Data Brokers Fuel Scams: Senate Report On Billions Of Consumer Losses

Forbes Business

by Steve Weisman, Contributor

March 1, 2026

AI-Generated Deep Dive Summary

Senator Maggie Hassan’s report reveals how data brokers have played a significant role in fueling scams and identity theft, resulting in billions of dollars lost by consumers. The report highlights the vulnerabilities in the data brokerage industry, which collects, sells, and shares vast amounts of personal information. These practices have made it easier for scammers to exploit individuals, leading to widespread financial fraud. Data brokers often collect detailed consumer data, including financial information, purchasing habits, and online activities. While their main business is selling this data to businesses for marketing purposes, the lack of proper safeguards has allowed malicious actors to access sensitive information. This has enabled fraudulent activities such as synthetic identity theft, where criminals combine real and fake details to create new identities, and phishing campaigns that target individuals based on specific data points. The financial impact on consumers is staggering, with billions lost each year due to these scams. Beyond individual losses, businesses also suffer from the increased cost of fraud prevention, legal fees, and reputational damage. The report underscores the urgent need for stronger regulations to hold data brokers accountable and protect consumer privacy. Moreover, the absence of comprehensive oversight in the data brokerage industry has created significant risks. Many companies operate with little transparency, making it difficult to track how their data is used or shared. This lack of accountability not only harms consumers but also erodes trust in businesses that rely on these data practices. The report calls for immediate action, including stricter enforcement of existing laws and the implementation of new regulations to ensure data brokers handle consumer information responsibly. By addressing these issues, policymakers can help mitigate the risks associated with data exploitation and safeguard both

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Originally published on Forbes Business on 3/1/2026