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Emerging Threats

What is Social Credit System?

A system that assigns citizens a score based on their behavior, determining their access to services, travel, loans, and opportunities — currently implemented in China.

China's social credit system is the most comprehensive behavior-monitoring system ever deployed, and elements of it are appearing elsewhere.

How It Works in China

  • Citizens receive a score based on financial behavior, social behavior, and political compliance
  • Low scores restrict access to: flights, trains, hotels, schools, loans, jobs
  • Score is affected by: late bill payments, traffic violations, social media posts, associating with low-score individuals
  • Corporate social credit also scores businesses

Emerging Elsewhere

  • Insurance pricing: Based on driving behavior, health data, social media analysis
  • Employer screening: Social media and online behavior checks
  • Tenant screening: Algorithmic scoring for rental applications
  • Banking: Alternative credit scoring using phone data and social connections
  • Platform bans: Coordinated deplatforming based on behavior across services

The Slippery Slope

  • CBDC + Digital ID + Social Credit = complete behavioral control
  • No technical barrier prevents Western democracies from building equivalent systems
  • The components are being built separately and could be connected

Defense

  • Financial privacy (cash, privacy coins)
  • Separate identities for different activities
  • Minimize data shared with any single entity
  • Support legislation preventing algorithmic scoring of citizens

Related Terms

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