That was President Ronald Reagan’s perspective on international diplomacy.  Increasingly, that is advice all individuals, all the time, need to apply.  On Amazon.com, for instance, roughly 80 percent of all reviews are four stars or higher, a positive perspective that defies human nature.  Yelp!, which knows that fake reviews undermine its entire business model, claims a proprietary fraud-detection system stops at least 20 percent of all reviews before they reach the public.  According to computer scientist Bing Liu, who studies online fraud, roughly 30 percent of all reviews across the Internet are fraudulent.  Yet, 70 percent of global consumers trust online consumer reviews, up from 55 percent just four years ago.  Review fraud is increasing, and trust in those reviews is also increasing.  Is this ignorance or indifference to accuracy?

The Reagan perspective needs to be used much more widely than just for consumer reviews on the Internet.  A recent study of biomedical journals discovered that use of manipulated data or fraudulent professional reviews has increased 10 fold since 1975 – and that study only counted frauds that were caught.  In September alone, several journals, including Experimental Parasitology and Pharmaceutical Biology discovered that nearly 30 papers had made their way to publication by using fake peer reviews.  The reviews, which are routinely solicited by the journal to assess the papers’ worthiness for publication, were fraudulent, most commonly being reviews by fake professionals created by the authors themselves.

The Internet has put an enormous amount of information at everyone’s fingertips, and now those wanting to use that incredible resource are having to deal with the effects of the intentional polluting of that information. Has deception and fraud become so commonplace that those trying to detect it constantly lag the deceivers?  What does that say about nearly all kinds of societal interactions, including those in retail, advertising, medicine, equities, religion, politics, education, marketing and on and on?  Is there any place individuals can place their trust?  Is there room for an independent, non-aligned business to validate information?

Hmmm, fact checking, the new black.

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As we have recently begun discussing, companies are facing increasingly inpatient and educated consumers with less brand loyalty than ever. In this environment, customer service has become a major brand differentiator. If companies can pass this task effectively to eager consumers, they can get a leg up on the competition. If they can save money in the process then it’s even better.

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Even after watching record labels get it wrong for years, m­ovie studios can’t get it right. DVD sales dropped 20 percent between 2010 and 2011, and increases in Blu-ray sales and digital downloading didn’t make up the difference. Expect an increase in piracy, not an increase in consumers spending time and money to get access to watch a movie they have purchased on any device.

On the other hand, in August, Nintendo will sell New Super Mario Bros 2 and other games for its gaming platforms, the 3DS and Wii U, as both direct downloads and physical packages. The company has previously offered high-end games on discs and cartridges, and smaller games via download. Customers can purchase via Nintendo’s eShop online store, or they can buy download codes from traditional game retailers. (Wired, 4/27/12)

Unlike the movie studios, Nintendo understands the changes that Pervasive Computing is bringing. Digital games on smartphones are training individuals to want and expect immediate access, which is changing business and delivery models for traditional game companies. How long will it be before sales of physical games sold at brick-and-mortar stores disappear completely?

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