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Data Miners Moving to Offshore Data Havens

schwit1 writes "Washington Post has an article about former TIA personnel moving their data mining operations offshore (Bahamas) to escape U.S. privacy rules, and to make a buck. I'm waiting for somebody to publish the private data (financial, medical, legal) of federal officials and their families on an open internet web server out of the Bahamas. Is this what it will take for the US to enact stringent privacy rules?"

36 of 320 comments (clear)

  1. Vote! by BWJones · · Score: 3, Insightful

    Aw, hell. While we are at it, why not privatize all of government? You might be surprised at how much is already privatized. We are well on our way to outsourcing our military to companies such as Haliburton and Computer Sciences Corporation (nee Dyncorp) as well as having our current POTUS wanting to privatize social security, the Dept. of the Interior, the Dept. of Eduation, the Department of Energy, our system of election to corporations like Diebold etc...etc...etc.... So, why are you now complaining about TIA and privacy?

    Individuals and organizations that will do anything necessary to accomplish their goals, even if that means skirting the law by going outside the country should not be tolerated. In essence, this approach would violate the law, thus this effort at relocation, so why is he supported by members in the current government?

    So, taking this further: Let's say that this company screws up in their data collection......what recourse will you have if the company is an offshore company? By what mechanisms will they be held responsible for errors or violations of the law?

    All of this is exactly why you need to vote in this coming election. Get out and vote!

    --
    Visit Jonesblog and say hello.
    1. Re:Vote! by Anonymous Coward · · Score: 5, Interesting

      "why not privatize all of government?"

      Have you heard of something called "the presidents management agenda" that the Bush administration has been touting since it came into office. This president has been seeking to outsource all "non inherently governmental" jobs in the US executive branch for quite some time now. The thinking for this is that private corporations will save the taxpayers money by finding efficiencies in doing business that government cannot. But yes, beware of where your personal information may end up!

    2. Re:Vote! by Stevyn · · Score: 3, Interesting

      Privatization isn't inherently bad. The reasoning behind it is many companies will have to compete for government contracts. This goes along with capitalism that the best business will come out on top. I worked for the US government in an internship over the summer. I've worked for small businesses. Believe me, there is a difference! If you can't get fired for being lazy, why work?

      However, like anything, privatization can be corrupted by people unwilling to play by the rules. That is bad and that should be fixed. However, saying that all privatization is evil Bush facsism, etc, means you are blaming all companies for the problems of one company and one administration.

      Yeah, Halliburton getting billions for the Iraq reconstruction is bullshit. But I think the government taking over healthcare costing the taxpayers "more" billions would be just as bad. You have to take each example and judge it on it's own merits. Big government is bad and small government supporting big evil business is just as bad.

    3. Re:Vote! by Anonymous Coward · · Score: 5, Informative

      For the lazy, the full text of the "presidents management agenda" can be found here. The outsorcing of jobs in government starts on page 17. Here is a quote... "Nearly half of all federal employees perform tasks that are readily available in the commercial marketplace - tasks like data collection, administrative support, and payroll services." Another good quote is "Government should be market-based -- we should not be afraid of competition, innovation, and choice. I will open government to the dicipline of competition. GWB". And if you are interested, here are "scorecards" of how things are going. India, here we come! See, its not only programming, its our entire government. They must all go to the same conferences.

    4. Re:Vote! by the_meager · · Score: 3, Insightful

      The interaction between business and government is obviously very harmful to our society. I have to question anyone who merely asserts that it is the fault of politicians, or that it is the fault of businesses or corporations.

      Nay, I say. It is the fault of how our government is set up. Let's face it, when you have too much democracy, and law-making and increased regulation becomes all too easy and common, big money is going to use government to deter competition. We were never meant to have a society in which new laws were to be easily created, and I am certainly not just talking about amendments.

      We are facing one of the dangers of democracy.
      Either the majority dominates the minority (tyrany of the majority) or the minority (wealth elite) dominates the majority (tyrany of the minority).

      Of course, human beings are not perfect, and I would never suggest that ridding the world of government would create utopia. However, I will say that reducing government and reducing the ability of companies to utilize government in deterring competition (everything from regulations to IP laws) would be a step in the right direction.

