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Devastating Data Breaches – Part 2: Marriott’s Merger Misfire

In the relatively short history of data breaches, most have followed a similar pattern. Generally, some bad actor gains access to classified data, and then leaks names, phone numbers, birthdates, and other semi-private pieces of information. While breaches like this can certainly have a negative impact on a business, the consequences aren’t as severe for the consumer when only semi-private information leaks. After all, bad actors can only do so much with a name and corresponding phone number. However, the consequences become much more serious when private data is lost. If information like credit card numbers, passwords, and social security numbers are leaked, it can have devastating financial consequences for those affected. Unfortunately, that is exactly what occurred in the case of the Marriott data breach in 2018.

In honor of Cybersecurity Awareness Month, AXEL is writing about some of the worst leaks, data breaches, and ransomware attacks in history. Follow along all October long to learn about what went wrong, what could’ve been done, and how companies responded to devastating data breaches. 

The Background

In November 2015, Marriott made a massive purchase, announcing its bid to buy Starwood Hotels and Resorts. Following a bidding war, Marriott eventually acquired the hotel chain for USD $13.6 billion [1]. Hotels previously under the Starwood brand include Westin, Sheraton, and other luxury hotels popular with business travelers. This merger ultimately made Marriott the world’s largest hotel chain, with over 5,700 properties worldwide following the acquisition [2]. Unfortunately, Marriott’s acquisition of Starwood did not only include Starwood’s hotel properties, but its outdated cybersecurity infrastructure as well.

In 2014, a bad actor gained access to Starwood’s network and began to extract customer data from the company’s reservation system. Starwood’s network was already seen as particularly susceptible in 2014, and cybercriminals seized on that opportunity [3]. However, this attack went unnoticed for years, even as Starwood was being acquired by Marriott. In fact, most of Starwood’s information technology and security staff were laid off following the merger [3]. Ultimately, this created the perfect storm for the hackers; an outdated, compromised reservation system with little security to watch over them. Even after the merger, Marriott still used Starwood’s reservation system for its former properties, continuing to put customer data at risk. And in 2018, that risk became realized.

The Breach

In September 2018, Marriott’s cybersecurity team found a suspicious attempt to gain access to Starwood’s guest reservation database. After investigating, Marriott found that bad actors had gained access, encrypted the guest reservation data, and extracted that data over four years [3]. Ultimately, Marriott estimated that 500 million guest records had been leaked. Even worse, the records contained highly personal information, including credit card numbers and passport numbers.

Worst of all, however, the breach was entirely preventable. While Starwood did encrypt credit card numbers on its server, it kept the encryption keys on the same server, making it painfully easy for the cybercriminals to extract the data [3]. Additionally, the majority of passport numbers were not encrypted at all. Combined with Starwood and Marriott failing to recognize or change its poor cybersecurity, this was a cyberattack that simply would not have happened if not for the negligence of the companies involved.

Eventually, investigators determined that the perpetrators of the cyberattack were Chinese state actors [4]. While most cyberattacks are committed by criminals who wish to sell the leaked data and make a quick buck, this attack had a very different purpose. Investigators hypothesize that China wished to track the movement and gain information on American businesspeople, military personnel, and diplomats. Ultimately, Chinese officials wished to gain this information to find potential candidates to approach to become spies for China [4]. This made the leaked passport numbers, a rarity in most data breaches, particularly valuable for the perpetrators of the cyberattack.

Lessons From the Attack

Following the breach, Marriott faced criticism from individuals and governments alike. While class action lawsuits originated in the United States mostly failed to gain traction in court, Marriott faced a myriad of fines overseas. In fact, Marriott was fined GBP £18.4 million, or approximately USD $25 million, for violating the General Data Protection Regulation, the EU’s overarching privacy law [5]. However, many of the expenses related to the attack were covered by Marriott’s cybersecurity insurance, a growing industry due to the sheer prevalence of cyberattacks in modern times [3].

While cybersecurity insurance incurred many of the costs, irreparable harm was done to Marriott’s image due to its mistakes. First and foremost, the company’s decision to continue using an outdated, vulnerable reservation system even after the merger proved to be catastrophic. While business mergers are undoubtedly a time of great turmoil, the negligence of Marriott’s cybersecurity is unforgivable, as it put millions at risk. Additionally, Marriott’s poor encryption made the data easy to find and extract. While some businesses are simply unlucky when it comes to cyberattacks, Marriott did not suffer because of bad luck, but its own negligence.

Protect Your Data with AXEL Go

Using a secure file storage system is the key to protecting your data from breaches and ransomware attacks. That’s where AXEL Go comes in. Offering military-grade encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself and your business from unauthorized cybercriminals. With devastating cyberattacks not going away any time soon, secure file-sharing is a necessity for businesses and individuals. If you’re ready to get the best protection, try two free weeks of AXEL Go here.

