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OPENING POSITION

December 2000 

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We worry a lot these days, at least in public, about our privacy being endangered by the vast network of digital information, a network that is growing by thousands of computers per week. I was recently made aware of an older danger that might be more germane.

A "friend" of mine prevailed upon a contact in one of the brokerage firms I do business with to look into my account and report on my trading activity. It turned out this was surprisingly easy to do. Within the brokerage itself, virtually any employee could look into individual accounts. Thus, the threat to privacy wasn't from the machines but the people.

A similar instance occurred last year in the IRS, when a relatively low-level employee was disciplined for perusing tax returns. And, of course, we all remember how easy it was for White House personnel to summon 600 FBI files of its Republican opponents with no machinery involved at all. In these instances, people were the weak link in privacy protection and, since they must be involved, always will be.

Privacy advocates have been reduced to extreme measures: refusing to cooperate with any information-gathering at all. You are told never give up your Social Security number (but you must resign yourself to the government's having it and using it). Don't give out your E-mail address to just anyone who asks for it, and of course, account numbers of any kind should be kept private. Even phone numbers are great links to your personal life, and driver's license numbers are better still, since many states sell their lists of them.

In the underground world of youth, the new game is new identities. Surprisingly easy to create -- they are sold on the streets in Los Angeles for $100 to $300 -- they not only befuddle the older generation (and the government) but confuse automated marketing tracking systems. Like hacking, creating new identities gives wonderful opportunities for harmless fun but also chances for malicious behavior. But what's the choice? Live like a tagged, monitored mouse in modern society or stop cooperating and clog up the societal matrix? I admit to having some sympathy for that response, especially after having dealt with my broker. Does he really need anything from me but my money?

I admit to techiness: I trust machines more than people. I suggest you ask your broker how his or her firm restricts access to account information and what safeguards are in place to keep those who don't belong there out of your files. Remember: If it can happen to me, maybe it's already happened to you.

Good fortune!