Data brokers pose hidden dangers that must be tackled

Profiles being hawked without tight oversight puts not just individuals but entire countries at grave risk

- SIDDHARTH PAI

In the US, a multibillion-dollar industry thrives on an invisible commodity: personal data. This sector, dominated by data brokers, collects, processes, and sells vast amounts of information on individuals, often without their knowledge. It is an opaque ecosystem with far-reaching implications for personal privacy, financial security, and national interests. Despite its outsized influence, the industry remains largely unregulated, raising urgent questions about the need for oversight and consumer protection.

Data brokers operate as intermediaries, aggregating information from sources like online browsing histories, credit applications, social media interactions, and public records. This data is packaged into detailed profiles of individuals with sensitive information such as credit scores, financial history, health conditions, and behavioral patterns. These profiles are sold to advertisers, corporations, political campaigns, and sometimes foreign entities. While these practices enable tailored advertising, marketing, and individually targeted services, they also pose dangers. Commodifying sensitive data—such as financial or health records—opens a Pandora's box of ethical, legal, and security concerns. There are many risks associated with data brokering. Armed with detailed personal information on us, criminals can craft sophisticated phishing scams, defraud individuals, and even steal identities.