Congressional Report Links $20.9 Billion in Consumer Losses to Data Broker Breaches A recent minority report from the U.S. Joint Economic Committee (JEC) estimates that over $20.9 billion in consumer losses are tied to identity theft stemming from four major data breaches involving data broker firms. The findings, released on Friday, stem from a months-long inquiry led by Senator Maggie Hassan (D-NH), the JEC’s ranking member, into the practices of five major data brokers: Comscore, Findem, IQVIA Digital, Telesign, and 6Sense Insights. The investigation was prompted by a 2023 report from The Markup and CalMatters, co-published by WIRED, which revealed that some data brokers were hiding opt-out tools from search engines using "no index" instructions a tactic that prevents web crawlers from listing privacy-related pages. Scammers exploit the sensitive data these companies collect including dates of birth, addresses, and Social Security numbers to execute personalized fraud schemes. Following Hassan’s August 2023 outreach, four of the five companies took steps to improve opt-out accessibility: - Comscore removed a "no index" tag from its "Data Subject Rights" page, which it traced back to a 2003 version of the site, though it could not explain why the code was originally added. - Telesign enabled indexing for its opt-out form and added a footer link after attributing the issue to a third-party SEO tool that restricted visibility by default. - 6Sense removed "no index" code from its privacy policy page and became the only company to report third-party audits assessing both opt-out visibility and request processing. - IQVIA Digital did not respond to requests for comment. Findem, however, failed to respond to Hassan’s inquiries or follow-up from committee staff. The report highlights the company’s "serious lack of responsiveness", noting that its 2024 mandatory disclosures revealed it did not process 80% of privacy requests, citing "insufficient data." The company also retained the "no index" code on its opt-out page, and WIRED’s attempts to contact Findem went unanswered. The JEC report also criticizes broader industry practices, citing the Markup/CalMatters investigation, which found that dozens of California-registered data brokers used "no index" codes and other "dark patterns" to obscure opt-out and deletion tools. Even when links were available, they were often buried in lengthy privacy notices Telesign’s, for example, exceeded 9,000 words making them difficult for consumers to locate. The findings underscore the financial and operational risks posed by data brokers’ handling of sensitive information, as well as the gaps in transparency and compliance within the industry.

Senate Report: Data Broker Breaches Cost U.S. Consumers Over $20 Billion in a Decade A February 27 report from Sen. Maggie Hassan (D-N.H.) reveals that four major data broker breaches over the past decade have resulted in over $20 billion in identity theft losses for U.S. consumers. As the ranking member of the Joint Economic Committee, Hassan’s analysis focused on breaches affecting hundreds of millions of Americans, with financial damages calculated using conservative estimates including a median loss of $200 per victim. Data brokers, which collect and sell personal information from commercial, government, and public sources often without consumer awareness pose significant risks when breached. The report highlights that exposed data frequently fuels identity theft, fraud, and scams, with the true financial impact likely exceeding the $20 billion estimate. Many victims pursue class-action lawsuits, suggesting losses per individual may be far higher than the median figure. The report calls for stronger protections, emphasizing the need for easily accessible opt-out mechanisms. In August, Hassan investigated five data brokers accused of obscuring opt-out pages, prompting four Comscore, IQVIA Digital, Telesign, and 6sense Insights to improve transparency. Findem, however, failed to respond to the senator’s inquiry. Hassan’s findings underscore the growing threat of data broker practices as scam-related losses rise, urging Congress, the administration, and the industry to enhance oversight and reduce fraud risks.