657 research outputs found
Privacy-Preserving Methods for Sharing Financial Risk Exposures
Unlike other industries in which intellectual property is patentable, the
financial industry relies on trade secrecy to protect its business processes
and methods, which can obscure critical financial risk exposures from
regulators and the public. We develop methods for sharing and aggregating such
risk exposures that protect the privacy of all parties involved and without the
need for a trusted third party. Our approach employs secure multi-party
computation techniques from cryptography in which multiple parties are able to
compute joint functions without revealing their individual inputs. In our
framework, individual financial institutions evaluate a protocol on their
proprietary data which cannot be inverted, leading to secure computations of
real-valued statistics such a concentration indexes, pairwise correlations, and
other single- and multi-point statistics. The proposed protocols are
computationally tractable on realistic sample sizes. Potential financial
applications include: the construction of privacy-preserving real-time indexes
of bank capital and leverage ratios; the monitoring of delegated portfolio
investments; financial audits; and the publication of new indexes of
proprietary trading strategies
A Theory of Pricing Private Data
Personal data has value to both its owner and to institutions who would like
to analyze it. Privacy mechanisms protect the owner's data while releasing to
analysts noisy versions of aggregate query results. But such strict protections
of individual's data have not yet found wide use in practice. Instead, Internet
companies, for example, commonly provide free services in return for valuable
sensitive information from users, which they exploit and sometimes sell to
third parties.
As the awareness of the value of the personal data increases, so has the
drive to compensate the end user for her private information. The idea of
monetizing private data can improve over the narrower view of hiding private
data, since it empowers individuals to control their data through financial
means.
In this paper we propose a theoretical framework for assigning prices to
noisy query answers, as a function of their accuracy, and for dividing the
price amongst data owners who deserve compensation for their loss of privacy.
Our framework adopts and extends key principles from both differential privacy
and query pricing in data markets. We identify essential properties of the
price function and micro-payments, and characterize valid solutions.Comment: 25 pages, 2 figures. Best Paper Award, to appear in the 16th
International Conference on Database Theory (ICDT), 201
Truthful Linear Regression
We consider the problem of fitting a linear model to data held by individuals
who are concerned about their privacy. Incentivizing most players to truthfully
report their data to the analyst constrains our design to mechanisms that
provide a privacy guarantee to the participants; we use differential privacy to
model individuals' privacy losses. This immediately poses a problem, as
differentially private computation of a linear model necessarily produces a
biased estimation, and existing approaches to design mechanisms to elicit data
from privacy-sensitive individuals do not generalize well to biased estimators.
We overcome this challenge through an appropriate design of the computation and
payment scheme.Comment: To appear in Proceedings of the 28th Annual Conference on Learning
Theory (COLT 2015
The Potential for Machine Learning Analysis over Encrypted Data in Cloud-based Clinical Decision Support - Background and Review
This paper appeared at the 8th Australasian Workshop on Health Informatics and Knowledge Management (HIKM 2015), Sydney, Australia, January 2015. Conferences in Research and Practice in Information Technology (CRPIT), Vol. 164, Anthony Maeder and Jim Warren, Ed. Reproduction for academic, not-for profit purposes permitted provided this text is includedIn an effort to reduce the risk of sensitive data exposure in untrusted networks such as the public cloud, increasing attention has recently been given to encryption schemes that allow specific computations to occur on encrypted data, without the need for decryption. This relies on the fact that some encryption algorithms display the property of homomorphism, which allows them to manipulate data in a meaningful way while still in encrypted form. Such a framework would find particular relevance in Clinical Decision Support (CDS) applications deployed in the public cloud. CDS applications have an important computational and analytical role over confidential healthcare information with the aim of supporting decision-making in clinical practice. This review paper examines the history and current status of homomoprhic encryption and its potential for preserving the privacy of patient data underpinning cloud-based CDS applications
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