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From Fitbits To Rokus, Hedge Funds Mine Data For Consumer Habits (bloomberg.com) 60

In an effort to gain an elusive trading edge, some of the world's biggest hedge funds have been snapping up large swaths of alternative data from Fitbits, Rokus, Teslas and employment websites like Glassdoor. Bloomberg reports: Spotting trends and patterns in consumer habits is big business, part of a global market for big data, that a JPMorgan Chase report said could reach more than $200 billion by next year. Still, there's no guarantee all that information will lead to riches. It needs to be scrubbed, organized and aggregated to be of any use. WiFi and Bluetooth connections have become so ubiquitous they're often taken for granted. But hedge funds have become keenly interested in tracking devices that connect to the internet.

Capturing signals they emit can show "when and where new things appear in the world,"; said Hugh O'Connor, director of data sourcing and partnerships at Eagle Alpha, which gathers alternative data for the finance industry. Firms can keep tabs on the number of Roku video-streaming devices or Fitbit fitness trackers being used, the length of time consumers spend on them and their approximate locations. Similarly, if you buy a Tesla Model 3 car and use its Bluetooth-enabled media, a data provider can capture when your new ride is hitting the road. There's been "incredible demand" from some of the world's largest asset managers for this type of information.
Hedge funds are also pulling data from mobile phones as they can reveal, in real time, the number of people carrying devices at a particular location. "This can shed light on how many -- or few -- people are frequenting a retailer, supermarket or fast-food joint," the report says. They're also scraping the web to create bespoke collections of public data. "Some examples include pricing trends on airline flights or hotels, inventory figures for products offered on coupon website Groupon, or sales posted for merchandise on Amazon.com," reports Bloomberg.

Additionally, social media sites and credit card data help shed some light on what consumers are thinking. Employment data is also very insightful. "If a tech giant suddenly starts seeking talent from the health-care industry, for example, that could suggest it has a new product or service in the works," reports Bloomberg. "A spike in the removal of job postings from a company's website could signal corporate distress."
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From Fitbits To Rokus, Hedge Funds Mine Data For Consumer Habits

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  • I understand that people are worried about this stuff, but if this data leads to better products that people want whatâ(TM)s the issue?

    • by Anonymous Coward on Thursday July 25, 2019 @05:32AM (#58983828)

      I understand that people are worried about this stuff, but if this data leads to better products that people want whatâ(TM)s the issue?

      Because that's not what's happening. These are WALL STREET hedge funds: not engineering companies.
      They are looking for an edge in their TRADING. They don't give a shit about these products or the consumer. They are just trying to find out which company is going to have gangbuster earnings or the opposite so they can trade accordingly and achieve returns that are better than the market overall to justify their obscene compensation.

      See, by data mining, they'll get an idea of a company's or industry's performance before others do; thereby beating them to the profits.

      This technology is being used against us. Whether it's using our desires against us to get us to buy more useless crap (like FitBits) or swaying elections with ad campaigns (Cambridge Analytica). I bet these hedge will want to damage Elizabeth Warren as much as possible.

      And I find it horribly disgusting that yesterday, the warning about Russian meddling in our elections was ignored. Election security is continually being shot down by Mitch McConnell. That is an act of a traitor. To put a foreign power's interests above this country just because they got "your guy" in office is just deplorable.

      • by Anonymous Coward

        Just wait until people start seeing the consequences of this:

        * You don't know what parallel construction is? You will. That trip to the MJ street corner got logged by your carrier, and now the local PD is saying that they had a surveillance team watching you all the time, with true eye witness accounts, honest Injun, which gave them the probable cause for a search warrant.

        * With all the extradition treaties, someone who buys a pork sandwitch in the US can, in theory, be arrested and sent to Pakistan or

    • by Viol8 ( 599362 ) on Thursday July 25, 2019 @06:32AM (#58983930) Homepage

      ... without your permission would allow better soap to be created and sold to you, would you be up for it? No, didn't think so.

    • by Anonymous Coward

      You just said you understood. Do you care about people you don't know peeping in your window? Measuring your sleep breathing? Monitoring your eyes as you watch TV? Reading your correspondence? These things are here or in development. It has nothing to do with better products. It's just plain old sleazy spying for profit. Technology has provided something that unethical opportunists are grabbing.

