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Data Mining: What the Internet Knows About You
- Angie just ordered a new fall coat from her favorite retailer.
- Sarah and Sam requested a car insurance quote to see if their current policy was competitive.
- Mark filled out a fun “what’s your favorite sport?” survey online.
It wasn’t long before unsolicited emails were showing up in their inboxes. Each had become targets of “data mining."
What Is It?
Data mining, sometimes referred to as data or knowledge discovery, is the computer-assisted process of taking data from enormous databases and compiling it to detect consumer patterns. This profiling practice helps companies increase revenue, reduce costs and market to people most likely to buy their products.
For example, Angie’s retailer data mines to analyze which products are selling best, when and where, and then sends targeted promotions based on an individual’s purchase history. Sarah and Sam’s insurance quote request did not go unnoticed by other providers once the couple clicked “submit.” Mark began receiving promotional emails from professional football and basketball teams because of his sports survey preferences.
In addition to buying preferences, data mining has other applications, too. Governments use it for national security or law enforcement purposes.
Confidentiality Concerns
Data mining has the potential to uncover information or patterns that may compromise confidentiality and privacy obligations. The threat to an individual’s privacy may occur when the compiled data enables the data miner (or anyone who has access to the data set) to identify specific individuals.
While it may be difficult to avoid data mining, the best defense for protecting your confidentiality is to be choosy about what you share online. Never give out personal financial information to anyone in an email, and when shopping online, make sure you trust the website and look for security encryption icons.
We respect the confidentiality of all our members and believe in helping you protect your privacy and personal financial data. To learn more about how we keep you and your financial information safe, contact us at
888-804-9428 or visit whcu.org.