Valuetainment - December 11, 2023


Big Data Industry： The Hidden Ways Your Data is Manipulated


Episode Stats

Length

13 minutes

Words per Minute

215.68724

Word Count

2,913

Sentence Count

226

Misogynist Sentences

2

Hate Speech Sentences

1


Summary


Transcript

00:00:00.000 Do you ever find yourself talking to your spouse or friend about a camera you want to buy or a car
00:00:03.800 you want to buy or a specific thing you want to buy for the next 24 hours? All you see is all
00:00:08.140 these ads. You never searched it. You never did anything. Are they watching? Are they listening
00:00:11.900 to you? What's your data worth? Do you know what percentage of Americans actually know anything
00:00:16.560 about how marketing companies track your data, my data? Do you know what the number is? Less than
00:00:21.600 3% know exactly. They did a sample of 2,000 Americans asking 17 questions to see how many
00:00:27.920 of these questions they would get right. This is the result. 77% got anywhere between 0 to 9 right.
00:00:33.900 That's a failing grade. 15% got 10 to 11 right. 6% 12 to 13. Only 1% got 14 to 15 right. 0.03% got 16
00:00:44.180 right. Perfect score was pretty much impossible out there. Why? Most people don't know how this
00:00:48.200 industry works. The whole industry, global data broker-like, meaning if you're selling other
00:00:52.100 people's information, you know how big that was in 2022? $268 billion. An estimated to be $365
00:00:59.100 billion in 2029. By the way, most people don't even know how this industry works. We're going
00:01:03.560 to talk about that today.
00:01:10.560 To give value out of this video, give it a thumbs up and subscribe to the channel. Let
00:01:17.180 me kind of share with you what World Economic Forum said in 2011. They said it was theorized
00:01:22.280 that personal data will become a new asset class and will become one of the most valuable resources
00:01:27.940 on the planet. So valuable that 68% of businesses worldwide in 2021 were buying third-party data
00:01:35.860 from data brokers. And by the way, if you want to see which countries were leading the way,
00:01:39.360 here's what it looks like. At the top, US 73%. EU, not including UK, was 71%. Non-EU Europe, 69%.
00:01:48.120 Canada, 59%. Asia, 56%. Latin America, 51%. Middle East, 48%. UK, 43%. And you got the rest of them.
00:01:54.360 But the US, very interested in what you and I do. Very, very interested. And just to kind of give
00:01:59.460 you a visual of what this really means, in 2021, it was estimated that data brokers held information
00:02:04.780 about customers that would fill, you know how many filing cabinets? Ready? 16 trillion filing
00:02:11.120 cabinets with all the data they gather with you and I. By the way, do you know how much information
00:02:15.780 they have on you? Like what different data points? You ready? Is it like 50, you think? 100,
00:02:19.220 maybe 200. That's crazy. 200, right? You ready? According to World Privacy Forum,
00:02:23.120 the average data broker has information on approximately 1,500 data points for every
00:02:28.480 consumer. They probably know that one girl you kissed that no one knows about. They have it in
00:02:32.020 here. They probably got it here when they're selling that information. A study done by FTC found that
00:02:36.760 one data broker segment alone held information on 1.4 billion consumer transactions and over 700
00:02:41.960 billion raw data elements. To put it in perspective, it's about 90 times the number of tweets sent globally
00:02:47.700 in a year. So you may be saying, Pat, how is this even allowed? It's because we give them permission.
00:02:51.920 How do we give them permission? Have you seen the terms of service of different companies? By the
00:02:55.380 way, do you want to take a wild guess? Which one of these big online companies, I don't know, Amazon,
00:03:00.100 Facebook, Instagram, Twitter, Microsoft, Apple, which one do you think has the longest terms of
00:03:05.160 service that you and I sign? I'm going to break it down for you here in a minute, but there is no
00:03:09.320 federal law in the U.S. that regulates the data broker industry. We give them permission and here's
00:03:15.440 what it looks like. Terms of service. Take a look at this here on which one's the longest. When you look at it
00:03:19.540 here, they got Facebook, Instagram, Spotify, Twitter, LinkedIn, YouTube, Apple, Amazon, TikTok,
00:03:25.680 Netflix, Microsoft. We got a bunch of them, right? The shortest ones are actually Instagram and