    • Some companies are preying on people's addictions in order to make money. They have whole teams of people coming up with ideas like "if the person sees a red notification icon they will stay on our site". While directly there is nothing wrong with this, the indirect effect is that society is becoming addicted to staring at screens scrolling through meaningless crap for their next fix. People are being de-humanised and becoming very anti-social, while the companies are just sucking any data they can out of
      • by DogDude ( 805747 )
        That's true. And until we call these addictions "addictions", I'm guessing nothing will change. Most people I know ARE badly, badly addicted to these things. Not everybody (not me, not my spouse), but most people I know are.
    • by Anonymous Coward

      Aside from the massive security/privacy holes this opens, the other main problem is that corporations are using their consumers as a free labour force. If a company wants to make a better product, then they need to PAY people to do their QA for them.

      For example, if Microsoft were ethical and paid everyone at least minimum wage for running Windows 10 with its built-in spyware, then I'd have less of an issue with them. I would never work/give data over to any company to make them richer without getting a fair

  • by Anonymous Coward

    So basically we need to cut out the middle-man and have everyone tap into our brains?

  • by indytx ( 825419 ) on Thursday July 25, 2019 @05:19AM (#58983812)

    We're building a surveillance state, except it's "private industry." What could go wrong? Personally, the idea that the greed Wall Street idiots who brought down the world's economy having real time access to this information is no less disconcerting than Barney Fife having it just because he's "law enforcement." The quarterly-profit-whores couldn't possibly abuse this information. At least for a "service" like Facebook, there are terms of service which its users never read. I don't remember checking a box for a greedy quant to monetize all of my life's activities.

    • by weilawei ( 897823 ) on Thursday July 25, 2019 @06:53AM (#58983996)

      I walked into a Wendy's last night, and used their ordering panel, swiped my card, and...my name is up on a giant screen with every other customer.

      Not a single prompt asking me what my name was--taken from my card, and not a single prompt asking for permission to broadcast my name to everyone else standing around.

      Not cool.

      • An even worse example of careless "security" policy: at many places where one must interact with receptionists or other clerks behind a desk in a rather public space, such people are often tasked with first establishing your authenticity before allowing you to progress through the remainder of whatever process for which they stand as gatekeepers. They will often establish this authenticity, as part of policies created by their superiors, by asking you to verbally recite, in an open space where complete strangers can hear, specifically identifying details about yourself. It's not sufficient to be in the possession of a unique ID card, they insist on hearing you recite the data they already know loud enough for anyone else in the same room to overhear. This even occurs in Kaiser Permanente hospital facilities, of all places.

        Have I succeeded in making you even more paranoid than you already were? You're welcome.

      • You paid with a card. You voluntarily gave all of your personal information to Wendy's to use, along with your credit card company, and the issuing bank. You get the "convenience" of not using cash, Wendy's pays 3%, and as a result, they all get info on you. Why was this surprising to you?
        • The part where they gave away payment data in violation of PCI rules.

          https://www.pcicomplianceguide... [pcicomplianceguide.org]

          • by DogDude ( 805747 )
            There's nothing that says that that info is private. That's why merchants store the names, last 4, and expiration dates.
            • https://www.pcisecuritystandar... [pcisecuritystandards.org]

              Try reading it. They're very clear you can't just make this information available to other people, and you can't just put it out there unencrypted. Storage is permitted for some elements, not sharing with visitors.

              4.1 Use strong cryptography and security protocols to safeguard sensitive cardholder data during transmission over open, public networks (e.g.Internet, wireless technologies, cellular technologies, General Packet Radio Service [GPRS], satellite communications).Ensure wireless networks transmitting cardholder data or connected to the cardholder data environment use industry best practices to implement strong encryption for authentication and transmission.

              Last I checked, visible light to visitor eyeballs was still transmitting information in the open.

              Requirement 7: Restrict access to cardholder data by business need-to-know
              To ensure critical data can only be accessed by authorized personnel, systems and processes must be in place to limit access based on need to know and according to job responsibilities.Need to know is when access rights are granted to only the least amount of data and privileges needed to perform a job.
              7.1 Limit access to system components and cardholder data to only those individuals whose job requires such access.RESTRICTING ACCESS IS CRUCIAL!
              Restrict Access to Cardholder Data Environments by employing access controls
              Limit access to only those individuals whose job requires such access
              Formalize an access control policy that includes a list of who gets access to specif i ed cardholder data and systems
              Deny all access to anyone who is not specif i cally allowed to access cardholder data and systems

              • by DogDude ( 805747 )
                The name, last 4 digits, and exp date aren't part of this stuff to keep secret. You can print it on receipts or do whatever you'd like with it.
                • Did you even look at it? Of course you can print it on a receipt you're giving to that person.

