Tag Archives | credit score

China’s Nightmarish Citizen Scores Are a Warning For Americans


Jay Stanley, writing for the ACLU:

China is launching a comprehensive “credit score” system, and the more I learn about it, the more nightmarish it seems. China appears to be leveraging all the tools of the information age—electronic purchasing data, social networks, algorithmic sorting—to construct the ultimate tool of social control. It is, as one commentator put it, “authoritarianism, gamified.” Read this piece for the full flavor—it will make your head spin. If that and the little other reporting I’ve seen is accurate, the basics are this:

  • Everybody is measured by a score between 350 and 950, which is linked to their national identity card. While currently supposedly voluntary, the government has announced that it will be mandatory by 2020.
  • The system is run by two companies, Alibaba and Tencent, which run all the social networks in China and therefore have access to a vast amount of data about people’s social ties and activities and what they say.
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How Accepting A Friend Request Will Soon Alter Your Credit Score

credit scoreThe The Next Web writes that you will soon be “empowered” by having every mundane aspect of your life mined for data:

Are you only as good as the company you keep? Before you accept that next friend request, consider what that person says about you, what that association might eventually cost, or be worth – even in the financial sense.

Where you live, who you friend on Facebook, the frequency you shop at Trader Joe’s, how much you spend – all of this information will be picked up, shared, and analyzed amongst the various connected devices and services you use.

This wealth of data will also be applicable to your financial decisions. “Who you are” as a consumer will no longer be based solely on your purchases, investments or credit file, but will also consider your daily routines, such as browsing the Internet, where you shop, and more.

Technology and new services are now making it possible to incorporate entirely new, more relevant data into a credit profile — data that is mostly consumer controlled or contributed and generated by simply gathering and delivering your lifestyle data.

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How Your Social Media Score Will Shape Your Life Options

On the intertwining of social capital and literal capital, the Economist reveals:

Facebook data already inform lending decisions at Kreditech, a start-up that makes loans in Germany, Poland and Spain. Applicants are asked to provide access for a limited time to their account on Facebook or another social network. Much is revealed by your friends, says Alexander Graubner-Müller, one of the firm’s founders. An applicant whose friends appear to have well-paid jobs and live in nice neighbourhoods is more likely to secure a loan. An applicant with a friend who has defaulted on a Kreditech loan is more likely to be rejected.

An online bank that opens in America this month will use Facebook data to adjust account holders’ credit-card interest rates. Based in New York, Movenbank will monitor messages on Facebook and cut interest rates for those who talk up the bank to friends. If any join, the referrer’s interest rate will drop further.

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On The Reputation Score You Will Soon Be Assigned

Via the The New Inquiry, Rob Horning on how Facebooking will be mandatory:

There is good reason to be concerned about the various data pools of personal information being gathered by communications and social-media companies. It’s used to shape the material conditions of our lives — what we see, what we’re permitted to do, who will talk to us, what sort of service we’ll receive.

It’s no coincidence that [social media management site] Reputation.com is joining forces with the credit-score agencies, as the Economist reports. It’s an extension of the same racket, to create a reputation score that is as actionable as a credit score.

If the reputation score is applied to you, you will have to pay to try to improve it or “clean it up.” But for others, such a score can be used to guide decisions about whether you are worth knowing, worth having as a roommate, worth friending on Facebook, worth offering a microloan to, worth renting a space on Air BnB to, etc., etc.

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