      You hit the nail right on the head, with this statement: "However, like anything, privatization can be corrupted by people unwilling to play by the rules." You have to watch the means of privatization. People point to post-Soviet Russia as a failure of capitalism, or the failure of "free markets" in Chile. Both arguments are empty, as in both cases, government sold off businesses to friends and major competitions -- the governmental creation of oligopolies (or outright monopolies).

      Last summer I worked for the county government (a county Emergency Management Agency to be exact). I never saw so many lazy employees in all my life.
      We shared the building with the 911 Emergency.
      At any given time, the 911E side had a dozen or so people working, most of which were not doing anything.

      During the day, when EMA was operating, they had 3 old lady secretaries who did nothing but drink coffee and gossip, 1 guy who went around talking to everybody all day, another who read things online with pink frills around his monitor, another lady "doing payroll" (who the hell does payroll every hour of the week?), an assistant director almost always busy, and then the director never to be found except when the cameras were around. They all made damn good money too. Now I'm not familiar enough with the 911E side to say what needs to be done and what can and cannot be done in a given day with x amount of people, but I KNOW that it shouldn't take more than three people to run the E.M.A. side... and they all make damn good money. I hear similar things all over government.

      I can definitely relate to you on private vs socialized sector...

      --
      Speckpot?
    5. Re:Vote! by TyrranzzX · · Score: 4, Insightful

      While we're at it, mabye we should privatise legislature, and the presidency, as well as the courts, to the eXtreme!!!1

      Realistically, there are too many marbles in play right now that are big and money driven. JFK tried screwing around with them, remember the actual money he minted rather than the toy money we use today? 3 guesses why he got killed. Ahh, I'll give it to you; the american government can print off money and spend it, and banks can to (when they give a loan, they only have to have 1/9 of the amount on hand). Additionally, our money is worthless, the only reason it has value is becuase oil countries will only trade in it. Literally, we're getting a free ride. Now, you begin passing around hard currency like silver dollars or something backed up, in contract, by gold, guess what happens to the banks? Banks invest, and indirectly control corporations by forcing them to be greedy tyranical organizations. They also have lots of power considering they have money, and money, entertainingly enough, is power, especially in dire times.

      Voting will do jack shit in this situation. They own all the media; airwaves, newspapers, ect. Why is the blackout of other canidates so total? Oh wait, that's right, the CEO gets a call from investors, saying they don't like bush being badmouthed on their media station. The CEO then fires anyone who talks bad about bush, or kerry, or they say "no talking about other canidates" and then kerry and bush are told if they focus on X topics, there'll be no other coverage.

      So really, voting will do a whole lot of jack shit in our current situation. Lets just say nader won next election, how quickly do you think he'd dissapear, or be assassinated, or blackmailed into doing bad things?

      Frankly, I see this as another way to get the government into the "save us, take away our rights". Seriously, we want them to keep our privacy secure? Ok, we'll make laws that'll effect the little guy (people moving from country to country to evade the law) but decide not to touch the big guy (sony, MS, ect) with a 10 foot pole, and if we do, it'll either be a slap on the cheek or something else. I'v been seeing a lot of that lately, and it's sad that people on slashdot don't quite get it, and even sadder that I'v talked to people who think we should cut the heads off of virus writers infront of their families (for some reason, that seems to be a popular thing).

    6. Re:Vote! by Pig+Hogger · · Score: 4, Insightful
      Yeah, Halliburton getting billions for the Iraq reconstruction is bullshit. But I think the government taking over healthcare costing the taxpayers "more" billions would be just as bad.
      Now here is true bullshit.
      You have to take each example and judge it on it's own merits.
      Indeed, let's take each example and judge it on it's own merits.

