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According to a recent study, there are over 4,000 data brokering companies operating worldwide, each of which are actively attempting to harness data from users online and sell them for profit.
In 2023, more users have grown aware of this issue, but for those who are not yet familiar with data brokers, here is a quick summary.
Data brokers are organisations that make money from collecting your personal data, analysing it, and then licensing it for other companies to use for marketing purposes.
While this might sound like a consequence of the ‘new era’ of the internet, data brokering actually originated around seventy years ago, back in the 1950s. It was this period when credit scores were first being used, and information brokering emerged as a career.
This then formed a spin-off, known as data brokering, in the 1990s. With developing technology, data brokering industry is now worth around $268 billion.
The Data Brokers’ MO
To understand the data brokers’ MO, it’s appropriate to look at why the average business wants data, rather than why the data broker itself wants it.
Over the last couple of decades, data has become one of the most important resources for businesses, as it helps them to understand their target audience better, optimise their customer service efforts, and personalise user experiences to cater directly to them.
According to recent statistics, organisations that are data-driven are 23 times more likely to acquire companies, and the use of that data can increase their profit by nearly 10%.
Data brokers take advantage of this and serve as the middlemen between the consumers and the business. Their aim is to build as big a database as possible, and then make their profit from businesses looking to harness the most relevant data.
How To Avoid Contributing To A Data Broker’s Bottom Line
If all of this sounds a little concerning, that’s because it is. It is borderline unethical to track users’ digital footprints and ask them to passively give up their own information. Thankfully, however, there is something you can do about it.
The way data brokers harness your data is through your search history, and the digital footprint that you leave wherever you go on the web – if you click onto a website, data brokers are going to know about it.
This allows them to formulate a profile on you, including your name, age, hobbies, even your address.In 2023, however, companies like Incogni offer data opt out guides and information on how to remove your digital footprint from the internet, ensuring that your personal data remains personal. This can stop data brokers at the source, ensuring that you don’t become just another cog responsible for an increase in their bottom line.
Hopefully, in the future, more will be done by governments to stop the practice altogether, but for now, cutting yourself out of a data broker’s reach is up to you. You need to invest in your own cybersecurity and protect your own data. Taking back control of data is possible with the right tools, but it’s up to you to use them.
