A Data Broker (or perhaps more accurately, an Information Broker) is a company which aggregates information, analyzes it, and leases or sells it to other companies, typically for marketing purposes. Some data brokers provide raw data, while others offer analytic scores, classifications, or other useful information derived from that original data.[1] Additionally, some offer a data analytics service to companies, for better organization and utilization of the data those companies already posses.[2]
There are many data brokers, but typically they focus on offering data for one of three main purposes.
These data brokers compile personal information which may be useful in targeted marketing. They compose dossiers on whoever they can, categorizing them based on certain demographics, such as age, ethnicity, education level, income, number of children, and interests.[3] Marketing companies then purchase lists of people who fall into their categories of interest.
These data brokers focus on personal information of people, allowing their customers or users to find personal details of individuals. Data commonly included (when available) includes birth dates, addresses and address history, education, relatives, employment, court records, affiliations, interests, social media profiles, property records, and more. Some such data brokers are Spokeo, PeekYou, PeopleSmart, Pipl.[3]
Some data brokers gather data on individuals for the purpose of reducing fraud. Customers of these data brokers will often use this service to verify persoanl details. For example, they may check that social security numbers belong to living people, and that addresses are not known to be associated with fraudulent behavior.[3]
Data brokers aggregate information from a variety of sources. Public records provide an excellent foundation, including birth certificates, property records, court records, driver’s license and motor vehicle records, census data, marriage licenses, divorce records, state professional and recreational license records, voter registration, bankruptcy records, and more. Other information can be added on to this collection, such as purchase activity. This data can be bought from retailers themselves, or from financial companies in the form of credit card and debit card purchase history. Additional information can also be gathered online, from social media services and web browsing activity. Some data brokers will also exchange information, to gain more complete profiles.
There are many date brokerage companies, but here are some of the more common ones.
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