MSBI : BI # 26 : Business Intelligence – Tools & Theory # 18 : Introduction to Data Mining #5 : Ethical Issues of Data Mining

Hi Folks,

This post is part of Series Business Intelligence – Tools & Theory

Currently running topic for this series is listed as below :

Series Business Intelligence – Tools & Theory

>>Chapter 1 : Business Intelligence an Introduction

>>Chapter 2 : Business Intelligence Essentials

>>Chapter 3 : Business Intelligence Types

>>Chapter 4 : Architecting the Data

>>Chapter 5 : Introduction of Data Mining<You are here>

Continuing from my previous post on this series, If you have missed any link please visit link below

We are going to Cover the Following Points in this article

  • Ethical Issues of Data Mining
  • Analysis of ethical issues

    Ethical Issues of Data Mining

    As with many technologies, data mining has both advantages and disadvantages. As we have learnt in the previous section.

    Here is an overview from different perspectives:

    · Consumers‟ point of view: According to the consumers, data mining benefits businesses. Consumer’s gains from data mining by companies modify their product and service to fit the consumer’s needs. On the other hand, the consumers’ privacy may be lost as a result of data mining.

    Data mining can also be used to distinguish against a certain group of people. For example, if through data mining, a certain group of people were established to carry a high risk for a disease then the indemnity company may refuse to sell insurance policy to them based on this data. The insurance company’s action is unethical and may also have rigorous impact on our health care system as well as the individuals involved.

    · Organizations‟ point of view: Data mining is a vision to businesses because data mining helps improve their overall process and discover new models that may allow companies to better serve their customers.

    Through data mining, financial and insurance companies are able to distinguish patterns of fake credit care usage, recognize behavior patterns of risk customers, and analyze claims.

    · Government point of view: The government is in trouble when it comes to data mining performance. Firstly, the government wants to have access to people’s personal data so that it can constrict the safety system and protect the public from terrorists, but secondly, it wants to defend people’s privacy right. The government recognizes the value of data mining to the society, thus they desire the businesses to use the consumers’ private information in an ethical way.

    Analysis of ethical issues

    After getting an overview of the different views about data mining, one can analyze that data mining offers incredible benefit to businesses and government, Data mining is also useful to persons, on the other hand, this advantage is minor compared to the benefits obtain for the companies. In order to gain this profit, individuals have to compromise on their privacy right.

    If we sustain data mining, then it is unfair to the consumers because their right of privacy may be dishonored. At present, business organizations do not have adequate safety systems to protect the personal information that they attain through data mining from unauthorized access.

    As people collect and merge the data to a precise location, there always is a chance that these data may be hacked by hacker Businesses always guarantee to safeguard the information but they have failed. So until businesses are able to develop better security system to defend consumer data against unauthorized access, the use of data mining should be restricted.

    Global Issues

    Since we are using Internet broadly, data mining will not only have a consequence on the US, instead it will have a global impact. Through Internet, an individual living in Japan or UK may have access to the personal information about someone living in India.

    In current years, several major international hackers have hacked into US companies stealing hundred of credit card numbers. These hackers have used the data that they attained through hacking from credit card fraud or marketing credit card information to other people. According to the FBI4, the majority of the hackers are from Russia and the Ukraine. Though, the increase in fake credit card usage in Russian and Ukraine is matched to the increase in domestic credit card theft.

    After the hackers have access to the customer data, they usually inform the victim companies of the theft, and either directly demands the money or offer to negotiate for a certain amount of money. In some cases, yet the companies decline to make the payment. However the hazard of credit card fraud can be condensed by transacting on a site that is protected.

    To recognize a secured site observe for a small lock icon in the lower left hand side of the page alternately look out for search engines starting with https instead of http.

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