Centre for Internet and Society

Consumer Privacy in e-Commerce

sahana — 2012-03-28T04:53:17Z

Looking at the larger picture of national security versus consumer privacy, Sahana Sarkar says that though consumer privacy is important in the world of digital technology, individuals must put aside some of their civil liberties when it comes to the question of national security, as it is necessary to prevent societal damage.

What is Consumer Privacy?

In today’s digital economy generating consumer information is inevitable. Though some companies use the personal information they obtain to improve and provide more services to consumers, many companies use the information in an irresponsible manner.

In countries that do provide legal protection for consumer privacy, it is never protected as an absolute right. Consumer privacy is not considered an absolute right for three reasons:

What constitutes consumer privacy is culturally, contextually, individually defined
Consumer privacy often conflicts with other market rights
The ownership of a consumer's private information is debated — as consumer's believe they own the information and businesses believe they own the information.

In order to understand consumer privacy it is useful to outline the privacy expectations and strategies of both consumers and businesses, and to also examine the protection measures taken by firms to safeguard consumer information. The major privacy concerns held by consumer's can be broken down into three main domains:

Consumers want to be informed about the type of information that is being collected from them.
Consumers need to know that they a certain degree of control over the personal information that is being collected.
Consumers need to be assured that their personal information will be secure and will not be abused or stolen.

Though privacy has been defined by many as the "right to be let alone", its application in today’s modern world is not that straightforward. We live in a world where our purchasing behavior, both online and offline, is shared and used invisibly. For instance, if an individual uses a social networking site, it is possible for a third party application to access personal information that is shared. Similarly, if an individual uses a warranty card or loyalty card during a purchase, it is possible for third parties, like data brokers, to collect and use the individuals' personal information.

For instance,15 consumer privacy groups have filed a complaint against Facebook for limiting user's ability to browse anonymously. The complaint was regarding the fact that users only had the choice to designate personal information as publicly linkable, or to not provide information at all. Though Facebook claims to ensure users control over their personal data by allowing users to choose their privacy settings, it does not clarify that these setting can change at any given point. Moreover, the latest privacy embarrassment that hit Facebook proves again that Facebook does not protect users’ privacy. A few weeks ago Facebook admitted to passing personal information of its users onto different gaming applications. These gaming applications have in turn passed the information on to advertisers who otherwise could not have accessed the information.[1]

Breach of Privacy in Information Collection

Internet users often fear the loss of personal privacy, because of the ability businesses and their websites have to collect, store, and process personal data. For example, sites extract information from consumers through a form, and then record data about their user’s browsing habit. After collecting user information, the sites match the data with their personal and demographic information to create a profile of the user’s preferences, which is then used to promote targeted advertisements or provide customized services. The sites might also engage in web lining through which they price a consumer according to their profiles.

Online there are two main ways in which sites collect user information:

Sites collect information directly through a server software. Sites often use automatic software logs to do this.
A third party extracts information from the site without the consumer’s knowledge. Sites often place cookies on websites to extract user information.

Automatic software logs and third party cookie placement are two overlooked aspect of information collection. Cookies work by collecting personal information while a user surfs the net, and then feeds the information back to a Web server. Cookies are either used to remember the user, or are used by network advertising agencies to target product advertisements based on long term profiles of user’s buying and surfing habits. An example of a website that uses cookies is 'double click'. Web bugs are used by advertising networks to add information to the personal profiles stored in cookies. Web bugs are also used in junk email campaigns to see how many visits the site gets. Cookies and web bugs are just two out of hundreds of technologies used to collect personal information. [2]

Challenges Posed by Protection of Consumer Privacy

In conclusion, I would like to talk about the difficulty in maintaining a balance between the legal collections of information and protecting privacy of consumers. Above I demonstrated how this conflict arises between businesses and consumers — and is rooted in businesses wanting personal information for commercial reasons, and a user wanting protection and control over their own information. This conflict can also arise between consumers, businesses, and political bodies. An example that demonstrates this is the ongoing conflict between RIM (Research in Motion) and the Government of India. The Government of India has issued a warning against RIM saying that it would suspend its blackberry operations if they do not adhere to the Indian laws and regulations.

