Data Brokers Secretly Trade Personal Information, Fueling Privacy Concerns and Scams

The Hidden Data Economy

Personal information has become a valuable commodity in today’s digital landscape, with data brokers actively collecting and selling this information without consumer knowledge, according to industry reports. These brokers operate behind the scenes, compiling detailed profiles that can influence everything from marketing approaches to healthcare eligibility decisions.

Sources indicate that most consumers remain unaware of the extensive data collection occurring across websites and services. “Once obtained, the information can then be used to market products at us, assess our suitability for jobs or financial services, and even whether we qualify for certain healthcare coverage,” the report states about how this collected data gets utilized.

Public and Private Data Brokers

Analysts suggest there are two main types of data brokers operating in the information marketplace. Public brokers typically appear as people search sites where surprising amounts of personal information become accessible, often including addresses and contact details.

Private brokers, meanwhile, collate personal information for various sectors including marketing, risk-mitigation for insurance companies, recruitment background checks, and financial services assessments. These brokers operate with less visibility than their public counterparts but maintain extensive databases of consumer information.

From Data Collection to Criminal Exploitation

The consequences of widespread data brokering extend beyond targeted advertising, with reports connecting this practice to criminal activities. A BBC investigation uncovered call center scammers laughing about their victims, with one recounting how he’d forced a woman to hand over her last $100.

Industry analysts suggest that scammers don’t pick phone numbers randomly but instead purchase data from brokers. “Once your data is out there, it’s not just calls. It’s phishing, impersonation, and identity theft,” the report states about how obtained information enables various confidence tricks and fraud schemes.

Fighting Back Against Data Collection

Services like Incogni have emerged to help consumers regain control of their personal information. The service reportedly automates removal requests from over 420 data brokers and maintains constant monitoring to prevent re-addition of personal data.

According to the company’s claims, their process involves initial scanning of people search sites, followed by removal requests to both public and private brokers. The service then sends follow-up requests after 60 days for public brokers or 90 days for private brokers, boasting a 99% confirmation rate for removal requests.

Industry Verification and Ongoing Protection

Incogni has reportedly become the first data removal service to have its commercial claims verified by a Big Four auditing service, according to industry sources. Their approach includes recurring removal requests and continuous monitoring to prevent brokers from re-adding information.

The service offers plans starting at $7.99 per month with family plans available for up to five people. During Cybersecurity Awareness Month in October, the company is running special promotions with major discounts, according to their announcement.

As the data broker industry continues to operate legally but opaquely, privacy advocates suggest consumers remain vigilant about their digital footprints. Meanwhile, other technology sectors continue evolving, with recent developments in open-source technology, international trade policies affecting lumber industries, geopolitical shifts in Middle Eastern investments, and challenges in small business marketing reflecting the broader digital and economic landscape.

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