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China announces it is scoring its citizens using big data

Please go read the article in the Dutch newspaper de Volkskrant entitled China rates its own citizens – including online behavior (hat tip Ernie Davis).

In the article, it describes China’s plan to use big data techniques to score all of its citizens – with the help of China internet giants Alibaba, Baidu, and Tencent – in a kind of expanded credit score that includes behavior and reputation. So what you buy, who you’re friends with, and whether you seem sufficiently “socialist” are factors that affect your overall score.

Here’s a quote from a person working on the model, from Chinese Academy of Social Science, that is incredibly creepy:

When people’s behavior isn’t bound by their morality, a system must be used to restrict their actions

And here’s another quote from Rogier Creemers, an academic at Oxford who specializes in China:

Government and big internet companies in China can exploit ‘Big Data’ together in a way that is unimaginable in the West

I guess I’m wondering whether that’s really true. Given my research over the past couple of years, I see this kind of “social credit scoring” being widely implemented here in the United States.

Fingers crossed – book coming out next May

As it turns out, it takes a while to write a book, and then another few months to publish it.

I’m very excited today to tentatively announce that my book, which is tentatively entitled Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy, will be published in May 2016, in time to appear on summer reading lists and well before the election.

Fuck yeah! I’m so excited.

p.s. Fight for 15 is happening now.

Predatory credit score-based insurance fees

I’ve been looking into who uses credit scores – FICO scores or other alternative scores – and I’ve found that the insurance industry is a major user.

Homeowners insurance rates, for example, varies wildly by state depending on what kind of credit score you have, often more than doubling for people with poor credit versus people with excellent credit. This is in spite of the fact that homeowners insurance applies not to the payments of mortgages but rather to the contents of an apartment or home.

Similarly, auto insurance rates vary by credit score, even though someone with a poor credit score isn’t obviously a bad driver. For example, in Maryland, people with bad credit scores can be charged 40% more just for having bad credit scores.

Statistics like this make me wonder, how much of this price discrimination comes from the insurance companies trying to understand and account for actual risk, and how much comes from their understanding that poorer people have fewer options and will simply pay predatory rates?

And just in case you’re a believer in free markets and fair competition, and think such predatory behavior would be whisked away in a competitive market, insurance companies actually target people who don’t shop around and charge them more. In other words, it’s not a free market if not everyone actually has good information.

Tell me if you have more examples like this, I’m a collector!