There are plenty of questions about what information your ISP should give up about you. Most of the cases in recent years have dealt with what info your ISPs should give up to the entertainment industry, as they try to track down unauthorized file sharers. However, it can get much more serious than that. Politech points to an article that seems to follow the early premise of Terry Gilliam's Brazil. A data entry typo on an IP address, resulted in broadband provider Cox giving incorrect information to the police, who immediately went out and accused a completely innocent couple of being involved with child porn. It took a week for the police to realize that Cox provided them with the wrong info. The couple are now suing Cox for disclosing (incorrectly) their information, saying it was a breach of privacy. Of course, with spoofing, trojans and open WiFi networks, these types of stories are only going to become more common. At what point do people realize that (typos or not), an IP address is not proof that someone is engaged in whatever they're being accused of?
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