Archive for category Digital Tattoo
The European Commission recently proposed tough new reforms to help people regain control of personal online data from sites like facebook and Google. The Swiss authorities are examining changes to national law that may be ready by 2014.
The new European legislation, presented by European Union Justice Minister Viviane Reding on January 25, aims to give consumers ownership of their own data and to harmonise the patchwork of different laws in force across the European Union’s 27 countries.
Facebook filed documents with the government that will allow it to sell shares of stock to the public. It is estimated to be worth at least $75 billion. But unlike other big-ticket corporations, it doesn’t have an inventory of widgets or gadgets, cars or phones. Facebook’s inventory consists of personal data — yours and mine.
Many Americans may be unaware that their social media conversations and posts are providing banks and lenders with a treasure trove of information. In fact, a growing number of banks and lenders are currently building a data repository – collecting, storing and analyzing data – in the hopes that one day it could help them determine your potential credit risk and also tailor marketing directly to you.
The earliest we’ll see banks and lenders begin to act is five years down the road, once they’ve had time to evaluate and correlate specific social media behaviors to actual credit risks. For example, tweeting about walking away from your home may translate as an indicator that you may be delinquent on a future loan. Now banks are doing the math to determine whether these kinds of comments or tweets actually prove true down the road.
Bottom line, if banks and lenders can prove that using social media data as a business tool is successful in assessing behavioral patterns and preventing future losses, then why wouldn’t they?
On social-networking sites like Facebook, false statements about people that harm their reputation could invite a lawsuit seeking damages.