren’t willing to put the extra work into their email campaigns.

 

Here’s what I don’t get about email marketing. And for the purposes of this rant, I’m talking primarily about companies that use email to move merchandise (as opposed to companies that use it for branding, to drive traffic, Etc.) Nearly two years ago, just about everyone using email as a marketing tool was in a near panic as the specter of California’s email law hovered over the industry. If you remember, it was not a certainty that the Federal Can-Spam law would be promulgated in time to supersede the CA law. In the rush to compliance with the impending Legislation, it really seemed as if the majority of marketers were beginning to recognize that email was an exhaustible resource, and many were moving away from an email blast (spray and pray) philosophy towards a customer data driven philosophy.

 

But that was then…

 

And once marketers became comfortable with the relatively toothless Can-Spam Law, many seem to have reverted back to their old ways. Do you need some additional revenue to meet your quarterly number? Blast out another email. Is your company seeing declining response rates? No worries, simply sharpen your pencil and offer deeper discounts. It’s a shame, really.

 

Thursday, May 26, 2005

A Matter Of Public Record Washington Post – May 25, 2005

Betty (but call her BJ) Ostergren, a feisty 56-year-old from just north of Richmond, is driven to make important people angry. She puts their Social Security numbers on her Web site, or links to where they can be found. It's not that she wants CIA Director Porter J. Goss, former secretary of state Colin L. Powell, or Florida Gov. Jeb Bush to be victims of identity theft, as were millions of Americans in the past year. Ostergren is on a crusade to scare and shame public officials into doing something about how easy it is to get sensitive personal data.

 

The Chapell View

A good article by Jonathan Krim. Ms. Ostergren is part of a legion of independent stalwart privacy advocates. More and more regular folks are increasingly frustrated by the amount of privacy, personal data that is publicly available. And they are “taking it” to our elected officials any way that they can.

 

Part of the problem is that we as a society still don’t fully understand the ramifications of placing large amounts of data into databases.

 

The other part of the problem is that proposing the painstaking task of having each municipality scrub their records and remove sensitive information isn’t going to propel any politician up the next rung of the political ladder. It’s much sexier to address consumer nuisance issues such spyware and spam. I find it unlikely that the victims of identity theft care much about the specific source – be it spyware or a title search they conducted twenty years ago. 

 

Tuesday, May 24, 2005

Friendster is no friend of privacy Q Daily News – May 20, 2005

Wow, Friendster just violated their own Privacy Policy and gave my email address out to a third party for use in administering a survey. How do I know it was them? Here’s the story. At 4PM today, I received an email asking me to participate in an online survey about online social networks. Since it was about a topic other than penis pills, breast enlargement, poker, and child porn, the email immediately seemed different than the normal spam that slips through my filters, so I opened it to see what it was all about. It was sent to the unique email address I used ages ago to sign up for Friendster, so by that measure, it was clear that this wasn’t just a blanket spam that happened to land in the inbox of someone who actually has used a social network site. Interested in how the third party (Q&A Research) had obtained the email address, I went to the survey website to see if I could find a way to call and ask; not finding any such contact information, I checked the company’s WHOIS record, and called the listed number.

 

The Chapell View

I usually don’t post other blog postings unless I know and trust the poster. In this case, I don’t know Jason from Q Daily News, so I can’t make any representations about the accuracy of his posting. Having said that, I thought it was an interesting read nonetheless.

 

User generated Content (UCG) continues to proliferate. Some of it is insightful – some of it is crap. Business will increasingly need to deal with UCG, although many companies are choosing to ignore UCG for the most part. I think that’s a mistake, because there is a good deal of information that can be minded from UCG. The key is figuring out a way to sort through all the clutter in order to find information that is useful. And that can be like finding the proverbial needle in a haystack. Case in point – I spend a certain amount of time each day sorting through various anti-spyware blogs. Some of them are right on the money, while others are confused, convoluted rants from people who could barely operate a cash register let alone run a business. But if I want to get to the good stuff, I need to wade through the bad. I wonder if someone couldn’t figure out a way to automate this process?

 

 

This posting also gets me to revisit a previous rant regarding the privacy policy of an online travel website. Back when I first blogged on this subject, I was reluctant to mention the websites’ name. I figured that with a little bit of patience, that I’d be able to convince the company to do the right thing. Well, it’s been well over a month, and I haven’t gotten anywhere with these people. In case you were wondering the site is www.Hotels.com, a wholly-owned subsidiary of IAC/InterActiveCorp.

