Data mining…occurring without your consent

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I. Expectations and the reality

II. The Korean system

III. The U.S. system

V. Conclusion

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I. Expectations and the reality

When I came to New York, I came with several expectations. One of them was an expectation of “advanced services” in all kinds of ways. Since everyone says, “New York is the world leader in finance, fashion, food and so on”, I especially was expecting advanced telecommunications services and financial services. However, when I came to New York, I was deeply disappointed. The first thing I was disappointed was the cell phones. The cell phones in Korea are much more advanced in function and fashion. Also almost every cell phone has a DMB (Digital Multimedia Broadcasting) function, which allows the users to watch TV through their cell phones without paying any extra costs. Koreans download Korean pop-stars’ music videos and songs on their cell phones. When they receive phone calls, these music videos are played on their cell phone screens while the downloaded songs come out as ring tones.

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II. The Korean system

On the other hand, there is a thing called “Publicly Certified Certificate (PCC)”, which is issued by “Certified Authorities” like KFTC (Korea Financial Telecommunications and Clearings Institute). Ever since 2004, if anyone in Korea wants to make a payment exceeding KWN 10,000 (≒ USD 100), with his/her credit card or debit card, he/she must make a payment through his/her PCC. If you do not have a PCC, you will not be able to make any kind of payment through the internet. So everyone in Korea has a PCC inserted in their cell phone, laptop or USB. Additionally, in Korea, whenever you swipe your credit card, the credit card company immediately sends you a text message. In that text message the following information is included. (1) date & time of use, (2) place of use, (3) amount of use. The credit card company, without the card holder’s request, analyses the card holder’s consuming pattern and sends out coupons, based on their analysis. In my opinion, this is a typical example of “data mining”. For example, a credit card company, like Samsung Card, keeps tracking your money spending pattern. They not only track the items you buy, but also track the place. So if you try to buy a thing that is totally distant from your routine purchasing or try to use your credit card in a place far away from your usual money spending places, the credit card company immediately calls your cell phone and asks you, “Sir, a request of approval of buying XXX has just been made…are you aware of this fact?” This is a typical instance of what happens in Korea and I have to say this is a result of extreme surveillance. When this kind of intensive monitoring service first came out, Koreans were thrilled. It was because Koreans thought this was a beneficial thing for their financial safely. Credit card companies advertised that they were bringing in all sorts of services which can be used in data mining. They even charge fees on their card holders for using these kinds of services. When I was in Korea, I thought this, instant text alert service, was being served for my benefit since it made me feel secured. As I was being notified the moment my card was being swiped, there was no chance that anyone else would be able to use my card behind my back. It was similar to hiring a personal assistant to keep track of every penny I spent. The worst thing was, I voluntarily requested to put an eye on me and my money spending pattern. I was also giving the card company money in return of its information gathering.

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III. The U.S. system

When we compare the above mentioned services with the ones here in New York, at first glance, the services we have here looks way behind. A credit card holder doesn’t know the exact amount of money that he/she has spent unless he/she goes online and checks. Even if someone illegally uses your card to buy something on-line, there is absolutely no way to catch that person or deny the approval of that wrongful use at that moment. Usually, you don’t realize the illegal card use until the moment you open up your credit card statement at the end of the month. Thereafter, you call the credit card company saying that your card has been illegally used. The credit card company always says that they will investigate the matter. 1~2 weeks pass by like an arrow before the card company gives you an explanation of what they figured out. During this period, a credit card holder becomes exhausted preparing and sending evidences, receiving phone calls and so on, on the request of the credit card company.

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IV. Conclusion

Therefore, when I first came to New York, I wondered why New York, so called the forefront of the financial world, did not have a simple system like instant texting service. I did not think the U.S. did not have it because of technological problem. I just assumed there might be an undisclosed or unresolved reason for it to not exist. And while I was in class, I was able to figure out that the main reason was not technology, but “privacy”. To me, it seems like Americans are much more concerned about privacy and against data mining. To tell the truth, I was not even aware of what data mining meant when I was in Korea. I was just satisfied at the fact that my card company was analyzing my spending patterns for me and was providing the result to me so that I could plan for my future spending. The fact that there was also a company that was co-planning my future spending didn’t come to my recognition. The worst part is I was even paying for giving out my information. This kind of data mining is certainly wrong and some kind of action has to be taken to prevent it. The only problem is, however, I have no idea what I can do to stop it. Is it a thing that can be stopped?

(998 words)

-- KeeryongSong - 29 Apr 2010