[1] Smith, Aaron. “Marriott Starwood Merger Creates World’s Biggest Hotel Company.” CNNMoney. November 16, 2015. https://money.cnn.com/2015/11/16/investing/marriott-starwood-hotel/index.html.

[2] “Meet the Biggest Hotel Chains in the World.” Hospitality News & Business Insights by EHL. https://hospitalityinsights.ehl.edu/biggest-hotel-chains.

[3] Fruhlinger, Josh. “Marriott Data Breach FAQ: How Did It Happen and What Was the Impact?” CSO Online. February 12, 2020. https://www.csoonline.com/article/3441220/marriott-data-breach-faq-how-did-it-happen-and-what-was-the-impact.html.

[4] Nakashima, Ellen, and Craig Timberg. “U.S. Investigators Point to China in Marriott Hack Affecting 500 Million Guests.” The Washington Post. December 12, 2018. https://www.washingtonpost.com/technology/2018/12/12/us-investigators-point-china-marriott-hack-affecting-million-travelers/.

[5] “ICO Fines Marriott International Inc £18.4million for failing to Keep Customers’ Personal Data Secure.” ICO. October 30, 2020. https://ico.org.uk/about-the-ico/news-and-events/news-and-blogs/2020/10/ico-fines-marriott-international-inc-184million-for-failing-to-keep-customers-personal-data-secure/.

Devastating Data Breaches – Part 1: The Hard Fall of Yahoo

Data breaches can affect any business. It’s an unfortunate fact, but in today’s digital world, there are so many technologically savvy criminals who seek to make money and wreak havoc upon millions. Cyberattacks can affect anyone, from the smallest neighborhood shop to the largest multinational corporations. However, while small businesses are affected constantly, the data breaches that affect large corporations are the ones that receive the most news coverage. And while the number of cyberattacks has risen in recent years, no incident comes close to the number of victims as the back-to-back data breaches Yahoo faced in 2013 and 2014.

In honor of Cybersecurity Awareness Month, AXEL is writing about some of the worst leaks, data breaches, and ransomware attacks in history. Follow along all October long to learn about what went wrong, what could’ve been done, and how companies responded to devastating data breaches. 

The History of Yahoo

From the late 1990s until the late 2000s, Yahoo was among the giants of Silicon Valley. Although the company never dabbled in hardware, it focused on one utility: Web services. And in the early years of the Internet, no one did web services better than Yahoo. Following in the footsteps of AOL, Yahoo’s first business model was organizing new web pages into categories in the early 1990s. When this proved successful, Yahoo quickly expanded into other web services, including email, instant messaging, news, and games [1]. With these services, Yahoo truly hit the mainstream. Throughout the 2000s, Yahoo remained popular, but began to lag behind tech newcomers like Google, Facebook, and their suites of web services. Following years of underperformance, Yahoo was struggling in the early 2010s. Unfortunately, Yahoo’s problems were only just beginning.

The Breach(es)

In August 2013, an unknown third party gained access to Yahoo data, making away with names, birth dates, phone numbers, and poorly encrypted passwords [2]. For three years following the breach, Yahoo was unaware of this unauthorized digital theft. However, in August 2016, Yahoo accounts were seen for sale on the dark web. Later, three separate buyers bought this stolen data for USD $300,000. To this day, Yahoo and federal investigators do not know the culprit of the 2013 hack [2].

In addition to the 2013 breach, Yahoo faced another cybersecurity crisis just a year later. In December 2014, Yahoo fell victim to another data breach, losing usernames, phone numbers, passwords, and security question answers to at least 500 million Yahoo accounts [3]. It was later revealed that the hack was the responsibility of four men hired by Russia, who sought the personal information of American intelligence officers [3]. 

In contrast to the 2013 breach, however, Yahoo executives were made aware of the hack soon after it occurred. Even when Yahoo was set to be acquired by Verizon in 2016, the company stated that it was aware of only four minor breaches [4]. Even in June 2016, Yahoo’s security team was aware that hundreds of millions of accounts were compromised, yet the company failed to inform Verizon or the public until September 2016.

The Fallout

Finally, in September 2016, Yahoo announced to Verizon and the public its knowledge of the 2014 breach. At the time, Yahoo estimated that 500 million accounts were compromised in the attack. In December 2016, Yahoo became aware of the 2013 attack and announced that an estimated one billion accounts were affected by the incident. While an estimated 1.5 billion compromised accounts is a nightmare for any business, the hacks and fallout occurred during a time of turmoil and transition for Yahoo. In fact, after the announcement of the 2014 hack, Yahoo lowered its purchase price to Verizon by $350 million [4]. Unfortunately, the news soon got worse for Yahoo. The company’s initial estimate of affected accounts was far from the true scale of the breaches.

