Bruce Schneier has an unusually chilling post up on some of the personal security issues that come from having our data under the control of others:
A dozen years ago, if someone wanted to look through your mail, they would have to break into your house. Now they can just break into your ISP. Ten years ago, your voicemail was on an answering machine in your house; now it’s on a computer owned by a telephone company. Your financial data is on Websites protected only by passwords. The list of books you browse, and the books you buy, is stored in the computers of some online bookseller. Your affinity card allows your supermarket to know what food you like. Data that used to be under your direct control is now controlled by others.
Bruce suggests that market incentives to protect data are inadequate, and that there are legal risks from the outsourcing as well – sad-but-true quote:
We have no choice but to trust these companies with our privacy, even though the companies have little incentive to protect that privacy. T-Mobile suffered some bad press for its lousy security, nothing more. It’ll spend some money improving its security, but it’ll be security designed to protect its reputation from bad PR, not security designed to protect the privacy of its customers.