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https://www.malwarebytes.com/newsletter/

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News | Privacy


US SENATORS ASK FTC TO INVESTIGATE CAR MAKERS’ PRIVACY PRACTICES

Posted: July 29, 2024 by Pieter Arntz



DIGITAL FOOTPRINT PORTAL

Enter your email to see if your personal data has been exposed.



An ongoing US Senate investigation indicated that connected car makers violate
consumer privacy by sharing and selling drivers’ data, including their location,
on a vast scale, and that the same car makers often obtain consumer consent
through deception.

Based on this investigation, senators have urged the Federal Trade Commission
(FTC) to investigate automakers’ disclosure of millions of Americans’ driving
data to data brokers, and to share new-found details about the practice.

And they don’t stop there:

> “If the FTC determines that these companies violated the law, we urge you to
> hold the companies and their senior executives responsible.”

At Malwarebytes, we reported how a team of researchers at Mozilla who reviewed
the privacy and data collection policies of various product categories for
several years now, named “Privacy Not Included,” found cars to be the worst
product category they ever reviewed for privacy.

A modern car hasn’t just been a transportation vehicle for a long time. With
multiple digital systems, they are increasingly plugged into web applications
and digital processes—applications and processes that are vulnerable to security
flaws.

But at least those vulnerabilities are not intentional. Some other privacy
issues are.

In November 2023, a judge ruled it’s fine for car makers to intercept your text
messages, because the practice doesn’t meet the threshold for an illegal privacy
violation under state law. 

The senators found some worrying aspects of modern car data collection
practices, which included the use of dark patterns to obtain consent in ways
that did not qualify as “informed” consent. Dark patterns, also known as
deceptive design patterns, occur when a user interface has been carefully
crafted to nudge or trick users into doing things they didn’t set out to do.

Another problem lies in the fact that data was found to be sold on to data
brokers. These services can allow interested parties—from law enforcement
agencies to marketing firms and even scammers—to access records that contain
usernames, passwords (including in clear text), email addresses, IP addresses,
and more.

Three car makers confirmed their disclosure of drivers’ data to one data broker,
such as acceleration and braking data. One of the car makers also confirmed that
it disclosed customer location data to two other companies, which it refused to
name.

The named data broker sold these reports to auto insurance companies and also
provided automakers with some of this information, including a driving score and
safe driving suggestions. According to the New York Times, car manufacturers
shared driving behavior data from more than eight million cars.

The senators also worry that some car makers may have gone as far as exclusively
advertising “safe driving” programs as a way to lower their insurance bills,
without revealing that some insurers might charge some drivers more based on
their telematics data.

Some states—including Louisiana and Montana—limited the use of telematics data
to raise insurance premiums, while California only permits telematics data
sharing for mileage verification.

The senators requested that:

> “The FTC should hold accountable the automakers, which shared their customers’
> data with data brokers without obtaining informed consent, as well as the data
> brokers, which resold data that had not been obtained in a lawful manner.
> Given the high number of consumers impacted, and the outrageous manipulation
> of consumers using dark patterns, the FTC should also hold senior company
> officials responsible for their flagrant abuse of their customers’ privacy.”

At Malwarebytes, we have expressed our concerns about the number of buyers and
brokers for data. That’s regardless of whether they are there to sell data to
anyone that is willing to pay, or only offer it to those that rightfully own the
data. It’s also regardless of how the data were obtained, in a breach or by
“consent.”

As we all learned in economics, demand drives up the price and the higher the
price the more attractive it becomes to go after the data. And, as the
mother-of-all-breaches (MOAB) incident clearly demonstrated, not everyone is as
careful as they should be about accidentally exposing their data collection.


CHECK YOUR EXPOSURE

You can verify whether your information is available online due to data breaches
by using the Malwarebytes Digital Footprint portal. Just enter your email
address (try the one your car dealership has) to our free Digital Footprint
scan, and we’ll give you a report. For those whose information was not included,
you’ll still likely find other exposures in previous data breaches.

SCAN NOW

--------------------------------------------------------------------------------

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Cybersecurity risks should never spread beyond a headline. Protect your—and your
family’s—personal information by using identity protection.

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ABOUT THE AUTHOR

Pieter Arntz

Malware Intelligence Researcher

Was a Microsoft MVP in consumer security for 12 years running. Can speak four
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