 

Anyway, here’s the story…

 

As a result of a purchase I made on this Hotels.com, I was somehow enrolled in a “Travel Rewards” program from one of their affiliates. Now I have ZERO recollection of signing up for this program, and but for the $10 charges to my credit card, I would not have even known that I was enrolled. When I confirmed that I’d been enrolled as a result of a purchase I’d made on the Hotels.com, I decided to end my relationship with Hotels.com. Here’s where the fun started…

 

 I sent an email to Hotels.com’s Customer Service group – asking them to remove all my personal information from their records. One would figure that this isn’t a very big deal as their web site privacy policy states:

 

 “If a visitor’s personally identifiable information (for example, their zip code, phone, email or postal address) changes or if a user no longer desires our service, we provide a way to correct, update or delete/deactivate visitor’s personally identifiable information.” (I paraphrased this to protect the company)

 

 

Well, I’m on my TENTH email requesting that they remove all my info, and here are the responses I’ve been getting from their CS group.

 

 

·         “Thank you for your reply. We can remove your e-mail address from our system so that you will not receive anymore offers. However, we are unable to remove your account from our site. Once you have registered with our services the account always remain active.”

 

·         “Please be advised your email address has been deleted from our newsletter.”

 

·         “Due to security reasons, we do not hold your personal & confidential information.”

 

·         “Please be advised if you have made a reservation or submitted information to us, this information will remain. This is not to be deleted, nor is your confidental information given out.”

 

I’ve also called a number of times, and was assured that they would have my information removed.

 

Finally, I asked them repeatedly to have their general counsel contact me. The CS person finally agreed, indicated that someone from their legal team would contact me. That was at least two weeks ago.

 

If you are a reporter and are looking for a good story, here it is. I am happy to provide any information you’d like. And needless to say, I will NEVER patronize Hotels.com again!

 

Thursday, May 19, 2005

Personal Data for the Taking NYTimes.com – May 18, 2005

Senator Ted Stevens wanted to know just how much the Internet had turned private lives into open books. So the senator, a Republican from Alaska and the chairman of the Senate Commerce Committee, instructed his staff to steal his identity. "I regret to say they were successful," the senator reported at a hearing he held last week on data theft. His staff, Mr. Stevens reported, had come back not just with digital breadcrumbs on the senator, but also with insights on his daughter's rental property and some of the comings and goings of his son, a student in California. "For $65 they were told they could get my Social Security number," he said. That would not surprise 41 graduate students in a computer security course at Johns Hopkins University. With less money than that, they became mini-data-brokers themselves over the last semester. They proved what privacy advocates have been saying for years and what Senator Stevens recently learned: all it takes to obtain reams of personal data is Internet access, a few dollars and some spare time.

 

The Chapell View

A few years ago, while working for email marketing Yesmail/ClickAction, I was given the tour of parent company infoUSA’s data facilities. They walked us through the process of aggregating all the data. Most of the basic data they have is obtained and updated via public sources.

 

First, I’ve got to award a gold start to whomever at infoUSA devised the M&P’s for obtaining the data. Mussolini could not have been so well organized, or thorough, in his approach. It’s like watching a scene from Willie Wonka. Hundreds of employees doing painstaking work which in and of itself seems irrelevant to the task at hand. But once all the work has been done, and all the data has been accounted for, the end product is like magic.

 

The trouble with magic (as I well remember from many a childhood storybook) is that it can be used for good or for evil. Similarly, large databases of information are by definition agnostic. They can be used to help to enrich lives – and if used irresponsibly, can literally ruin lives.

 

Wednesday, May 18, 2005

Store's Floor Model Computer Loaded With Woman's Personal Info  TheDenverChannel.com – May 7, 2005

Imagine receiving a phone call from a stranger who knew your most private thoughts, knew what you looked like, knew your Social Security number, and even knew how much you make and where you work. That happened to a Colorado woman after she took her computer to a major electronics store. Her situation may be surprising given all the warnings about identity theft. But it's not surprising if you think for a moment about what's on your personal computer. There may be files about your income, business records, taxes, personal e-mails, dirty jokes, pictures and more. It's all personal information unless you took your computer to a local retailer. Susan, who asked us to conceal her true identity, did just that.

 

The Chapell View

Companies are just plain weird when it comes to data. Perhaps its because data is not a tangible thing like a book, or a car, or a cheeseburger. But common sense seems to go out the window when it comes to data.

