Crowdfunded OpenSCHUFA Project Wants To Reverse-Engineer Germany's Main Credit-Scoring Algorithm

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We've just written about calls for a key legal communications system to be open-sourced as a way of re-building confidence in a project that has been plagued by problems. In many ways, it's surprising that these moves aren't more common. Without transparency, there can be little trust that a system is working as claimed. In the past this was just about software, but today there's another aspect to the problem. As well as the code itself, there are the increasingly-complex algorithms, which the software implements. There is a growing realization that algorithms are ruling important parts of our lives without any public knowledge of how they work or make decisions about us. In Germany, for example, one of the most important algorithms determines a person's SCHUFA credit rating: the name comes from an abbreviation of its German "Schutzorganisation für Allgemeine Kreditsicherung", which means "Protection Agency for General Credit Security". As a site called Algorithm Watch explains:

SCHUFA holds data on round about 70 million people in Germany. That's nearly everyone in the country aged 18 or older. According to SCHUFA, nearly one in ten of these people living in Germany (some 7 million people) have negative entries in their record. That's a lot!SCHUFA gets its data from some 9,000 partners, such as banks and telecommunication companies. Incredibly, SCHUFA doesn't believe it has a responsibility to check the accuracy of data it receives from its partners.In addition, the algorithm used by SCHUFA to calculate credit scores is protected as a trade secret so no one knows how the algorithm works and whether there are errors or injustices built into the model or the software.So basically, if you are an adult living in Germany, it's a good chance your financial life is affected by a credit score produced by a multimillion euro private company using an automatic process that they do not have to explain and an algorithm based on data that nobody checks for inaccuracies.

SCHUFA considers the project as clearly directed against the overarching interests of the economy, society and the world of business in Germany.

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As Video Games Are In Presidential Crosshairs, New Study Again Shows They Don't Effect Behavior

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Violent video games have once again found themselves in the role of scapegoat after a recent spate of gun violence in America. After the Florida school shooting, and in the extended wake of the massacre in Las Vegas, several government representatives at various levels have leveled their ire at violent games, including Trump, who commissioned an insane sit-down to act as moderator between game company executives and those that blame them for all the world's ills. Amid this deluge of distraction, it would be easy to forget that study after study after study have detailed how bunk the notion is that you can tie real-world violence and violent games is. Not to mention, of course, that there has never been more people playing more violent video games in the history of the world than at this moment right now, and at the same time research shows a declining trend for deviant behavior in teens rather than any sort of upswing.But a recent study conducted by the Max Planck Institute and published in Molecular Psychiatry further demonstrates the point that violence and games are not connected, with a specific methodology that carries a great deal of weight. The purpose of the study was to move beyond measuring behavior effects immediately after short, unsustained bursts of game-playing and into the realm of the effects on sustained, regular consumption of violent video games.

To correct for the "priming" effects inherent in these other studies, researchers had 90 adult participants play either Grand Theft Auto V or The Sims 3 for at least 30 minutes every day over eight weeks (a control group played no games during the testing period). The adults chosen, who ranged from 18 to 45 years old, reported little to no video game play in the previous six months and were screened for pre-existing psychological problems before the tests.The participants were subjected to a wide battery of 52 established questionnaires intended to measure "aggression, sexist attitudes, empathy, and interpersonal competencies, impulsivity-related constructs (such as sensation seeking, boredom proneness, risk taking, delay discounting), mental health (depressivity, anxiety) as well as executive control functions." The tests were administered immediately before and immediately after the two-month gameplay period and also two months afterward, in order to measure potential continuing effects.

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