Americans are increasingly using financial apps to manage their money, but they need to be careful about which ones they choose to share their most sensitive data and how they do it, experts say.
Nearly 3 in 4 of the financial apps examined by researcher Creditnews share at least some information with third parties. On average, the apps shared about six types of data, including device or other ID information, names, email addresses, app interactions, and phone numbers, Creditnews said. The most egregious apps shared about three times that amount of data.
Due to sensitive information used in financial apps, they’re prime targets for cybercriminals. Each time the app shares your data with a third party, your data footprint widens, creating more opportunities for your data to get stolen. Criminals can use stolen information to steal your money, identity, or reputation.
Data can also be used to create profiles on you that can be used for ad targeting or potentially, discrimination, Creditnews said. Some financial apps disclose data on race and ethnicity, health, web browsing, voice and sound recordings, contacts, and emails — all of which bad actors could twist to use against you in finding a job, a place to live and more
“Therefore, staying informed and thinking critically about how and with whom you share your data is essential,” Sam Bourgi, a Creditnews analyst wrote.
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