Data Brokerage Firms Exposed: Top Companies and Risks

Data brokerage firms have been collecting and selling our personal data for years, often without our knowledge or consent.

Acxiom, a leading data brokerage firm, has been in operation since 1969 and has collected data on over 700 million people worldwide.

These firms use this data to create detailed profiles of individuals, which can be used for targeted advertising and other purposes.

Some of the top data brokerage firms include Acxiom, Experian, and CoreLogic.

Data brokers collect and sell personal data about individuals, often without their knowledge or consent. They gather information from various sources, including public records, social media, and online behavior.

Data brokers use this information to create detailed profiles of individuals, which can include demographic data, purchase history, and online interactions. These profiles can be used for targeted advertising.

Data brokers sell this data to third-party companies, which use it for various purposes, such as marketing and research.

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Data brokers collect and sell personal information, including your name, address, phone number, email, and even your social media profiles. They can also buy and sell information about your online behavior, such as the websites you visit and the products you purchase.

They can even find out if you've ever been arrested or filed for bankruptcy. This information can be used to create detailed profiles of you and your habits.

Data brokers often use this information to target you with specific ads and promotions. For example, if you've recently purchased a baby blanket, you might start seeing ads for diapers and baby food.

Your credit score is also up for grabs. Data brokers can buy and sell information about your credit history, including your credit card balances and payment history.

This information can be used to determine your creditworthiness and even influence your credit score.

Data brokers collect and sell personal data, often without users' knowledge or consent. They gather information from various sources, including social media, online behavior, and public records.

Their data is used to create detailed profiles of individuals, which can be sold to companies for targeted advertising and other purposes.

Data brokers also sell data to government agencies and law enforcement, which can be used for surveillance and other purposes.

They often use complex algorithms to analyze and categorize the data, making it more valuable to potential buyers.

This data can be used to predict an individual's behavior, interests, and even creditworthiness.

The top data broker companies are Experian, Equifax, Epsilon, Acxiom, and CoreLogic. They dominate the industry in terms of consumer database size and annual revenue.

Experian is a well-known player in the data brokerage world, specializing in credit monitoring and reporting services. It collects and processes financial data on individuals.

These data brokers collect and process vast amounts of information, which is then used by lenders, landlords, and other entities to make informed decisions.

Experian is one of the top data brokers, known for its credit monitoring and reporting services, collecting and processing financial data on individuals.

Experian's data is used by nearly all major lenders, including banks, credit card companies, landlords, background checkers, and employment screeners.

The company collects and processes financial data on individuals, returning customer data and credit scores used by these entities.

Acxiom is another top data broker, providing comprehensive data for consumer and audience insights, predictive analytics, and data segmentation.

Acxiom works with brands like Spotify, Meta, Hulu, and Yahoo, offering a "data portrait analysis" that lets potential clients see exactly how Acxiom data would impact their business.

Epsilon is a top data broker that leverages consumer behavior data to develop insights about what individuals might be interested in purchasing.

Epsilon generates a profile of each lead, fills in gaps in its information with partner data, and creates a "connected identity" for its clients to use in marketing.

LiveRamp's main product is a platform for data connectivity, the LiveRamp Data Marketplace, which lets businesses take siloed marketing data from a range of channels and bring it into a single unified data set.

CoreLogic is also a top data broker, but less information is available about its services compared to the other companies mentioned.

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Oracle is a cloud data company that develops AI-driven cloud applications for various sectors, including marketing and sales.

Their customer data platform enables organizations to build detailed customer profiles with 50 prebuilt attributes.

Thanks to partnerships with Amazon and Google, Oracle has established itself as “the data broker for the generative AI age.”

Oracle's customer data platform allows organizations to extract insights with over two dozen AI models.

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A 2007 University of California study found many companies operating under an opt-out model that was inconsistent with consumer expectations.

The proposed US Data Accountability and Trust Act, introduced in 2009, contained requirements for auditing and verification of accuracy of data held by information brokers, and additional measures in the case of a security breach.

This bill also gave identified individuals the means and opportunity to review and correct the data held that related to them, but it failed to pass the United States Senate.

The U.S. Federal Trade Commission recommended the United States Congress develop legislation enabling consumers to see the information that data brokers hold about them in 2009, a recommendation it renewed in subsequent reports in 2012 and 2014.

In 2013, the U.S. Government Accountability Office also called for Congress to consider legislation.

California Governor Gavin Newsom signed into action statute AB 1202 in 2019, which requires data brokers to register with, and provide certain information to, the Attorney General.

Data broker firms have lobbied and spent $29 million in the year 2020 to influence federal regulation.

