While discussions around data privacy often focus on big tech companies like Google and Facebook, a lesser-known but significant sector plays a crucial role in this data ecosystem: data brokers.
How Data Brokers Operate
Data brokers aggregate user information from various online and offline sources. They collect, collate, and sometimes analyze this data to create comprehensive profiles of individuals, which are then sold to various entities like marketers, private investigators, tech companies, and even law enforcement.
Data brokers acquire information through various means:
- Web browsing history: They use tracking technologies like cookies and scripts to track online activities, including search queries, social media interactions, website visits, and app usage.
- Public sources: Data brokers access public records such as birth certificates, marriage licenses, voter registration information, court records, and motor vehicle records.
- Commercial sources: They obtain information from retailers, loyalty programs, and credit card providers, including purchase history, loyalty card transactions, and credit card usage.
- Consent: Individuals may unknowingly consent to data sharing when signing up for loyalty programs or online services without thoroughly reading the fine print.
Types of Data Brokers
Data brokers can be broadly categorized based on their services:
- Risk-mitigation brokers: They primarily provide credit checks and background information.
- People-search brokers: These brokers offer lookup and people-search services.
- Marketing brokers: Marketing brokers provide services like real estate services, genealogy lookup services, and email and calling lists for targeted marketing.
Impact on Privacy and Individuals
Data brokers' operations raise significant privacy concerns. The collection, analysis, and sale of personal information often occur without individuals' knowledge or explicit consent, limiting their control over their data. Here are some risks associated with data brokerage:
- Identity theft: Data brokers hold vast amounts of sensitive personal information, making them attractive targets for cybercriminals. Data breaches can expose millions of people's data and increase the risk of identity theft.
- Targeted advertising and manipulation: Data brokers sell information to marketers who use it to create highly targeted advertising campaigns. While targeted advertising might seem innocuous, it can be used to manipulate consumer behavior and exploit vulnerabilities.
- Discrimination and bias: Data brokers categorize individuals based on sensitive attributes like race, ethnicity, gender, sexual orientation, income level, and political beliefs. This information can be used to discriminate against individuals in areas like employment, housing, and access to services.
- Lack of transparency and control: Data brokers operate in a largely opaque manner, making it difficult for individuals to know what information is collected, how it is used, and to whom it is sold. Opting out of data collection from individual brokers can be time-consuming and often ineffective.
Protecting Your Personal Information
While completely avoiding data brokers is challenging, individuals can take steps to minimize data collection and protect their privacy:
- Limit online sharing: Be mindful of the personal information shared on social media and websites. Avoid posting sensitive data like birth dates, addresses, and financial information publicly.
- Review privacy policies: Carefully read privacy policies before signing up for online services or loyalty programs. Pay attention to how companies collect, use, and share data.
- Use privacy tools: Utilize privacy-enhancing tools like VPNs, ad blockers, tracker blockers, and privacy-focused search engines to minimize online tracking.
- Opt out of data broker services: Consider using data removal services or manually opting out of data collection from individual data brokers. Resources like Privacy Rights Clearinghouse provide lists of data brokers and instructions on how to opt out.
- Strengthen privacy settings: Adjust privacy settings on devices, apps, and online accounts to limit data collection and sharing.
The Future of Data Brokerage
As awareness of data privacy grows, individuals are demanding greater control over their personal information. The future of data brokerage may see increased scrutiny and regulation, potentially leading to more transparency and accountability within the industry. New technologies like privacy-enhancing technologies, data protection ontologies, and stricter privacy laws could help shape a more ethical and privacy-conscious data ecosystem.
Data brokers play a significant role in the modern data economy, but their practices raise substantial privacy concerns. By understanding how data brokers operate and taking proactive steps to protect their personal information, faculty and staff at UBC can mitigate the risks associated with data collection and contribute to a more privacy-respecting digital environment.