 

Case in point - I could certainly see how a teenaged Circuit City employee might copy this woman’s info onto a floor model computer. (Maybe it was a prank, maybe the employee simply forgot to remove the information from the floor model.) However, why in the world would Circuit City take the position that they are not responsible for protecting this woman’s information? Information is property, and once the retailer takes this woman’s property into their possession, they have to accept some responsibility for ensuring its care. If a Circuit City employee took possession of her computer, and then accidentally dropped it on the floor, the store would be responsible for fixing or replacing it, no?

 

I realize that we don’t have all the facts yet, but nonetheless… OIY!

 

This seems like a situation that could have been completely resolved with a sincere apology and a gift certificate. Now its going to cost a lot more…

 

Tuesday, May 17, 2005

Protect passwords? Not if latte is free MercuryNews.com – May 6, 2005

Would you give up your computer passwords for a Starbucks latte? “imasexyguy'” did. So did “raiderfan.'” The football fanatic even gave it to a radio reporter -- to put on the air. And then he told the interviewer he still wasn't going to change it. In a marketing stunt designed to shine a light on sloppy personal cybersecurity, VeriSign on Thursday offered passersby in downtown San Francisco $3 coffee coupons if they would reveal their passwords to survey-takers. Two-thirds of the 272 respondents turned over their passwords without flinching. The rain and then a BART bomb scare seemed more problematic. A few who said they simply would give a made-up password were dropped from the results, though they did get free coffee. And with a little coaxing, 70 percent of those who said ``no way'' gave up significant hints, like wife's name, anniversary date and the ever popular pet's name.

 

The Chapell View

OK. Before I even get to the article, I’ve gotta comment on the MercuryNews’ registration process. Holy smoke, people. Two full pages of offers to cull through and then I get a series of pop-overs. It’s their web site, and they can do whatever they want, but I’m unlikely to visit that site again soon… When making the exchange between free content and advertising, its very difficult sometimes to find the right balance. Mercury’s gone over the line, at least according to this cowboy.

 

 

Anyway, this is all a bit ironic given the topic of the article. One of the challenges that privacy professionals consistently come up against is that consumers generally don’t take responsibility for ensuring the safety of their own personal information. Consumers will give up whatever they have to in order to get WHAT they want WHEN they want it. How do you help someone who won’t help themselves? How seriously can you take the concerns of someone who doesn’t want pop-up ads, but doesn’t bother reading the EULA before downloading the P2P software?

 

Trouble is… privacy professionals (and marketers and publishers for that matter) don’t have the luxury of not taking consumer concerns seriously. So what do we do? Should we gradually continue to push the envelope on privacy and hope that consumers (and lawmakers) will simply continue to grumble and not take real action? Or do we push forward trying to broker deals on industry best practices for privacy? I genuinely believe that the latter is the best course. But I have to admit – when I hear of stories such as “coffee for your password,” it makes me wonder…

 

One other comment – What is the nexus of most ID theft crimes - unguarded computer passwords or data aggregators with insufficient privacy and security procedures?

 

Wednesday, May 11, 2005

Police keep an eye on city NY Times – May 5, 2005

Allison Davis, who lives in the suburbs and works downtown, was strolling past Lexington Market on her lunch break yesterday when she first noticed the small glass orb mounted on the side of a building. "I don't think it is such a bad thing in this area," Mrs. Davis, 27, said of the police surveillance camera, one of 43 that Baltimore police turned on yesterday to watch and digitally record, around the clock, everything that happens on the block. Residents in neighborhoods struggling with street-crime problems likely will welcome the cameras, Mrs. Davis said. But if the system expands to "places without a lot of crime," she said, "it would freak me out."

 

The Chapell View

I find it interesting that the cameras were purchased with “homeland security” funds. If God forbid a terrorist unleashes a dirty bomb on the West side of Baltimore, I’m sure it will be some small consolation that we were able to capture on film the exact moment that he met the Almighty…

 

Monday, May 9, 2005

Cookie Saga: Consumer Education Needed iMediaConnection.com – May 9, 2005 – A Chapell Article

Mark Twain once quipped, “Rumors of my death have been greatly exaggerated.” I can only wonder what he’d have to say about our industry’s recent dialog around cookies. My former colleagues at Jupiter are no doubt pretty happy to have their numbers vindicated, after a good deal of skepticism was leveled against their report from many -- including me. Of course, which research methodology was right is ultimately far less important than the action items that each of us can take away from the research as a whole. And I think there are still a few things we can draw from the recent body of research on cookies.

