Why you can't really anonymize your data
radar.oreilly.com
radar.oreilly.com
I take a bit of issue with Pete's statement that Naryanan's break "gave access to their complete rental histories". Rather, it gave access to slightly munged ratings a for possibly partial subset of the movies included in the dataset. While this is real, it's not quite the same as knowing their entire rental history.
To my knowledge, there was no damage done by this exploit: no one was fired because it was likely they loved Brokeback Mountain. By contrast, the Netflix Prize brought about a lot of great research that otherwise might never have been done much less made public.
I'm glad the data was released, and the contest held, and I think in retrospect the benefits outweighed the potential risks. I would hate for the conclusion to be that privacy must be upheld above all other factors. I would hate for the outcome to be that no such dataset will ever be released again.
Properly weighing the risks requires a certain amount of paranoia. When the person who's doing the security review cares about what the outcome is, they won't be imaginative enough when thinking about how the data might be misused. You almost need an adversarial system.
[0] https://secure.wikimedia.org/wikipedia/en/wiki/AOL_search_da...