Like that car? The tricks of the data body industry

2. Like that car? The tricks of the data body industry

In the New Economy, data have become a primary resource. Businesses unable to respond to the pressure of informatisation are quickly left behind. "Information is everything" has become the war-cry of the New Economy. More than ever, business companies now collect data related to their customers, their competitors, economic indicators, etc., and compile them in data warehouses. Large amounts of data acquired can be turned into a systematic collection called a data warehouse through data mining techniques. These data can be used for marketing, stock exchange transactions, risk assessment, and many other purposes.

However, there are also many companies that specialise in data body economics as the main line of business. They collect huge amount of data process and enhance them (thereby increasing the value of the data) and offer them on to other companies. Direct marketing companies belong to this category. Direct marketing companies carry out targeted marketing, also called strategic marketing, aimed at individual customers or groups of customers. This process is based on a consumer profile, a collection of data containing personal information such as age, sex, marital status, employment, address, and information about consumer and payment behaviour. Based upon this profile, conclusions regarding possible future consumption are drawn and offers are made.

For example, somebody who has been attracted by a car on display in an airport terminal and completes a card with name and address to participate in a draw reveals a lot of economically valuable information about him / herself. Apart from name and address, and other data that is completed on the card, this person also can be assumed to be a potential car buyer (evidently he / she wants a car) and to be relatively affluent (the poor do not normally travel by plane). The time when you complete the card also provides information: in July and August, you are more likely to be a holiday maker than in November. Possibly in small print somewhere on the ticket you complete you agree to receive more information about this and other products, and you agree also that your data are "electronically processed". The data acquired this way can normally be expected to be much more valuable than the car the is offered in the draw. Most people who completed the cards will not win in the draw, but instead end up on directs marketing data warehouses and one day receive offers of products and services which they never knew they wanted.

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Timeline 1970-2000 AD

1971 IBM's work on the Lucifer cipher and the work of the NSA lead to the U.S. Data Encryption Standard (= DES)

1976 Whitfield Diffie and Martin Hellman publish their book New Directions in Cryptography, playing with the idea of public key cryptography

1977/78 the RSA algorithm is developed by Ron Rivest, Adi Shamir and Leonard M. Adleman and is published

1984 Congress passes Comprehensive Crime Control Act

- The Hacker Quarterly is founded

1986 Computer Fraud and Abuse Act is passed in the USA

- Electronic Communications Privacy Act

1987 Chicago prosecutors found Computer Fraud and Abuse Task Force

1988 U.S. Secret Service covertly videotapes a hacker convention

1989 NuPrometheus League distributes Apple Computer software

1990 - IDEA, using a 128-bit key, is supposed to replace DES

- Charles H. Bennett and Gilles Brassard publish their work on Quantum Cryptography

- Martin Luther King Day Crash strikes AT&T long-distance network nationwide


1991 PGP (= Pretty Good Privacy) is released as freeware on the Internet, soon becoming worldwide state of the art; its creator is Phil Zimmermann

- one of the first conferences for Computers, Freedom and Privacy takes place in San Francisco

- AT&T phone crash; New York City and various airports get affected

1993 the U.S. government announces to introduce the Clipper Chip, an idea that provokes many political discussions during the following years

1994 Ron Rivest releases another algorithm, the RC5, on the Internet

- the blowfish encryption algorithm, a 64-bit block cipher with a key-length up to 448 bits, is designed by Bruce Schneier

1990s work on quantum computer and quantum cryptography

- work on biometrics for authentication (finger prints, the iris, smells, etc.)

1996 France liberates its cryptography law: one now can use cryptography if registered

- OECD issues Cryptography Policy Guidelines; a paper calling for encryption exports-standards and unrestricted access to encryption products

1997 April European Commission issues Electronic Commerce Initiative, in favor of strong encryption

1997 June PGP 5.0 Freeware widely available for non-commercial use

1997 June 56-bit DES code cracked by a network of 14,000 computers

1997 August U.S. judge assesses encryption export regulations as violation of the First Amendment

1998 February foundation of Americans for Computer Privacy, a broad coalition in opposition to the U.S. cryptography policy

1998 March PGP announces plans to sell encryption products outside the USA

1998 April NSA issues a report about the risks of key recovery systems

1998 July DES code cracked in 56 hours by researchers in Silicon Valley

1998 October Finnish government agrees to unrestricted export of strong encryption

1999 January RSA Data Security, establishes worldwide distribution of encryption product outside the USA

- National Institute of Standards and Technologies announces that 56-bit DES is not safe compared to Triple DES

- 56-bit DES code is cracked in 22 hours and 15 minutes

1999 May 27 United Kingdom speaks out against key recovery

1999 Sept: the USA announce to stop the restriction of cryptography-exports

2000 as the German government wants to elaborate a cryptography-law, different organizations start a campaign against that law

- computer hackers do no longer only visit websites and change little details there but cause breakdowns of entire systems, producing big economic losses

for further information about the history of cryptography see:
http://www.clark.net/pub/cme/html/timeline.html
http://www.math.nmsu.edu/~crypto/Timeline.html
http://fly.hiwaay.net/~paul/cryptology/history.html
http://www.achiever.com/freehmpg/cryptology/hocryp.html
http://all.net/books/ip/Chap2-1.html
http://cryptome.org/ukpk-alt.htm
http://www.iwm.org.uk/online/enigma/eni-intro.htm
http://www.achiever.com/freehmpg/cryptology/cryptofr.html
http://www.cdt.org/crypto/milestones.shtml

for information about hacker's history see:
http://www.farcaster.com/sterling/chronology.htm:

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WIPO

The World Intellectual Property Organization is one of the specialized agencies of the United Nations (UN), which was designed to promote the worldwide protection of both industrial property (inventions, trademarks, and designs) and copyrighted materials (literary, musical, photographic, and other artistic works). It was established by a convention signed in Stockholm in 1967 and came into force in 1970. The aims of WIPO are threefold. Through international cooperation, WIPO promotes the protection of intellectual property. Secondly, the organization supervises administrative cooperation between the Paris, Berne, and other intellectual unions regarding agreements on trademarks, patents, and the protection of artistic and literary work and thirdly through its registration activities the WIPO provides direct services to applicants for, or owners of, industrial property rights.

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RIPE

The RIPE Network Coordination Centre (RIPE NCC) is one of three Regional Internet

Registries (RIR), which exist in the world today, providing allocation and registration services which support the operation of the Internet globally, mainly the allocation of IP address space for Europe.

http://www.ripe.net

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