4/18/2018

Massive Data Breech of Significant Proportions

There's a lot of commotion in the news, justly so, regarding data privacy.  Many corporations are selling data.  Some of this data could be considered private, as in medical, as in perhaps Hippa data.  That's sort of a no-no.

You have to look back at the Equifax data breech, to realize the implications.  Before doing reports, I approved loans, as in reading credit reports for Equifax, TransUnion and TRW.

Credit reports tell us everything about a person, their shopping habits, payment records, previous address', any bankrupcy/foreclosure/unpaid student debt, etc., in a nice, easy to read format.  I could ask the customer their basic demographics over the phone, enter into the mainframe terminal at my desk, and pull the credit report, have a decision with an average talk time of under 2 minutes.  That's average, meaning many calls were under 2 minutes.

What does the app + credit report tell us.  It tells us their potential repayment probability, plus, throw in some good old fashion experience plus hunches, into the credit decision to approve or decline, you'll receive a letter in the mail in to 7 to 10 business days explaining the reason why.  

Of course, there were over-rides to the system, but not many, maybe 10%.  So we agreed with the computer model 90% of the time.  And the model bounced up the demographic info such as age, address, length of time on job along with credit report and spit out an answer almost immediately.  It would compare against a model of past customers and their payment history.  We do the same thing now, yet its called data science.

My boss said, from reading the customer's credit report, you should know if they drink whiskey, beer or milk.  In other words, we should have a good picture in our minds of who this person is based on the credit report and demographics.

Back to the main story, with a data breech of credit reports, that data can be constructed to form a financial picture of every person in that data set, not to mention all the credit card info, loan info, social security numbers, address and previous address, alias, you name it.

Its a massive breech of significant proportions.  And that data is swimming through the hands of dark web, being sold and resold.  How about that, food for thought.


And so it goes~!