It's all about something called cookies, a small text file that quietly and often secretly is placed on your personal computing device simply by opening some Web sites or clicking on a banner ad. A cookie is a unique identifier that leaves a clear trail of your online doings. Online advertising companies then can exchange cookie information with a consumer's computer as they deliver banner ads to a page, even if the consumer does not click on the ad. Identity fraud . Identity theft is skyrocketing, according to the Federal Trade Commission.
Experts say that the Internet makes a difference.
Pinpoint direct marketing . With someone's online profile and the help of the satellite Global Positioning System, marketers can identify who you are, your preferences, likes and dislikes and geographic location at any given time. For example, a consumer with a wireless device walking down the street can be targeted, located and instantly receive a coupon for a latte at the shop across the street. Such a scenario is not far-fetched with today's technology. Even popular Microsoft programs like Word, Excel and PowerPoint imbed invisible markers, or Web bugs, in documents that could eventually be traced back to a specific PC, reports The Privacy Foundation, a Denver-based nonprofit organization that examines electronic privacy issues.