[HN Gopher] Crooks threaten to leak 3B personal records 'stolen ...
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       Crooks threaten to leak 3B personal records 'stolen from background
       check firm'
        
       Author : rntn
       Score  : 92 points
       Date   : 2024-06-03 20:07 UTC (2 hours ago)
        
 (HTM) web link (www.theregister.com)
 (TXT) w3m dump (www.theregister.com)
        
       | wdb wrote:
       | Fascinating. I always request my details to be removed after
       | completion so if my details are leaked they have a problem.
        
         | Rygian wrote:
         | > according to the VX team: "The database DOES NOT contain
         | information from individuals who use data opt-out services.
         | Every person who used some sort of data opt-out service was not
         | present."
         | 
         | You're good, perhaps! The rest are opted-in for a data leak.
        
           | r00fus wrote:
           | This is a great example of why everything should be opt-in
           | given the risk the individuals incur, not to mention the
           | company.
           | 
           | If society appropriately disincentivized data collection, we
           | could even get to where companies don't see customer data as
           | an asset instead more as a liability.
        
             | xkcd-sucks wrote:
             | It seems hard to disincentivize "data" in the same way it's
             | hard to disincentivize "cocaine", e.g. to most companies
             | "10 kg of cocaine" is a liability but there exist certain
             | companies generally staffed by more unpleasant people who
             | make it their business to treat it as an asset.
             | 
             | Which means going to a different layer / structural
             | solution maybe. How does the value of data go to zero?
        
               | rusk wrote:
               | Lots of companies ran a mile from data once GDPR dropped
               | and it's pretty much a standard threat model for new
               | information architectures
        
             | onemoresoop wrote:
             | Nothing meaningful should stored due to data leaks
             | liability, period. Now if data really leaks out users
             | should be able to sue and get compensated. If companies are
             | made to pay they'll clean up their act fast.
        
         | adamomada wrote:
         | Your details just go into a different file, and you show as sus
         | on the next background check.
        
           | londons_explore wrote:
           | This is why I don't use those privacy services. An awful lot
           | of companies use background checks as a decider on if they
           | are going to offer you service, or to give discounts to low-
           | risk customers.
           | 
           | I might end up paying extra because my insurance company
           | decided I didn't fall into their 'lowest risk' bucket because
           | my background check came back as "we have never heard of this
           | gal" because I once used a data privacy protecting service or
           | they can't find my facebook/linkedin/twitter.
        
             | namaria wrote:
             | So your rationale is to avoid seeking out privacy on the
             | off chance that you might not get the biggest discount
             | available when buying insurance?
        
               | londons_explore wrote:
               | or a mortgage, credit card, or bank account, yep.
               | 
               | There is easily a 10x difference in insurance prices
               | between "known good customer" and "probably fraudulent
               | customer" - and that difference is the difference between
               | being able to own your own house (with mortgage to begin
               | with) and renting for life.
               | 
               | Most people would value owning their own home over having
               | some computer system using their data to select one ad
               | over another.
        
               | namaria wrote:
               | While there might be such a difference in price, equating
               | trying to avoid data collection through legitimate means
               | with being flagged as a probable fraudster and having to
               | pay 10x is not sound reasoning.
               | 
               | If people were routinely getting gauged like this for
               | trying to opt out of something, there would be a pretty
               | huge story in that and I doubt it would go unreported.
        
               | pessimizer wrote:
               | Caring about privacy puts you on a list. It's like
               | responding to spam asking to be taken off the mailing
               | list; you're just verifying that you're someone they
               | should be paying attention to.
        
               | namaria wrote:
               | I'd much rather be in a list for exercising my rights and
               | upholding my convictions that cowering in fear of
               | imagined damage for not toeing an arbitrary line.
               | 
               | Sounds like a pretty awful way to live. Honestly I'm
               | shocked to hear such a conformist and timid opinion
               | uttered in a forum called Hacker News.
               | 
               | Even if you play the 'actually this is a VC connected
               | corporate forum' what sort of entrepreneur lives by this
               | sort of preemptive self censoring?
        
       | johnea wrote:
       | So, one criminal gang steals data from another criminal gang, and
       | then sells it to a 3rd criminal gang.
       | 
       | Sounds like capitalism is functioning as intended...
        
       | dmitrygr wrote:
       | This will continue until we make having a huge collection of
       | personal data into a liability and not an asset for companies.
       | Actual jail terms for CEOs for leaks would be a wonderful start.
       | Or, at least, we should have fines that are not wrist-slaps. For
       | example, a fine of $1000 paid to each individual per leak would
       | be a good starting point. Then, companies will properly start
       | minimizing the amount of data they store, in fear of a crippling
       | loss.
        
