Internet Privacy Guide

Personal data is valuable. Your name, address, date of birth, shopping habits and product preferences can be sold to retailers. Recent research suggests that consumers are "willing to share data when they feel they get some value in return," even as the costs of identity theft and fraud top $16 billion per year.^1,2

So where do you draw the line? How do you decide when internet privacy is worth it and when you're better off sharing information with social media sites, consumer applications and value-added services?

How to Decide When Internet Privacy is Worth It

The benefits of sharing your data

According to recent medical research, most participants in clinical trials "believe the benefits of broadly sharing person-level data outweigh the risks."³ From a healthcare standpoint, there's solid logic here: with more information, researchers are better equipped to design new treatments and discover new breakthroughs. But what's the benefit of sharing personal data with marketing agencies or retailers trying to sell you products and services?

With detailed data on-hand, you're served up personalized ads for specific services in your social news feeds and email accounts rather than scatter-shot spam and generalized offers. Ease-of-use is also enhanced; with more companies now responsive via Facebook, Twitter and other social services, it's easier than ever for consumers to reach out if they have an issue. Letting companies leverage personal data and store information about previous interactions lays the groundwork for quick responses based on historical outcomes—rather than having consumers explain themselves (and their issue) time after time.

Experts also see the rise of privacy-as-a-product. You could sell access to your personal data in exchange for discounts on products like internet-connected vehicles or direct compensation from organizations looking to collect connected-device data, such as information about how many miles you drive each year, what the weather is like at your house or how many steps you walk each day.⁴

The risks of providing information

Identity theft is a key concern, we hear about this almost daily. If attackers breach corporate data networks and steal personal information, they could use it to create fake credit card accounts or file fraudulent tax returns. Even when offered free credit monitoring services after a breach, dealing with the long-term effects of identity theft could take months or years.

There's also the problem of handling and transmission: many privacy policies (which often go unread) contain clauses describing how your data will be shared and what type of marketing analysis will be performed. Once outside the control of the app or service you chose, however, it's virtually impossible to safeguard your information.

For example, while new legislation in California gives consumers more control over what companies can collect, when they can collect it and what type of legal remedies are available for misuse, this doesn't eliminate the problem of secure data handling.⁵

Social media and privacy: key indicators

Social media serves as a great example of privacy concerns: More than 80 million Facebook users recently had their personal data accessed by third-party analytics firm Cambridge Analytica.⁶ The result? Media backlash, government hearings and promises of change. But is that enough? How do you know when social media sites and third-party apps will protect your data?

Key indicators of a safe service include:

1. Clear privacy policy: look for a privacy policy that lays out exactly who has access to your information, why they need it and how you can opt out of data collection.
2. Responsive customer service: do some research. How long do customers wait for a response to concerns about security and privacy? If it's anything longer than 24 hours, they may not have the staff and resources in place to handle a potential data breach.
3. Corporate ownership: how does the company respond to large-scale consumer issues? Whether it's a data breach, product issue or service interruption, look for companies that take responsibility for their actions and the actions of associated third-parties. Any business playing the "blame game" will do the same with your data.

How to make the call on internet privacy

How do you make the call on internet privacy? When are savings and convenience worth trading your data?

Start with these questions:

1. What am I handing over?

If the data requested is minimal in scope and long-term use—such as your general geographic location—and the result is a significant discount or improved convenience, it's probably a solid trade-off. Even in the case of a data breach you're not at high risk, and you gain a direct benefit.

2. What am I getting in return?

Look for specific benefits. The promise of "special offers" or "VIP discounts" down the line isn't enough to justify handing over personal information that could be shared across multiple companies. Instead, reserve your data for direct benefits such as immediate discounts, free services or preferential treatment.

3. Does the company recognize the value of my data?

As noted above, privacy is transitioning to a product model—something users can sell to receive benefits or discounts. With that transition comes the emerging need for negotiation; like any transaction, companies will attempt to spend as little as possible for the greatest return. As a result, consumers must recognize the inherent value of their personal information and be willing to walk away from apps and services that don't respect the new paradigm.

The importance of internet privacy

There's value in your data—and value in trading it to companies for direct benefits. Before you hand over personal information, however, it's worth knowing the risks of identity theft and misuse, weighing them against potential benefits and ensuring any company handling your data recognizes its value.