 

Friday, May 6, 2005

Warnings That Madison Avenue Needs to Be Nimble About Changing NY Times – May 5, 2005

MADISON AVENUE was warned yesterday that it risked being marginalized by profound changes in technology and demographics that are fundamentally changing the ways products are sold to consumers. The warning came from speakers at the opening session here of the 2005 management conference of the American Association of Advertising Agencies.  "In a world where the only constant is change, the only way to stay in business is to recognize when the lessons you have learned no longer apply," said Ron Berger, the 2004-6 chairman of the Four A's, as the association is known.  "Throwing out a business model that has worked in the past takes just as much guts, just as much courage, perhaps even more so, than starting a business from scratch," said Mr. Berger, who is also chief executive and chief creative officer of the New York and San Francisco offices of Euro RSCG Worldwide, part of Havas. Tough decisions have to be made by agency senior executives, he added, because "we, as leaders of the industry, have a responsibility - and part of that responsibility is to lead, not to follow."

 

The Chapell View

It’s very encouraging that senior advertising professionals are addressing issues of ad clutter and consumer burn-out. Many of us in the privacy space have been thinking about these issues for some time. In fact, this is an area where the privacy folks could really be an asset to advertisers. I’m working on a White Paper with the Ponemon RIM council which should address some of these issues.

 

Think about how much trouble the Entertainment industry is in right now – in part because they stopped listening to their customers, and their customers eventually cast them aside. Look for an article from my colleague Isaac Scarborough. The article will compare various ways that consumers have veered away from “legitimate” (read traditional) media consumption – from P2P file sharing to ad-blocking technologies.

 

Thursday, May 5, 2005

Intermix is just the start - Commentary: Ramifications of adware suit are broad Marketwatch – May 3, 2005

As I stepped ashore on the island of Cozumel last year after a pleasant few days aboard a cruise ship, I was accosted by solicitors offering scuba-diving tours before I could get 50 feet away from the ship. One after the other, they invaded my space. I thought: "Ugh! Live pop-ups!" That happened once. But on a computer, the digital equivalents of pesky sporting tours or timeshare touts haunt us every minute of each day. The way they get on our computer is through adware, which is on an estimated nine out of 10 computers. The definition is fluid, but, broadly speaking, adware is software that's mysteriously installed on computers without user consent. It can track user activity and serve up advertisements related to that activity. It's typically bundled with applications, like screensavers, or music file-sharing applications or when people mistype URLs.

 

The Chapell View

Overall, this is one of the best written articles on the relationship between advertisers and some of the more nefarious elements in the online universe. A few items of note:

 

·         Size of the Adware Market - I wouldn’t take Webroots #’s too seriously. The anti-spyware software company recently released a report indicating that revenues for adware companies was $2 billion per year, which is over 20% of the total online advertising market. If you were to ad up the adware revenues of six of the largest adware firms - Claria, WhenU, Direct-Revenue, 180 Solutions, Ask Jeeves and eXact Advertising – I don’t know that you’d reach $500 million. Moreover, I participated in the CNET Spyware event yesterday, and David Moll of Webroot wasn’t able to effectively back up his $2 billion number – and NONE of the other software firms on his panel were willing to estimate the adware market to be higher than $800 million…. I wonder if it might be in their interest to create a perception that the adware problem is larger than it actually is?

 

·         Eyes wide shut – no more! – The real takeaway with this study is that it is imperative for any online advertiser to have firm understanding and control of their data, distribution and/or advertising partners. This includes; vetting your partners, establishing contractual accountabilities, and requiring audit rights.  I’ve already penned some steps that advertisers should take when selecting an adware partner. Bottom line - it’s crucial for advertisers to have a firm grasp of the data governance issues.

 

·         Eyes wide open – I’ve spoken with several companies in the online space over the past week. There’s a level of concern that I haven’t seen since late 2003 when it looked like that CA Spam bill was going to pass without Federal Pre-emption.

 

Wednesday, May 4, 2005

Patients Not Notified That Their Health Records Were Stolen CNET - April 26, 2005

Detailed health records of more than 1,600 Colorado families -- containing their most personal information -- are missing, and most of the families don't even know it. Mickey Ritter feels that the state health department should inform all families whose health information has been stolen.  The records are part of an anonymous autism study and were entered into a laptop computer -- a computer that was stolen from a state health department employee last October when she carelessly left it in her car. But it wasn't until January of this year that some parents -- who had no idea the data was being collected -- began to find out their family's most private information could be for sale on the open market. "We received a letter from Boulder Community Hospital notifying us that they had sent our son's records to the state health department, and the records were then stolen in October," said parent Mickey Ritter. Ritter was stunned because she and more than 1,600 other Colorado families had never been informed that their medical records were even being studied. Notification is not required by state law.

