Connect with us

Politics

Data Privacy – Why Users Should Care and How the Tech Industry Should Safeguard Data – ReadWrite

Published

on

Nigel Cannings


It is probably obvious to most people that certain personal information should be tightly protected — especially bank details, health records, and passwords. The motivation might be to protect us from criminal activity, embarrassment, or just because it is not anyone else’s business. Users should care about data privacy — and the tech industry should safeguard your data.

It’s essential to understand that ALL personal data is now the fuel of the digital economy.

And that means that there is an entire industry worth billions of dollars devoted to finding everything out about YOU. Your friends. Your shopping habits. Where you live and who you live with. Everything is up for grabs and harnessed for one simple reason.  To make it easier to target you with adverts persuading you to buy things you might not purchase otherwise. 

Data Privacy – Why Users Should Care and How the Tech Industry Should Safeguard Data 

We all know about adverts that follow us around the Internet (a process known as remarketing). Many people have stories about how a conversation with someone about buying something or maybe seeing a movie, somehow led to an advert about it.

They are convinced that their phone is listening to everything they are saying. And, your phone IS listening – but not for the reasons you think. Actually, it’s down to the incredible power of today’s predictive algorithms. They probably know more about what you will want to do or buy next than you do. Based on billions and billions of interactions observed from other people just like you.

Some big life and tech industry questions

The big question is: if you know that your “important” information is protected, does tracking matter? Should you care if your other data is being used to track you? Especially if it results in free or low-priced apps that make your life easier or more pleasurable. Be it Facebook, Instagram, Gmail or Uber.

The first issue is simply a very human one. “I’m just not sure that I’m that comfortable with someone having access to everything that I’m doing.” No one reads 1984 and thinks that seems like a wonderful way to live. It just feels wrong.

There are real and practical data issues that need to be addressed.

There is a lot more at play than simply being sold a new appliance. We now know that democracy itself can be manipulated by the very technology that also sells us washing powder.

1960’s Simulamatics Corporation

The idea is not new. It actually goes back to the early 60s and the rise of the Simulamatics Corporation. It came up with the idea of identifying groups of people and computerizing them so that their behavior could be predicted.

The computer power and availability of data was a fraction of that available today. But the idea was there. And if you believe the Simulmatics Corporation, their data and predictions were enough to forecast and swing elections. (For more information on the dawn of this type of data science, read the fascinating If Then by Jill Lepore.)

Cambridge Analytica

Fast forward to the present day, and we are still feeling the effects of the Cambridge Analytica scandal. Where the process of mining publicly available data, made it possible to push one country to break with its largest trading partner. And another to elect the worst or best President it has ever had.   

One wryly amusing side story from the Brexit campaign is that contrary to popular belief, Cambridge Analytica had no involvement in that campaign at all, according to a three-year probe by the Information Commissioner.

However, they did find that “there are systemic vulnerabilities in our democratic systems” caused by the availability of personal data. That alone should be enough to make us demand that our data is better protected and regulated.

Things are changing. Slowly. And not always in ways where the motives are entirely transparent.

Convenience – not always benevolent

Take two recent examples – Apple vs. Facebook and Google against everyone else.

Apple vs. Facebook 

In its latest update to its mobile operating system, iOS 14, Apple has released a new security feature that centers around the IDFA (Identifier for Advertisers — Look it up — too good to miss).

Oh, Joy!! This is a unique identifier for every iPhone and iPad, which allows advertisers to track the effectiveness of their advertising. Apple has decided to make this an opt-in feature for users. It supplies a one-time pop-up box that asks users whether they want to be tracked by Facebook or not. Verizon has made it so on their phone system — you can opt-out.

On the face of it, it seems obvious, why would you wouldn’t want to be tracked?

Mark Zuckerberg, not perhaps someone you would normally feel sympathy with, says this change “threatens the personalized ads that millions of small businesses rely on to find and reach customers.”

The reality is that Facebook also owns Instagram and WhatsApp, and Apple owns iMessage. 