The Ministry of Home Affairs is demanding that RIM allow access to encrypted content that flows in and out of India. In other words the Government of India wants RIM to allow the security forces to have access to data sent using Blackberries by reducing encryption levels, or by providing the government with the decryption keys. The demand by the government is somewhat ironic as Blackberry manufacturers have developed the Blackberry encryption key to protect the consumers’ privacy during any business deal, so that information is not compromised. On the other side of the debate, the government is demanding access to Blackberry communications, because their inability to decrypt the codes makes countering the threats to national security difficult. This is especially true for a country like India, which is constantly facing threats from Maoists, and extremist Islamic groups.

This example highlights an important question: what is more important — national security or consumer privacy? In 2010, RIM agreed to negotiate access to consumer messages only where access requests are within local laws. Blackberry also agreed to not make any specific deals with consumers, and to make its enterprise systems security and confidentiality non-negotiable.

Conclusion

Though, consumer privacy is very important especially in a world of digital technology, however, when we speak of national security, I feel that individuals must set aside some of their civil liberties — at least to the extent that it is necessary to prevent societal damage. For a clearer understanding of national security vs consumer privacy look at the case of RIM Vs Indian Government in the following sites:

[1]http://www.ft.com/cms/s/0/198599e6-dc5f-11df-a0b9-00144feabdc0.html#axzz1O00LowtN

[2]http://cyber.law.harvard.edu/olds/ecommerce/privacytext.htmlFor an overview of some of these new data-collection technologies, along with some information on privacy-enhancing technologies such as P3P, see Developing Technologies.

For more details visit http://editors.cis-india.org/internet-governance/blog/privacy/consumer-privacy-e-commerce

My Experiment with Scam Baiting

sahana — 2012-03-13T10:43:28Z

Today, as I am sure many of you have experienced, Internet scams are widespread and very deceptive. As part of my research into privacy and the Internet, I decided to follow a scam and attempt to fully understand how Internet scams work, and what privacy implications they have for Internet users. Though there are many different types of scams that take place over the Internet —identity scams, housing scams, banking scams— just to name a few. I decided to look in depth at the lottery scam.

Day 1: July 4, 2011

On July 4, I received a spam mail from Shell BP Manchester England (lamarc65@cs.com). The e-mail informed me that my e-mail address had won a sum of $550,000 which was held on July 3, 2011 in England. In order to claim my prize the e-mail instructed me to confirm the receipt of the mail by submitting a few of my personal details to one Dr. Mohammed Al Maliki. This is an extract from the letter asking for my information:

Information Requested:

Your full Name:
Contact address:
Your Telephone:
Your Age:
Your occupation:
Your country of origin:

Congratulations.
Yours Sincerely,
Mrs Roseline Lott
Shell Prize announcer, England.

Deciding to reply to the email and see what happened, I responded to Dr. Mohammed Al Maliki (dr.mohamedmalik@gmail.com) with the information that the e-mail had asked, only I substituted my real information with the following fake information:

Shaiza Sarkar
B-196, CR Park, New Delhi - 110019
09916000603
23 yrs old
India

To my surprise he replied to my mail the same day at 4:59pm. In this mail he informed me that he had sent my details to Lloyds Bank who would be responsible for the payment of my prize. He asked me to inform him after I receive a mail from the bank. The e-mail contained a phone number for me to call. I tried to call the number mentioned in the mail but there was no reply.

Again to my surprise, I received a mail from Lloyds Bank at 6:58 p.m. the same day with a list of documents and details that I was supposed to send them to claim the prize money. Lloyds Bank had also attached a deposit certificate to ‘prove’ that Shell Petroleum Development Company had deposited the prize money in the bank. Below is an extraction of the e-mail I received from Lloyds Bank.

