“Demographic groups already underserved by mainstream financial services—low-income earners, elderly individuals, and racial minorities—are now most exposed to data misuse,” Gogia said. “The most vulnerable demographics could be minorities, seniors, children, or families of military,” Shah added.
Security breaches at data broker companies have already demonstrated these risks. In the past year alone, major data breaches exposed millions of Social Security numbers and location data tracking people’s movements.
Privacy advocates argue that the collection and sale of personal data without explicit consent violates fundamental privacy rights. The absence of federal regulations means consumers often have no way to know who has their data or how it’s being used.
