Mastercard would exploit the personal data of its customers and then resell it to the highest bidders and make colossal money.
Your personal data has become one of the most valuable resources in the vast digital world. Mastercard, one of the world’s leading payments companies, has capitalized on this trend by selling its cardholder transaction data to third-party companies. The company has thus opened the door to questions of security and data confidentiality for your daily banking operations.
Monetization of transaction data
Over the years, Mastercard has leveraged its status as a global payments network to access massive amounts of transaction data. This data includes information about consumers’ spending, purchasing habits, and even their financial situation. To inflate its profits, the company sells this information to third-party companies on online data markets, as we learn from the American research group PIRG.
On platforms like Amazon Web Services Data Exchange, Mastercard offers batches of data containing transaction details, such as amount, frequency of purchases, location and date. This data is then used by companies to carry out advertising targeting, create models of consumer behavior or find new customers.
While the data is aggregated and anonymized, companies can still target individuals using sophisticated tools connected to these third-party data markets. Mastercard, for example, classifies “ big spenders ” where the ” frequent buyers ”, and sells these groups to other entities. Companies can also use AI-powered scores to predict future consumer behavior.
Serious risks to consumer privacy and security
In addition to selling data on third-party marketplaces, Mastercard has its own Data & Services division. His role ? Providing access to massive databases of purchasing transactions, with products ranging from cybersecurity to highly targeted advertising. For example, Mastercard allows companies to create advertising campaigns targeted at potential customers, identified as “ high added value “.
This sale of data obviously poses risks to the privacy and security of consumers. Indeed, the more access companies have to this data, the more vulnerable they are to security breaches and hacks, which exposes users to identity theft or financial fraud. Without also forgetting the perverse effects of targeted advertising, which can lead to impulsive purchases that are harmful to the financial health of individuals.
PIRG calls for regulation of transaction data monetization. For the association, companies should adopt limited-use data policies, collecting only the information strictly necessary to provide services expected by cardholders.
Source : PIRG
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