00:03:30.620 Netflix. Instagram is 2,451 total word count. Netflix is 2628. You know who the longest one is?
00:03:37.640 Microsoft. You know where Microsoft at? 15,260. That's terms of service. 15,260 terms of service.
00:03:45.960 When's the last time you read all the terms of service? When's the last time we read them? Do we
00:03:49.080 go through them? You know how long it would take if we went through all of these? That's what happens
00:03:52.180 when we just say agree, they get all our data. By the way, just a bonus for you, just to put that
00:03:55.980 in perspective, you know the Microsoft terms of service, the amount of words that it has? The book
00:03:59.680 Art of War by Sun Tzu is only 12,035 words. That means Microsoft's terms of service is bigger
00:04:06.240 than you reading The Art of War by Sun Tzu. Pretty wild. By the way, another thing to consider here when it
00:04:11.660 comes down to data, you ever see all these websites that at the bottom, like, I want to really read this
00:04:15.440 article. Accept all cookies. And what do we do? Accept all cookies. That's also data they're
00:04:19.600 getting. You know what percentage of websites have cookies? 42.4% of websites globally use cookies.
00:04:27.100 65% of survey conducted by Deloitte respondents expressed profound concerns regarding the excessive
00:04:31.840 use of cookies and its potential impact on their personal data. So this industry is such a big
00:04:36.800 industry. Do you know how many companies in America just focus on selling data? What do you think it is?
00:04:41.280 Like, how many real estate companies are out there? How many insurance companies are out there?
00:04:44.440 How many companies do you think in America just focus on selling data? You ready? You think it's
00:04:47.760 220? 580? How about 1,100? That's crazy. Try 4,000. 4,000 companies that specialize in selling
00:04:55.180 your data. And by the way, you know, they say in 2019, 45% of your information that they sold was
00:05:01.240 marketing and advertising, data brokers, market demand. But the question is, what do they do with
00:05:05.280 the other 55%? What's the information being sold? No one knows. There's a lot of people speculating,
00:05:08.960 but no one knows. A Pew Research surveyed revealed that 91% of adults agree or strongly agree that
00:05:15.440 consumers have lost control over their personal data. And by the way, which industry do you think
00:05:20.880 is the fastest growing in data brokerage? What industry do you think? Just take a wild guess.
00:05:25.420 By 2022, the health and pharma industry, anyone surprised? Is projected to have the fastest growth
00:05:32.020 in data and brokerage services. And by the way, whether you're in the military or previous,
00:05:36.440 or you have friends and family that are in it. This is a very interesting report from Duke
00:05:40.440 Sanford School of Public Policy. Companies are gathering, inferring, aggregating, and then
00:05:44.740 selling, licensing, and sharing data on Americans, as well as providing technological services based on
00:05:49.960 that data. The Duke report also said data brokers are selling data on U.S. military personnel. The data
00:05:55.960 brokerage ecosystem poses risk to national security by compiling large, detailed databases on military
00:06:02.200 personnel, and subsequently selling that data on the open market. Here's what they're gathering. Ready?
00:06:07.880 I'll go through it fairly quickly. Detailed information on service members, government records,
00:06:11.580 medical conditions, medical records, financial situation and credit scores, political affiliation,
00:06:15.800 religious identity, gender and sexuality, address and contact information, children and families,
00:06:20.480 surveys, healthcare directories, active military occupational data, on-base housing information,
00:06:25.140 the prominent veteran affairs mortgage data, hobbies such as gambling,
00:06:28.200 or international travel capital. They want to know whether you gamble or not if you're in the
00:06:35.960 military. That's pretty wild. Detail geolocation data that can be used to identify military locations
00:06:41.980 and movements. Let me get this straight. We're selling the data to tell whoever wants to buy it
00:06:47.600 where our military personnel is. I wonder who would want to buy that. I mean, I can't think of any
00:06:52.040 countries. Definitely China wouldn't be interested. I know Iran wouldn't be interested. Russia wouldn't be
00:06:56.600 interested in things like this. They don't want to know where our military personnel are. Not at all.