In October 2017, Yahoo announced that all of its accounts were compromised in the two hacks. Over 3 billion accounts were ultimately affected by the breaches. Following the public reveal of the 2013 hack, Yahoo forced all of its users to change their passwords [5]. While this was a smart, necessary step, much of the damage had already been done. Usernames, phone numbers and birthdates were, unfortunately, already vulnerable.

Following the revelations of the breaches, Yahoo faced serious scrutiny from consumers and investigators alike. Following investigations, Yahoo was fined USD $35 million by the Securities and Exchange Commission (SEC) not for the breaches themselves, but for failing to disclose its knowledge of the 2014 breach until two years later [4]. In fact, this was the first time the SEC ever fined a public company for failure to disclose knowledge of data breaches. Additionally, Yahoo settled a class-action lawsuit for USD $80 million. Ultimately, Yahoo was punished for the cover-up, rather than the actual breaches. Unfortunately, the steep punishment simply did not outweigh the damage done to Yahoo and its customers.

Protecting Your Data

Although October is designated as Cybersecurity Awareness Month, true protection from data breaches and cyberattacks requires a year-long commitment. That’s where AXEL Go comes in. AXEL Go is a secure file-sharing and storage software that prioritizes data protection. Offering military-grade encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself or your business from cybercriminals. Put simply, your vital information deserves the best protection. If you’re ready to try the best protection, get two free weeks of AXEL Go here. 

[1] Greenberg, Julia. “Once Upon a Time, Yahoo Was the Most Important Internet Company. Now It’s Struggling.” Wired. November 23, 2015. https://www.wired.com/2015/11/once-upon-a-time-yahoo-was-the-most-important-internet-company/.

[2] Perlroth, Nicole. “All 3 Billion Yahoo Accounts Were Affected by 2013 Attack.” The New York Times. October 03, 2017. https://www.nytimes.com/2017/10/03/technology/yahoo-hack-3-billion-users.html.

[3] Goel, Vindu, and Eric Lichtblau. “Russian Agents Were Behind Yahoo Hack, U.S. Says.” The New York Times. March 15, 2017. https://www.nytimes.com/2017/03/15/technology/yahoo-hack-indictment.html?_r=0.

[4] “The Hacked & the Hacker-for-Hire: Lessons from the Yahoo Data Breaches (So Far).” The National Law Review. May 11, 2018. https://www.natlawreview.com/article/hacked-hacker-hire-lessons-yahoo-data-breaches-so-far.


[5] Goel, Vindu, and Nicole Perlroth. “Yahoo Says 1 Billion User Accounts Were Hacked.” The New York Times. December 14, 2016. https://www.nytimes.com/2016/12/14/technology/yahoo-hack.html.

Everywhere is the New Office: The Rise of Digital Nomads

At the beginning of the COVID-19 pandemic, the transition to at-home work was swift. Never before had so many workers been forced to work from a new location, with new software to learn, in such a short period of time. But after a few months of at-home work, a weird thing happened: Workers began to adore remote work compared to the traditional office. Although it took getting used to, now, 77% of workers prefer working remotely versus working in an office [1]. But now, with the pandemic under (some) control, workers are still figuring out ways to continue working from anywhere. This desire has led to an increase of “digital nomads” across the country, and the world.

Digital nomads are location-independent workers who travel often, while still getting work done due to consistent Internet availability. While digital nomads are nothing new, the popularity of the practice exploded during the pandemic. In fact, in 2020, the number of digital nomads in the United States reached 10.9 million, up 50% from 2019 [2]. With more businesses offering indefinite remote work, the practice will likely spread further as well. Because of its ever-growing popularity, it’s fair to ask: Is this the future of work? 

Why do Digital Nomads Love Their Jobs?

First and foremost, digital nomads (and at-home workers in general) like their work method because it allows a better work-life balance [3]. This includes taking more breaks, feeling less pressure and no more commutes. All of these perks are quite beneficial for remote workers, including digital nomads. It allows workers to continue earning an income, while also saying goodbye to some of the more stressful facets of traditional office jobs. For many of these digital nomads, remote work is a no-brainer. After all, if offices allow for remote work, why not enjoy these perks? The problem, however, is that not all offices want remote work to become permanent.

Numerous prominent business leaders have voiced their opposition to permanent remote work. Netflix co-CEO Reed Hastings stated that he sees “no positives” regarding remote work, and Goldman Sachs CEO David Solomon said that remote work was “an aberration we’re going to correct as soon as possible [4].” So while remote work offers a multitude of benefits to digital nomads, it isn’t guaranteed their lifestyle will last forever. While some business leaders, such as Mark Zuckerberg [4], have sung the praises of remote work, the practice is far from universally admired.