"FROM THE DESK OF DR. MOHAMED MALIK
REGIONAL CLAIMS AGENT,
SHELL PETROLEUM INTERNATIONAL LOTTERY PROGRAM.
Regional Office:
St James Court, Great Park Road,
Almondsbury Park, Bradley Stoke,
Bristol BS32 4QJ, England
Contact: +447035974608
“LLOYDS BANK PLC
ADMINISTRATIVE HEADQUARTERS.
LONDON, ENGLAND, UNITED KINGDOM.
REF...FILENOS2345/LTB
ATTENTION: SARKAR SHAIZA
*REGARDING YOUR PRIZE FROM SHELL PETROLEUM DEVELOPMENT COMPANY*
PLEASE SEND US THE DOCUMENTS BELOW;
1. A CERTIFICATE OF AWARD FROM SHELL PETROLEUM CONTACT DR MOHAMED MALIK
2. A SCANNED COPY OF EITHER YOUR DRIVERS LICENSE OR YOUR INTERNATIONAL PASSPORT OR WORK I.D CARD.
3. A SWORN AFFIDAVIT OF CLAIM FROM THE CROWN COURT HERE IN LONDON,YOU ARE REQUIRED TO CONTACT [DR MOHAMED MALIK]YOUR AGENT FOR ALL THIS.
SIR PAUL WISCONFIELD.
HEAD OF OPERATIONS.
LLOYDS TSB BANK PLC

Day 2: July 5, 2011

The next day I informed Dr. Mohammed Al Maliki of the above letter from the bank, as instructed to at 8:58 p.m. At 9:45 p.m., Dr. Mohammed Al Maliki emailed me back with the certificate of award from Shell Petroleum Development Company with my fake name printed on it.

Though the first two documents that Lloyds Bank required me to obtain were standard enough, the turning point in this entire scam was the third document that Lloyds Bank asked me to acquire. The third document asked me to present a sworn affidavit of claim from the Crown Court in London. Following the instructions given by the bank, I again emailed Dr. Mohammed Al Maliki. He replied with instructions for me to contact Barrister Wilson Burrows (ESQ) of Wilson and Co. Law Chambers for this document. I tried to search for Wilson and Co. Chambers on the Internet and found that no company with such a name exists.

This is the certificate of award provided to me by Dr. Mohammed Al Maliki:

Day 3: July 6, 2011

At 1:47 p.m. I mailed Wilson and Co. Law Chambers informing them about the sworn affidavit that I required in order to claim the lottery prize. The same day at 8:25 p.m. the Law Chambers sent me the following mail with an application form, and asked me to transfer 520 pounds through a Western Union Money Transfer to the Chamber’s Accountant Mr. Preston Doyle. I checked the address provided in the mail to see if it existed. The Google map showed that the given pin code “L14JJ”- London - was a pin code for Liverpool, Merseyside UK, which is not London , and not where Wilson and Co. Law Chambers claimed to be based. Additionally, the Law Chambers attached a form for the affidavit in this mail.

Below is an extract from the email I received from Wilson and Co. Law Chambers:
“The Principal Attorney
Wilson and co Chambers
#18 Harms Road Manchester
L14JJ - London.
Supreme Solicitors, Principal Attorneys and Property Managers
Kind Attention: Client,
As stated in the attached form, the completed form should be returned with the Court Oath Fee. For further processing, see below fees;
Court Oath Fee: 250 Pounds
Attorney Fee: 270 Pounds
------------------------------------------
Total Fee: 520 Pounds
-----------------------------------------
To send this money, go to any WESTERN UNION MONEY TRANSFER OFFICE nearest to you and make the payment to the Chamber's Accountant - Mr. Preston Doyle with the following details -
Receiver's Name: Mr. Preston Doyle
Receiver's Location: London, United Kingdom.
Receiver's Address: #18 Harms Road Manchester, L14JJ – London
Amount: £ 520.00 (Five Hundred and Twenty Pounds)
Regards,
Mrs.Wilson Burrows(ESQ)
(Registrar)
Mrs. Ivon Samuel (KBE) (Secretary)”

Day 4: July 7, 2011

After receiving the e-mail asking for a money transfer, I was curious and wished to probe more. Thus, I wrote to Wilson and Co Law Chambers and explained that a Western Union Transfer was not available in my village. The same day at 6:48 p.m. the Law Chambers sent me a mail saying that the Honourable Chamber recognizes only Western Union Transfer as the safest mode for transactions. I did not reply to this mail, as I knew I would not be able to go any further with my investigation. Though I was disappointed because this was the end to my investigation into lottery scams, and I still had questions that I wanted answered, the last e-mail the Law Chambers sent me was very interesting. In the last email sent to me by the Law Chambers requested (in a very pushy tone) that I should not tell anyone about my prize money, and that it was in fact in my best interest not to tell anyone.