Facebook sees the changes, not as a way to protect consumers, but to cripple Facebook. “Apple has every incentive to use their dominant platform position to interfere with how our apps and other apps work, which they regularly do to preference their own.” 

Google vs. Everyone Else

Google controls the world’s most popular browser, Chrome, and has announced that it is implanting sweeping changes to “third-party cookies.”

These are the nasties that track you across the internet. When your browser knows that you were recently on Site A, looking at a particular product, it can shove an advert at you to tempt you to buy the same thing. 

The proposal is that these cookies will be replaced with a type of group ID. This identifies you as part of a particular “tribe” of people who Google thinks have similar interests. Google will supposedly stop third-party cookies — SOMETIME NEXT YEAR — 2022. They will already have all they need in their data storage by then.

We only have to wait another year for the implementation by Google

It sounds fantastic because third-party tracking is considered to be one of the most intrusive aspects of web browsing. Why? Because it sprays your data around the internet in an unregulated manner, leaking privacy with every new site you visit.

So — after another year — the change will dramatically limit the ability of almost every company on the internet to target specific ads at you. Because they will no longer be able to rely on collecting data second-hand through third-party cookies.  

Best for Google

Except for Google. Who is one of the largest collectors of *first* party data on the internet? Google collects data from your searches through Gmail and Google Maps. If the company’s ability to target you is better, and everyone else’s is worse, surely this means that more money gets spent on Google ads, at the expense of other advertisers?

What both cases show is that it is unlikely big tech companies will act in your best interest when it comes to the management of personal data.

Especially if that personal data is what fuels their bottom line. Is a degree of regulation and perhaps some technology rethinking needed?

Europe has led the way to protect private data — GDPR

Europe has led the way in terms of the regulation of private data, and the General Data Protection Regulations (GDPR) is probably the most comprehensive data privacy law ever enacted.

But does GDPR have any real teeth?

It is estimated that $9 billion was spent in preparation for GDPR. For the last calendar year, DLA Piper estimates that fines across the whole of Europe stand at about 114m Euros.

With the enormous focus on data privacy — that fines can be up to 4% of global turnover, it doesn’t seem that GDPR hasn’t quite got into its stride yet.

Data Privacy – Consumer — why you should care. in the

The future of data privacy probably rests in the hands of the consumer. And the willingness of all of us to pay for the services that are subsidized by the money made from our data.

Tim Berners-Lee, famously the inventor of the World Wide Web, has gone on a mission to reclaim personal data with the idea of data “Pods.” These pods put personal data is in the hands of the individual, and are only handed out on a very selective basis. For this to work, we need to rearchitect the internet. And consider how far convenience trumps privacy.  

Think about something as simple as email. Who doesn’t love being able to go on to Gmail and search for email? Or start a new email and have Google suggest whole sentences for you?

All of this connection relies (today) on Google having full access to your data.

What about Alexa? How great to walk into the kitchen, and switch on the radio. But more than 20 times a day, that same Alexa device is activating and sending data to Amazon accidentally: And somewhere in an office block in Romania, someone is listening to it.

To secure our data, we must start to think more about local processing of data. Including searchable encryption and homomorphic data processing. All ways of minimizing data leakage. It can all be done. And we can do much of it right now. 

But it needs someone to pay. For all our talk about how we want our data to stay “ours,” it is our data that is picking up the tab right now.

Image Credit: andres ayrton; pexels; thank you!

Nigel Cannings

CTO at Intelligent Voice

Nigel Cannings is the CTO at Intelligent Voice. He has over 25 years’ experience in both Law and Technology, is the founder of Intelligent Voice Ltd and a pioneer in all things voice. Nigel is also a regular speaker at industry events not limited to NVIDIA, IBM, HPE and AI Financial Summits.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

Published

on

Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Continue Reading

Politics

Fortune 500’s race for generative AI breakthroughs

Published

on

Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

Continue Reading

Politics

UK seizes web3 opportunity simplifying crypto regulations

Published

on

Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

Continue Reading

Copyright © 2021 Seminole Press.