1. Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley Chapter 5: Privacy Ethics for the Information Age Forth Edition by Michael J. Quinn

2. 1-2 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-2 Chapter Overview Introduction Perspectives on privacy Disclosing information Ways information becomes public U.S. legislation Public records Covert government surveillance U.S. legislation authorizing wiretapping Data mining Identity theft Encryption

3. 1-3 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-3 Introduction Information collection, exchange, combination, and distribution easier than ever More information access  less privacy Trade-offs –Privacy vs. need for credentials –Privacy vs. desire for free expression –Privacy vs. safety / security

4. 1-4 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-4 Defining Privacy Privacy related to notion of access Access –Physical proximity to a person –Knowledge about a person Edmund Byrne: Privacy is a “zone of inaccessibility” Edward Bloustein: Privacy violations are an affront to human dignity Too much individual privacy can harm society –Ex: a group that facilitates business among its members, not helping the whole siciety. Where to draw the line?

5. 1-5 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-5 Harms of Privacy Cover for illegal or immoral activities Burden on the nuclear family –To care for all its members Hidden dysfunctional families –We don’t know about pain caused by family violence because of privacy. Ignored people on society’s fringes –Poor, mentally ill people.

6. 1-6 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-6 Benefits of Privacy Individual growth (maturity) Individual responsibility Freedom to be yourself Intellectual and spiritual growth –Shut out the rest of the world to focus our thoughts without interruption. Development of loving, trusting, caring, intimate relationships –Close relationships

7. 1-7 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-7 Is There a Natural Right to Privacy? Morton Levine: Property rights (Home)  Privacy rights –I own my home, no body should interfere Privacy is a prudential right –Ex: Telemarketing and the Do Not Call Registry

8. 1-8 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-8 Privacy and Trust Modern life more private –In the past there was greater emphasis on community Challenge: living among strangers –We know little about neighbors –BUT we must trust people to some extent –Ex: taxi driver, teachers, bank loans Remedy: establishing reputations –Ordeal, such as lie detector test or drug test –Credential, such as driver’s license, key, ID card, college degree Establishing reputation is done at the cost of reducing privacy

9. 1-9 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-9 Disclosing Information Public record: information for public access –Ex: birth certificates Public information: information revealed to an organization that has right to share it –Ex: Telephone directory Personal information: undisclosed information –Ex: religion, wealth Types of disclosures –Voluntary : –Involuntary : body and luggage search at airport –Statutory : Record of arrests and convicted persons Cameras on streets

10. 1-10 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-10 Ways Information Becomes Public Rewards or loyalty programs (shopping cards) Body scanners (to choose clothes that fit you) Digital video recorders (Sells info about viewing habits) New Automobile “comes with black boxes like airplanes” Enhanced 911 service (Track locations of cell phones) RFIDs (Tags on products – aspirin or pants) Implanted chips (RFID tag contains name and address for patients and children) Cookies (a file on your PC placed by a web server to monitor your visit to a Web site Spyware: a program to monitor your surfing on the net

11. 1-11 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-11 Public Records Examples of Public Records Census records –Many ways to use these records Internal Revenue Service records – Income, tax, assets, organization you give charity for, medical expanses, …etc. FBI National Crime Information Center 2000 –Stolen items, missing persons and guns, wanted persons, criminal histories, suspected terrorists.

12. 1-12 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-12 Census Records Census required to ensure every state has fair representation Number of questions steadily rising Sometimes Census Bureau has broken confidentiality requirement –World War I: provided names and addresses of young draft resistors –World War II: used info. About Japanese- Americans Round them up and send them to arrest camps.

13. 1-13 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-13 Internal Revenue Service Records Much personal information on tax forms Some IRS employees have misused access to IRS records IRS has also misplaced tapes and diskettes containing records

14. 1-14 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-14 FBI National Crime Information Center 2000 NCIC –Collection of databases related to various crimes –Contains > 39 million records Successes –Helps police solve hundreds of thousands of cases every year –Helped FBI tie James Earl Ray to assassination of Dr. Martin Luther King, Jr. –Helped FBI apprehend Timothy McVeigh for bombing of federal building in Oklahoma City

15. 1-15 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-15 Criticisms of the NCIC Erroneous records have led to false arrests Police have arrested innocent people with same name as someone in NCIC database FBI has used NCIC to keep records of people not suspected of any crime –Ex opponents to Vietnam War Corrupt law-enforcement employees have sold information to private investigators and deleted or altered records Some law-enforcement employees illegally access the NCIC (Ex: to search for babysitters)

16. 1-16 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-16 OneDOJ Database Database being constructed by U.S. Department of Justice Gives state and local police officers access to information provided by five federal law enforcement agencies –Incident reports –Interrogation summaries –Other information not available through NCIC Criticisms –OneDOJ gives local police access to information about people who have not been charged with a crime –There is no way to correct misinformation in raw police reports