However, it won’t be easy to rope digital nomads back into the office. After all, remote workers have the leverage right now. In 2020, efficiency actually increased, even though workers had to navigate the newfound difficulties of remote work [5]. With this information in mind, workers know that they are valuable, efficient employees. More importantly, business leaders know they are valuable and efficient as well. So while anti-remote work CEOs may want a return to the traditional office, making it a requirement risks losing employees to businesses more open to remote work.

The Digital Nomad Economy

Even some businesses have begun to market themselves to digital nomads. For example, Airbnb has shifted its focus from short-term vacation rentals to longer-term “workcations.” In fact, the number of long-term Airbnb stays nearly doubled in 2020 compared to 2019 [2]. And with more businesses becoming open to permanent remote work, this sector of the economy will continue to grow, adding even more benefits to remote work.

Put simply, remote work offers significantly more freedom for workers compared to office work. And for digital nomads, it’s about more than just freedom of location. Working remotely allows employees to get their tasks done on their time. With no supervisors looking over your shoulder or gossipy coworkers to worry about, employees can focus more on their work. With this increase of personal freedom for workers, it’s no wonder why efficiency jumped in 2020.

The Drawbacks of Remote Work

However, with this freedom comes responsibility as well. Without a boss or coworkers to surround you during work hours, temptations can arise. After all, what’s stopping workers from taking a two-hour break in the middle of the day? Additionally, remote work can actually cause worse work-life balance as well, as the lines between home-life and work-life can be blurred. Finally, security could be compromised by remote work as well. In fact, that’s partially why Apple CEO Tim Cook has been so enthusiastic about a return to offices [6].

Remote work offers a myriad of benefits for workers, with just a few drawbacks. Thankfully, there are ways to mitigate those drawbacks, particularly regarding security. Even better, most of these techniques are simple for remote workers, no matter where they are. First, ensuring that your software is up-to-date is the best (and easiest) way to protect yourself and your business. Bad actors typically attack through older versions of software, so keeping it up-to-date will minimize the risk of you becoming a target. Next, avoiding public wi-fi networks is another key tip. Public networks are prone to malware and can infect your computer, harming you and your business.

Protect Yourself with AXEL

Finally, using a secure file-sharing system is key to protecting your most vital files from data breaches and ransomware attacks. That’s where AXEL Go comes in. Offering industry-leading encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself and your business from unauthorized cybercriminals. In a world where remote work is becoming the norm, secure file-sharing is a necessity for any business. If you’re ready to try the best protection, get two free weeks of AXEL Go here. 

[1] Ballard, Jamie. “Most Remote Employees Don’t Want to Return to the Workplace after the Pandemic.” YouGov. January 19, 2021.  https://today.yougov.com/topics/economy/articles-reports/2021/01/19/remote-employees-work-from-home-poll.

[2] Lufkin, Bryan. “Is the Great Digital-nomad Workforce Actually Coming?” BBC Worklife. June 15, 2021. https://www.bbc.com/worklife/article/20210615-is-the-great-digital-nomad-workforce-actually-coming.

[3] Courtney, Emily. “The Benefits of Working From Home Beyond the Pandemic: FlexJobs.” FlexJobs Job Search Tips and Blog. September 03, 2021. https://www.flexjobs.com/blog/post/benefits-of-remote-work/.

[4] Kelly, Jack. “How CEOs And Workers Feel About Working Remotely Or Returning To The Office.” Forbes. March 19, 2021. https://www.forbes.com/sites/jackkelly/2021/03/19/how-ceos-and-workers-feel-about-working-remotely-or-returning-to-the-office/.

[5] Curran, Enda. “Work From Home to Lift Productivity by 5% in Post-Pandemic U.S.” Bloomberg.com. April 22, 2021. https://www.bloomberg.com/news/articles/2021-04-22/yes-working-from-home-makes-you-more-productive-study-finds.

[6] Ryan, Kevin J. “Why Apple Employees Are Objecting to the Company’s Remote Work Rules.” Inc.com. July 20, 2021. https://www.inc.com/kevin-j-ryan/apple-employees-letter-return-to-office.html.

Convenient or Monopolistic? Epic’s Challenge to Apple’s “Walled Garden”

On August 13, 2020, Epic Games, the developer and publisher of the massively popular online game Fortnite, tried something that most companies would be too scared to do. They picked a fight with Apple. On that day, Epic announced a 20% discount on “V-Bucks,” Fortnite’s in-game currency, but only if they purchase it directly from Epic, rather than through Apple’s App Store.

This was an intentional violation of Apple’s terms of service, as Apple takes a 30% commission of all in-app purchases, and Epic wanted that extra money for itself. Within hours, Apple took Fortnite off the App Store for violating its terms of service, with a lawsuit by Epic quickly following [1].

