Previously, we covered the digital black market and the price of personal data sold there. $42 could purchase online banking details, while a company's hacked database might go for $1,100. Email accounts? Only $1.50. And your meticulously crafted online identity? Just $1,200. While these numbers may seem small, the price is a reflection of the increasing amount of data available - in part due to expanding efforts by corporations to gain more and more of our personal data.
With machine learning and AI becoming the norm, most businesses are adapting their strategy toward data-driven models. That is, leveraging data to optimize everything from ad spend to customer retention. It’s been shown that data-centric companies expect a 23% profitability increase. Depending on the company that’s hundreds of millions of dollars added to the bottom line. There’s no question why companies are after our data but, there’s a few problems. One of the main ones being, we don’t own our data. Most of this data ends up with the big guys where the value goes from tens of dollars to hundreds of billions. GAMMA (Google, Apple, Amazon, Meta, and Microsoft) reigns supreme, leveraging data to drive immense profits. Ad revenues alone are projected to reach an astounding $567.49 billion in 2023.
Personal data is applied differently depending on the industry. In E-commerce it is used to personalize shopping experiences. Healthcare data can shape everything from individualized treatments to groundbreaking drug research. One of the most popular applications, entertainment and media, tracks content engagement spikes to curate the algorithms we enjoy on IG and TikTok. While these are benefits, it also illustrates that now more than ever we need better tools to guard and implement use of our data.
In contrast to the black market, corporate user data is broken down differently depending on where it's from. First-party data is collected directly and is considered the most authentic. Second-party data is someone else's first-party data, obtained through partnership. There’s third-party data that's aggregated from various sources; it's vast but typically lacks accuracy. This is the kind of data that most people have heard of. Data collected through 3rd party cookies, following us around, collecting information without our consent. Thankfully, most browsers have ended 3rd party cookies - Google being the last holdout. Then there’s zero-party data. Voluntary data on user preferences i.e., hobbies, sizes, favorite colors, etc.
While data collection varies in degrees of intrusiveness, steps have been taken to safeguard users online. That said, those safeguards tend to lag behind the technology itself - consider the generative AI boom. Europe boasts its comprehensive GDPR, placing guardrails on the nature of data collection. The U.S., however, has made slow progress with individual state-based legislations. California, Virginia, Colorado, Connecticut, and Utah have stepped forward, yet a national GDPR counterpart remains elusive. Moreover, the U.S. laws shift the burden onto users to opt-out, sidestepping the core issue of transparent data handling by companies.
Even if everyone read terms and conditions, and most don’t, you’d need a law degree and insider information to understand what the document is actually saying. Users should absolutely have some responsibility but, we should also be equipped with the means to make an informed decision. That’s part of what we’re doing at Going Ghost. Aside from articles like this, we’re creating a platform that levels the playing field for users. Our Data Passport is a personal data security solution that allows you control of how your data is collected and used, all while getting paid for it. You can learn more at www.goingghost.me.
The gap between black market price tags and legitimate businesses' billion-dollar valuations of personal data is vast. Recognizing this disparity is critical to grasping the value of our digital footprint and championing more transparent, conscientious data handling practices in the modern digital age. The public's calls for change have made some progress but there is more work to be done.
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