Data Brokers and You: The Invisible Trade of Personal Information

I feel as though tech media rarely open up opportunities for investigative journalism, which is a shame because dodgy things happen in the world of tech, too (FTX *cough cough*). One such example is a data broker. Your datais a commodity that is bought, sold, and brokered by everyone but you.

In today's digital age, information is the new currency. The more companies know about you, the better they can tailor their advertisements, offerings, and services to your specific tastes. But how much do these companies really know? Enter data brokers – the entities silently shaping our online experiences.

What is a Data Broker?

Data brokers are companies or individuals that collect information from a variety of sources, such as public records, purchase histories, and social media profiles. They then analyze, package, and sell this data to other businesses, usually for marketing, advertising, or risk management purposes. Surprisingly, most people are unaware of the vast amount of information these entities hold about them or how it’s used.

The Astonishing Scope of Data Collection

It's difficult to grasp the volume of data amassed by these brokers. Here are a few startling statistics:

Personal Profiles: According to the World Privacy Forum, the average data broker has information on approximately 1,500 data points for every consumer. That's potentially 1,500 tidbits of information on you, from your favorite color to your annual income.

Market Size: A study by the Federal Trade Commission (FTC) found that one data broker segment alone held information on 1.4 billion consumer transactions and over 700 billion raw data elements. To put that in perspective, it's about 90 times the number of tweets sent globally in a year!

User Unawareness: A Pew Research survey revealed that 91% of adults "agree" or "strongly agree" that consumers have lost control over their personal data.

These figures aren’t just mere numbers. They're indicative of a vast, shadowy industry shaping the way businesses interact with you.

The Risks and Implications

The data broker industry isn't inherently malevolent. In many cases, the information they provide helps companies create better, more tailored experiences for consumers. For instance, if you love hiking, wouldn't it be great to receive advertisements about the latest hiking gear instead of random products?

However, there's a darker side. Data inaccuracy can lead to unfavorable consequences for individuals. Imagine being denied insurance or a job due to incorrect data suggesting you have a history of risky behavior. Moreover, with so much data stored by brokers, the potential for security breaches and misuse is alarming.

Regaining Control: How to Remove Information

While data brokers have the upper hand in information trading, there are measures you can take to reclaim your privacy:

Opt-Out: Many data brokers offer an opt-out service. However, it's not a universal solution as there are hundreds of brokers out there, each with its own process.

Limit Sharing: Check privacy settings on your social media accounts and online platforms. Regularly review the permissions you grant to apps and websites.

Do it yourself: there are various strategies for removing your online digital data. This might be an effective approach for those overwhelmed by the sheer number of data broker sites.

Future Trends: The Evolving Landscape of Data Brokering

As we look toward the future, the role of data brokers is expected to evolve, influenced by technological advancements, consumer sentiments, and regulatory shifts. Here's a glimpse into the emerging trends:

AI and Advanced Analytics: With the advent of more sophisticated AI algorithms, data brokers will be able to make more accurate predictions about consumer behavior, potentially leading to hyper-personalized marketing strategies. However, this also raises ethical concerns about the depth of personal profiling.

Increased Transparency: As consumers grow more conscious of their digital footprints, there's a push for more transparency within the data brokering industry. In response, some forward-thinking brokers are offering tools for individuals to see exactly what data is held about them.

Regulatory Changes: In regions like the European Union, the General Data Protection Regulation (GDPR) has already set strict guidelines for data collection and usage. Other countries and regions are likely to adopt similar frameworks in the coming years, offering consumers more control and potentially reshaping the data broker business model.

The Rise of Ethical Brokering: Just as there's a push for ethical consumerism in various industries, the future may see the rise of 'ethical data brokers' – companies that prioritize transparent, consensual data collection and uphold stringent privacy standards.

By keeping an eye on these trends, consumers can better navigate the digital realm, ensuring their personal information is handled with the respect and security it deserves.

In Conclusion

As we advance further into the digital age, the lines between privacy and convenience become increasingly blurred. Data brokers will continue to play a pivotal role in shaping our online experiences, but it's imperative to be informed and proactive about how our personal data is used and traded. After all, knowledge is power, and in this context, that power pertains directly to the information about you.