CSIA 413 Week 1 Discussion: Privacy and Corporate Liability
Smart devices use a variety of sensors and technologies to sense and record information from their environment. These sensors gather data, which is then processed by the device to make informed decisions or provide relevant output. Smart devices may interpret data and take appropriate actions based on what they have gathered with the
goal of improving their performance (TechTarget, 2023). The only issue with this mode of thinking is that in doing this, smart devices can be gathering information the user may prefer to be kept confidential. For example, a smartphone might use data from its GPS to determine your device's location upon opening an app when that was never the intended outcome. In many cases, smart devices communicate with central systems or other devices via wireless technologies Bluetooth, or cellular networks to transmit and receive data, enabling remote monitoring, and data analysis. This can contribute to the spread of information without your implicit intent.
Third-party technology can infringe on customer privacy in various ways, often involving unauthorized data collection, improper handling of personal information, and vulnerabilities that can be exploited by malicious actors. Some third-party technologies may collect customer data without obtaining proper consent. This can include information such as browsing habits, location data, and personal preferences, which can be used for targeted advertising or other purposes without the customer's knowledge. Some third-party technologies may share customer data with other companies; if this sharing is not transparent or the data is used beyond its intended scope, it can violate customer privacy (CSOonline, 2023).
Because these devices often have data in transit, it becomes important for that data to be encrypted. If the third-
party device does not use proper encryption methods to protect data during transmission and storage, customer information could be exposed by unauthorized parties. Smart devices might accidentally leak customer data due to
technical issues or misconfigurations which can lead to private information becoming publicly accessible. Some third-party technologies engage in user profiling and tracking behaviors to build detailed user profiles. This information can be used to target individuals with personalized content or ads, but it can also lead to an invasion of privacy. Within that, devices might have access to location data tracking user’s movements and behaviors without their consent. This could lead to device tracking across platforms making that information even more vulnerable. An example of this could be location services turned on among multiple devices within an apple ecosystem (apple watch, MacBook, iPhone, etc.).
Companies can be held liable for privacy breaches due to legal and regulatory frameworks that govern the protection of personal data and privacy rights. When companies collect personal information, they are often subject to laws and regulations that mandate how they handle that data. If a privacy breach occurs, the affected individuals, regulatory authorities, or even other businesses might take legal action against the company responsible (KeeperSecurity, 2023). This would be a costly loss for Red Clay renovations in multiple ways, such as:
Financially:
Fines: Red Clay can be fined for failing to protect personal data as required by privacy laws such as GDPR, CCPA, and others.
Lawsuits: Data breach victims may file lawsuits seeking damages resulting from the breach.
Recovery: Costs associated with investigating the breach, notifying affected individuals, and implementing security improvements.
