October 2000óLast month's
newsletter took a look at how cookies work and some Internet
basics. I hope it conveyed the concept that the Internet is a public
network and as a public network, it's, well, public.
Privacy in My Perspective
The privacy issues surrounding technology in general have their
complexities. The more technology advances, the more the perception
of privacy is threatened by the ability to collect data. On the flip
side there is a cost to protecting privacy. If companies are denied
information, they will market their products less efficiently and
thus more expensively. As consumers I think it's fair to say that we
will pay some, if not all, of this expense.
Having come from an environment where online
expenses were as much as $22.50 an hour for 9600 baud I probably
have a difference slant on things. There's no free lunch. If I get
to play online virtually free, in exchange for a company thinking
it's gathering information on a customer base, perhaps, in my book
at least, it is a fair trade.
The Cookie and Privacy
While there are all sorts of ways that a company can collect
information on you let's focus on cookies and try and nail down how
this could be done.
An advertiser could place a cookie on your
computer and record which ads you see and which ads you click on and
thus target you with certain ads. Further if the same advertiser
participated on multiple sites they could collect info that you'd
visited site A and site B.
The question then becomes, does the advertiser
actually "know" who you are. True, they can recognize your computer
from a cookie that they've placed on your computer, and they know
your IP address, but unless you've volunteered additional personal
information, there is no way for them to know for sure who you are.
Remember from last month: you can only be identified by your IP
address, not your name, not your address, etc. unless you give it
At this point you need to ask yourself if this is
a privacy issue.
Cookies and Security
I've heard concerns that it would be possible to store credit card
information, etc. in a cookie and that somehow a bad person could
read all your cookies and collect that information. While some web
sites have been compromised and credit card numbers have been stolen
I have never heard of a case of this happening with cookies. In my
opinion it would be a poor site indeed that put your credit card
number in a cookie anyway.
Other Cookie Crumbs
I've heard other stories speculating on what cookies might do. While
I appreciate that there are people out there watching out for the
worse I have yet to see any claims that these activities have
actually been put into practice.
The Bottom Line
I think there are areas of online privacy concerns. While there are
conflicting stories I think there is a very good chance that actual
user lists have been sold and that some products have tracked user
activities, knowing full well who you are, without disclosure. I
might add that when these are discovered these guys are taken out to
the woodshed and given the whacking they deserve.
However I haven't seen any of these activities
We make trade offs between convenience and privacy
In addition to credit reporting organizations,
those supermarket "member" cards and even video rentals are all tied
to us as individuals. We give a perfect stranger our credit card in
a restaurant and they take it off somewhere and who knows what goes
In my state we are now required to provide a
social security number to get a driver's license. Now a number of
people at the Department of Motor Vehicles have access to a number
that, in the hands of the wrong person, can result in identity
Your medical conditions may be reported to the
Medical Information Bureau, a centralized database. Many insurance
companies can access the MIB records, as can some employers. If you
have privacy concerns ask the MIB for a copy of your records.
Chances are a company you've never heard of has personal info that
will surprise you. One organization's take on the MIB and a link to
the MIB are available at
Have you read the fine print in terms of what your
financial institution can do with your personal information and what
you can do to restrict them from using that information? It will
vary from state to state and it will probably be very difficult to
find, but it's worth checking out, and you may be surprised.
This isn't meant to scare you, but to put the
issue of cookies in perspective and to help you make an informed
decision on how you want to handle cookies. At the end of the day,
it's a decision that we must all make on our own but you'll want to
make that decision with as much information, put in the proper
perspective, which you can gather.
Personally I'll take the convenience.
Until next month, best in computing.