A survey by the world''s largest central bank umbrella organization, the BIS, has encouraged individuals and firms to get more control over the information collected on them by social media and other Big Tech businesses and banks.
In recent decades, the rise in internet-enabled mobile phones, apps, and other high-tech gadgets has resulted in an explosion of personal data that businesses now harvest, process, and sell.
While most countries already have data usage restrictions, some banks are still disposing of what was at stake, or their rights over their data, according to a statement released on Thursday.
According to the paper, authorities should therefore adopt new data governance techniques to "sensit the playing field between data subjects and data controllers."
They should require businesses to receive clearer consent to collect data, better explain how it was being used, and make it easier for those from whom it was harvested to get access.
"When data is shared between data providers and data users, the data governance system should include which data they want to share, how long they will last for them, and who will process it," the paper said.
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The BIS'' role as a central bank underscores how widespread the clamour for stricter data policies is now spread.
Current restrictions are quite common. While the European Union''s General Data Protection Regulation (GDPR) which took effect in 2018, is generally seen as the most comprehensive, it is still considered as having issues.
Other parts of the world are far less advanced. For example, the United States, where the majority of Big Tech companies are founded, has still no significant consumer privacy laws, largely relying on a patchwork of state and sector rules.
Data subjects are also missing out because their information often becomes locked in firm''s silos or platforms after consuming an app, website, or service, according to the study.
In turn, the companies may combine that data with other elements such as income and education, generating insights and predictions, thus constructing "derived data."
Because of a lack of previous credit history, young and less well-off people are often denied loans, although if they had full access to their online data, that might be avoided.
"These low-margin, high-risk consumers are uneconomical to reach in the traditional world without having access to digital data sharing," said the paper.
The amendment required that any new governance structure be fully effective.
(i) purpose limitation - ensure that the purpose for which data is being shared is described in clear and concise terms.
(ii) data minimization - share only as much data as it is absolutely necessary.
(iii) retention restrictions - make sure that data isn''t shared for longer than they were previously required.
(iv) limit on use - ensure that data is only used for the purpose for which it was shared.
Assure your data is secure, (v) operational resilience.
2022 Thomson Reuters