Below is the extract of this mail:

“So do not discuss your winning with anybody until your prize has been transferred to you. It is for your own good. And it is at that time alone that you can be used for advert purposes by our company. So the success of this transfer lies sorely in your hands. These are the exact words from the Director this morning.”

Regards,

Mrs.Wilson Burrows (ESQ)

(Registrar)

His Lordship, Justice Ivon Samuel (KBE) (Secretary)

Day 5: July 8, 2011

Originally I wrote to the Law Chambers telling them I did not have access to a Western Union for the purpose of seeing if they use other mediums to receive money. Surprisingly, at 1:47 p.m. Wilson and Co. Law Chambers emailed me. The e-mail said that they would grant me the privilege of using a direct deposit of the 250 pounds into their correspondents account in India. In the mail they asked me to confirm that I would use this method of payment, and that once confirmed, that they would furnish me with their correspondent’s account details. Interested, I confirmed. After my e-mail confirmation at 9:47 p.m. they emailed me the details of their correspondent in India.

Below are the details of the account that I was supposed to transfer the money into:

This is the account details you will deposit the money into:
Account Name: L. MOHAN SINGH
Bank name: HDFC BANK
Branch: DELHI
Account number: 0609190004391
Ifsc Code : HDFC0000609
Pan Card: DDMPS9075M

Day 6: July 11, 2011

I did not deposit the money (obviously) and I did not e-mail the bank or the Law Chambers, I did receive a mail from Wilson and Co. Law Chambers informing me that their reputable organization would not tolerate my laxity. Unfortunately, because I could not pay the fee to their correspondent and obtain the affidavit, I was unable to follow the scam any further. Despite this dead end I was curious to know if they would provide me with the phone number of their Indian correspondent. Thus, I wrote them a mail to humbly apologise for the delay. I further asked them to provide me with the correspondent’s phone number claiming that the bank was rejecting his profile due to security protocols.

Day 7: July 12, 2011

The Law Chambers responded, informing me that they did not wish to give the correspondents number. In their e-mail they made it quite clear that for online banking all that is needed is the IFSC code. Therefore, I had to stop here.

This is the extract of the mail they sent me when I asked for the phone number:

The Principal Attorney
Wilson and co Chambers
#18 Harms Road Manchester
L14JJ - London.
Supreme Solicitors, Principal Attorneys and Property Managers

Kind Attention: Client,
This Honorable Chambers is in receipt of your mail. It is very important for you to know that laxity will not be accepted anymore. For the online transfer of this payment, you do not need any phone number, all you need is the IFSC Code already supplied to you. Once more, the IFSC Code is HDFC0000609. That is all you need to make an online transfer.

While I stopped following the scam at this point, many people might have continued with the process without any knowledge of it being a scam. Thus, one should be very sceptical about individuals or organizations who ask for personal and banking information.

Conclusions

In my experiment with scam baiting, I realized that:

They introduced me to various parties to make this entire scheme look professional. I initially assumed that I would have to carry out the process with the Shell Petroleum Development Company alone.
In the beginning of the experiment I initially thought the scam was about taking my account number and hacking into it. During my experiment I realized that the scam was not designed to make money by emptying my bank account, but instead was designed to profit off of the various admission fees such as the Sworn Affidavit.
Due to the speed by which they were able to respond to my emails, I realized that they had pre-prepared fake documents – ready to send to anyone who emailed them regarding claiming the offered lottery prize.
Throughout all of our e-mail exchanges I noticed that the individuals behind the scam only used a G-mail account. Curious, I checked their IP address – hoping to find out more information and possibly track their location – but found that Google does not reveal senders IP address information (which is in fact a very good thing in terms of privacy protection!)

For a detailed understanding of different types of scams visit here.

For more details visit http://editors.cis-india.org/internet-governance/blog/privacy/scam-baiting