00:07:00.880 They're trying to mind their own business. Right. Utility and new phone connection records,
00:07:04.660 code forms, order forms, sweepstake forms, partnership with list providers, commissaries
00:07:09.320 on military approved buyers, partnership with over 900 sources, including data gathered from public
00:07:13.860 records, social media accounts, online purchase records, online purchase records, online purchase
00:07:19.320 records, public tax documents, public tax documents. Doesn't that have your social on it?
00:07:23.680 Credit reports, national clearing house records, phone, email, postal surveys, call center,
00:07:28.160 compilation, live feed, voter data, data from commercial resources, medical records, government
00:07:33.500 records, nonprofits, serving military and veteran causes, public records, all of this stuff.
00:07:38.500 They are selling that data. And by the way, what do you think your data is worth? If you're in the
00:07:43.700 military watching this right now saying, I'm a Navy SEAL. I'm a Army Green Beret. I'm a Sergeant.
00:07:48.380 I'm an officer. I'm a Colonel. I'm a one-star general. You know what they're selling this per
00:07:52.640 military service member? What do you think it is? 200 bucks, a hundred bucks. You're like,
00:07:57.320 it's got to be worth more than that. What if I told you 22 cents? That's what they're selling.
00:08:02.360 You may buy it. You're watching and say, I would want to buy it for my company, right? They're selling
00:08:07.100 it for only 22 cents a pop. And by the way, I can't give you so many other weird stories. I want to give
00:08:12.700 you a couple of random stories. FYI, every year, you know, like your information gets stolen. Do you know
00:08:16.900 how many children's information gets stolen on a yearly basis? Children's identity. 915,000. By the
00:08:23.140 way, did you hear the story about the mother that stole her daughter's identity to go become a high
00:08:28.880 schooler so she can have pom-poms and be a cheerleader and she gets caught and goes to jail?
00:08:34.780 Of course, she's got issues. 33 years old to do this and she steals her daughter's information. By the
00:08:40.300 way, luckily, this is the mom doing it to the daughter. Imagine if a stranger is doing it to
00:08:43.640 somebody else. This is the story of Wendy Brown, who stole her daughter's information, Jamie. That's
00:08:48.060 mom-daughter. 915,000 per year. But let me give you another one. I'm going to take you back to a story
00:08:52.320 in 2004. Back in the days, people have been stealing information for a long time. In 2004,
00:08:57.840 Facebook, I think, came out in 04, give or take. That's like when these guys come out. We're not
00:09:01.700 using social regularly. This guy named Philip Cummings is working at this company. He's got a regular
00:09:07.540 desk job at Teledata Communications in Long Island, New York. And he helped people run routine
00:09:13.080 credit checks. When he left his job, he packed up his belongings along with the confidential
00:09:17.940 information that belonged to 33,000 people. Him and his accomplice end up selling this thing to
00:09:24.020 other people that were interested. You know how much the fine was at the end? The U.S. Department
00:09:28.400 of Justice estimated they made somewhere between 50 to 100 million dollars. Data has been important for
00:09:36.200 a very, very long time. Back in the days, people did it this way. Today, it's a lot easier because you
00:09:41.720 use all these apps regularly and you're always accepting cookies and you're always accepting
00:09:45.580 terms of service. You're not sitting there for 10 hours reading all these terms of service. So
00:09:48.940 guess what? We're essentially giving them the permission to use all our data. And military
00:09:52.840 information is being sold for 22 cents on a dollar. So let me give you an idea with all this data stuff
00:09:58.480 where I'm not concerned and where I am concerned. So for example, if you're using the data to retarget and
00:10:03.960 sell me a product that I showed a little bit of interest in, cool. I get it. It's on me to say yes or no.
00:10:09.440 Now, some people are like, but that's not, that's not cool. They're targeting and all this. Stop it.
00:10:14.160 You know, if you want to go to a market, supermarket, go to Ralph's, go to Kroger's.
00:10:18.180 Where do you think they have their milk? Right in the front? The number one product people buy when
00:10:21.840 they go to a market is what? Milk. They put that shit all the way in the back because they want us
