The hidden costs of free apps: Your personal information

Is there such a thing as free online apps, tools, or services anymore? People are becoming increasingly aware and concerned about online privacy. With good cause, too. Data is the new oil of the digital age—companies rely on it for marketing, research, and as a form of currency. So, considering how valuable it is, it’s no wonder that nearly all the online tools and services we use discretely harvest that resource. Especially “free” ones, as it turns out.

 

 

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“Free” apps may be costing you more

A recent study found that free apps share 7 times more data points than paid ones. So we’re actually paying a hidden (and steep) price for these free services with our data. They’re not happy to let that data go, either. I checked some of the apps on my phone, and all things considered, I wasn’t too surprised to find that many of them don’t offer users any way to delete the information they collect.

What I found even more alarming is that free apps are twice as likely to use ad libraries, which have the same permissions and access to your device as the app does, to things like your photos and videos, stored payment details, and even personal messages. Developers use these ad libraries to serve you ads (and make money). And many apps include more than one ad library—all with access to your data.

 

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Why this should be concerning to you

Many consumers adopt a “so what” attitude—especially millennials and Gen Z. They’re desensitized to data harvesting. But it’s about more than just serving ads. There are real risks involved. These can range from inflated insurance rates to identity theft.

Where data is collected and shared or sold, it almost inevitably ends up with data brokers. They may buy purchase history data here, and fitness and health data there, then compile them into detailed personal profiles they sell to businesses, marketing agencies, insurance companies, individuals, and other data brokers. And that’s how your data starts circulating the web and propagating.

The more places your data lives online, the higher the risk of data breaches. In 2022, a Cash App employee accessed and leaked the data of about 8.2 million users. It’s happened to data brokers too. I covered one of the biggest data breach instances I’ve come across myself, where 2.7 billion records were stolen from National Public Data (NPD), a background search company.

 

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So, what can you do to prevent misuse of your data?

1) Delete apps you don’t need

Generally, the fewer apps you use, the safer your personal data will be. I know it’s a tough ask, but it’s better to go through your devices and purge them of any apps you don’t absolutely need. If you can use one app to perform more than one function, opt for those instead.

 

2) Switch to more privacy-friendly alternatives

Many apps collect and share data that doesn’t logically relate to their function. The same goes for permission. For example, there’s no reasonable explanation for why a calculator app would need to collect your location data or have permission to access your calendar.

Although most legitimate apps must disclose when they share personal information, it can be hard to catch. Carefully check the data safety section on Google play and the app privacy section on the App Store for this information.

 

3) Optimize your privacy settings

Many apps allow you to adjust settings to limit how much of your data is collected or shared. If they don’t, it’s better you don’t have them on your phone.  Take time to review these settings and lock down permissions wherever possible. You can (and should) also restrict permission through your device settings.

 

4) Remove your data from people search sites and data brokers

Even if you limit the data you share directly, data brokers often compile public records or purchase your information from other sources. I recommend you take the time to periodically wipe your personal information from these sites.

Google your name, email, phone number, or address and you’ll likely see a bunch of results containing your data pop-up in the results. Go through them one by one and follow their opt-out processes. You can also use a data removal services to do this for you automatically.

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Kurt’s key takeaways

While “free” apps might seem like a harmless convenience, they often come with hidden costs in the form of your personal data. Many people, especially younger generations, have become indifferent to these risks. However, data collection can have serious consequences. Whether it’s inflating insurance rates, leading to identity theft, or fueling further misuse through data brokers—the threat is real. Taking steps to protect your privacy, like deleting unnecessary apps, optimizing privacy settings, and removing your data from data brokers, can help mitigate these risks. It’s also worth considering more privacy-conscious alternatives.

Do you think your personal information is a fair price to pay for free apps? Let us know in the comments below. 

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