It’s not like they’re going to lose business to the competition, because there just isn’t that much competition. There are only a handful of huge companies out there hoovering up your data, repackaging it and reselling it. It’s consumers who get hurt, but it’s businesses who buy their data from these guys. So ultimately the penalties for negligence are minimal.
For example, according to the Privacy Rights Clearinghouse database of breaches, this is the eighth time in the last eight years that Lexis Nexis has been pwned, spilling hundreds of thousands of customer records over that period.
I think somebody needs to revoke their data mining rights. I think breaches of this sort call for real penalties; if not via fines from agencies like the FTC, then through private rights of action. I wouldn’t be surprised if we see class action suits filed against these companies, though it’s unlikely they’ll be forced to do more than pay for credit monitoring services for those affected.
It is our data, after all. These companies are getting it largely for free and selling it for a profit. And because they’re such big repositories of consumer and business data – and, apparently, easy prey for hackers -- they’ve got a big red bulls-eye on their backs. They should be held accountable.
Got a question about social media or privacy? TY4NS blogger Dan Tynan may have the answer (and if not, he'll make something up). Follow him on Twitter: @tynanwrites. For the latest IT news, analysis and how-to's, follow ITworld on Twitter and Facebook.
Now read this:
Further adventures in data mining, or welcome to my Lear Jet lifestyle
Axciom exposed: A peek inside one of the world’s largest data brokers
What do data miners really know about us? We may soon find out.
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