For information consumers, constant communicators and internet junkies everywhere, unlimited mobile data is a pass to unlimited playtime. Its like unlimited crack for the addict. For data scientists, analysts and marketers, the words unlimited mobile data spark raised eyebrows. Unlimited data, by its very nature, makes for limitless possibilities. How its use will pan out is, of course, a different story.
One way companies such as Target and Macys use smartphone data is movement tracking. When a customer arrives, a camera gets a shot of their face or license plate, then the retailer tracks where they go in the store through WiFi. Although these stores arent malicious, and are ostensibly doing this to build user profiles and personalize marketing, it seems ominous: 80% of shoppers feel in-store tracking is unacceptable; 68.5% are concerned their data will not be kept safe, and 67% say tracking feels like spying.
This is the grey area of mobile data usage, because many people might not be okay with tracking, but they might be happy to take advantage of a special discount the store offers as a result of tracking. Customers with Wal-Marts app, which uses geolocation tracking, spend nearly 40% more per month. This benefits Wal-Mart, and the customers are admittedly saving money on each purchase–which prompts more return trips.
Another not-so-dark issue with mobile data is the bias that people bring to mobile analytics. Confirmation bias, according to analytics firm Amplitude, is where you find what youre looking for, because youre looking for it. This can hurt your business because you miss what the data is truly indicating.
You can also fall prey to the streetlight effect, looking for answers to a problem where its easiest to find them, instead of delving deep into the data. Escalation of commitment is another problem. You set up a custom metric and invest a lot in it, but it turns out the metric isnt doing you any good. Instead of stopping, you keep the metric because of your initial investment.
Last, but not least of the analytics biases, the clustering illusion happens when you think you see an exciting pattern from minimal data. The wrong conclusion from insufficient findings affects how you view data throughout the rest of your findings.
Bias issues with mobile data taint its effectiveness for your business. But the truly dark side is yet to come.
The dark side
In the US alone, the average American adult uses 2.5 GB of mobile data per month. Ultimately, the more mobile data were using, the more vulnerable we are to mobile malware and identity theft. In 2015, there were 490,000 identity theft complaints–and thats just the cases people reported to the FTC. In 2016, malware attacks on smartphones rose by 95% from January to April.
Malware takes four primary forms: spyware, Trojans, phishing attacks, and hidden processes. The infamous Zitmo Trojan of 2010 was able to move from mobile to PC and back again, capturing online banking transaction numbers and leading to substantial financial losses.
Ransomware is a newer kind of malware that has become increasingly popular. The first example of ransomware was 2013s FakeDefender. FakeDefender warned users of nonexistent malware and prompted them to buy a security app. The app, of course, did nothing and the money disappeared into the hands of hackers. Plenty of ransomware simply steals information, and hackers hold it hostage. Pay them, and they supposedly release the info. Hackers can make up to $7,500 a month this way.
Small businesses are particularly susceptible to the schemes of cyber criminals: in 2015, half of global cyber attacks hit small businesses. Hackers can target multiple unsuspecting small businesses at once, because theyre not as up-to-date on cyber security as the big guys.
If you own or work for a small business that exchanges information via mobile device, be careful. Keep apps up to date and install trusted anti-virus software. Practice safe surfing by avoiding suspicious links and staying off adult sites, and dont open suspicious texts and emails.
Data can be a business best friend and its worst enemy. Avoid the dark side of mobile data by using it to your advantage, not your loss.