On September 10, 2021, that lawsuit received a ruling. The judge sided with Apple on nine of ten counts, but ordered Apple to loosen restrictions on alternative payment options [2]. However, Apple CEO Tim Cook still stated that, even if an app uses a non-Apple payment option, Apple would still invoice the 30% commission [3]. So, what’s next? Epic appealed the ruling, but for now, Apple still maintains tight control over the apps on its App Store. Ultimately, this case highlights the uniqueness of Apple’s software philosophy, and how its relationships with third-party developers frequently draw ire.

A Walled Garden

For years, Apple’s software philosophy has been described as a “walled garden.” This means that Apple’s software is simple, secure, and easy to use for the consumer. However, Apple also strongly dissuades or even forbids users and developers from leaving their walled garden. Apple states that this approach is necessary to protect its users, and also to differentiate itself from Android, a competitor with a more open ecosystem [4]. Ultimately, this leads to increased simplicity for the user, along with increased dependence on Apple software. So while this approach does protect users from dubious third parties, it also entraps users into Apple’s ecosystem as well.

While Apple claims that its walled garden approach is to offer increased security and simplicity for its users, there are other reasons why Apple uses this philosophy. Because Apple has full control of its ecosystem, it can enforce practically any rule it wants. This includes a 30% commission on in-app purchases. Unfortunately, for third-party developers, this means putting up with Apple’s demands or risk getting kicked out of the garden. And that’s exactly what happened with Epic Games.

The Legal Argument

The main conflict of Epic Games vs. Apple focused on whether Apple’s walled garden approach violates antitrust law. Specifically, Apple’s requirement to force users to only purchase in-game items through the App Store, rather than through another party, was used as evidence of monopolistic behavior [2]. On the other hand, Apple argued that they are free to do business (or not do business) with any other company, and that their restriction of third-party payment services was within their rights as a business. Simply put, this case pitted first-party hardware and third-party software developers against one another.

Ultimately, the court ruled with Apple on nine of ten counts, with Epic stating their intention to appeal their decision [2]. In the one ruling against Apple, Judge Yvonne Gonzalez Rogers stated that “Apple created a new and innovative platform which was also a black box. It enforced silence to control information and actively impede users from obtaining the knowledge to obtain digital goods on other platforms. Apple has used this lack of knowledge to exploit its position [2].” However, because the judge ruled in favor of Apple in the other nine counts, few changes are likely to occur.

While there was potential for a landmark ruling that would shake Apple to its core, the actual ruling that was handed down will likely not have a massive effect on either company. The only change Apple must make is to allow developers to use third-party payment services. However, nothing is stopping Apple from collecting the 30% commission from those third-party developers. Ultimately, while this court ruling had the potential for massive change, the judge’s ruling ensured that Apple’s walled garden philosophy will continue.

Security and Your Rights

While Apple argued that its App Store policies were there to protect users, we know that isn’t the main reason for those restrictive rules. Simply put, the purpose of Apple’s walled garden approach is to keep users locked into the Apple ecosystem. While some users do prefer this method, and it can protect users from unsavory third-party developers, it still infringes upon the rights of consumers.

Unfortunately, this philosophy is all too common with Big Tech companies. Sacrificing privacy is a big win for Big Tech, but a huge loss for privacy rights. Corporations continue to collect hoards of personal data to sell to advertisers, while your privacy is violated. With Amazon, Google, and others offering endless new ways to collect your data, it’s fair to ask: Are you the customer, or the product?  

Thankfully, there are businesses that prioritize security and personal rights. That’s where AXEL comes in. AXEL believes that privacy is a human right. With this in mind, we created AXEL Go, a secure file-sharing and storage software. Offering industry-leading encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself or your business from unauthorized cybercriminals. With AXEL Go, there’s no compromise between security and privacy rights. After all, our business is protecting your data, not collecting it. If you’re ready to try the most secure file-sharing and storage software, get two free weeks of AXEL Go here. 

[1] Statt, Nick. “Apple Just Kicked Fortnite off the App Store.” The Verge. August 13, 2020. https://www.theverge.com/2020/8/13/21366438/apple-fortnite-ios-app-store-violations-epic-payments.

[2] Newman, Daniel. “Does The Epic Ruling Open The Door For Apple’s Competition?” Forbes. September 16, 2021. https://www.forbes.com/sites/danielnewman/2021/09/16/does-the-epic-ruling-open-the-door-for-apples-competition/.

[3] Adorno, José. “Apple Can Still Charge Its App Store 30% Fee Even after Epic Ruling, Analysts Say.” 9to5Mac. September 14, 2021. https://9to5mac.com/2021/09/14/apple-can-still-charge-its-app-store-30-fee-even-after-epic-ruling-analysts-say/.


