The thought of the vast amount of personal information being collected by data brokers can be overwhelming. But the truth is that giving up some personal data is the cost of using phone apps or online accounts for free.
While it may not be possible to completely halt data brokers from collecting information, there are ways to reduce the amount of personal data they obtain. By understanding their practices, you can take steps to minimize your digital footprint and lower potential risks.
So, what data exactly do data brokers collect, and how do they operate? Are data brokers legal? And, most importantly, can you opt out of their records? The answers to these questions are on the way!
What are data brokers?
Data brokers, also referred to as information brokers, gather personal info by scouring the web. They then compile, package, and sell this information to various third parties, which can include other data brokers.
Who are these third parties that purchase this information? Some of them include credit card companies and financial institutions (which use the data in fraud detection and risk mitigation), insurance companies, marketing firms, tech companies, and even law enforcement agencies. The information sold by data brokers can then be used by these companies in their respective industries, and it can include sensitive personal data.
The data broker industry is a lucrative one, generating billions in revenue each year by trading and selling consumer data. Your sensitive personal information, such as your full name, address, date of birth, contact details, employment history, and more, can easily end up in the hands of these brokers. For them, selling data and your private information is how they make money.
How data brokers collect information
Now that we've learned about the various types of personal information data brokers collect, let's look at their methods of gathering this information. It's important to note that these personal details are not obtained from a single source but from a multitude of sources.
- Web Browsing History
Every action you take in the online world leaves a trace of data. These small packets of information, commonly known as cookies, collect the details you leave behind on every website you visit. They're like secret agents who follow your every move and report the information they gather.
Web tracking enables websites and third parties, such as data brokers, to create your data profile. Based on this profile, they can then present you with targeted ads or show you information they believe you want to see. You may have noticed this practice, particularly when using social media sites.
That's why although keeping your social media accounts private may not seem like a big deal, it can help reduce your level of exposure.
- Public Records
Many individuals are unaware of the vast amount of private data that can be found online in public sources. Data broker companies collect personal information from various public records, including motor vehicle records, census data, birth certificates, marriage licenses, voter registration information, bankruptcy records, and more.
- Through your agreement
When you sign up for a new app or create a new account, you are usually required to accept certain terms and conditions. Unfortunately, these agreements are often lengthy and tedious, so we rarely take the time to read them. As a result, we unknowingly grant access to our personal information.
- Data breach
Data breaches occur when a company experiences a security breach, and some users' personal information is released into the world. Once this information is out there, data brokers and other third parties can acquire it and use it for their own purposes, including selling your personal details.
- Data brokers selling information
Not only do many data brokers collect and sell basic personal information to other companies, but they also engage in the exchange of information with other data brokers. In other words, data brokers sell information to other data brokers.
Is data brokering legal or illegal?
The regulations surrounding the data brokerage industry differ globally, with some countries having more stringent laws than others. In the European Union, the General Data Protection Regulation (GDPR) sets some of the strictest data privacy laws out there.
In the United States, however, there is no federal law that governs the operations of data brokers, leaving it to the discretion of each state. Despite this, the Federal Trade Commission has taken steps to mitigate the risks associated with data brokerage by publishing reports and offering recommendations to Congress with the goal of making data collection more transparent.
States like California and Vermont have taken actions to protect their citizens' privacy by implementing their own regulations, such as California's Consumer Privacy Act and Vermont's Data Broker Law. This requires data brokers to register with the state and pay a yearly fee to continue their data collection activities.
Can I remove myself from data broker lists?
The ability to control your personal data is within reach, as most data brokers and people search sites offer an opt-out option. You can do this by sending out manual requests, or you can pay private companies to handle it for you.
One such company is Incogni, which provides a data removal service. It automatically sends opt-out requests on your behalf to data brokers and people search sites. For a monthly fee of $6.49 in an annual plan, Incogni can erase your personal data from listings without any effort on your part.
