Many years ago, while reviewing algorithms with my team, I made a comment that resonates even more deeply today: “Humans are so predictable.”
by Wes Chaar Ph.D
This wasn’t a throwaway remark, but an observation based on both the immense amount of data and algorithmic model outputs we were analyzing. These datasets, working with advanced algorithms, could forecast human behavior with unsettling accuracy. They could predict what groceries you might buy, the media you would consume, and even how you might react to specific stimuli online. What started as a fascination quickly evolved into discomfort, as the reality of how much algorithms could know about a person became clear – often more than even close family members.
This digital omniscience isn’t some kind of psychic phenomenon. Rather, it’s the result of the invisible trail of data each of us leaves behind through our daily online and offline activities. From internet searches to booking flights, from social media posts to fitness trackers, and even offline activities like making purchases, using public Wi-Fi, or traveling in our car, we constantly generate a data stream. This stream is quietly collected, processed, and harnessed by various businesses and entities. Our personal data has become a vital commodity, fueling trillions of dollars of our economy. Every action – whether physical or digital – adds to the mosaic of our digital identity, our digital DNA.
But how exactly is this data collected, stored, and used? More importantly, what does this mean for our privacy and freedom? In this article, we will explore some of the key methods that businesses use to harvest your personal data – such as cookies, identity graphs, and clean rooms – but this is by no means an exposé of every method used.
A Trail of Cookie Crumbs
Let’s start with something most people encounter every day but may not fully understand: cookies. Every time you visit a website, you’ve likely seen a pop-up requesting permission to use cookies. Most people click “accept” without giving it a second thought, eager to continue browsing. But what exactly are you accepting?
Cookies are small text files stored on your device that remember certain pieces of information about your activity on a site. For instance, if you visit an online store and leave items in your shopping cart, cookies enable the site to “remember” those items the next time you visit. If you’ve filled out an order form before, cookies can store your personal details – such as your name, address, and contact info – so that they can auto-fill forms in future sessions.
However, cookies do more than just help you remember items in your shopping cart. They also track your browsing habits, including what you search for, how long you linger on a specific page, which content you read, which ads you might click on, and much more. These actions feed into your digital dossier, which companies use to understand you, and to compile your digital DNA.
Identity Graphs: Connecting the Dots
If cookies represent the initial collection of data, identity graphs are the sophisticated technology that stitches all those scattered pieces of information together into a unified profile of you.
An identity graph provides a cohesive view of individuals by linking data from different devices, platforms, and interactions. It combines multiple identifiers – such as email addresses, phone numbers, and device IDs – across various touchpoints, whether you’re on your laptop, smartphone, or even interacting offline. The identity graph creates a 360-degree view of your digital life, tracking everything from your search history and social media engagement to your offline behaviors like loyalty card usage and fitness tracking.
For example, when you log into an e-commerce site, the identity graph doesn’t just track what you buy. It records how you found the site – whether via a search engine, a social media link, or an ad – and what products you viewed. Even if you return to the site on a different device, such as your phone, the identity graph seamlessly connects these activities, forming a continuous profile of your behavior.
This technology extends beyond online interactions. If you use a fitness tracker, make a purchase in-store, or log into public Wi-Fi, these offline actions are also added to your digital profile. The identity graph ties all this information together, allowing businesses to understand your entire customer journey, from your online browsing habits to your in-store purchases.
The depth and granularity of identity graphs give corporations unprecedented insight into your preferences and behaviors. Augmented with algorithms that provide the ability to predict future actions, identity graphs are a powerful tool for many industries. This level of intelligence around an individual raises significant privacy concerns, as these graphs paint a detailed picture of your life, typically without your complete knowledge or understanding.
The Clean Room Illusion
For those who believe that privacy laws or data anonymization techniques will protect them, there’s a sobering reality: clean rooms. Despite the innocuous name, clean rooms are not the safe havens for data privacy they claim to be. Instead, they represent a significant loophole in privacy protection today.
A clean room is a space where companies can share data in a manner that complies with privacy laws, or at least appears to do so. Here’s how it works: Company A might have data on your browsing habits, while Company B has information about your purchasing history. Both companies enter a clean room, where they can pool and augment their data together. To safeguard privacy, your personally identifiable information (PII) is often “hashed” or anonymized, making it impossible (in theory) to identify you directly.
However, once inside the clean room, companies can stitch together these datasets, forming a more complete profile of you than either company could build alone. The companies claim that because your PII is anonymized, your privacy remains intact. But in reality, the combined datasets provide such a comprehensive view of your digital life that re-identifying you becomes easy.
This process is perfectly legal, yet it poses serious ethical dilemmas. The promise of anonymity is largely a façade. Even though companies may not have direct access to your name or contact information, the detailed insights gained from combining multiple datasets make it possible to track you with alarming precision. Clean rooms may appear to offer privacy protection, but they are in fact part of a larger surveillance ecosystem that capitalizes on your data.
The Consequences of Data Exploitation
The pervasive collection and exploitation of personal data have profound implications for our society. First and foremost, it erodes privacy. We are living in a world where our every action – both online and offline – is tracked, analyzed, and monetized. This constant surveillance has a chilling effect on our privacy and freedoms.
Furthermore, the monetization of personal data has contributed to a growing imbalance in power. Large corporations are accumulating vast wealth and influence by exploiting our personal data, while consumers remain powerless over how their information is used. If our data is so valuable, why are we not benefitting from its exploitation? Why are we left in the dark about how much of our personal information is being shared, sold, and monetized? Aren’t we the rightful owners of our digital DNA?
A Call for Awareness and Conversation
Understanding the tools and mechanisms companies use to collect and exploit personal data – such as cookies, identity graphs, and clean rooms – is crucial for regaining ownership of your digital footprint. These are just few examples of a broader ecosystem of data-gathering techniques that businesses leverage, often without full consumer awareness.
We have reached a critical juncture. It’s time for an open conversation on how personal data is collected, stored, and used. It’s time to ask questions around our data ownership, data vote, privacy, and freedom. In this world where data is more valuable than gold, knowledge is the first step in reclaiming our privacy and our data rights.
Wes Chaar Ph.D, author of Data Independence: Reclaiming Privacy in an Era of Evolving Tech, is a leading expert in Analytics, Data Science, Machine Learning, Artificial Intelligence, and Data Fusion fields. Over the course of his career, Chaar has driven industry-leading innovations in the Airlines, Hospitality, CPG, Retail, Advertising, Media, Marketing, Private Equity, and Data Services sectors.
Photo by Bernard Hermant on Unsplash