[4] Beres, Damon. “All the New Ways Apple Is Trying to Take Over Your Life.” Slate Magazine. June 08, 2021. https://slate.com/technology/2021/06/apple-wwdc-ios15-new-features-walled-garden.html.

Big Tech’s Big Secret: Why Google and Apple Want Your Data

Two of the biggest tech companies in Silicon Valley have long been rivals. Whether it be iPhone vs. Android or Chrome vs. Safari, Apple and Google have never been on the friendliest of terms. Except for one, massive partnership. This year, Google is expected to pay Apple USD $15 billion to have Google be the default search engine on Safari [1]. At first, this deal seems like a head-scratcher. After all, why would Google pay its biggest rival billions when most already prefer Google as their search engine of choice? Put simply, Google outbids others to ensure other corporations (namely, Microsoft) can’t have their search engines become the default.

In addition to the two companies’ rivalry, there is another reason why Apple and Google’s lucrative partnership is so puzzling. Specifically, the two corporations’ stance on data privacy. In recent years, Apple has highlighted its privacy features extensively, with entire marketing campaigns dedicated to showcasing Apple’s (seemingly) hard-line stance on user privacy. On the other hand, Google’s revenue depends on advertising, and thus, user data. Over 80% of Google’s revenue comes from targeted advertising [2]. Overall, Apple and Google’s partnership shows how Big Tech companies that claim to prioritize your privacy may sacrifice that right for a big payday.

Apple’s Stance on Privacy

Just a few months ago, Apple launched a marketing campaign with the tagline “Privacy. That’s iPhone [3].” Clearly, Apple knows that privacy is something that the public wants, particularly in today’s Digital Age. In fact, Apple even states that “Privacy is a fundamental human right” on its website. On Apple’s site that details its privacy features, the company touts that Maps “doesn’t associate your data with your Apple ID” and that “your Apple ID isn’t connected to Siri.” Finally, Apple states that Safari “helps stop advertisers that follow you from site to site [4].” Clearly, Apple wants its users to believe their data is protected with them. Put simply, Apple wants to market itself as the Big Tech company that actually cares about your privacy. But is that the case?

Well, not really. While Apple is certainly better with privacy than most other Silicon Valley giants, that’s not a particularly high bar to clear. Apple still collects data in aggregate and keeps your exact maps locations for 24 hours [5]. While Apple may say that the benefits of this data collection vastly outweigh the harms, they’re still collecting the data. But worst of all, Apple still allows apps that don’t care about privacy at all. All of Apple’s privacy features are only on its own software. If you use more popular apps, such as Google Maps, Gmail, Facebook, YouTube, and others, you’re not protecting your data, even if you’re using the apps on an iPhone.

So while Apple talks a big game, and has certainly made positive steps toward a more private future, it’s still misleading to say Apple truly cares about your privacy. By still allowing data-hungry apps on its App Store, your data is still exposed on Apple’s hardware. Of course, Apple is a business, and simply not allowing these popular apps would be a massive change. However, the implication that all of your data is protected on Apple devices is simply misleading.

Google and User Privacy

While Apple has taken some steps to protect user data, Google’s entire business model depends upon the collection and sale of data. Google collects, among other things, website histories, Gmail data (including email drafts), and specific location data, even when the Google Maps app isn’t open [6]. Google then takes that personal data and sells it, allowing companies to target their ads to specific audiences. With this hyper-specific information, Google can line its pockets with revenue, while your data is exposed to advertisers.

In fact, Google’s entire business model is the sale of user data. That’s why nearly all of Google’s products are completely free. From Google Maps to YouTube, Gmail to Drive, Google offers all of these services for free. And many have wondered how Google can offer such complicated software for no cost. The answer? Google’s software isn’t their main product. You are their main product.

For Big Tech, It’s All About Ads

Unfortunately, Google is just one of many corporations whose main product isn’t software or programs. It’s you and your data. Similar to Google, Facebook makes the vast majority of its revenue through ads. Facebook learns as much as possible about you, then uses that data to deluge your timeline with hyper-specific ads [7]. Additionally, the goal of Amazon’s expansion into smart speakers and grocery stores isn’t just to offer a wider suite of products. It’s about gathering even more information about its customers and sharing that with advertisers [8]. 

While Facebook and Amazon both carefully state that they don’t “sell” your data to third parties, they do “share” your data with third parties. In practice, this still means advertisers can pay for access to your data. And, unfortunately, that is how most Big Tech companies operate. While these mega-corporations may offer a variety of free software and products to customers, those aren’t their main business. If they aren’t selling products or services, they’re selling you.

AXEL is Different

At AXEL, we also believe that privacy is a human right. Unlike other companies though, we don’t hide behind our slogans. AXEL takes steps to ensure your data is protected from cybercriminals and advertisers alike. From military-grade encryption to blockchain technology, AXEL offers the most stringent security for your most important data.