      Case: the canadian universal health-care system:

      • In Canada, health-care costs the same per-capita as in the US.
      • In Canada, 100% of the population is covered (compared to 60% of the US population).
      • In Canada, if you need heart bypass surgery, it is FREE.
      • In Canada, nobody is prevented from getting employment because he would be too expensive for the employer's insurer.
      • In Canada, nobody loses his job because he suddenly has an expensive debilitating medical condition.
      • In Canada, if you need a new hip or a new knww, it is FREE.
      • In Canada, administrative overhead is 3% compared to 35% in the US. That's because in Canada, everyone has the same coverage, and you don't have to check the patient's credit record.
      • In Canada, there is no money WASTED on insurance companies PROFITS.
      • In Canada, professionals don't have to pay $400 per month for medical insurance.
      • In Canada, if you get whiplashed by a drunk driver, you don't have to hunt for the fucker's insurance because the needed medical treatment is FREE.
      • In Canada, employers aren't struggling to cover their employees.
      • In Canada, nobody will lose his life savings and his house to an hospital.
      • In Canada, drug prices are controlled and pharmaceutical companies do not spend twice as much on marketing as they spend on R&D.
      • In Canada, if you need a new heart and new lungs, it is FREE.
      If you yankees would get rid of your tired government is bad mantra, you would see that there are many things that just cannot be done by the private sector at all.
    7. Re:Vote! by yppiz · · Score: 3, Interesting
      According to the grandparent post, per-capita costs are the same in the US and Canada, so their high taxes are equivalent to our high premiums, except they cover everyone.

      --Pat / zippy@cs.brandeis.edu

    8. Re:Vote! by Pig+Hogger · · Score: 3, Interesting
      Nothing is free. They pay for all of that with very high taxes.
      Which is better than very high private insurance premiums to a company that will dump you when you're no longer profitable, and then you lose your house to the hostpital. At least, the very high taxes benefit everyone instead a few insurance company directors (they don't pay dividents to shareholders anymore)...
    9. Re:Vote! by Pig+Hogger · · Score: 3, Insightful
      - In Canada, if you need to see a specialist for anything not life threatening, be prepared to wait months for an appointment
      In the US, if you need to see a specialist for anything not life threatening, and don't have any money, though fucking shit.
      - In Canada, if you need prostate cancer surgery, be prepared to wait months
      In the US, if you need prostate cancer surgery, and don't have any money, though fucking shit.
      - In Canada, if you need a new hip or a new knee, be prepared to wait YEARS
      In the US, if you need a new hip or a new knee and don't have any money, limp.
      - In Canada, if you need an MRI to examine the knee you twisted playing basketball, be prepared to wait months and months
      In the US, if you need an MRI to examine the knee you twisted playing basketball and have no money, though fucking shit.
      - In Canada, everybody has the same universal health care. Unfortunately, that health care is is universally of poor quality.
      In the US, not everybody has access to health care. This access is conditionned by how much dough each one has.
    10. Re:Vote! by Insanity · · Score: 3, Insightful

      - I'm a Canadian, and therefore not an expert on American law, but I'm pretty sure the constitution doesn't explicitly give the federal government the power to build highways or run a space program, but you still have the interstate highway system and NASA. By precedent, it would seem that the constitution doesn't have to explicitly state every power of the federal government.

      - Paying for a smoker's lung removal or a drunk driver's broken back may be an offense to your sense of justice or something, but the fact is that people make mistakes. So you think drunk drivers and smokers shouldn't be covered... what about morbidly obese people? America is certainly full of those... what about people who hurt themselves mountain biking, or playing tennis? They knew the risks, why should we pay for their self-inflicted injuries? For that matter, old people knew they were going to get old, so why the hell didn't they save for their medical expenses? This line of thinking is really quite absurd. We all have frail human bodies, and either we do stupid things to screw them up, or they just fail on their own. We all need fixing, eventually.

      - Health insurance companies employ thousands... of beaurocrats. Yes, they're generally good people, and they need to eat too. But it's been shown time and again that a poorly designed government program can't really be justified based on job creation; similarly, neither can the horrendous American health insurance industry.

      - Drug companies should be able to recover development costs and make a healthy profit, you'll get no argument from me on that. In the Canadian system, they can do that. Drugs are cheaper here, but that's because America has rolled over and allowed drug companies to do as they please - they get away with truly absurd profit margins.

      - America has completely forgotten what insurance is supposed to be about. Everyone pays into a pool, and takes from that pool what is needed. We all pay to support our fellow citizens, and to insure that, should something happen to us, we're covered too. Allowing the young and healthy to be uninsured completely screws this up. So does charging more for smokers, the disabled, those with chronic conditions, old people, etc. That's not insurance anymore. It's especially not insurance when a percentage of the pool goes to profit. Everyone gives, and the guy we trust to hold on to the money takes a cut? I'm not talking about administrative overhead, but rather about pure profit. Again, it's not really insurance if you're paying, but you're not covered in case of X, Y, or Z.

