Your Personal Information Fuels Big Business

Consumers aren't the only ones planning vacations this year. U.S. legislators will get a break from the grind this summer, as well. 

After they enjoy their time away from law-making, I wonder, will they come back refreshed and ready to consider laws to prevent data brokerage firms from eroding privacy completely?

A recent Washington Post article spells out the privacy risks posed by these long-time data collectors and sellers. The reporter wrote:

"The data brokerage industry, however, works differently. These companies compile information from a variety of sources, including court databases and records of consumer behavior, to develop profiles of individuals that can be marketed to other companies. Typically, the subjects of these profiles have no idea how their information is collected and used."

These organizations also are gathering available data from social networks, making their data an even hotter commodity for marketers (and we can only guess who else). This is just one more reason to check and update your privacy settings in the various online accounts you hold. If you haven't done this recently (or at all), don't feel bad. You're not alone. As Mashable recently reported, some 13 million Facebook users "haven't even touched their privacy settings." 

Here is just one example, detailing how Facebook has teamed up with data brokerage firms to optimize their advertising initiatives. And in other Facebook data news, my friend Tommy recently experienced a troubling incident inside his feed. He shared the following with me in a note:

The other day, I saw a picture of a long-time friend and a post in my Facebook feed. I thought it was something he had posted because it had his picture just like other posts people put up. But the post wasn't from him at all; it was an ad for Southwest Airlines. 

My friend had "Liked" Southwest. I did not realize that "Liking" Southwest, something many do simply to get their coupons, may mean I've agreed to be used in their ads. Seeing this friend's picture makes me suspicious that my picture is doing the same thing on other people's Facebook feeds. It's a brave new world out there, and I know many of my generation, myself included, are very clueless of the implications of our privacy settings.

NOTE: To help prevent this from happening to you or your friends, see the steps to take earlier in this Tips message! 

When Google Tells You Not to Worry

I'm certain I wasn't the only one who found recent comment by the executive chairman of Google a bit ironic (given the vast amount of ways Google tracks those using their products). As reported by CNET, the head honcho said this about the unwanted tracking of consumers:

"Governments won't allow it, and it will be bad business," he said. "In a competitive environment, businesses actually want their consumers to be happy."

In fact, however, the U.S. government is already allowing it. Maybe not expressly, but simply because lawmakers and regulators today cannot keep up with the rapid development of technological devices, software and analytics tools.

Of course businesses want to keep their customers happy. But for every executive who says data collection and analysis is bad business, there are seven others who will tell you it's excellent for business and for customers, as well. Some will even go so far as to say that spying on their customers allows them to provide better products, more targeted offers and a "more fulfilling" customer experience.

It's always good to follow the famous advice of President Ronald Reagan: "Trust, but verify." While it's entirely possible companies and organizations are using "Big Data" to improve their businesses, their operations and their efficiencies, you want to be sure they are doing this professionally and in a way that protects your information from falling into the wrong hands. 

Warn Family Members to Be Cautious While You're Away

A common scam fraudsters run on the elderly is to call and pretend to be a loved one stuck in some horrendous scenario while vacationing in a far-away locale. This is just one of many scams to warn your family members about before heading out for your vacation.

Thank you to my friend Tara overseas for sharing this article about 27 more scams to avoid. You can click through to read the entire thing, but here are a few of the more concerning ones that frequently target elderly victims:

Home maintenance services: A company offers a cheap quote to for maintenance or gardening services. They demand an upfront cash payment to start or finish the job - then escape with the money or make unreasonable charges for botched work. 

QUICK TIP: Check Your Credit Report for Free

Many people are unaware that each of the three credit reporting bureaus are legally required to provide consumers one free credit report each year. My advice is to set yourself calendar reminders. Also, be sure to stagger your requests to each agency throughout the year. That way you can check your scores (and monitor for anyone who may be attempting to use your identity) up to three times annually for free. 

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I receive a lot of requests to repurpose the information contained in these Tips messages, so I wanted to drop a quick note in here to say, "Yes, I approve!" Please use the following attribution so that others will know where to find me if they have additional questions about the material you pass along.