The world of data brokers has largely operated behind the scenes, quietly gathering vast amounts of personal information from billions of internet users. What many don't realize is how far this data collection actually goes. Every online action, from a click to a purchase or a "like," is harvested and sold for profit, turning personal data into a valuable commodity.
As artificial intelligence continues to advance, there’s a growing concern about the already opaque data brokerage industry becoming even more aggressive. A 2023 Pew Research study revealed that 67% of Americans understand little to nothing about how companies handle their data, up from 59% in 2019. In fact, 73% feel they have little to no control over how their data is used.
Even seemingly harmless pieces of information like a phone number can be exploited by data brokers to reveal highly sensitive details such as Social Security numbers, addresses, and more. Arjun Bhatnagar, CEO of Cloaked, explains how his app helps disguise personal information to offer some protection from these prying entities.
While larger, more established brokers like Experian, Equifax, and TransUnion maintain some level of responsibility in handling data, many smaller, lesser-known players are skirting regulations and pushing ethical boundaries. The patchwork of state laws in the U.S. provides little oversight, making it difficult to control these practices.
The scope of data collection is staggering. Experts estimate that data brokers hold around 1,000 data points on each individual. This includes everything from basic identifiers like your name and address to financial records, purchasing habits, real-time location data, and even inferred characteristics like your political beliefs or hobbies. As Chris Henderson from Huntress puts it, “The larger the pool of information, the higher the price of that data.”
Despite efforts to regulate the industry, including California’s Consumer Privacy Act, the U.S. still lacks a unified federal privacy law. This fragmented regulatory landscape makes it hard for consumers to protect their data. Even opting out or removing your data from brokers can be a complex and frustrating process, as data often reappears from other sources.
To regain some control, privacy experts recommend a mix of preventative measures like freezing your credit, using secure browsers, and being mindful of the personal information you share online. Services like DeleteMe and OneRep are also becoming popular for managing data removal.
However, it’s clear that individual actions alone may not be enough. The future of data brokering is set to become even more challenging as AI and machine learning enable brokers to create more detailed and predictive profiles. While new technologies like blockchain could offer solutions, experts remain skeptical. The reality is that protecting personal data will only grow more difficult without stronger, more comprehensive regulations in place.
