A Deep Dive on How Data Brokers Impact Your Privacy

Data brokers collect, aggregate, and sell consumer information to various businesses and organizations. The data is collected from several sources, such as social media, online transactions, and even offline public records – most of the time, without the user being aware of this.

Since there isn’t a federal law in the U.S. that regulates the industry, the practice isn’t illegal. Still, many people have no idea that the industry even exists, not to mention that their data is being collected and sold.

Using sophisticated algorithms to analyze the data collected, brokers create detailed profiles of people and sell them to companies for marketing, advertising, and credit scoring purposes. Among the major players in the industry are Acxiom LLC, CoreLogic, and Epsilon.

The different types of personal information handled by data brokers are many, including:

• Full name
• Home address
• Phone number
• Email address
• Age
• Gender
• Occupation
• Income
• Bank account details
• Credit card details
• Health status
• Devices used
• Political affiliation

Bitdefender‘s Digital Identity Protection service reveals that 40.65% of users have between 2 and 11 personal data entries exposed online, while nearly 60% have more than 12 data points publicly accessible.

Handling such large quantities of important data makes the data brokerage industry an easy target for financial fraud. For example, cybercriminals may steal financial information to open fraudulent bank accounts and apply for credit cards.

One of the most common concerns associated with having your information in the hands of data brokers is targeted advertising. Your browsing history and purchasing habits can be sold to advertisers to manipulate your purchasing decisions. Even the spam emails and telemarketing calls you receive may come from third-party companies who purchased your information.

However, there are far more dangerous risks at play, such as serious privacy violations and misuse of data. One of them is identity theft, as cybercriminals can use your data to file false tax returns under your Social Security number, seek medical services and drug prescriptions with your medical information, and even commit crimes under your identity.

Moreover, it’s worth noting that data breaches are the data brokers’ feeding ground, as they take the opportunity to collect as much information as possible while it’s publicly available. Data brokers will extract information by any means necessary. Their business model revolves around going out of their way to collect data and sell it to other companies who can’t or don’t want to collect it themselves.

Another risk factor is that the data collected for one purpose can be repurposed or reused in several ways. Usually, this is done without the explicit consent of the individuals.

For instance, social media platforms may repurpose users’ data by sharing their information with data brokers to enhance targeted advertising and increase revenue streams. This truly highlights the complex ecosystem of data sharing and privacy concerns, as unintended consequences may result from sharing data with the data brokerage industry.

Namely, it may lead to discriminatory practices when the data brokers’ analysis results in biased outcomes. It could even have a psychological impact on individuals, as they may find it hard to be at ease knowing their data is being bought and sold.

The U.S. doesn’t have a comprehensive federal law that regulates the collection, processing, disclosure, and security of personal information.

Still, there are sectoral federal privacy laws, such as HIPAA, COPPA, and FERPA, as well as state privacy laws like CDPA and CPA. Internationally, there’s the European General Data Protection Regulation (GDPR), as well as the Digital Services Act and Digital Markets Act.

Although these laws establish principles for the lawful processing of personal information and grant individuals rights over their data, their effectiveness is limited, as certain organizations take advantage of loopholes to manage data however they want.

Among these gaps, there are inadequate disclosure of data practices and limitations to individual’s control of their own data. So, addressing these gaps and enhancing transparency regulations needs to be prioritized.

Some basic measures are essential to protect your privacy, such as avoiding sharing sensitive information through social media, deleting unused platform accounts, and encrypting connections with a VPN.

The next step is to ask for data brokers to delete your information, as they’re obligated by law to do so under request. As there are many data brokers out there, this task can be daunting, but data removal services like Incogni can help.

Incogni contacts high-scale data broker companies that may have your data and ensure they remove it, working as your own personal data removal agent. The platform handles the full removal process and has a database with more than 180 of these companies, including people search websites.

As data brokers can still get your information after it’s been deleted, Incogni and other data broker removal services do a recurring work, operating on a subscription-based pricing structure. So, going for an annual subscription of Incogni may be the wiser choice, as you can save 50% in relation to the monthly plan. Better yet, you can reduce the price to as low as $3.30 per month by sharing the Family & Friends annual plan with four more people. Finally, you can also use the 30-day money-back guarantee to try out the service risk free.

Undeniably, it’s crucial to take proactive measures to safeguard your personal information, as data brokers collect and monetize your data often without explicit consent.

Although minimizing information shared on social media and using encryption tools are important steps to protect your privacy, requesting data removal is the most reliable way to stop unauthorized access to your information and avoid scams and identity thefts.

Enlisting the help of a company like Incogni is always a good option, as not only does it provide an excellent service, but it also doesn’t break the bank, with 50% savings for those who make a long-term commitment.

By taking control of our data and gaining awareness of online dangers, we can shape a more secure and respectful digital landscape for ourselves and our loved ones.