      - The Canadian system is not perfect - and that's a symptom of our reluctance to put enough money into it. Canadians want American-level taxes and European-level government services, so it's always tricky balancing these things. The system has its ups and downs... right now, non-critical care is suffering, and that's why you have Canadians showing up in America. It's just an issue of money. The bottom line is that a government healthcare system is non-profit. Private health care isn't. It's well established that government tends to be inefficient, but in this case, your tangled mess of private health insurers, private hospitals, and rediculous litigiousness is far worse. Bottom line: you're getting less healthcare for your money.

      --
      Nix absolutably seriousness.
  2. Escape US jursidction != stronger US privacy laws by Emugamer · · Score: 4, Interesting

    okay the poster here is saying that if a foreign country hosts information that violates US laws, we are going to enact more laws???

    I think if they did something like that, we'd be more likely to invade, though I'd prefer the stronger laws...

  3. Similar stunt in portland by Anonymous Coward · · Score: 5, Interesting

    Reminds me of a publicity stunt a newspaper in portland pulled after the local government ruled that trash on the curbside was fair game for the police to seize without a warrant. They went dumpster diving at several high profile government officials curbsides and posted the results of their findings in the paper. I thought it was a very effective piece of journalism.

  4. Think about what Europe does by Engineer-Poet · · Score: 5, Interesting

    The US could do the same as the EU, and prohibit export of personal data to jurisdictions which do not have equal or better privacy protections as ours. That would stop a lot of outsourcing in general, and probably be a vote-winner among unemployed geeks.

    1. Re:Think about what Europe does by Emugamer · · Score: 4, Insightful

      that makes sense, but how do you find someone who exports personal data? and how do you setup a system that tracks the sale of the illegally exported information? it sounds great, just not very enforceable

    2. Re:Think about what Europe does by belmolis · · Score: 3, Interesting

      British Columbia just established safeguards to protect personal data against the United States. The province gave a contract to a US-owned firm, and many people were worried that the company would hand the data over to the US government. Rather than give the contract to a Canadian firm, the provincial government effectively banned the company from exporting the data to the US.

    3. Re:Think about what Europe does by belmolis · · Score: 4, Informative

      The contracts are for the Medical Services Plan, which covers all residents of BC, and Pharmacare, which covers drugs. The provincial government has amended the privacy laws in an effort to satisfy critics, but a lot of people aren't convinced that this will do the job. I can't find an article on the privacy law amendments right off, but here's a link to a statement by the BC Government Employees Union (which admittedly has other concerns about outsourcing), and here is a BC government page with relevant information.

  5. Ummmm... by badasscat · · Score: 4, Insightful

    Washington Post has an article about former TIA personnel moving their data mining operations offshore (Bahamas) to escape U.S. privacy rules, and to make a buck. I'm waiting for somebody to publish the private data (financial, medical, legal) of federal officials and their families on an open internet web server out of the Bahamas. Is this what it will take for the US to enact stringent privacy rules?

    Does this make any sense to anyone?

    These companies are moving offshore to escape US privacy laws. So the solution is for the US to enact tougher privacy laws? Wouldn't that just encourage even more companies to move offshore?

    I would think the solution would be one of those worldwide initiatives that people around here seem so fond of. (That's sarcasm, if you couldn't detect it.) If a company's moving offshore to escape one country's laws, the only real solution is for that other country and all the other countries around it to enact the same laws. Right?

    1. Re:Ummmm... by jonwil · · Score: 4, Insightful

      No, the answer is to prohibit exporting personal data to these countries that dont have strong laws.

    2. Re:Ummmm... by ScrewMaster · · Score: 3, Insightful

      Sure. As a matter of fact, that policy has worked so well for copyright that they are extending it to patents as well. This is called "harmonization".

