Escaping the Telecosm

Commentary
August 03, 2010 Posted by:

The views expressed in this column are those of the author and not SVB Financial Group.

 We're feeling a little chagrined to admit that the Wall Street Journal exposé of Internet snooping caught us by surprise. The study, entitled "The Web's New Gold Mine: Your Secrets," published this weekend found that assorted Internet traffic-analyst companies and other interested parties routinely store thousands of tracking files on the computers that access certain Web sites. One that has cured my pathological spelling disability, Dictionary.com, was the most prolific in the study, planting 159 surreptitious agent files after only one visit. As these tracking companies pick up information about my Web behavior they are able to build a robust profile of me to sell to advertisers.

Although the profile is technically anonymous, it would be child's play for any company to discover where I live, work and bank using common software called "beacons" that can track the details of what a user types. For example, I might seek direction from my house using Google Maps or type other information into a news site that requires a registration or membership to serve up a story. According to the article, companies routinely use beacon-type spyware to capture data about individual users.

I always knew that Internet companies I did business with would keep track of our relationship. They do this to benefit me and in the hope of selling me more stuff. Netflix would suggest movie titles for me if I ever bothered to rate the ones that I've watched. This is no different from the elaborate CRM systems maintained by analogue businesses. Some probably need to update their software. Amazon still notifies me about the new collector's edition of Good Night Moon, somehow missing the fact that the toddlers I purchased books for in 1997 are now almost 16 and download new titles via their Kindle. In truth, I don't have a problem with these types of relationships. What concerns me here are the actions of companies I don't know. Actions that, if asked, I never would have authorized.

I tried to come up with a real world version of these peeping-Tom companies. Suppose there was a camera in my bathroom tracking what toothpaste and shaving products I used and maybe another camera in my fridge to follow my at-home eating habits? No reasonable person would permit that type of intrusion — at least not without appropriate compensation. Clearly, my fridge and my bathroom belong to me and to gain access you need my permission. What about my computer? Who does that belong to? If these firms have a legitimate reason to plant spyware on my computer, then they shouldn't be embarrassed about asking my permission. With a modest monetary nudge I might even agree to it.

If business is doing this spying, it is no great leap to assume that governments and politicians are as well. It is hard to imagine that the Internet-savvy politicians are not carefully tracking the activities of members of the "Taxed Enough Already" movement or the famed NetRoots Nation. This is similar, yet more advanced than, the traditional political "opposition research." With today's modern technology, Nixon's White House Plumbers would never have needed to leave the office. More worrying are the potential actions by governments not constrained by a framework of laws like our constitution. We can't help but wonder what consulting firm the Iranian régime is using to snoop on Iranian dissidents at home and abroad.

Using confidential information for commercial purposes without permission seems to me a fundamental violation of trust. The only question that remains, we suppose, is whether people will take steps to protect themselves and their privacy. Will there be a government mandate to require authorization from computer owners before commercial spyware can be attached to their systems? Assuming there is no escape from this intrusive Telecosm, perhaps new products will be introduced to dynamically cleanse the offending code or mask and distort the user's activities. We had always puzzled over what was behind the Google tag line, "Don't be evil." Now we know.

The views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

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