00:10:25.560 to do what? Walk all the way to the back. You're like, I'm only going to buy milk. And then you're
00:10:29.520 like, bam, bam, bam, bam, bam, bam, bam. You went to buy milk for five bucks. You end up leaving it
00:10:33.980 $88. They use it. You fell for it. I fell for it all the time. It's normal. Costco does it. Where do they put
00:10:39.040 all this stuff that we have to buy? Meat is where? 17 miles all the way down. You got to walk up and
00:10:43.940 then you got another 45 minutes of stuff you're going to pick up. Next thing you got a case of
00:10:47.500 mustard as if you're going to start a side business of selling mustard. Why do you need 17 years of
00:10:51.780 supply of mustard? We picked it up. You know what? I'm going to save some money as if you're going to
00:10:55.000 use mustard all that in a month. So I don't mind if they're retargeting to sell me a new product or the
00:10:59.960 same product I'm interested in. I'm okay with that. What I am concerned about is the movie Minority Report,
00:11:04.440 if you remember it, which was future behavior, what you can, future crimes you can commit. There's
00:11:09.160 this show on HBO called Westworld where they have this AI system that based on this AI, do they hire
00:11:15.300 you? Do they not hire you? Are you good to come on board? What if they do this? And what if they do
00:11:19.780 that? And you know, you're not a good person to hire because your behavior in the future is going to be.
00:11:22.940 That's the stuff that gets a little bit interesting where can people get arrested on a future crime? Can
00:11:28.640 people get held back for certain things? You know, China's already using the social credit system to track
00:11:33.580 what you can get, what you can't get. Voting, this is where you're going to be at and they put you in
00:11:37.240 a box. That's the part that's a little fishy to me. I have no problem with capitalists trying to put
00:11:41.980 their product in front of me to buy it over and over again. I'm okay with that. I'm a big boy. If I
00:11:46.280 buy it, great. If I don't buy it, I have to be able to control it. It's the other things that I'm a
00:11:50.880 little bit concerned about. So I'll give you a couple things as a solution while you're going through
00:11:54.260 this because I know some of you guys that are paranoid people, you're freaking out right now. Like,
00:11:57.500 oh my God, what do I do? Take all the apps down. Delete every app you got. Get off of everything,
00:12:02.240 right? So I'm not telling you that, but you have to know it's a different world we're living in.
00:12:05.580 It's better to be aware. Here's a few things on how to protect your personal data. Freezing your
00:12:09.660 credit is one way to do it. Being alert for scams. There's a lot of different apps you can use to give
00:12:14.960 you alerts on somebody's using the things that they're using. I get so many alerts when somebody
00:12:19.220 buys. How'd you know? Because I got alerts that I know who's buying and who's using what. Practicing
00:12:23.680 good password hygiene, protecting your devices, locking up your stuff. A sound data security plan is
00:12:28.960 build on five key principles is what FTC tells you. Number one, take stock. Know what personal
00:12:32.840 information you have on your files and on your computers. Number two, scale down. Keep only what
00:12:37.380 you need for your business. Number three, lock it. Protect the information that you keep. Number four,
00:12:42.020 pitch it. Properly dispose of what you no longer need. And last but not least, plan ahead. Create a plan
00:12:46.840 to respond to security incidents. So if you got value out of this video, give it a thumbs up. Subscribe to
00:12:51.120 the channel. By the way, this is probably an episode you may want to watch with your spouse, mom, dad,
00:12:55.160 grandparents. It's probably something everybody needs to watch or learn more about it. But
00:12:58.340 I interviewed somebody a few years ago, a guy named Matthew Cox. You've probably seen him on TV.
00:13:02.320 This was FBI's most wanted guy in the area of loopholes in the system. He actually breaks down
00:13:10.160 how he would defraud banks using other people's credit. Absolutely wild what he did. If you want
00:13:16.980 to learn exactly how they use it, you may as well learn it from somebody that did it for many years
00:13:20.680 and made millions of dollars doing this. If you've never watched this before, click here to watch it.
00:13:24.900 Aside from that, have a good day, everybody. Take care. Bye-bye, bye-bye.
00:13:28.340 you