                  There's a table in there that lists Name among Cardholder Data. Go look at it. Physically read it with your own eyes. Then read the requirements. You know, the lists of things you can and can't do; unlike your suggestion that they can, "do whatever they'd like with it."

                  You CANNOT just do whatever you want with it. You glossed over even attempting a rebuttal by the highly sophisticated method of plugging your ears a

                  • Re: (Score:2, Insightful)

                    by DogDude ( 805747 )
                    I attempted a rebuttal as somebody who has worked in retail for 17 years. PCI is bullshit. Nobody cares. NOT being PCI compliant costs $25/month. Big deal.
                    • by MobyDisk ( 75490 )

                      PCI is bullshit. Nobody cares. NOT being PCI compliant costs $25/month. Big deal.

                      So you just admitted that you didn't read the evidence, implied that weilawei was right, but that you simply don't care. Why did you post 3 times telling someone that they were wrong, when your actual opinion was "I don't know if you are right or wrong but I don't care. "I don't care" does not mean "You are wrong."

                    • by DogDude ( 805747 )
                      A. I don't think that a person's name on the credit card is part of PCI compliance, as it can be put on the receipt, or read by any human being with eyeballs on the card.
                      B. Even if I'm wrong (and I don't think I am), it's a moot point. Our company doesn't bother with PCI compliance because answering surveys and such is not worth the hassle of a simple $25/month fee.
                    • by MobyDisk ( 75490 )

                      A. I don't think that a person's name on the credit card is part of PCI compliance, as it can be put on the receipt, or read by any human being with eyeballs on the card.

                      So can the number and the CVV code, but both are part of PCI compliance. Seems clear that you still didn't read the link.

                      Even if I'm wrong (and I don't think I am), it's a moot point. Our company doesn't bother with PCI compliance

                      So because your company isn't compliant, the entire concept of compliance goes away for everyone? Genius!

    • by gtall ( 79522 )

      Well, Wall Street certainly had a hand in tanking the world's economy by buying dodgy home loans, repackaging them, and selling them to unsuspecting buyers arguing that home loans rarely went bad. Except, these loans were made by banks who decided they needed more capital regardless of how they got it. They were aided by the mortgage repackagers who were backed by Wall Street.

      The government regulators looked the other way because the Bush Administration didn't think regulation was their job. The Fed under G

  • So now it's not just fuck the Zuck. Hmm. Variety.
  • Psychohistory (Score:5, Insightful)

    by macraig ( 621737 ) <mark.a.craig@gmCOMMAail.com minus punct> on Thursday July 25, 2019 @07:10AM (#58984036)

    The genesis of Asimov's psychohistory will be in some corporate data center, and we won't like the non-fictional version. It won't be used to save humanity, it will be used to further stratify and exploit it.

    "Psycho" history, indeed.

  • It's all YOUR choice. You choose to use Internet connected things. You choose to use "smart" phones. You choose to use credit cards. Absolutely none of these things are required to have a good, fulfilling life. So if you choose to use these things and let everybody track you, then don't bitch about it.
    • by Anonymous Coward

      All or nothing, black or white.

      Also, fallactly of presumed choice. Can you NOT have a cell phone these days? A wireless tracking device that can be remotely activated? No, didn't think so.

      Not even my grandmother can go without a cell phone, and lawyers are notoriously slower than the Amish to adopt technology.

    • by Anonymous Coward

      No, it isn't always your choice. There is so much data being mined that isn't under your direct control - for example your family's Facebook use where they take a picture of you, You might be able to stop some of it but at the risk of alienating those around you (which might lead to a less fulfilling life). You could live as a hermit, of course. It might be fulfilling for some.

      There are also things in your control that get used in ways you don't expect. Anything that gets recorded electronically has a risk

  • Slashdot used to be a form full of privacy, security, and anti-corporate people. Now, it seems that either they all left, or they've all been brainwashed into not caring about their own privacy. Whichever one it is, it's still super, super weird to see Slashdotters not give two shits about living in a voluntary surveillance state.
  • What is to prevent you from gaming fitbits, rokus and things? Hell back a few years ago I worked in a place where were all given these little Virgin pedometers. Being the enterprising sort I opened mine up and discovered the mechanism to count steps was a reed switch and a magnet. A quick script on an Arduino and I took tens of thousands of steps per day.

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