Table of Contents
- Unmasking Data Brokers: Who Are They and What Do They Do?
- What Are Data Brokers?
- How Do Data Brokers Collect Data?
- What Do Data Brokers Do with the Data?
- Who Are the Major Data Brokers?
- Acxiom
- Experian
- Oracle Data Cloud
- CoreLogic
- What's The Difference Between a People Finder and a Data Broker?
- What Are the Risks of Data Brokers?
- Invasion of Privacy
- Data Breaches
- Discrimination
- How Can You Protect Your Data?
- Limit Your Online Activity
- Opt-Out of Data Broker Databases
- Read Privacy Policies
- Use Privacy Tools
- The Future of Data Brokers
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Unmasking Data Brokers: Who Are They and What Do They Do?
In today’s digital age, data is a valuable commodity. Companies are constantly collecting and analyzing data to better understand their customers and improve their products and services. But what happens to all that data once it’s collected? Who is buying and selling it? And what does that mean for your privacy?
In this article, we’ll unmask data brokers and explore their role in the data economy.
What Are Data Brokers?
Data brokers are companies that collect, analyze, and sell data to other businesses. The data that is aggregated can include personal information such as name, address, age, income, interests, and even health conditions. Data brokers then sell this information to other companies, typically for marketing and advertising purposes.
How Do Data Brokers Collect Data?
Data brokers use a variety of methods to collect data, some of the few can include:
- Public records: Data brokers can access public records such as property records, court records, and even voter registration data to gather personal information about individuals.
- Online activity: Data brokers can track your online activity through cookies, which are small files that websites store on your computer to remember your preferences and browsing history. They can also track your activity through your IP address, which is a unique number assigned to your device when you connect to the internet.
- Social media: Data brokers can gather information from your social media profiles, including your likes, shares, and comments.
- Mobile apps: Some of the largest consumer apps sell their users personal information to third parties.
- Surveys and contests: Data brokers may also collect information through surveys and contests, often by offering incentives for participation.
What Do Data Brokers Do with the Data?
Data brokers use the data they collect to create detailed profiles of individuals. These profiles can include demographic information, interests, purchasing habits, and more. They then sell this information to other companies, typically for marketing and advertising purposes.
Data brokers may also use the data to create predictive models, which can help companies target specific audiences and personalize their marketing efforts.
Who Are the Major Data Brokers?
There are hundreds of data brokers operating in the United States, but some of the major players include:
Acxiom
Acxiom is one of the largest data brokers in the world, with over 3,000 data points on over 700 million consumers worldwide. They collect data from a variety of sources, including public records, surveys, and online activity.
Experian
Experian is a credit reporting agency that also operates as a data broker. They collect data from credit reports, public records, and other sources to create profiles of individuals for marketing and advertising purposes.
Oracle Data Cloud
Oracle Data Cloud is a subsidiary of the software giant Oracle and specializes in data-driven marketing solutions. They collect data from a variety of sources, including social media, online activity, and offline purchases.
CoreLogic
CoreLogic is a data broker that specializes in real estate and property data. They collect information from public records, mortgage applications, and other sources to create profiles of homeowners and potential homebuyers.
What's The Difference Between a People Finder and a Data Broker?
Not all data brokers are people finders (also known as people search sites), but all people finders are data brokers. BeenVerified, TruthFinder, and Intelius, are all household-name people finders are all data brokers focusing on personal data.
While in some cases data brokers can pose a risk, people search sites will freely expose information like your name, address, emails, relatives, and more all to the world wide web. These sites are used extensively for swatting, doxxing, stalking, robocalling, and other nefarious activities.
What Are the Risks of Data Brokers?
While data brokers may seem like a harmless part of the data economy, there are several risks that can be associated with their practices.
Invasion of Privacy
One of the main concerns with data brokers is the invasion of privacy. By collecting and sharing personal information (with no guardrails or consent), individuals' safety can be put at risk of identity theft, doxxing, harassment, stalking, robocalls, and more.
Data Breaches
Data brokers are a prime target for hackers due to the vast amount of sensitive information they collect and store. In 2017, Equifax, a major credit reporting agency and data broker, experienced a data breach that exposed the personal information of over 147 million people.
Discrimination
Data brokers’ use of predictive models can also lead to discrimination. By targeting specific demographics or individuals based on their data profiles, companies may be excluding certain groups from opportunities or unfairly targeting them for certain products or services.
How Can You Protect Your Data?
While it may seem like there’s no escaping data brokers, there are steps you can take to protect your data and privacy.
Limit Your Online Activity
One of the best ways to limit the data brokers’ access to your information is to limit your online activity. This includes clearing your cookies regularly, using a virtual private network (VPN) to mask your IP address, and being cautious about what you share on social media.
Opt-Out of Data Broker Databases
Many data brokers allow individuals to opt-out of their databases. This means that they will no longer collect or sell your information. However, keep in mind that this may not completely remove your data from their databases, and you may need to opt-out of multiple data brokers to fully protect your information. We have free guides on how to opt-out of some of the largest people finders, including TruthFinder, BeenVerified, and Radaris.
Read Privacy Policies
When signing up for a new service or making a purchase, be sure to read the privacy policy carefully. Look for any mention of data sharing or selling and decide if you’re comfortable with the terms before proceeding.
Use Privacy Tools
There are also privacy tools available that can help you protect your data. For example, Privacy Badger is a browser extension that blocks third-party trackers, while DuckDuckGo is a search engine that doesn’t track your activity.
You can also use our tool, PrivacyZen, which automatically scans for your information across 50+ data brokers every single week. If any of your information is found, our team immediately works on getting it removed through a combination of automated and human-in-the-loop processes.
The Future of Data Brokers
As technology continues to advance, data brokers will likely play an even larger role in the data economy. However, with increased awareness and regulations, there may be more transparency and control over how data is collected and used.
In the meantime, it’s important to be aware of the data brokers’ practices and take steps to protect your data and privacy. By understanding who they are and what they do, you can make informed decisions about your online activity and personal information.
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