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What Is a Data Broker? The Multi-Billion Dollar Industry That Knows Everything About You
📅 2026-07-05
👤 CyberForget Team
⏱ 7 min read
Data Brokers Privacy Guide Education Security
What Is a Data Broker? The Multi-Billion Dollar Industry That Knows Everything About You
Every day, companies you've never heard of are buying, selling, and trading your personal information. Name, address, phone number, email, income, medical history, shopping habits, political affiliation — they collect it all. They package it, analyze it, and sell it to anyone willing to pay.
These companies are called data brokers, and they make up a $300+ billion industry that operates almost entirely in the shadows.
Data Broker Definition
A data broker is a company that collects personal information from public records, websites, commercial sources, and other data brokers, then aggregates, analyzes, and sells that data to third parties.
Unlike companies you directly do business with (like your bank or your doctor), data brokers collect information about you without your knowledge or direct consent. You've never signed up for their services, yet they maintain detailed profiles on you — and they profit every time that data changes hands.
Quick facts:
- There are 4,000+ data brokers operating worldwide
- The average American adult has data held by 100+ data brokers
- The industry generates $300+ billion annually
- Data brokers have no legal obligation to tell you they're collecting your data (in most countries)
Where Data Brokers Get Your Information
Data brokers don't spy on you directly — they don't need to. Your data is freely available in dozens of places:
Public Records
- Property records (who owns what, purchase price, mortgage info)
- Voter registration (name, address, party affiliation)
- Court records (lawsuits, bankruptcies, divorces, criminal cases)
- Business licenses and professional certifications
- Marriage and divorce records
Commercial Sources
- Retail purchase history (from loyalty programs and credit card transactions)
- Warranty registrations
- Subscription services
- Magazine and catalog mailing lists
- Airline and hotel rewards programs
Online Activity
- Social media profiles (even on "private" settings, metadata is visible)
- Website cookies and tracking pixels
- Email address harvesting
- Browser fingerprinting
- App permissions (location, contacts, photos)
- Online review profiles
Publicly Available Data
- Phone books and directories (yes, these still exist)
- Property tax assessments
- Professional licensing databases
- Business registrations
- Social media public posts
Other Data Brokers
One of the most shocking facts: data brokers buy data from
each other. Your profile is copied, enhanced, and resold across hundreds of companies in a complex web of data reselling.
What Data Brokers Do With Your Data
1. Build Marketing Profiles
The most common use. Data brokers create detailed consumer profiles segmented by:
- Demographics: Age, income, education, family size
- Behavior: Shopping habits, travel preferences, media consumption
- Interests: Hobbies, political leanings, religious affiliation
- Life events: Recent marriage, divorce, move, birth of a child
These profiles are sold to advertisers for targeted campaigns.
2. Power People-Search Websites
Websites like Spokeo, WhitePages, BeenVerified, and Intelius are data brokers in disguise. They aggregate public records and commercial data, then charge users to access your information. These are the sites that show:
- Your current and past addresses
- Phone numbers and emails
- Relatives and neighbors
- Estimated income and property value
- Criminal records and court filings
3. Enable Background Checks
Employers, landlords, and lenders use data broker profiles for background screening. The problem? These reports are often inaccurate, outdated, or contain data about the wrong person — yet you can be denied a job or apartment based on them.
4. Feed Insurance Risk Models
Health and life insurers buy data from brokers to assess risk. Your social media posts, purchase history (buying junk food vs organic), and even your Netflix choices can influence your insurance rates — without you knowing.
5. Sell to Law Enforcement and Government
Many data brokers sell access to law enforcement agencies. This means your location data, purchasing patterns, and social connections can be accessed by government agencies without a warrant.
Major Data Brokers You Should Know
Consumer Reporting Agencies
| Broker | What They Collect |
|--------|------------------|
|
Acxiom | Marketing profiles on 700M+ people worldwide |
|
Epsilon | Consumer transaction data, email habits |
|
Experian | Credit data plus marketing profiles |
|
Oracle Data Cloud | Online and offline behavior data |
|
Salesforce DMP | Cross-device tracking across websites |
People-Search Sites
| Site | What They Show |
|------|---------------|
|
Spokeo | Contact info, income estimates, family, social profiles |
|
WhitePages | Phone numbers, addresses, landline ownership |
|
BeenVerified | Criminal records, contact info, relatives |
|
Intelius | Full background reports, property records |
|
TruthFinder | Deep background checks, social media |
|
MyLife | Public profile with review/rating system |
Specialized Data Brokers
| Broker | Specialty |
|--------|-----------|
|
ID Analytics | Identity risk scoring |
|
Palantir | Government and corporate data analysis |
|
Thomson Reuters CLEAR | Investigative data for law enforcement |
|
LexisNexis Risk Solutions | Insurance claims data, background screening |
|
Verisk Analytics | Insurance risk modeling |
Is Data Brokerage Legal?
In most countries, yes — data brokerage is legal and almost entirely unregulated.
United States: No comprehensive federal privacy law. The industry operates under a patchwork of state laws:
- California (CCPA/CPRA): Gives residents the right to know what data brokers have and request deletion
- Oregon, Texas, Virginia, Colorado: Have passed consumer data privacy laws with varying opt-out rights
- Massachusetts: Passed a location privacy law in June 2026
- FTC oversight: Can penalize deceptive data practices, but no proactive regulation
European Union (GDPR): Much stronger protections. Data brokers must have a lawful basis to process personal data and must honor deletion requests.
The Delete Act (California SB 362)
In 2025, California passed the most aggressive data broker regulation in the US. The Delete Act requires all data brokers operating in California to:
1. Register with the California Privacy Protection Agency (CPPA)
2. Honor a single, centralized opt-out request that deletes your data from all registered brokers
3. Report their data collection practices annually
This is a game-changer, but it only applies to California residents for now.
How to Remove Your Data From Data Brokers
Option 1: Manual Opt-Out (Free, Time-Consuming)
Each data broker has its own opt-out process. You need to:
1. Find your listing on each site
2. Submit an opt-out request (some require ID verification)
3. Wait for processing (3–30 days)
4. Re-check and re-submit every 6 months (data gets re-listed)
Time investment: 10–20 hours for the first pass, then 2–3 hours every 6 months
Option 2: Automated Removal (Paid, Hands-Off)
Services like CyberForget continuously scan data brokers and automatically submit opt-out requests on your behalf. When your data reappears (which it inevitably does), the service handles it without you lifting a finger.
Time investment: Zero. Once set up, it runs continuously.
Start your free scan →
Option 3: DIY Through the Delete Act (California Only)
If you're a California resident, you can use the CPPA's centralized opt-out mechanism to delete your data from all 665+ registered data brokers with a single request. Learn more →
The Bottom Line
Data brokers exist because your information is valuable — and because there's very little regulation stopping them from collecting it. The industry won't regulate itself, and most governments are moving too slowly.
The most effective defense is to opt out and stay out. A one-time opt-out isn't enough — data brokers refresh their data constantly. Whether you choose to do it manually or use an automated service, the key is persistence.
*Updated: July 2026. This page is a pillar resource — bookmark it and check back for updates as data privacy laws evolve.*
Take Control of Your Data
Ready to remove your personal information from data broker sites? CyberForget automates the entire process.
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