Nowadays the topic of storing personal data by companies has become a growing concern. On the one hand, this practice allows organisations to not only provide targeted recommendations, but also greatly facilitates the process of identity verification for banks and hospitals. On the other hand, storage of all data in one place is a target for hackers, this may result in the identity theft.
This systematization had made it a lot easier for websites to display products that are more likely to be purchased. This means that when marketplaces have access to people’s preferences, age, and interests it tends to advertise things that are relevant to a specific online user. For example, after putting an item into wish list, the algorithms begin creating an individual’s digital portrait, based on the preferences. As a result, when this website is opened again, it will display products that are more likely to catch the attention of a consumer and therefore be bought. Another significant advantage is the simplified process of verifying peoples identities. For example, when visiting a hospital, since all data is stored in one place, a doctor can easily enter one’s medical history. Resulting in faster and easier retrieval of necessary information. Hence, this storage of personal information makes many processes more effecient.
However, there are some downsides to this practice. The centralized databases are prime targets for hackers, increasing risks of exposing millions of sensitive records in a single breach. As a result, personal data such as phone numbers, home addresses and medical records can be leaked online. Moreover, this entails risks of identity theft. After obtaining passwords and PIN numbers, fraudsters can pretend to be someone else online. For instance, it is a frequent case when scammers take out microloans and online loans in the name of unsuspected person. This remains a matter of concern for many people, even though companies assure that these databases are highly protected.
In conclusion, although there are risks of cyberattacks and identity theft, which may lead to serious consequences. I believe that these drawbacks do not outweigh its benefits such as personal recommendations and immediate identity verification.