         | hedora wrote:
         | Also, the money should go into an escrow account with a list of
         | claimants. Some neutral third party should handle getting the
         | checks to individuals.
         | 
         | That way, there's no financial incentive to make it hard to
         | claim damages, and people won't need to bother filling out a
         | form every few weeks to claim the cash.
        
         | robertonoa wrote:
         | > a fine of $1000 paid to each individual per leak would be a
         | good starting point
         | 
         | They would just fold the company and start another? Most data
         | brokers do not have 3 trillion dollars.
        
           | dmitrygr wrote:
           | Some people will still get some money. And spinning up a new
           | company still has costs. However, this is precisely why this
           | is the second-best option, after actual jail time for actual
           | CEOs. Then they can fold whatever they want in their prison
           | cells
        
           | Gibbon1 wrote:
           | Can make the board personally liable.
        
             | tithe wrote:
             | Can't you do this via class action seeking to demonstrate
             | negligence?
        
               | csdreamer7 wrote:
               | At best the fees class action lawyers would charge would
               | change that $1000 into $0.10.
               | 
               | I already pay taxes; why not have the government do their
               | job and protect my digital information and fine the
               | companies and their executives so they learn to care
               | about it. The government allows the corporate barrier to
               | be pierced if employee salaries are not paid.
        
           | gagagaga7 wrote:
           | They will need to be insured for that amount then. Can't
           | afford to insure against that liability? Can't legally
           | operate.
        
             | dcist wrote:
             | Agree with this. An insurance requirement would solve this
             | problem. It would also incentivize robust security audits
             | by the insurance companies and the data collectors.
        
         | wing-_-nuts wrote:
         | 'Crippling loss'? Haha. Look at the equifax debacle. They set
         | aside some paltry amount of money for the class action, almost
         | instantly ran out and then everyone collectively shrugged.
         | 
         | Regs are rarely ever meant to actually favor the average
         | citizen over the corporation. Just look how quickly the
         | consumer protection agency was killed.
        
           | JackYoustra wrote:
           | The CFPB survived the lawsuit against it?
        
           | FireBeyond wrote:
           | Then they offered free enrollment in their credit protection
           | services.
           | 
           | But... you had to supply a credit card to enroll.
           | 
           | And... after six/twelve months they'd automatically roll you
           | over to their highest tier plan, and start billing you.
           | 
           | It might as well have been a promo scheme.
        
         | pknomad wrote:
         | I agree with your sentiment but I feel like that's an
         | impossible expectation/standard to set for certain companies
         | that don't have the luxury of dropping data whenever they see
         | fit. For example consumer banks abide by the Bank Secrecy Act
         | which mandates the banks to keep wire records that exceed $100
         | for at least 5 years.
        
         | toomuchtodo wrote:
         | https://news.ycombinator.com/item?id=40203558
        
         | ipaddr wrote:
         | A simple tax on every personal record you hold would work.
        
           | flemhans wrote:
           | Could be paid to the person instead of the government
        
             | fwip wrote:
             | Would be nice, but wouldn't that limit the taxable set of
             | data records to those that have enough info to route
             | payment to? Either paid directly by the company, or enough
             | information for the government to identify you.
        
           | nox101 wrote:
           | That sounds like unintended consequences to me.
        
         | CamperBob2 wrote:
         | Best metaphor I've heard is that personal data should be
         | treated like toxic waste. If you're a company that works with
         | it, it should only be because you have to, not because you want
         | to. And then, you want to keep as little of it around as
         | possible. You definitely don't want to leak it, because then
         | the EPA will come down on you like a ton of bricks. All of your
         | processes should be geared toward minimizing or eliminating
         | exposure to it whenever possible.
         | 
         | Unfortunately, companies are incentivized to treat personal
         | data like something to be aggressively gathered and hoarded
         | instead... but not necessarily like something to be guarded
         | against leakage.
        
       | rootusrootus wrote:
       | Maybe as this becomes so ubiquitous, we will finally see
       | 'identify theft' recognized as BS. If you allow someone who is
       | not-me to pretend to be me and rip you off, this is not ever my
       | problem; it's yours.
        
         | zippergz wrote:
         | Cue the posts complaining about how impossible it is to do any
         | transaction online because you have to provide so much proof
         | (and the companies collecting even MORE data about us, to later
         | be stolen).
        
           | svachalek wrote:
           | Most transactions online use some kind of payment system,
           | which is vulnerable to various forms of fraud and hackery but
           | not "identity theft". "Identity theft" (and GP is right that
           | this is a made up crime to discount corporate greed and
           | laziness) occurs during an application for credit, which
           | doesn't need to be a common and easy process.
        
             | barbazoo wrote:
             | And even that has been solved by more privacy forward
             | societies. For instance PostIdent in Germany where you
             | verify your identity with a trusted third party.
        
