shekar@menudo.uh.edu (A. N. Shekar) (02/21/91)
The following item appeared in the RISKS-FORUM Digest 11.12 on USENET,
and appears worth re-posting here (assuming someone hasn't already
done so).
RISKS-LIST: RISKS-FORUM Digest Sunday 17 February 1991 Volume 11 : Issue 12
Date: Thu, 14 Feb 91 18:57:34 EST
From: janson@ATHENA.MIT.EDU
Subject: Credit enquiries appear to expose client lists
to competitor's scrutiny
I have become sensitive to my exposure due to electronically compiled
and disseminated personal data, but, until recently, I had never
considered ways in which the users of such data expose themselves to
possible losses. I was both amused and disconcerted to learn that a
company which uses a credit reference service makes it easier for a
competitor to target customers through traces which are maintained by
the credit agency.
This last week I received in the mail, from MCI, an offer for a rebate
in exchange for electing them as my long distance carrier. [Ignore
for the present discussion ethical issues raised by the particular
incentive mechanism which MCI employed.] I had expected, and did
receive, a number of enquiries from various alternative carriers at
the time when equal access provisions went into effect in this area. I
was, however, perplexed as to why they chose to target me now.
It took a bit of reflection, but I finally concluded that one focus of
MCI's current mailing is the holders of ATT Universal cards. [MCI
used an address which gave them away.]
Not really the kind of thing which one company would deliberately give
to a competitor. So I called ATT to ask what happened. I was informed
that they knew the likely path which the information had traveled, but
that once they had made a credit enquiry, they were powerless to
prevent MCI from approaching the credit agency and obtaining a list of
those people for whom ATT had requested credit histories.
< End of Excerpt from RISKS Digest >
For those that don't know this, most credit bureaus not only give out
your credit history to virtually anyone that asks, they can _also_
report the names of all those persons/organizations that have verifed
your credit history in the recent past. Yet another thing to worry
about for the privacy conscious.
Incidentally, MCI has been my long distance carrier for the last
couple of years, and I was astonished to have one of their marketing
reps call some weeks ago to offer me a "courtesy rebate certificate
for $10", to show "appreciation to a valued customer", etc., or words
to that effect. Their certificate(s) arrived promptly in the mail, and
I am still puzzled as to why they would call up current subscribers
and offer these rebates ... I mean luring people away from the
competition is one thing, but this was strange!
A. N. Shekar (shekar@mwk.uucp)