INVASION OF PRIVACY

OUR RIGHT TO BE LEFT ALONE HAS DISAPPEARED, BIT BY BIT, IN LITTLE BROTHERLY STEPS. STILL, WE'VE GOT SOMETHING IN RETURN--AND IT'S NOT ALL BAD

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If things seem crazy now, think how much crazier they will be when everybody is as wired as I am. We're in the midst of a global interconnection that is happening much faster than electrification did a century ago and is expected to have consequences at least as profound. What would happen if all the information stored on the world's computers were accessible via the Internet to anyone? Who would own it? Who would control it? Who would protect it from abuse?

Small-scale privacy atrocities take place every day. Ask Dr. Denise Nagel, executive director of the National Coalition for Patient Rights, about medical privacy, for example, and she rattles off a list of abuses that would make Big Brother blush. She talks about how two years ago, a convicted child rapist working as a technician in a Boston hospital riffled through 1,000 computerized records looking for potential victims (and was caught when the father of a nine-year-old girl used caller ID to trace the call back to the hospital). How a banker on Maryland's state health commission pulled up a list of cancer patients, cross-checked it against the names of his bank's customers and revoked the loans of the matches. How Sara Lee bakeries planned to collaborate with Lovelace Health Systems, a subsidiary of Cigna, to match employee health records with work-performance reports to find workers who might benefit from antidepressants.

Not to pick on Sara Lee. At least a third of all FORTUNE 500 companies regularly review health information before making hiring decisions. And that's nothing compared with what awaits us when employers and insurance companies start testing our DNA for possible imperfections. Farfetched? More than 200 subjects in a case study published last January in the journal Science and Engineering Ethics reported that they had been discriminated against as a result of genetic testing. None of them were actually sick, but DNA analysis suggested that they might become sick someday. "The technology is getting ahead of our ethics," says Nagel, and the Clinton Administration clearly agrees. It is about to propose a federal law that would protect medical and health-insurance records from such abuses.

But how did we arrive at this point, where so much about what we do and own and think is an open book?

It all started in the 1950s, when, in order to administer Social Security funds, the U.S. government began entering records on big mainframe computers, using nine-digit identification numbers as data points. Then, even more than today, the citizenry instinctively loathed the computer and its injunctions against folding, spindling and mutilating. We were not numbers! We were human beings! These fears came to a head in the late 1960s, recalls Alan Westin, a retired Columbia University professor who publishes a quarterly report Privacy and American Business. "The techniques of intrusion and data surveillance had overcome the weak law and social mores that we had built up in the pre-World War II era," says Westin.

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