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120M American Households Exposed In 'Massive' ConsumerView Database Leak

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Re: 120M American Households Exposed In 'Massive' ConsumerView Database Leak

#161
post #82

Personal data right now is considered an asset. It needs to be seen as a liability. Maybe the solution is a data tax. You pay a set amount every year for every piece of personal data you have. If you buy personal data from another company, you still have to pay the tax for the data you acquired. If you have a breach of data, your tax goes up for a period of 10 years. In addition, every piece of personal data needs to…

> Personal data right now is considered an asset. It needs to be seen as a liability. What an excellent insight. You changed my conception of the problem. Thanks!

Virtually all ... assets / goods / services ... have both some positive and potential negative value. There's a component of risk.

This gets complicated when the interactions themselves are complex and indirect. I'm looking at some general notion of complexity, in terms of scale, structure, and depth, but one general notion I'm working toward is that of intermediation -- the distance, think of it as a depth in nodes -- between the observer and observed. The shallower that depth, the simpler the interaction, the less intermediated the relationship.

Node complexity also matters. Jumping through dumb pipes is one thing, passing through complex relays another. The children's game of "telephone" exemplifies this -- contrast that to simply passing a note down the chain. The note (written on paper) is physically transported. The verbal message is passed from one person to the next.

(We're ... starting to see bits of this emerge as our comms networks become more complicated, and powerful in processing capabilities.)

Back to value/liability: any given opportunity or action has some positive potential and some negative one. We tend to pursue actions with a high probability of success, and where negative consequences are either rare, or, and this is problematic: vaguely defined or difficult to articulate. That is, there's a risk, but you don't know how big that risk is. And in cases it's huge: tetraethyl lead, asbestos, tobacco, CFCs, fossil hydrocarbons.

But it takes years or decades to establish the risk. And there's a strong motivation to denying it or suppressing the message.

Data falls into that class of goods (or bads).

Re: 120M American Households Exposed In 'Massive' ConsumerView Database Leak

#162

Personal data right now is considered an asset. It needs to be seen as a liability. Maybe the solution is a data tax. You pay a set amount every year for every piece of personal data you have. If you buy personal data from another company, you still have to pay the tax for the data you acquired. If you have a breach of data, your tax goes up for a period of 10 years. In addition, every piece of personal data needs to…

Taxes are good for discouraging directly harmful activities or internalising externalities. I'm not so sure they're the right mechanism for costing risk, though as an alternative to insurance, that's a possibility.

Re: 120M American Households Exposed In 'Massive' ConsumerView Database Leak

#163

Earlier quoted context omitted.

I'm assuming the strength of your password. The security practices of the company storing data. e.g. Company only uses SHA-1 for storing passwords premiums skyrocket.

Sounds like the offspring of FIPS 140-2 and PCI. Have fun with that.

Yeah. I wouldn't advocate a for a law like that at all. Too much governmental control over business practices.
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