Question 1

What is a data broker?

Accepted Answer

A data broker, data brokerage, or information broker is a company that makes money from personal data. Because of the value of your personal information, the data brokerage industry is highly lucrative. Information and data brokers collect data sets (information about you) from different sources and sell the data to other people or businesses. Usually, the data is personal or sensitive information about consumers, often found through public records. Since data may provide value for organizations (like a marketing company, which may use it in targeted advertising) it can be a profitable venture. Companies make informed decisions based on your data. For example, when you apply for a credit card, the card issuer usually reviews your credit report. A credit report is a consumer report produced by a credit reporting agency—one type of data broker. This report includes your financial information.

Question 2

How do data brokers get your information?

Accepted Answer

Data brokers often collect information that's readily available through public records. What's considered public record varies from state to state, but may include data points such as: Bankruptcies Liens Census data Motor vehicle records Court records Property records Criminal history Voter registration information Insurance Public records could also include demographic information about: Where you live Names of people you have direct relationships with Your age Whether you've been married or divorced Your employment history Names and ages of your family members Usually, health information isn't in your public record in the United States without special authorizations. This includes health care services you've received, immunization records, and mental health data. Brokers may acquire and aggregate information about your purchases, the coupons you use, the sweepstakes you enter, location data, stores, or brands you prefer. All of this can come from sources like loyalty cards, accounts you've signed up for, email offers you've responded to, or mobile apps you use. This info is user data that brokers can purchase and then provide to other companies or post for sale on people-search sites. Some data broker companies serve as information resellers by collecting consumer data from one company and then selling it to another company or individual. For example, some agencies may collect posts on your social media account, "likes" or interactions with related posts, websites you visit, online gaming activity, online quizzes, mobile apps, and other social activity. This user data helps advertisers target their ads to your interests.

Question 3

What is a consumer reporting agency?

Accepted Answer

A consumer reporting agency (CRA) is a company that collects data and information about consumers, compiles consumer reports based on the data, and provides the reports to other companies. Then companies can use these reports to make educated decisions before engaging with you. Consumer reporting agencies are required to follow specific legal guidelines, according to the Consumer Financial Protection Bureau (CFPB).

Question 4

How to protect yourself from data brokers

Accepted Answer

All consumers in the United States can (and should) start taking control of personal data that's available on people-search sites. Data brokering can be concerning since individuals or businesses can purchase personal data online. Since your personal information could appear online without your knowledge or consent, cybercriminals could try to use your information to commit identity theft. That's why it's important to take steps to protect yourself.

Question 5

Can you remove your information from data brokerage sites?

Accepted Answer

There are a few steps you can take to begin protecting yourself and remove your information from data broker sites. First, visit the Privacy Rights Clearinghouse. You can check if companies you use have suffered a data breach and review privacy laws. You can also access their Data Brokers Database to learn where your information may appear. From the database, you can visit each data broker site to opt out and request data removal. Consider removing personal info (data points) that could lead to identity theft and sensitive data that you may not want readily available to just anyone. You can also consider removing location data that could risk your physical safety or privacy.

What are Data Brokers and How Can You Protect Your Information?

Key Takeaways

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