You have all probably heard examples of companies tracking purchases that you make and subsequently suggesting similar items for you in ads on your screen. You are also most likely familiar with companies mining public information you enter into websites such as birth dates and email addresses. You may, however, be surprised at the variety of data types that people seek. You may also be surprised when you learn of some unique ways companies use this data.
A recent article by Forbes titled ‘Data Mining CEO Says He Pays For Burgers With Cash To Avoid Junk Food Purchases Being Tracked’ mentions a few examples of mined data that isn't so often considered by the public.
For example, the article discusses how insurance companies use “aggregate data about individuals from records of things like prescription-drug and other retail sales, product warranties, consumer surveys, magazine subscriptions and, in some cases, credit-card spending” to determine insurance rates and premiums. In some cases, if a person appears healthy from the examination of this data, they may be allowed to skip in-person medical tests. For example, a person who is subscribed to a fitness magazine may receive a lower insurance rate than someone who is not. Due to this reality, Kevin Pledge (CEO), has decided to forgo using his membership card at the grocery store when he makes less-than-healthy food purchases.
The point here is that whether or not you are aware of the types of data being mined, you may not always understand why, or what it is being used for. This is only one example of a less obvious motive behind data mining. You would be surprised at just how much can be found out about a person from seemingly harmless information. With the increasing prevalence of this type of data mining, it can be hard to avoid. I do, however, think it is worth a second look when giving out any information. Ask yourself ‘what else could this information be used for?’
http://www.forbes.com/sites/kashmirhill/2012/06/15/data-mining-ceo-says-he-pays-for-burgers-in-cash-to-avoid-junk-food-purchases-being-tracked/
This article is a big concern to me. I have used rewards cards, in hopes of saving a few cents here and there, but never really thought about how the information would be used. If the information could come back to haunt me then I will probably start taking all those rewards cards off my keyring.
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