There is no comprehensive federal privacy law that specifically regulates the industry, making it hard to combat data brokers.

About 20 other U.S. states have followed California's lead in enacting comprehensive legislation to give residents more control over their personal data.

Data brokerage firms have faced intense criticism for their practices. A United States Senate Committee in 2013 found that data brokers collect a huge volume of detailed information on hundreds of millions of consumers without their permission or input.

This lack of transparency has led to concerns about the misuse of consumer data. Data brokers sell products that identify financially vulnerable consumers, making it easier for marketers to target them with high-interest loans or other predatory services.

Data brokers operate behind a veil of secrecy, making it difficult for consumers to know what information is being collected about them. This secrecy has led to security breaches, with data brokers facing legal charges for poor data security practices.

Here are some key findings about data brokers' practices:

Data brokers have been criticized for their practices, which can have serious consequences for consumers. They collect and sell data on hundreds of millions of people without their permission or input.

One of the main issues is that data brokers sell products that identify financially vulnerable consumers. This can lead to discrimination in pricing, services, and opportunities.

A 2014 White House report found that web searches with black-seeming first names like Jermaine were more likely to result in ads with the word "arrest" compared to searches with white-seeming first names like Geoffrey.

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Data brokers often operate behind a veil of secrecy, making it difficult for consumers to know what data is being collected about them. This lack of transparency can be frustrating and even scary.

Some data brokers have faced legal charges for security breaches due to poor data security practices. This highlights the importance of protecting consumer data and ensuring that companies take responsibility for their mistakes.

If you're concerned about data brokers and how they're using your information, there are resources available to help. The Privacy Rights Clearinghouse (PRC) publishes an Online Information Broker FAQ and maintains a list of information brokers with links to their privacy policies, terms of service, and opt-out provisions.

The future of data collection and brokerage looks grim. Experts warn that data brokers will continue to evolve and collect even more detailed and predictive profiles, incorporating biometric data and behavioral tracking.

Consumers are already in a tough spot, with data being used as a form of payment in everyday transactions. This is a comprehensive privacy problem that requires action from Congress or the FTC.

Data brokers will continue to thrive until regulation steps in, as they generate significant revenue from selling information about individuals. These revenue streams are particularly valuable for companies that lack other recurring revenue streams.

Telling people to configure their settings on social media and browsers is not a practical solution, as it's a complex task that requires technical know-how. It's going to take a combination of regulation, technology, and individual effort to address this issue.

Justin Sherman, a leading expert on data brokers, has testified before several government committees, including the U.S. House Committee on Energy and Commerce and the Massachusetts Legislature Joint Committee on Consumer Protection and Professional Licensure.

In his written testimony, Sherman highlighted the threats posed by data brokers to Americans' freedoms, privacy, and safety. He emphasized the need for stronger regulations to protect individuals from the sale of their personal data by these brokers.

The U.S. Senate Committee on Finance held a hearing on December 7, 2021, to examine the role of data brokers in the digital economy. Sherman testified before the committee, urging lawmakers to take action to protect Americans' private data from hostile foreign governments.

Wyden, Lummis, Whitehouse, Rubio, and Hagerty introduced bipartisan legislation in June 2022 to protect Americans' private data from hostile foreign governments. This legislation aims to strengthen the regulation of data brokers and prevent them from selling sensitive information to foreign adversaries.

Warren, Wyden, Murray, Whitehouse, and Sanders introduced legislation in June 2022 to ban data brokers from selling Americans' location and health data. This bill aims to protect individuals' sensitive information from being exploited by data brokers.

The Norwegian Consumer Council has also conducted research on data brokers, highlighting the risks posed by these companies to national security and individual privacy.

To protect yourself from data brokerage firms, start by being aware of what data they collect. Data brokerage firms like Acxiom and Experian collect and sell vast amounts of personal data, including information from public records, social media, and even online browsing habits.

You can't control the data that's already out there, but you can take steps to limit what's collected in the future. Opt out of data collection by contacting the data brokerage firms directly.

Use strong, unique passwords and enable two-factor authentication to secure your online accounts. This will make it harder for data brokers to access your information through phishing or hacking.

Data brokerage firms often sell data to third-party companies, which can use it for targeted advertising. Be cautious of online ads that seem too tailored to your interests – it may be a sign that your data is being used for marketing purposes.

Regularly review your credit reports to ensure there are no errors or unauthorized accounts. This will help you detect any potential identity theft or data breaches.

Data brokerage firms also collect data from public records, including property records and court documents. Be mindful of what information you share publicly, especially on social media.

By taking these steps, you can reduce the amount of personal data that's available for data brokerage firms to collect and sell.

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