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EU agency advises against using search & browsing history for credit
scores Image: The New York Public Library
Catalin Cimpanu August 26, 2021

EU agency advises against using search & browsing history for credit
scores

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News
Privacy

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Catalin Cimpanu

August 26, 2021

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EU agency advises against using search & browsing history for credit
scores

The European Union's lead data protection supervisor has recommended
on Thursday that personal data such as search queries & internet
browsing history should not be used for the assessment of credit
scores and creditworthiness.

The recommendation comes from the European Data Protection Supervisor
(EDPS), an independent agency attached to the EU that advises
policymakers "on all matters relating to the processing of personal
data."

"[T]he EDPS considers that inferring consumers' credit risk from data
such as search query data or online browsing activities cannot be
reconciled with the principles of purpose limitation, fairness and
transparency, as well as relevance, adequacy or proportionality of
data processing. Therefore, the EDPS recommends explicitly extending
the prohibition to search query data or online browsing activities,"
the EDPS said in a document published on Thursday.

In addition, the agency advises that providers of financial and
credit services should also not be allowed to use health data, such
as cancer data, as well as any special category of personal data
under Article 9 of the GDPR for the calculation of credit scores.

"Ensuring compliance with the principle of proportionality in the
processing of personal data would also help protect consumers from
being targeted at moments of vulnerability with unfair credit offers
(for instance, high-cost payday loans)," the agency added.

The EDPS recommendations come after the European Commission has 
proposed revisions of two sets of EU rules on June 30, 2021,
including an update to the EU's older directive (2008/48/EC) on
credit agreements for consumers.

Responding to a controversial IMF blog post

Of note is that while the EDPS recommendations touch on a large
number of topics, the agency's officials addressed the subject of
using online browsing history for credit assessments for a reason.

Namely, the agency was addressing a controversial blog post from the
International Monetary Fund, published last December, where IMF
researchers argued that credit scores would be far more accurate if
financial assessments would be enriched with nonfinancial data
points, such as "the type of browser and hardware used to access the
internet, the history of online searches and purchases."

The IMF recommendation, which was universally panned and considered
downright creepy, showed, however, the underlying fear of most of the
banking sector--that they are losing ground to tech companies like
Amazon, Facebook, and Google.

While the EDPS has no legislative role, the agency's recommendations
have been a major contributing factor to the core principles behind
the EU General Data Protection Regulation (GDPR) and may signal that,
at least the EU, is not ready for the surveillance nightmare future
the IMF is apparently happy to embrace on behalf of its banking
sector members.

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Tags

  * browsing history
  * data protection
  * EDPS
  * European Union
  * GDPR
  * privacy
  * search query
  * social media
  * surveillance

 

Catalin Cimpanu is a cybersecurity reporter for The Record. He
previously worked at ZDNet and Bleeping Computer, where he became a
well-known name in the industry for his constant scoops on new
vulnerabilities, cyberattacks, and law enforcement actions against
hackers.

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