Hackers claim massive breach of company that tracks and sells Americans' location data

When we talk about data privacy, tech giants like Google and Facebook are often blamed for using personal data to show ads and recommendations. Less discussed are the businesses whose entire business model revolves around collecting your data and selling it to other companies and governments. These companies often operate in legal gray areas, with the consent required to collect user data buried deep in the fine print.

What’s even more concerning is that these data brokers fail to adequately protect the data they collect. Last year, National Public Data made headlines for failing to secure 2.7 billion records of individuals whose data it had harvested. Now, hackers have reportedly stolen data from Gravy Analytics, the parent company of Venntel, which has sold vast amounts of smartphone location data to the U.S. government.

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Hackers claim to have breached Gravy Analytics, a major location data broker and parent company of Venntel, a firm known for selling smartphone location data to U.S. government agencies. The compromise is massive, including sensitive location data that tracks precise smartphone movements, customer information and even internal infrastructure, according to a 404 Media report.

The hackers are threatening to make the stolen data public. The files contain precise latitude and longitude coordinates of the phone and the time at which the phone was there. Some even indicate what country the data has been collected from.

Hackers have claimed access to Gravy's systems since 2018. If true, this represents a serious security lapse on the company’s part. It is baffling how companies that collect and sell user data (a practice that arguably shouldn’t be allowed in the first place) failed to protect it from being leaked.

404 Media also suggests that the hackers gained deep access to the company’s infrastructure, including Amazon S3 buckets and server root access. The exposed customer list reportedly includes major companies like Uber, Apple and Equifax as well as government contractors like Babel Street.

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This data breach highlights the serious security flaws in the location data industry. Companies like Gravy Analytics and Venntel have been profiting from collecting and selling sensitive location data, often without proper user consent. They've prioritized profit over security, and now the privacy of millions is at risk. This data could end up on black markets, endangering individuals, especially those in vulnerable situations, by making them targets for harassment or worse.

The FTC's recent crackdown on Gravy, announced in December, underscores their negligence. The proposed order will prohibit these companies from selling or using location data, except in specific cases like national security or law enforcement. The implications are worrying. Sensitive locations like schools and workplaces could become easy targets for those with malicious intent.

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The Gravy Analytics breach serves as a sobering reminder of the vulnerabilities in the digital age. While it’s impossible to control how every company handles data, you can take steps to minimize your exposure and protect your privacy. Here are five actionable tips to stay safe.

1) Limit app permissions: Many apps request access to location data, contacts and more, even when it's not necessary for their functionality. Regularly review the permissions for apps on your smartphone and revoke access to anything that feels excessive. For instance, a weather app doesn’t need access to your microphone or camera.

2) Use a VPN: Virtual private networks (VPNs) can mask your IP address and encrypt your internet activity, making it harder for data brokers and hackers to track your online behavior. A good VPN adds an extra layer of security, especially when using public Wi-Fi networks. For the best VPN software, see my expert review of the best VPNs for browsing the web privately on your Windows, Mac, Android and iOS devices.

3) Opt out of data sharing where possible: Some companies allow you to opt out of having your data collected or shared. Services like Your Ad Choices and privacy settings within platforms like Google can help you reduce the amount of data collected. Check for opt-out options with any apps or services you use frequently.

4) Avoid free apps that monetize data: Free apps often generate revenue by selling user data. Instead, consider paid versions of apps that explicitly prioritize privacy. Research the company behind the app to understand its data handling policies before downloading.

5) Invest in data removal services: Data removal services can help you regain some control over your personal information by identifying and removing it from people-search websites, data broker platforms and other online databases. Check out my top picks for data removal services here.

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Companies that collect and sell user data pose a significant threat to privacy, and when they fail to protect this data, it often ends up in the hands of even worse actors. Cybercriminals, and even some governments, can exploit this information to target individuals. It is crucial to implement stringent repercussions for these companies when they fail in their duty to safeguard user data. A mere slap on the wrist is not enough. We need real accountability to deter negligence and protect individual privacy rights.

Should companies face stronger penalties for failing to protect personal data? Let us know by writing us at Cyberguy.com/Contact.

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