 

The Chapell View

When there is a data breach that potentially puts at risk hundreds of people's information, I think it's incredibly irresponsible for those entrusted with the information to sit on their hands. People's lives are being absolutely ruined by ID theft.

 

I think there’s a larger “trust” issue at stake here. I am shocked that anyone would be enrolled in a public health study without their consent – regardless of the altruistic nature of the research. But since I don’t know much about the medical research world, I figured I’d ask an expert. Fortunately, my brother Rich has a PHD in Pharmacology (I don’t know what the heck that means either) and works as an analyst at a medical research firm. And he’s smart as a whip. Here’s what Rich had to say…

 

“I'm amazed that they were able to collect and share this information without the knowledge or consent of the participants. The article mentioned that there is no state law against it, but it violates the declaration of Helsinki, which is a result of the codification of medical ethics originally put together by the World Medical Organization in response to the Nuremberg trials. It's not a law, but it's a set of ethical principles that all medical researchers are familiar with. Some Helsinki quotes:

 

·         ‘It is the duty of the physician in medical research to protect the life, health, privacy and dignity of the human subject.’

 

·         ‘The subjects must be volunteers and informed participants in the research project.’

 

·         ‘Every precaution must be taken to respect the privacy of the subject, the confidentiality of the patient's information, and to minimize the impact of the study on the subject's physical and mental integrity and on the personality of the subject.’

 

According to the Helsinki Principles, not only should the patients, or their parents, have been informed of the study and given the option to refuse to participate, but they should also have been informed that the data was stolen. That's part of that pesky "privacy and dignity" thing.”

 

Thanks Rich!

 

I believe there may also be some Federal Privacy Issues at play here. I’m certainly no expert in HIPAA, but I believe that medical institutions are required to provide notice and obtain consent from patients prior to using their information for medical research. However, there may be an exemption for the CDT. And according to the news story, both federal and state laws allow CDC to survey health records without notice to patients.

 

So let’s assume that there’s no legal requirement to obtain consent here. 

 

Regardless of the legal and ethical requirements, it is just plain stupid to fail to notify the victims of a data breach. Why?

 

·         Because word of the data breach inevitably gets out into the public domain.

 

·         Because people will be less likely to hand over their data once they’ve been screwed.

 

·         Because law and policy makers tend to look at these types of scenarios when weighing the need for an additional regulatory framework.

 

·         Because eventually, it become more difficult to conduct important medical research as a result.

 

Talk about soiling your own food dish…

 

Monday, May 2, 2005

Pick your battles with Internet privacy CNET - April 26, 2005

The recent flurry of hype over ZabaSearch got me thinking about privacy. For those who didn't have the pleasure of receiving a frantic e-mail from a friend about it, ZabaSearch is a search engine for personal information. Folks across the Internet were shocked to find that not only their current addresses and phone numbers but even information from the past several years came up in ZabaSearch. Even unlisted numbers appeared. I received several e-mail messages with the Internet equivalents of gasps and expressions of horror attached. The truth is that ZabaSearch is no evil Big Brother. It's a search aggregator, and a rather efficient one at that. All the information in its database can be found elsewhere on the Web. Its crime, if any, was making personal information supereasy to find.

 

The Chapell View

Interesting article by Tom Merritt over at CNET.  I don’t want to come down on ZabaSearch. They certainly aren’t the only company out there that’s taking publicly available data and aggregating it into a useful tool. In fact, I agree with Tom and give the company kudos for capitalizing on ‘newsworthiness’ of privacy issues to land some free press coverage.

 

There’s one point that seems lost on Tom, as well as many others who cover privacy. We as a society have not come to terms with the impact of large scale data aggregation. So while I’ll concede that ZabaSearch isn’t doing anything illegal or inherently evil by aggregating publicly available data, its important to note that the sum of that data is inherently much more powerful than the individual parts. In other words, large scale data aggregation is in and of itself a potentially dangerous thing. I’m not saying that it should it should be illegal to aggregate data, but I do think that more thought needs to go into the implications of collecting, storing and using large databases.

 

I’ve often drawn an analogy from the world of science. A few atoms of hydrogen are completely harmless. However, if you put enough of them together, you’ve got something that is extremely powerful – and a potential weapon of mass destruction. If you don’t subscribe to my analogy, I offer the following question. How many people’s credit (and potentially their lives) was ruined by the data breaches of the past six months alone?

 

With large databases goes large responsibility.

 

Thursday, April 28, 2005

Whoa, Canada: SSN Request Doesn't Add Up Washington Post - April 26, 2005

Gaithersburg