Data brokers are companies that collect, aggregate, and sell large volumes of personal information from various sources. These sources can include public records, online activities, social media, surveys, and more. Data brokers compile this data into profiles, which they sell to other businesses, marketers, advertisers, and even government agencies.
“Companies that collect, aggregate, and sell large volumes of personal information from various sources.”
How data brokers collect information:
- Credit cards
- Web browser bookies
- Public Records
- Retailers
- Mobile apps
- Purchase history
These brokers gather extensive amounts of data, including demographic details, purchasing behavior, browsing history, interests, and more. They employ advanced analytics and algorithms to categorize and segment individuals based on their characteristics, allowing businesses to tailor their marketing strategies and offerings.
Types of data brokers:
- Marketing
- Fraud detection
- Risk mitigation
- People search sites
While data brokers can provide valuable insights, there are also concerns regarding privacy and consent. Many people are unaware of the extent of data collection and how their personal information is being bought and sold.
Efforts have been made to regulate data brokers and ensure transparency in their operations. Privacy laws, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S., aim to give individuals more control over their personal data and require data brokers to disclose their practices.
As the importance of data privacy and protection grows, there is a need for increased transparency and regulations to ensure that individuals have control over their personal information and are informed about how it is being used.