VLP Partner Melissa Krasnow Quoted in Bloomberg Law “Data Mining in Exchange for Insurance Carries Breach, ID Risks”
VLP Partner Melissa Krasnow was quoted in the Bloomberg Law article “Data Mining in Exchange for Insurance Carries Breach, ID Risks.”
The article discusses companies that will offer health insurance to people who agree to download software on their phones or computers that collects the electronic data they generate while browsing the web, according to court documents. Consumer information is transmitted to a data bank before being anonymized and sold to third parties, who use it for marketing or other purposes.
Ms. Krasnow said: “Their purpose is to collect, use, disclose, and transfer a lot of personal information…. They need to have appropriate security safeguards in place.” If proper disclosures aren’t made or if the data is handled incorrectly, the companies could come “under the crosshairs” of state attorneys general and the Federal Trade Commission. According to Ms. Krasnow, internet search history and location data gleaned from mobile and computer trackers are a “treasure trove” of information for bad actors. She also said that data collection companies could potentially be targeted by ransomware attacks if hackers learn a company is holding personal information that can be monetized.
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