Additionally, with AXEL, you’re not the product. That’s why we never sell your data to any third party. We don’t offer any “too good to be true” deals while selling your data on the side. AXEL Go is a secure file-sharing and storage software that puts you in control of your data. If you’re ready to take back control of your data, try two weeks of AXEL Go for free here. After the free trial, AXEL Go is just $9.99 per month. After all, our business model is offering the best, most secure file-sharing service to all; not offering your private data to the highest bidder.

[1] Ion, Florence. “Google Continues to Pay Apple Billions to Keep You From Using… Bing?” Gizmodo. August 26, 2021. https://gizmodo.com/google-will-continue-to-pay-apple-billions-to-keep-you-1847564608.

[2] Graham, Megan, and Jennifer Elias. “How Google’s $150 Billion Advertising Business Works.” CNBC. May 21, 2021. https://www.cnbc.com/2021/05/18/how-does-google-make-money-advertising-business-breakdown-.html.

[3] Apple. YouTube. May 20, 2021.

https://www.youtube.com/watch?v=8w4qPUSG17Y.

[4] “Privacy.” Apple. 

https://www.apple.com/privacy/.

[5] “Apple Delivers a New Redesigned Maps for All Users in the United States.” Apple Newsroom. August 06, 2021. https://www.apple.com/newsroom/2020/01/apple-delivers-a-new-redesigned-maps-for-all-users-in-the-united-states/.

[6] Haselton, Todd. “How to Find out What Google Knows about You and Limit the Data It Collects.” CNBC. December 06, 2017. https://www.cnbc.com/2017/11/20/what-does-google-know-about-me.html.

[7] Gilbert, Ben. “How Facebook Makes Money from Your Data, in Mark Zuckerberg’s Words.” Business Insider. April 11, 2018. https://www.businessinsider.com/how-facebook-makes-money-according-to-mark-zuckerberg-2018-4.
[8] M, Laura. “Does Amazon Sell Your Personal Information?” DeleteMe. August 21, 2020. https://joindeleteme.com/blog/does-amazon-sell-your-personal-information/.

Bitcoin has Entered the Mainstream. Now What?

For centuries, individual governments have created, distributed, and regulated their own physical currencies. Even with the rise of checks, debit cards, and credit cards, nationalized currency is still the norm for every country on Earth. Of course, the physical currency itself isn’t valuable. After all, a $100 bill isn’t made with $100 worth of materials; the bill is valuable because the government says it’s worth $100. So if the material itself doesn’t provide the value, what if something other than physical currency could provide value too?

Even something as integrated as physical currency was still susceptible to new, digital ideas. In 2009, bitcoin was launched. While it languished in relative obscurity for its first few years, it entered the public consciousness after one high-profile case: the Silk Road marketplace. The revelation of a thriving, online black market that survived on anonymous, digital payments was frightening to many. However, it also showed what the future of currency could be. A fully digital, borderless currency has the potential to change the entire global economy. And while this economic revolution is a long way away, bitcoin continues to gain momentum, proving itself to be more than just a fad. And while bitcoin may never overtake national currencies, its ever-growing acceptance shows that it isn’t going away any time soon.

From Obscurity to Omnipresence

When bitcoin was first launched, it was almost completely unknown. After all, cryptocurrencies weren’t really a thing in 2009. And even until 2016, an estimated 46% of all bitcoin transactions were used for illegal goods and services [1]. Put simply, bitcoin was much more popular among the dark corners of the Internet than the general population in the coin’s early days. However, in 2017, bitcoin entered the mainstream. That year, the value of bitcoin increased 1,824%, from under USD $1,000 to a then-high of USD $19,783 [2]. And while bitcoin’s value remained volatile after this jump, it proved that bitcoin was more than a currency for illegal goods; it was a currency with the potential to revolutionize business and government.

In 2021, it is beginning to realize that potential. While widespread use and acceptance of bitcoin is still hypothetical, major corporations are beginning to embrace the revolutionary cryptocurrency. Businesses that accept bitcoin payments include AT&T, Overstock and PayPal [3]. And while traditional cash and credit cards still make up the vast majority of purchases at these businesses, bitcoin’s increased acceptance highlights its continued momentum in 2021.

In addition to corporations’ acceptance, some national governments are encouraging the use of bitcoin as well. In June 2021, El Salvador passed a law making bitcoin a legal currency in the country [4]. While it does not go into effect until September 7, this radical experiment could be the turning point for bitcoin. If successful, El Salvador could show how bitcoin can be used as an effective, convenient and stable currency. Its potential success in El Salvador could lead to more widespread adoption as legal tender in various countries, making the coin even more valuable, and more stable. However, if unsuccessful, it could highlight bitcoin’s volatility, decreasing its value and slowing its momentum.