17. 1-17 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-17 Code of Fair Information Practices Has the following principles: No secret databases People should have access to personal information in federal databases Organizations cannot change how information is used without consent People should be able to correct or amend records Database owners are responsible for reliability of data and must prevent misuse

18. 1-18 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-18 Wiretaps and Bugs Wiretaps: relates to interception of telephone conversations Bugs are hidden microphones used for surveillance Wiretapping and bugs are not legal FBI continues secret wiretapping

19. 1-19 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-19 Operation Shamrock Operation Shamrock was a covert, domestic intelligence gathering operation that monitored telegraph communications. Expanded to telephone calls Kennedy – Organized crime figures “watch list” – Individuals and companies doing business with Cuba Johnson and Nixon – Vietnam war protesters Nixon – War on drugs – Monitoring phone calls

20. 1-20 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-20 Carnivore Surveillance System Created by FBI in late 1990s Monitored Internet traffic, including email exchanges Carnivore = Windows PC + “packet-sniffing” software Captured packets going to/from a particular IP address Used about 25 times between 1998 and 2000 Replaced with commercial software

21. 1-21 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-21 Covert Activities after 9/11 September 11, 2001 attacks on World Trade Center and Pentagon President Bush authorized new, secret, intelligence-gathering operations inside United States

22. 1-22 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-22 National Security Administration Wiretapping President Bush signed presidential order –OK for NSA to intercept international phone calls & emails initiated by people inside U.S. –No search warrant required Number of people monitored –About 500 people inside U.S. –Another 5,000-7,000 people outside U.S. Two al-Qaeda plots foiled –Plot to take down Brooklyn bridge –Plot to bomb British pubs and train stations

23. 1-23 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-23 TALON Database: Threat And Local Observation Notice Created by U.S. Department of Defense in 2003 Supposed to contain reports of suspicious activities or terrorist threats near military bases Reports submitted by military personnel or civilians Reports assessed as “credible” or “not credible” by military experts Reports about anti-war protests added to database Many of these reports later deleted from database In 2007 TALON was terminated

24. 1-24 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-24 Data Mining Data mining –Searching for patterns or relationships in one or more databases –Way to generate new information by combining facts found in multiple transactions –Way to predict future events Secondary use: information collected for one purpose used for another purpose –Ex: Collaborative filtering is used to predict future preference of a person comparing to other people transactions (renting from a video store) Information about customers is a valuable commodity

25. 1-25 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-25 Data Mining Examples – Marketplace: Households Lotus Development Corporation developed CD with information on 120 million Americans Planned to sell CD to small businesses that wanted to create mailing lists based on various criteria, such as household income More than 30,000 consumers complained to Lotus about invasion of privacy Lotus dropped plans to sell CD

26. 1-26 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-26 Data Mining Examples – IRS Audits IRS uses computer matching and data mining to look for possible income tax fraud Computer matching: matching tax form information (filled by a person) with information provided by employers, banks, etc. Data mining: searching through forms to detect those that appear most likely to have errors resulting in underpayment of taxes

27. 1-27 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-27 Data Mining Examples – Syndromic Surveillance System Created by New York City Analyzes more than 50,000 pieces of information every day –911 calls –Visits to emergency rooms –Purchases of prescription drugs Looks for patterns that might indicate an epidemic, bioterrorism, or an environmental problem

28. 1-28 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-28 Data Mining Examples – Telecommunications Records Database Created by National Security Agency after 9/11 Contains phone call records of tens of millions of Americans NSA analyzing calling patterns to detect terrorist networks Phone records voluntarily provided by several major telecommunications companies USA Today revealed existence of database in May 2006 Several dozen class-action lawsuits filed August 2006: Federal judge in Detroit ruled program illegal and unconstitutional July 2007: U.S. Court of Appeals overturned ruling, saying plaintiffs did not have standing to bring suit forward

29. 1-29 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-29 Ownership of Transaction Information Who controls transaction information? –Buyer? –Seller? –Both? Opt-in: consumer must explicitly give permission for the organization to share info with another organization. –Preferred by privacy advocates Opt-out: consumer must explicitly forbid an organization from sharing info –Preferred by direct marketing

30. 1-30 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-30 Identity Theft : Background Identity theft: misuse of another person’s identity to take actions permitted to the owner Credit card fraud #1 type of identity theft Ease of opening financial accounts contributes to problem –Because information brokers on the Web are selling IDs (license, SSN, Credit cards) 10 million victims in 2004 alone Average loss: $5,000 per victim

31. 1-31 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-31 Gaining Access to Information Mailboxes Lost or stolen wallets Dumpster diving (looking old bills, bank statements, …etc) Shoulder surfing (while people are filling forms) Skimmers (wedges) –Credit card readers attached to ATM machines Phishing –Gathering financial info through spam asking you to visit a web site and the update personal info (fake Paypal)

32. 1-32 Copyright © Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5-32 Encryption Process of transforming a message in order to conceal its meaning Valuable tool for maintaining privacy