Top 5 privacy issues for 2005

Larry Ponemon   Today’s Top Stories   or  Other Management Stories  

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December 28, 2004 (Computerworld) -- During the past year, Ponemon Institute has surveyed thousands of individuals on a variety of issues affecting their privacy, from a universal credentialing system to Internet ads that use personal information to target prospective customers. Emerging trends from our research suggest that individuals view their right to privacy as increasingly important and worry about how organizations collect, use and share their personal information. Other concerns include cybercrime, abusive marketing and loss of civil liberties.

Despite privacy concerns, however, the vast majority of people we contacted are willing each day to take significant information-sharing risks for small benefit. These actions include downloading free software, obtaining free Internet services or receiving an e-product coupon.

Our studies also show that the U.S. public will often choose convenience over privacy. For example, our 2004 Privacy Trust Study of the U.S. airline Industry found that a majority of consumers were willing to share enormous amounts of personal information with an airline and the federal government if this allowed them to get through airport security checkpoints faster.

Based on what we learned from consumers this year, here are what we believe will be the top five privacy and IT ethics issues in 2005:

Identity Management: Balancing privacy and security

Identity is the key to protecting personal information and privacy rights. The rash of identity theft incidents and growing sophistication of cybercriminals creates the need for a nearly perfect universal ID credential. We realize that such a system can raise Big Brother concerns—especially if there is a lack of oversight. However, we believe this credential will become an essential tool for gaining access to private records and public places.

Findings from the Ponemon Institute 2004 Survey on the Public's Perception of Identity Management, sponsored by the International Association of Privacy Professionals and Electronic Data Systems Corp., support the use of biometrics for identity management. More than 70% of respondents said they could accept certain kinds of biometrics, such as a voice recognition or fingerprinting system. The No. 1 reason is convenience. More than 88% of respondents believe biometrics will make identification more convenient and accurate. Among those opposed to biometrics (11%), most appear concerned about secondary or alternative uses of this data.

The study also supports the creation of a universal verification credential, but only if managed by a trusted organization. More than 74% of respondents believe that one universal ID would make it much more convenient to establish their identity with different organizations without having to remember different passwords, personal identification numbers or access procedures. The U.S. Postal Service and retail banks emerged as the two most trusted types of organizations to manage such a system.

While consumers may be willing to divulge sensitive personal information to establish and maintain business relationships, they clearly value protection of their personal information. 84% want to be notified if there has been unauthorized access to their data. The challenge is for organizations to strike a balance between respecting people's rights to access their records while protecting them from unwelcome trespasses.

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