KU Business faculty experts discuss: Data privacy
In today’s digital world, data privacy is a critical issue. Whether we realize it, we constantly exchange information for convenience, from signing up for new apps to making online purchases. But how much do we understand about where our data goes or how it’s used?
Shaobo Li, associate professor in the Analytics, Information and Operations academic area at the University of Kansas School of Business, sheds light on the complexities of data privacy and the steps consumers can take to protect themselves in an age where information is currency.
Li earned his doctorate in business administration and his master’s degree in statistics at the University of Cincinnati. His research interests include statistics, marketing and information systems, discrete data analysis, data privacy and various other topics. His research has been published in premier journals in statistics and business domains.
What does the general public need to know about data privacy?
I think right now in the digital age we’re in, everybody is aware of their privacy just because of the internet and the influx of information that comes with it.
The problem is that everyone is aware of privacy, but they all have different preferences. Someone may be susceptible to their personal privacy information, and they don’t want to trade this information for any kind of service, and some may feel the opposite. But with that being said, nowadays it’s hard not to trade your information when you sign up for any membership or service.
When you sell your information to a company, they take it in exchange for a service that makes your life more convenient. This is a common scenario that everybody has experienced, so in terms of being aware of privacy itself, it just depends on your individual preference and your comfortability with this process.
Is this something we should be cautious of?
We definitely should be cautious, as one of the biggest consequences of data security is scam. Everybody has gotten a scam email, phone call or text message, which means somewhere your information has been leaked. That is the part of data privacy that we should be cautious of. Don’t sign up for different kinds of services before you know what that service does, or what privacy measures the company has in place.
There are a lot of startups and even small companies whose sole purpose is to collect your information, which can be a scam. Those are something to be cautious of. What you can do is think a little more about whether you understand the purpose of the company and what you are going to benefit from when telling them your information.
What are some simple steps consumers can take to safeguard their personal information?
For one, when you download an app on your phone, most of the time you’re asked if you want the app to track your location and behavior from other apps. For me, I don’t enable that feature. That’s one practice to protect your data, unless it’s an app that really requires it, like Google Maps for example.
Additionally, if an app simply wants to track your data to improve their services, you need to think about that. Ask yourself if you want to sacrifice your information for that specific service, and how big of a convenience the service will be for you.
At a personal level, if your data is already compromised and you don’t have control over it anymore, you should be looking out for suspicious emails or text messages because they are most likely going to be scam. On a higher level though, you may be able to pursue class action lawsuits to mitigate the consequences of losing your data.
What are some common misconceptions about how consumers’ data is used?
Most people think that if you give a company your data, then only that company has your data. But in a B2B context for example, they have partnerships with other companies or third parties, so your data is flowing around across different organizations.
How are companies taking steps to protect the data of consumers?
Big technology companies like Apple are taking steps to protect your data. Many of them will employ some technical differential privacy measures, which essentially adds noise to the data. This is similar to blurring an image, so your data doesn’t look like it belongs to you anymore.
As data privacy laws become more complex, how can consumers and businesses stay informed about their privacy rights?
It all depends on which areas of privacy you want to know about. The first step is to find out what you want to be aware of and then seek out that information. Decide if you are curious about the technical aspects, regulation and policy aspects or more general information.
If you are a consumer, read the data operation policies. If you are a company, be aware of the laws and regulations in your area that may make it harder or easier to collect privacy and run a business.
Is there anything else you’d like to add?
There is just a huge amount of information every single second, so be cautious about where you let your data go. Make sure you know whether the company collecting your data has a reputation or if they have measures in place to protect your information before you trust them.
At an individual level, pay attention, be cautious and don’t give your data away if you can help it.
By Lauryn Zebrowski
