Your Finance App Knows You Better Than You Think

<p>In an
analysis of 100 popular iOS apps, <a href="https://www.financemagnates.com/terms/c/cybersecurity/">cybersecurity</a> firm Surfshark uncovered
concerning data privacy practices among finance apps. It turns out that the
payment giant PayPal and the popular trading app for retail investors Robinhood,
collect the most data about their users.</p><p>Finance Apps Hoard User
Data, Surfshark Study Finds</p><p><a href="https://surfshark.com/research/study/app-privacy-checker" target="_blank" rel="nofollow">The study
found</a> that finance apps collect more user data on average than other app
categories – 16 out of 32 possible data points tracked by Apple in its app
store. <a href="https://www.financemagnates.com/tag/robinhood/" target="_blank" rel="follow">PayPal and Robinhood</a> gathered the most data points at 26 and 25,
respectively.</p><p>"Nearly
20% of collected data is used for tracking. Such tracked data can be shared
with third-party advertisers or data brokers, who use it to deliver
personalized ads targeting the users, or aid companies in market research,"
said Agneska Sablovskaja, the Lead Researcher at Surfshark.</p><p>PayPal and
Robinhood are the most "data-hungry" apps. However, it appears that
they do not use the gathered information – or at least they claim not to – for
tracking their users. However, many other popular financial applications engage
in such tracking, <a href="https://www.financemagnates.com/tag/revolut/" target="_blank" rel="follow">including Revolut</a>, Binance, Coinbase, and Crypto.com.</p><p>Tracking
involves linking data collected from an app about a particular user or device,
such as a user ID or device ID, with external sources like third-party
advertising networks. Additionally, the gathered data might be distributed to
data brokers. </p><p>50% of Apps Collect Search
History and Location</p><p>Across all
app categories, nearly half collected precise location data and search
histories. Facebook and Instagram stood out as the most “<a href="https://www.financemagnates.com/fintech/personal-finance-apps-convenience-or-privacy-nightmare/" target="_blank" rel="follow">privacy-invasive</a>”,
gathering all 32 data points defined by Apple.</p><p>“Two-thirds
of the apps collect your name and coarse location, and nearly half collect your
precise location. Coarse location is a more general estimation of where you
are, while precise location is more detailed and accurate,” Surfshark
explained.</p><p>Additionally,
93% of the data points collected by finance apps are tied to user identities.
Mint, a popular app for managing personal finance, shared a worrying 70% of
collected data with third parties – the highest amount observed.</p><p>“Understanding
an app’s privacy policy is crucial for safeguarding digital autonomy,” Sablovskaja
concluded.</p>

This article was written by Damian Chmiel at www.financemagnates.com.