Data Brokers: How They Get Your Data and What You Should Know
We live in a world where data is the new currency. While we’re busy sharing our lives online, browsing websites, or simply using a mobile app, there’s a whole ecosystem quietly working in the background. That ecosystem is built on the buying, selling, and trading of personal information—led by data brokers.
Most people aren’t even aware of the extent to which their information is being collected, analysed, and sold. So, in this post, let’s peel back the curtain on data brokers: how they operate, where they get your data, and what you can do about it.
What Are Data Brokers?
Data brokers are companies that collect your personal information from a variety of sources, process it, and then sell or share it with other businesses. These businesses may use your data for things like targeted advertising, background checks, or even risk assessment.
They don’t interact with you directly—so you’re likely never aware when they collect your details. And while that might sound a bit Orwellian, it’s actually a huge industry. The global data broker market is projected to reach nearly $345 billion by 2026.
The big names in the industry include Acxiom, Oracle Data Cloud, Experian, and Equifax. These companies might sound familiar because they have a foot in consumer credit data too, but they’re much broader than that—they’re collecting everything they can about you.
How Do Data Brokers Get Your Information?
Data brokers don’t (usually) hack into your personal devices or steal your information in the dead of night. Instead, they use a wide range of legitimate sources, often in ways that seem innocent at first glance. Here are the primary channels they use to obtain your data:
1. Public Records
Data brokers can access publicly available information, and you’d be surprised at just how much of your life is public by default. Things like voting registrations, birth and marriage records, property deeds, court records, and even bankruptcy filings are often public. These records are harvested and included in data broker profiles.
2. Social Media
When you sign up for a social media account, you willingly share a lot of information about yourself—sometimes way more than you realise. Even if your account is set to private, data brokers can still collect details like your name, job title, location, and interests. In some cases, they buy this data directly from the platforms.
3. Loyalty Programs
You know those rewards cards at supermarkets or frequent flyer programs? While they give you discounts and points, they’re also collecting data about your purchasing habits. Every time you scan your loyalty card, companies are recording what you buy, how often you shop, and even your brand preferences. This information can then be sold to data brokers.
4. Website Tracking & Cookies
Have you ever noticed those annoying cookie consent pop-ups? Well, cookies are one of the most significant ways companies track you online. They record your browsing behaviour, including which sites you visit, how long you stay, and what links you click on. This data is then sold to brokers who build detailed profiles on your online behaviour.
5. Mobile Apps
Apps are a goldmine for data brokers. Many apps collect everything from your location to your browsing history—even your contacts. Sometimes they’ll even access your microphone or camera if you’ve given permission (knowingly or unknowingly). That’s why some of those “free” apps might come with hidden costs—your data.
6. Surveys and Online Forms
Have you ever filled out an online survey or signed up for a newsletter? Those forms often ask for details like your name, email address, age, and preferences. Many times, this data is sold to brokers, especially if the form doesn’t clearly state how your data will be used.
What Do Data Brokers Do With Your Data?
So, what happens to all this data after it’s collected?
Targeted Advertising
This is probably the most common use. Ever wonder how Facebook or Google knows just the right product to show you? Data brokers sell your information to advertisers, who use it to create highly personalised ads. They may not know your name, but they know you’re in the market for a new phone, or that you just had a baby.
Background Checks
Companies that run background checks for employers, landlords, or insurance companies often buy data from brokers. They use the profiles created by these brokers to evaluate you, sometimes in ways that can seem a bit invasive.
Risk Assessment
Banks and insurance companies use data brokers to assess your risk level. For instance, your shopping habits, location, and even social media activity can be used to decide whether to offer you a loan or what kind of insurance rates you get.
Identity Verification
Some data brokers sell information to companies for identity verification. When you call customer service, for instance, they might use a third-party data broker to confirm you are who you say you are by cross-referencing their records.
What Can You Do About It?
By now, you might be feeling a bit uneasy. After all, it seems like data brokers know a whole lot about you. The good news is that there are a few steps you can take to protect yourself:
1. Be Mindful of What You Share
Think twice before filling out surveys, forms, or signing up for every loyalty program. The less you share, the less data there is to be collected.
2. Use Privacy Tools
Consider using a VPN (Virtual Private Network) to mask your online activity. Also, get in the habit of using ad blockers and privacy-focused browsers like Brave, which limit the data that can be collected.
3. Review App Permissions
Go into your phone settings and check what permissions you’ve granted to apps. Turn off unnecessary permissions like location or access to your contacts.
4. Opt Out Where Possible
Many data brokers allow you to opt-out of their data collection. It can be a tedious process, but websites like StopDataMining.me and SimpleOptOut.com offer a good starting point by providing lists of brokers and opt-out instructions.
5. Check for Data Leaks
Regularly review if your information has been compromised in a breach. Services like Have I Been Pwned? allow you to check if your email or personal information has been exposed.
Conclusion: The Price of “Free” Services
Data brokers are a fact of life in today’s digital world. While they might seem like shadowy figures, they operate legally and openly, using data you’ve given away in small increments over time. The convenience of “free” services often comes at the cost of your personal information.
Ultimately, while it’s nearly impossible to completely avoid data collection, being mindful of what you share and using privacy tools can significantly reduce your digital footprint. Stay informed, stay cautious, and take control of your data where you can.
In the end, protecting your data in today’s world is like keeping sand from slipping through your fingers—you might not catch every grain, but you can hold onto enough to keep things safe.
That’s the scoop on data brokers! If you’ve got any more questions about this, or if you’re curious about how to protect your data further, feel free to drop a comment or shoot me a message. Cheers!