Thursday, December 26, 2013

"What Surveillance Valley knows about you" (GOOG)

From Pando Daily:

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“In 2012, the data broker industry generated 150 billion in revenue that’s twice the size of the entire intelligence budget of the United States government—all generated by the effort to detail and sell information about our private lives.”
Senator Jay Rockefeller IV
“Quite simply, in the digital age, data-driven marketing has become the fuel on which America’s free market engine runs.”
Direct Marketing Association
Google is very secretive about the exact nature of its for-profit intel operation and how it uses the petabytes of data it collects on us every single day for financial gain. Fortunately, though, we can get a sense of the kind of info that Google and other Surveillance Valley megacorps compile on us, and the ways in which that intel might be used and abused, by looking at the business practices of the “data broker” industry.

Thanks to a series of Senate hearings, the business of data brokerage is finally being understood by consumers, but the industry got its start back in the 1970s as a direct outgrowth of the failure of telemarketing. In its early days, telemarketing had an abysmal success rate: only 2 percent of people contacted would become customers. In his book, “The Digital Perso,” Daniel J. Solove explains what happened next:
To increase the low response rate, marketers sought to sharpen their targeting techniques, which required more consumer research and an effective way to collect, store, and analyze information about consumers. The advent of the computer database gave marketers this long sought-after ability — and it launched a revolution in targeting technology.
Data brokers rushed in to fill the void. These operations pulled in information from any source they could get their hands on — voter registration, credit card transactions, product warranty information, donations to political campaigns and non-profits, court records — storing it in master databases and then analyzing it in all sorts of ways that could be useful to direct-mailing and telemarketing outfits. It wasn’t long before data brokers realized that this information could be used beyond telemarketing, and quickly evolved into a global for-profit intelligence business that serves every conceivable data and intelligence need.

Today, the industry churns somewhere around $200 billion in revenue annually. There are up to 4,000 data broker companies — some of the biggest are publicly traded — and together, they have detailed information on just about every adult in the western world.

No source of information is sacred: transaction records are bought in bulk from stores, retailers and merchants; magazine subscriptions are recorded; food and restaurant preferences are noted; public records and social networks are scoured and scraped. What kind of prescription drugs did you buy? What kind of books are you interested in? Are you a registered voter? To what non-profits do you donate? What movies do you watch? Political documentaries? Hunting reality TV shows?...MUCH MORE