      --
      The higher the technology, the sharper that two-edged sword.
  6. What? by Pan+T.+Hose · · Score: 3, Insightful

    Washington Post has an article about former TIA personnel moving their data mining operations offshore (Bahamas) to escape U.S. privacy rules, and to make a buck. I'm waiting for somebody to publish the private data (financial, medical, legal) of federal officials and their families on an open internet web server out of the Bahamas. Is this what it will take for the US to enact stringent privacy rules?

    Enact stringent privacy rules? For the US? On Bahamas? Offshore? With the global jurisdiction and universal scope of US law, I presume? How would you want the "federal officials" to do that? Maybe US should "liberate" Bahamas?

    --
    Sincerely,
    Pan Tarhei Hosé, PhD.
    "Homo sum et cogito ergo odi profanum vulgus et libido."
    1. Re:What? by Lehk228 · · Score: 3, Insightful

      I am pretty sure the regulations would restrict the EXPORT of personal information.

      --
      Snowden and Manning are heroes.
  7. Re:Escape US jursidction != stronger US privacy la by Anonymous Coward · · Score: 3, Insightful

    No, what is needed are laws that prevent the collection of such info in the first place. By the time it's published abroad, it's already been collected here.

    No, what we need is for someone to show people the kind of information that's been collected on them already, whether by the government or private companies. Say, collect all the info on the staff of the New York Times, the Washington Post, CNN, Faux News, and members of Congress, then send it to them. Sure, some systems might have to be hacked in the process, which I'd ordinarily be opposed to, but things have gotten so bad that maybe people need a wake-up call.

  8. Won't happen by beldraen · · Score: 4, Insightful

    At this point, companies enforce the idea that anything that they can get their hands on is theirs.

    Until we recognize that just because I gave you my information it does not mean that it is no longer mine, privacy will always take a second place to corporate interests. And, since corporate interests run America, it follows that it will not change.

    What is more important is not what corporate America is doing, but how to get the Federal government back into the hands of and for its citizens; although, I really do not think that is possible. Whether you agree with the politics or not, it is suggestive to say that about 50% of the populace believes that Bush's policies are acceptable, which basically includes allowing businesses to ignore any ethical concerns (Halliburton, Microsoft, etc). You can't change corporate America with only 50% of the vote.

    --
    Bel, the mostly sane.. "Of course I can't see anything! I'm standing on the shoulders of idiots." -- Me
    1. Re:Won't happen by sillydragon · · Score: 3, Insightful

      Until we recognize that just because I gave you my information it does not mean that it is no longer mine

      Am I the only person that saw that line and thought of how big business (RIAA, MPAA, etc) wants to have it's cake and eat it too?

      RIAA: You uploaded some music? You're going to jail, punk.

      TIA & Data miners: You once wrote your name on a napkin at a diner in Noplace, Arkansas...it's ours now and we can give it to anyone we want.

    2. Re:Won't happen by beldraen · · Score: 4, Insightful

      You are not alone. When an intellectual property right holder has something or sells something, they want to treat it as a property. But, they want to treat the generator or the consumer as a licenser who is subject to a contract. It's been a very devastating road in U.S. that has been very well used to raise the barrier of entry to competition.

      As one person noted, it is interesting that I.P. is the only thing that can be of someone else (generated from common activities), be treated as a loss of property even though it was never produced (piracy), kept as private property (trademarked in a sense), patented to prevent people from reproducing something that they are not allowed to see, and sold as a license to which you must agree without opening the product.

      I have a very, very hard time believing that the founding fathers had in any shape for form intended this nightmare.

      --
      Bel, the mostly sane.. "Of course I can't see anything! I'm standing on the shoulders of idiots." -- Me
  9. Re:Forgive my potential shortsightedness but.... by BCW2 · · Score: 4, Insightful

    Medical data includes psyc problems, social disease and other things that make you a target for blackmail, job denial, etc. Employer will find reasons to can you if they want. Not having the problem in 20 years does not matter, you had it once, you are a risk. Insurance companies spend more time writing up reasons to deny coverage or claims than they do taking care of the premium payers.

    --
    Professional Politicians are not the solution, they ARE the problem.
  10. RTFA by marktaw.com · · Score: 3, Informative

    The guy who designed the system is going offshore, because the government couldn't get the greenlight and hoping to find private backers.

    Bell said he did not become involved with Global until after he left government in March.