       | Nuzzerino wrote:
       | From the opt-out link:
       | 
       | > If you are a California, Virginia, Colorado, Connecticut, or
       | Utah resident, you have the right to request that we delete
       | personal information that we collect about you, subject to
       | certain exceptions.
       | 
       | I think it's time to require this on a national level. This is
       | getting ridiculous.
        
         | aljgz wrote:
         | That's a step forward, but not a solution. There are so many
         | firms collecting data on everyone. There should be something
         | similar to a "National no call list". If you register there,
         | all firms should delete your information or face consequences.
        
           | radicaldreamer wrote:
           | Unfortunately this will be used to discriminate against
           | people when applying for a loan or a job, so we must make it
           | illegal to discriminate when these data brokers return
           | nothing for a search because someone has opted-out.
        
             | nickff wrote:
             | If you're going to make it illegal for anyone to use the
             | data broker information to make decisions, you should just
             | ban the data brokers from existing.
        
               | anon373839 wrote:
               | Bingo. This is clearly the answer. However, law
               | enforcement buys from data brokers, so it will never
               | happen.
        
               | Arrath wrote:
               | Ideally, yes.
        
           | jjtheblunt wrote:
           | Firms don't seem to face consequences for violating the no-
           | call list, as people notice FCC does not seem to stop spam
           | calls or texts.
        
             | ethbr1 wrote:
             | It ebbs and flows. Afaik, most of the spam calls and text
             | tend to "leak" through over international agreements, until
             | the carriers block them.
        
           | weikju wrote:
           | so register in a central database to not be registered in a
           | bunch more central databases? Then the one "do not collect
           | data" list will be leaked over and over?
        
           | faeriechangling wrote:
           | The national do not call list isn't effective so I can't
           | advocate for another one as a solution UNTIL the first
           | implementation is fixed.
        
           | KennyBlanken wrote:
           | https://en.wikipedia.org/wiki/Nirvana_fallacy
           | 
           | see also: overton window.
           | 
           | The one thing conservatives in the US do very well is be
           | willing to accept any step in the direction they want -
           | usually by taking an extreme position to "anchor", and then
           | eventually retreating to a position that's still in the
           | direction they want to go.
        
         | s_dev wrote:
         | It's enlightening to see read comments from this forum when
         | GDPR was being introduced. It was just seen as pesky
         | legislation designed to trap people needlessly in red tape and
         | not legit privacy protections. I think a lot of Americans are
         | coming around to sense -- now seeing US companies consistently
         | abuse their data. The US should have similar legislation to
         | protect Americans.
         | 
         | Here's an example:
         | https://news.ycombinator.com/item?id=17154971
        
         | rkagerer wrote:
         | Or legislate these things have to be opt-in. I remember when
         | politeness dictated you ask someone before even taking their
         | photo.
         | 
         | I think the companies collecting personal information assume
         | they have more entitlement to it they they actually do, and are
         | on the wrong side of the law - especially when breaches like
         | this result in real damage. I'd like to see a few really harsh
         | class action lawsuits bite them in the ass and leave behind bad
         | enough scars that other firms begin to see personal data as a
         | liability not as asset.
        
       | WhackyIdeas wrote:
       | How has this American data broker got my data when I am a British
       | citizen? Wtf?
        
         | pbhjpbhj wrote:
         | Where did you check that your data was in the leak?
        
         | FireBeyond wrote:
         | Apropos of anything else, because these companies couldn't care
         | where or who you are. The more data they can slurp up on more
         | people, the better and more valuable their databases sound.
        
       | Y_Y wrote:
       | Crooks threaten to leak data stolen from other crooks.
        
       | hn_throwaway_99 wrote:
       | The thing I don't understand is how, with SOOO much leaking of
       | nearly everyone's personal data who is a US citizen, can KYC
       | requirements (that is, what is required to own a bank account in
       | someone's name online) still be so low. In many (most?) cases all
       | you need is full name, address, date of birth, social security
       | number, possibly also phone and/or email. If those pieces of
       | content correlate with each other, and there is no other
       | suspicious information about the account opening request, the
       | account is likely to be opened.
       | 
       | All that information is _essentially_ semi-public these days for
       | nearly all US citizens. How is this still allowed for KYC
       | purposes?
        
         | lettergram wrote:
         | It's the validation of that info that is KYC
        
           | ethbr1 wrote:
           | Is there really validation in the current system though? Or
           | is it simply providing self-consistent (publicly available)
           | details?
           | 
           | KYC in an environment where all the data points are openly
           | available looks very different.
        
             | lijok wrote:
             | There is. Liveness checks prove the user submitting the
             | info is the user in the documents.
        
       | markus_zhang wrote:
       | OK great, we are being leaked left and right. You know what, we
       | should just demand $10 per collection. Collect and leak whatever
       | you want, because I cannot stop you, but you need to pay me.
        
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