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Re: [projectvrm] Facebook patents technology to help lenders discriminate against borrowers based on social connections


Chronological Thread 
  • From: Shannon Clark < >
  • To: LaVonne Reimer < >
  • Cc: Tom Crowl < >, ProjectVRM list < >, Andy Oram < >, Douglas Rushkoff < >
  • Subject: Re: [projectvrm] Facebook patents technology to help lenders discriminate against borrowers based on social connections
  • Date: Sat, 8 Aug 2015 14:14:37 -0700

Worth noting that this patent was one of many that Facebook got via acquiring a patent portfolio from Friendster and that the other uses of the patent are quite different. I think this is a case where a provocative headline is making more of something than is really there. 

Also there is a very solid case (and ample prior art) to using network ties to detect fraud (which isn't too far removed from making a credit decision). One anti fraud technology I helped in a small way with (over a decade ago) used a lot of different methods to look for bad actors who shared various features - for example employees and customers who share a phone number or an address or employees and suppliers. Etc. this was for a casino who are often on the bleeding edge of such technology (and who also make a lot of credit decisions). Bad actors would often try to hide relationships either between themselves or between multiple Faldo identities. 

In the modern era I can easily see using social ties on a public network such as Facebook as one factor in helping identify real people vs fraudulent actors. It wouldn't by far be perfect or exact but it would help surface many cases (either networks of fake accounts on social networks or people claiming a false identity. )

I see a common and very real example of this on Facebook about once a week - a set of people are making fake accounts in the names of airlines then claiming to run a contest for free airfare for everyone who shares some post. Every week I see at least one friend caught by these deceptions - made somewhat obvious if you look at the account as it will have no history or social ties and won't be "verified" 

Sent from my iPhone

On Aug 7, 2015, at 8:03 AM, LaVonne Reimer < "> > wrote:

A couple notes on this.

First, it's an approach taken by multiple "big data underwriting" startups to which billions . . . and billions of venture capital continue to flow. As an aside, I'm curious whether Facebook will use this patent to go after them. Most of the startups go well beyond the company you keep to other forms of social media and behavioral information. I don't have the expertise in the targeted advertising arena that others on this list can claim but I do know this data is being mined increasingly to profile people as creditworthy or not. This bit about your connections is just one piece though. If it were the only piece at least you'd know how to game the system.

A classic example of data created or collected in one context being used in another where the unexpectedness of it all can be linked to monetary harm.

Second, I met with a prospective investor yesterday. It's big-time NYC money that usually doesn't flow to a startup but these guys have been monitoring the identity verification and credit space for some time so they're at least taking a close look at my deal. They totally buy into the Lumenous premise that putting business owners in charge of their data will not only lead to better and more timely information for creditors but will set the stage for a universal system of credit and trust that can adapt to economic communities of interest we have yet to imagine.

What interested me is that he really wasn't talking in VRM terms. He just says these guys who are vacuuming up every bit of data they can are garbage collectors. Worse, they craft algorithms to justify vacuuming up lots and lots of data. In other words, VRM (at least in some domains) may win on the "merits."

Tom, thanks for posting this. I had missed it.

LaVonne



On Wed, Aug 5, 2015 at 7:12 PM, Tom Crowl < " target="_blank"> > wrote:
Facebook patents technology to help lenders discriminate against borrowers based on social connections

From their patent:

"In a fourth embodiment of the invention, the service provider is a lender. When an individual applies for a loan, the lender examines the credit ratings of members of the individual’s social network who are connected to the individual through authorized nodes. If the average credit rating of these members is at least a minimum credit score, the lender continues to process the loan application. Otherwise, the loan application is rejected."

Better not associate with any poor people on the web! The oligarchy's screws are tightening...





--
LaVonne Reimer, Founder
Lumenous
503-720-0690 (cell)
lavonnereimer (skype)

www.lumenous.net




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