The World Privacy Forum has released a new report, “The Scoring of America” (pdf), concerning new types of consumer scoring and how they can affect individuals. Here’s an excerpt from the introduction:
To score is human. Ranking individuals by grades and other performance numbers is as old as human society. Consumer scores — numbers given to individuals to describe or predict their characteristics, habits, or predilections — are a modern day numeric shorthand that ranks, separates, sifts, and otherwise categorizes individuals and also predicts their potential future actions.
Consumer scores abound today. Credit scores based on credit files receive much public attention, but many more types of consumer scores exist. They are used widely to predict behaviors like, spending, health, fraud, profitability, and much more. These scores rely on petabytes of information coming from newly available data streams. The information can be derived from many data sources and can contain financial, demographic, ethnic, racial, health, social, and other data. […]
Predictive scores bring varying benefits and drawbacks. Scores can be correct, or they can be wrong or misleading. Consumer scores – created by either the government or the private sector – threaten privacy, fairness, and due process because scores, particularly opaque scores with unknown ingredients or factors, can too easily evade the rules established to protect consumers. Read more »