Government Regulations

While most countries don’t accept bitcoin as a currency, that doesn’t mean that it is free from government oversight. Although bitcoin was created as a decentralized, international currency, it is still subject to national laws. And with its growing popularity comes growing regulation. For example, China has banned banks and other financial institutions from providing services regarding cryptocurrency. This means bitcoin trading is outlawed in China, although individuals are still allowed to hold cryptocurrencies [5]. China’s government blames bitcoin’s high volatility for the ban, claiming that cryptocurrency trading could put individuals and the entire nation’s economy at risk.

In the United States, however, bitcoin trading is legal and faces relatively few regulations. Americans are free to buy and sell cryptocurrencies with little government interference. However, it may not be this simple for long. Lawmakers are attempting to increase regulations on bitcoin and other cryptocurrencies, stating that they pose a tax evasion risk [6]. Therefore, Congress is debating the addition of more tax-reporting requirements for cryptocurrencies [7]. So while cryptocurrency faces few regulations in the United States today, it will likely become regulated similarly to stocks and gold in the future.

Finally, bitcoin has faced pressure from environmental activists as well. The process of bitcoin “mining” is energy-intensive, with high-powered computers constantly churning to solve complex algorithms. Due to this mining, the cryptocurrency itself has a larger carbon footprint than American Airlines [8]. Because of this massive environmental impact, bitcoin may not be a sustainable currency, as it will remain minable until 2140 [9].

The Future of Bitcoin

In a way, bitcoin is similar to a promising startup: It burst into the mainstream in 2017 and has shown incredible potential. However, it’s going up against a powerful competitor: Physical currency. Therefore, bitcoin has to prove its worth in order to survive. Can it maintain stability and keep consumer trust? Can it offer benefits that physical currency can’t? Right now, we simply don’t know. However, its increased acceptance by businesses and governments can certainly lead to trust, stability and convenience. Therefore, its potential is still sky-high.

Ultimately, potential is not the same as success though. An estimated 17% of Americans now own a share of bitcoin [10]. But many of those owners see bitcoin as an investment, rather than a competing currency. And for those who don’t own bitcoin, it is still seen as unstable, confusing and complex. Put simply, bitcoin is not more convenient than physical currency in 2021, and is significantly more volatile. It doesn’t have the widespread use and trust that it requires to be a competing currency. So while bitcoin has certainly gained momentum and trust in recent years, it still has a long way to go before proving itself to be a viable, everyday currency.

[1] Foley, Sean, and Jonathan R. Karlsen. “Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed Through Cryptocurrencies?” OUP Academic. April 04, 2019. https://academic.oup.com/rfs/article/32/5/1798/5427781.

[2] Morris, David Z. “Bitcoin Hits a New Record High, But Stops Short of $20,000.” Fortune. December 17, 2017. 

https://fortune.com/2017/12/17/bitcoin-record-high-short-of-20000/.

[3] Lisa, Andrew. “10 Major Companies That Accept Bitcoin.” Yahoo! Finance. August 25, 2021. https://finance.yahoo.com/news/10-major-companies-accept-bitcoin-190340692.html.

[4] “Bitcoin to Become Legal Tender in El Salvador on Sept 7.” Reuters. June 25, 2021. https://www.reuters.com/technology/bitcoin-become-legal-tender-el-salvador-sept-7-2021-06-25/

[5] “China Bans Financial, Payment Institutions from Cryptocurrency Business.” Reuters. May 18, 2021. https://www.reuters.com/technology/chinese-financial-payment-bodies-barred-cryptocurrency-business-2021-05-18/.

[6] Franck, Thomas. “U.S. Treasury Calls for Stricter Cryptocurrency Compliance with IRS, Says They Pose Tax Evasion Risk.” CNBC. May 20, 2021. https://www.cnbc.com/2021/05/20/us-treasury-calls-for-stricter-cryptocurrency-compliance-with-irs.html.

[7] Kelly, Makena. “Controversial Crypto Rules Remain in Infrastructure Bill after House Vote.” The Verge. August 25, 2021. https://www.theverge.com/2021/8/25/22641375/cryptocurrency-infrastructure-irs-tax-developers-miners-bitcoin.

[8] Mellor, Sophie. “Elon Musk Is Right: Bitcoin Mining Is Bad for the Planet.” Fortune. May 13, 2021. 

https://fortune.com/2021/05/13/musk-bitcoin-mining-bad-planet-heres-how-bad/.

[9] Hayes, Adam. “What Happens to Bitcoin After All 21 Million Are Mined?” Investopedia. August 23, 2021. https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/.

[10] “About 46 Million Americans Now Own Bitcoin.” Nasdaq. May 14, 2021.https://www.nasdaq.com/articles/about-46-million-americans-now-own-bitcoin-2021-05-14.