Data brokers are companies that collect data themselves or buy it from other companies (like a credit card company), crawl the internet for useful information about users – legally or otherwise – and aggregate that information with data from other sources (e.g. offline sources).
There are several thousand companies around the world collecting information about consumers from public and non-public sources to sell them to other companies. Depending on the range and type of data they store, data brokers are divided into two categories. To get more details about data brokers you may see it here www.advisorycapitalbrokertraining.com/.
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Type 1: Data brokers for marketing and advertising
The role of such companies is to create databases of individuals and use them later for targeted advertising and marketing. Data brokers create audiences that include a person’s age, location, education level, income, web history, purchase history, and interests. Advertising companies can purchase these audiences and show them targeted ads.
Type 2: Fraud detection data brokers
Some data brokers offer fraud detection – a service typically used by banks and mobile phone operators. For example, before granting a loan, a bank might turn to a data broker to help it determine whether the information provided is accurate and legitimate, and therefore reduce the risk of granting a loan to a fraudster.