Data Brokers and Privacy: How Your Data is Traded Online

In an age where information is currency, data brokers have emerged as key players in the online economy. They collect, analyze, and sell your personal data, often without your direct consent. While many people are aware of companies tracking their online activities, few understand the scope of the data brokerage industry and how extensively personal information is bought and sold. This article will explore the practices of data brokers and provide practical steps individuals can take to protect their privacy.?

?

Understanding Data Brokerage?

Data brokers operate by gathering information from various sources, including public records, online purchases, social media activities, and web browsing habits. They compile this data into comprehensive profiles, which they sell to advertisers, corporations, and even governments. These profiles can include highly sensitive details, such as financial status, health information, purchasing behavior, and even your physical location.?

The core issue is that most of this data is collected and traded without individuals being fully aware of it. Unlike social media platforms where users willingly share information, data brokers scrape data from less obvious sources, making their operations much more opaque. Consumers are often surprised to learn how much personal information is available for sale and how little control they have over it.?

?

Unpacking the Data Trade?

The data brokerage industry is worth billions of dollars. Companies like Acxiom, Experian, and Oracle are some of the biggest players in the field, and they sell data to a wide range of industries, from retail to healthcare to political campaigns. This data helps businesses target consumers with personalized advertisements, optimize marketing campaigns, or predict consumer behavior.?

However, the data collected is not always accurate or secure. Inaccurate information can lead to unjust consequences for individuals, such as being denied a loan or being targeted with irrelevant or harmful ads. Worse, if a data broker experiences a data breach, the personal information of millions of people could fall into the wrong hands, leading to identity theft, fraud, or other cybercrimes.?

?

When Data Falls into the Wrong Hands?

A notable example is the 2019 Equifax breach, which exposed the personal data of over 147 million people, including Social Security numbers and financial records. While Equifax is primarily a credit reporting agency, it also operates in the data brokerage space, showcasing the potential risks when such entities mishandle sensitive information.?

Data brokerages have been at the center of several scandals and privacy violations in recent years. In 2020, Clearview AI, a facial recognition company, faced public scrutiny for scraping billions of images from social media platforms to build a database it sold to law enforcement agencies. Similarly, the Cambridge Analytica scandal brought to light how voter profiles were harvested from Facebook users without their consent, influencing elections through micro-targeted advertising.?

These incidents highlight the dangers of allowing data brokers to operate unchecked. The consequences range from individuals being unfairly targeted with predatory ads to entire societies being manipulated on political and social issues. Furthermore, this data could be sold to malicious actors, increasing the risk of cybercrime.?

Privacy expert Bruce Schneier gives us some perspective in his book on data security, “By 2010, we as a species were creating more data per day than we did from the beginning of time until 2003. By 2015, 76 exabytes of data will travel across the Internet every year.” One can make an educated guess as to the state of these statistics in 2024 and that’s a lot of data, to say the least!?

?

Practical Recommendations for Protecting Your Data?

While it is difficult to entirely avoid data brokers, there are steps individuals can take to limit their exposure and protect their personal information:?

Limit Data Sharing: Be cautious about the information you share online, particularly on social media and through online forms. Avoid oversharing details that could be used to build a profile.?

Use Privacy Tools: Use browser extensions that block trackers that collect data on your browsing habits. Additionally, using VPNs (Virtual Private Networks) can help mask your location and activity.?

Check Data Broker Opt-Outs: Many data brokers are legally required to offer an opt-out service where you can request the removal of your data. Websites like DeleteMe can help manage these requests on your behalf.?

Review Privacy Policies: Before using a website or service, review its privacy policy to understand what data they collect and how it’s used. While it may not be feasible to read every policy in full, many services provide summaries of key points, especially related to data sharing.?

Monitor Your Data: Regularly check if your information has been part of a data breach using tools like Have I Been Pwned, and consider credit monitoring services to alert you to potential identity theft.?

?

The Future of Data Privacy?

The data brokerage industry poses significant privacy risks to individuals, yet its practices remain largely hidden from public view. As data brokers continue to profit from the sale of personal information, it’s crucial for consumers to take proactive steps to protect their privacy. From using privacy tools to limiting data sharing, individuals can reduce their exposure to this shadowy industry. But the broader solution lies in pushing for stronger regulations that hold data brokers accountable and protect consumer rights in the digital age. The time to act is now—our personal data, and our digital future, depend on it.?