  11. U.S. Customs for data by UpLateDrinkingCoffee · · Score: 4, Insightful

    We control the property that leaves and enters these shores. Shouldn't we also do this with personal data? I'm not talking about a big firewall like China has, but I am required to give out personal information all the time in the course of living my daily life. I would like assurances that when I entrust personal info with, say, my insurance company that the data will stay where the laws protect me. What good are privacy laws otherwise?

  12. Comment removed by account_deleted · · Score: 3, Funny

    Comment removed based on user account deletion

  13. Won't make a difference by TuballoyThunder · · Score: 4, Interesting
    After the tricare hard drive theft, which contained information on half a million beneficiaries, one would think some action would be taken. No such luck--Tricare and the DoD still uses social security numbers as unique identifiers and I still have to keep putting fraud alert on my credit report.

    The really idiotic part was that the class action lawsuite was dismissed because "the class had suffered no damages." One law firm's reaction was the potential value of this ruling as a defense for future privacy theft instances.

  14. already a precedence by Whammy666 · · Score: 4, Insightful
    I'm waiting for somebody to publish the private data (financial, medical, legal) of federal officials and their families on an open internet web server out of the Bahamas. Is this what it will take for the US to enact stringent privacy rules?

    There's already a precedence. I don't remember that exact circumstances, but it went something like this: A local newpaper got hold of a list of people who were renting porn from the adult video store. Come to find out, the list included the names of some prominent policitians and judges in washington. The newspaper published the list which caused great embarassment to said politicians. Congress immediately passed an emergency measure which made publishing such embarassing info about politicians illegal.

    If these offshore companies try to do the same, you can bet your bottom dollar that Congress will take immediate action to cover their asses. Of course, Joe Citizen will not enjoy the same protection because it's not in the national/corporate interest that his privacy be respected.

    --
    When all else fails, run.
  15. Presidne'ts Details by Kalak · · Score: 3, Insightful

    Address:
    The White House
    1600 Pennsylvania Avenue NW
    Washington, DC 20500
    202-456-1111
    president@whitehouse.gov

    Salary: $400,000

    Health Data

    And here's his attourney

    Translation: For those living "in the public life," there is no expectation of privacy, so to expect those in public life to understand the motivation of those of us who appreciate privacy to keep it is like talking about being poor to someone who has been rich all their life: They just can't understand. Heck, the news media mentiones when the President has a physical. Some congressional districts probably do this for their representatives too. This is probably only one of the reasons privacy advocates have a hard time pleading their cause in the US.

    --
    I am, and always will be, an idiot. Karma: Coma (mostly effected by .hack)
  16. Often, The Info Is Already In The Public Domain by reallocate · · Score: 3, Insightful

    An important fact that's seldom discussed is that any information about me that might be available via the Internet has already been made public. The act of digitizing that information and making it available in a database increases its potential access, but it does not impact my privacy. The data were already in the public domain.

    If some piece of information about me is not legally available to the public, and still appears on the Internet, then someone has broken the law.

    So, those who argue for new privacy legislation to curb what they see as violations of their privacy on the Internet are really asking to reclassify as private many types of personal information that have long been accessible to the public.

    Suppose, then, that former employees could not verify or deny that we used to work for them. Suppose a bank was not allowed to access the credit history of the guy who wants to buy your house. Suppose your daycare center could not check the criminal record of the kid who wants to be their new driver.

    Technology and the Internet certainly ease access to information -- that was the point, after all -- but it is almost always info that was already available to the public.

    Legislation that broadens government access to private information is, of course, a different issue.

    --
    -- Slashdot: When Public Access TV Says "No"
  17. The Bush Administration Did The Same Thing by HangingChad · · Score: 3, Insightful
    The current administration did the same thing by transporting prisoners to countries where the laws on interrogation are more lax. This is just another extension of the same philosophy.

    Actually, this could work out to be kind of an equalizer. Here in this country looking information on public officials could get you an "Ashcrofting." But let some company in another country do the dirty work for you. Hey, what's this charge on Bill O'Reilly's credit card to a place called Vibrator Universe?

    Actually, that's nothing compared to what foreign governments are going to do with that treasure trove of information. More likely what will happen is Congress will make it a crime to export data on Congress, and the let the rest of us take up the pooper. Business as usual.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage