What Is a Data Broker?
A data broker is a company that collects personal information about people, packages it into profiles, and sells or licenses that data to other businesses. The defining feature of data brokers is that they have no direct relationship with you. You never signed up for their service, never agreed to share your information, and in most cases have no idea they exist. Yet they may hold thousands of data points about you, from your home address and phone number to your shopping habits and estimated income.
The data broker industry is enormous. Market analysts estimate it was worth between $305 billion and $365 billion globally in 2025, with projections pushing past $500 billion by the end of the decade. There are an estimated 4,000 to 5,000 data broker companies operating worldwide, with roughly 2,000 active in the United States alone. California’s data broker registry lists over 540 registered brokers, though that only captures companies that voluntarily comply with the state’s registration requirement.
The Three Main Types of Data Brokers
People-Search Sites
These are the data brokers most people encounter first. Sites like Spokeo, BeenVerified, Whitepages, Intelius, and PeopleFinders let anyone search for you by name, phone number, or address. They compile public records into searchable profiles and make money through subscriptions, one-time report purchases, and advertising. Because they compete for search engine traffic, they tend to give away more and more personal details for free, which is a big part of why your information is so easy to find online.
Marketing and Advertising Data Brokers
Companies like Acxiom (now Liveramp), Epsilon, and Oracle Data Cloud collect consumer data to help advertisers target you more precisely. They segment people into categories based on demographics, purchase behavior, interests, and life events. If you have a dog, you might be tagged as “Dog Owner.” If you recently searched for mortgage rates, you may land in a “Prospective Homebuyer” segment. These brokers also offer “append” services, where a business that only has your email address can pay to fill in your home address, phone number, and buying history.
Risk Mitigation and Financial Data Brokers
The credit bureaus (Experian, Equifax, and TransUnion) are technically data brokers too, though they operate under stricter regulations like the Fair Credit Reporting Act. Beyond credit reports, companies like LexisNexis and CoreLogic compile background check data, fraud risk scores, and insurance risk profiles. Employers, landlords, and financial institutions use these services to make decisions about you.
Where Do Data Brokers Get Your Information?
Data brokers pull from a surprisingly wide range of sources. No single leak exposes you. It is the combination of many small, ordinary data trails that builds a detailed profile.
- Public records: Property deeds, voter registration, court filings, marriage and divorce records, motor vehicle records, and census data are all freely available and routinely scraped.
- Online activity: Cookies, tracking pixels, and browser fingerprinting capture your search history, browsing habits, and purchase behavior across websites.
- Social media: Public posts, likes, check-ins, and follower lists on platforms like Facebook, Instagram, and LinkedIn are collected and cross-referenced with other data.
- Retail and loyalty programs: Every time you swipe a loyalty card or make a purchase tied to your email, that transaction data can be sold or shared with brokers.
- Apps and services: Many apps quietly share or sell user data to brokers through terms buried deep in their privacy policies.
- Other data brokers: Brokers buy and sell data among themselves, which is how a single piece of information can end up in dozens of databases.
To put the scale in perspective, Acxiom alone claims to hold profiles on more than 300 million Americans, with each profile containing over 10,000 individual data points.
How Do Data Brokers Make Money?
The business models vary by category but generally fall into a few patterns. People-search sites sell individual reports and monthly subscriptions, typically ranging from $1 to $30 per lookup. Marketing data brokers sell access to audience segments on a per-campaign or licensing basis, charging advertisers for the ability to target specific consumer groups. Financial data brokers charge businesses per credit report, background check, or risk score they pull. Some brokers operate on a data-as-a-service model, providing API access to their databases for ongoing integration into other companies’ workflows.
Why This Matters for You
The practical risks range from annoying to serious. Your information on people-search sites makes it easier for scammers, stalkers, and robocallers to find you. Marketing profiles drive the eerily specific ads that follow you around the internet. Background check data can affect your ability to get a job, rent an apartment, or qualify for insurance, sometimes based on outdated or inaccurate records.
The good news is that you can take action. Many data brokers are legally required to honor opt-out requests, and a growing number of state laws (including regulations in California, Vermont, Texas, and Oregon) are increasing transparency and giving consumers more control.
What You Can Do About It
Start by understanding which brokers have your data, then begin submitting opt-out requests. You can do this manually, but with thousands of brokers operating, most people find it more practical to use a data removal service that handles the process on their behalf.
We have detailed, step-by-step opt-out guides for the most common people-search sites in our opt-out guides section. If you want to compare the leading automated removal services, check out our breakdown of Incogni vs. DeleteMe vs. Optery vs. Aura to find the right fit for your situation.