Identity theft is a constant security concern and a huge business for thieves and criminals around the world. However, hackers and criminals are not the only people that may be accessing your information without your knowledge or permission. Businesses rely on various, methods to learn more about your personal finances, likes, dislikes and spending habits. Some companies make their profit by collecting information on a consumer base and then selling it to other interested companies.

While these transactions are legal for the most part, some of the methods used to collect your information without your knowledge may surprise you. If these businesses get hacked themselves at a later date, your information can then be used for identity theft.

Methods

The Internet has become a gold mine for collecting personal information, though it is by no means the only source. However, you have likely downloaded a program or used a website service that advertises itself as being free. While it is true that this site or service did not require a payment upfront, you are likely paying with your personal information. In return for using the site or service, you are granting permission for that vendor to track your activity online. This is done through the use of cookies, which are small programs that get installed on your hard drive to monitor your activity and send results back to the installer.

Any time you use a debit or credit card to purchase something, there is an electronic record of that transaction.

Grouping these transactions together creates a profile of your purchasing habits, food preferences, traveling tendencies and other data. While it is reasonable for a vendor to keep track of your purchase history with them to offer you customized suggestions or services, problems arise when this data is sold to other vendors without your knowledge or permission. The problem is amplified when that data is stolen.

Phone apps are another way that businesses can keep track of you. Many of them now rely on a GPS function to keep aware of your general location and monitor your day-to-day activity. Communications companies have access to a tremendous amount of your information, because bundled accounts allow them to keep track of your Internet usage, what TV shows you watch and what types of phone calls you make.

Benefits

This information is so valuable to companies because it allows them to be more specific with their advertising targeting. Search engines rely on algorithms that select advertisements to show you based on your Internet activity. The search engines are also able to charge vendors significantly more money for these advertisements, which is how they are able to make profit on services you use for “free.” Targeted advertising is also cheaper in the long run for the vendors because, in theory, they are not wasting resources on ads that are going to people that have no interest in their product or service. Much of this information is stored and assimilated automatically by computer programs. This means that there is usually not a single individual reading through your personal information. However, that danger is still there.

Risks

Major companies get hacked on an almost daily basis. When this happens, the personal information that is been carefully collected about you is available to people who were not meant to see it. Instead of an algorithm selecting advertisements for you based on your buying habits, a criminal now has your credit card number, Social Security number and personal address. While corporations scramble to update their computer security, they often remain a step behind from the criminal element who make data theft their career.

Companies are also going to greater lengths to get your information than they have in the past. Web browsers now have the ability to turn on the microphone on your computer without your knowledge or explicit permission. In theory, this gives a company the ability to listen in on private conversations in your home. While businesses always deny that they have any ill intent with this technology, it is foolish to ignore the potential for abuse.

What You Can Do

Keep an effective antivirus or anti-malware program on your computer that regularly deletes cookies and tracking programs from your system. Many web browsers now have an option that allows you to opt out of being tracked in many ways. Check your browser and make sure that you have this option enabled.

Read the terms and conditions of any program or app before you download and use it. This gets problematic, because companies purposely make these agreements as long and convoluted as possible. However, look for a specific privacy policy in the terms and conditions, and read that carefully. Be careful when downloading a new program, because it may try to bundle other programs into the download when you first install it. Read each screen in the download and installation process carefully, and uncheck or opt out of any additional programs that it is offering to install. Companies rely on you clicking the “next” button repeatedly without reading each screen.

Be careful about what you share on social media sites, because the terms and conditions of those sites often allow them to use that information to tailor advertisements to you or people you are connected to on the site. They may even be able to use photos that you post on the site as part of an ad that goes to people on your contact list without any notification or compensation to you. Also make sure that your settings on the sites are as private as possible. Anything that is shared publicly can be scraped or mined by other companies without your knowledge or permission.

Stay diligent about your passwords, and change them regularly to help prevent your accounts from being compromised by an outside source. Ask about a company’s privacy policy before you sign up for a service. Get the policy in writing as well.

Most businesses are run somewhat by advertising. Personal information is the currency which advertising thrives off of in order to reach a target audience effectively. Technology has made this process infinitely easier and simpler than at any point in history. However, that convenience always comes at a price. Never take your online security for granted, and always remember that something free rarely is.