A data broker, also known as an information broker, is an entity that specializes in collecting personal data from numerous sources. They aggregate, analyze, and license this information to third parties for purposes like marketing, risk mitigation, and identity verification.
A data broker is a business that aggregates information from public records, online activities, and other sources to create detailed profiles of individuals. These profiles are then sold or licensed to other companies, often without the direct knowledge of the person whose data is being shared.
Key Components
- Data Collection: Gathers personal information from a wide array of sources, including public records (property records, court filings), commercial sources (loyalty card programs, purchase histories), and online tracking (cookies, social media activity).
- Data Aggregation & Analysis: Compiles and analyzes the collected data to create comprehensive individual profiles, often segmenting consumers into categories based on demographics, behavior, and inferred interests.
- Data Licensing & Sales: Sells or licenses access to these consumer profiles and data sets to other businesses for purposes such as targeted advertising, credit risk assessment, and identity verification.
Historical Context or Origin: The practice originated with direct mail marketing lists in the mid-20th century and evolved significantly with the advent of the internet and digital data collection.
Why Data Brokers Matter
Data brokers operate in a largely unregulated industry that significantly impacts personal privacy and security. The data they hold can be used for beneficial purposes like fraud prevention, but it can also lead to discriminatory practices, identity theft if breached, and an overall loss of control over one's personal information and digital footprint.
This extensive digital footprint, often managed by unseen data brokers, becomes a critical part of an individual's legacy. Platforms like Kinnect help families manage and secure a loved one's complete digital estate, providing a framework to control personal data across various online accounts and services.
Frequently Asked Questions
Q: What are examples of data brokers?
A: Major data brokers include companies like Acxiom, Experian, Equifax, CoreLogic, and Oracle.
Q: Is it legal for data brokers to collect and sell my data?
A: In many jurisdictions, including the United States, it is legal for data brokers to collect and sell publicly available information and data obtained through user agreements, though regulations like GDPR and CCPA/CPRA provide consumers with some rights to access and delete their data.
Q: How can I remove my information from data brokers?
A: You can remove your information by submitting individual opt-out requests directly to each data broker's website, though the process can be complex and time-consuming.
