How does privacy legislation impact fighting fraud?
• Most privacy legislation makes the false assumption that personal information that resides in numerous databases can be protected from unauthorized distribution. In the current information environment this protection is simply not available. By mandating protection for personal information the honest operators of information systems will do their best to comply, while the unscrupulous will be unfettered. The likely result will be even more unauthorized abuse of personal information. • Crooks will be free to use the information any way they choose while the legitimate user of such information will have greater restrictions on the use of such information, which will make the prevention and detection of information and identity fraud more difficult. • The bottom line will be a result that is the opposite of that which was intended. As with other digital technology, there is likely to be an unintended consequence that is worse than what was preexisting.
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