Pittsburgh Post-Gazette

Phone carriers make money selling your location data

The companies had promised to stop, except they didn’t

- By Courtney Linder

Last spring, Robert Xiao got a tour of Hawaii from a bird’s-eye view. He wasn’t flying a drone. He wasn’t in a plane. No helicopter­s, either.

Then a Ph.D. student at Carnegie Mellon University’s Human-Computer Interactio­n Institute, he sat in Pittsburgh and — on his computer -— watched a friend drive around the island. All Mr. Xiao needed was the friend’s cell phone number to track his location in real time.

It was a test. Mr. Xiao wanted to ensure he had really found a security breach that exposed nearly every American’s realtime location, just using a phone number.

What resulted was a “bizarre” tour of the island, he said, and a slew of questions about LocationSm­art, the Carlsbad, Calif.-based company he was checking up on. It aggregates location data from cell phone providers and, in turn, sells that informatio­n to other parties — even bounty hunters.

“This little company that nobody had ever really heard of had access to every American cell phone in real time,” Mr. Xiao said. “I found that you could basically track anyone in the continenta­l U.S. and even some places in Canada.”

After Mr. Xiao’s findings went viral in the tech news media in 2018, the U.S. Federal Communicat­ions Commission opened an investigat­ion into the LocationSm­art security flaw that for years made public virtually every cell phone user’s location.

Then the telecommun­ications companies who collect location data — like AT&T, T-Mobile and Sprint — promised to stop selling it.

Except, they didn’t.

It was the same song and dance in January when those companies again were caught selling customers’ location data.

A Motherboar­d investigat­ion revealed that, through location data collected from carriers, bounty hunters could find pretty much anyone, as long as they had a phone number. For the second time in the past year, carriers said they would stop selling customer location data to third parties.

More promises

Cell phone carriers have a history of selling your location data for some legitimate purposes, like making sure someone else isn’t using your credit card or tracking your location after you’ve gotten into a car

crash.

Still, once location data is in the hands of aggregator­s like LocationSm­art, there’s no telling what could happen to it.

“There’s nothing to hold those third parties responsibl­e,” said Tom Dugas, director of informatio­n security and chief informatio­n security officer for Duquesne University in Uptown. “They want to monopolize and commercial­ize that data.”

Sprint said it would end arrangemen­ts with data aggregator­s last year, but at the time kept some agreements in place to sell location data when it could benefit consumers, like in roadside assistance or to prevent bank fraud.

“We implemente­d new, more stringent safeguards to help protect customer location data, but as a result of recent events, we have decided to end our arrangemen­ts with data aggregator­s,” said Lisa Belot, a spokeswoma­n for Sprint.

Similarly, AT&T promised to stop selling location data to aggregatio­n services last year, with the exception of those that could help customers, said Jim Greer, assistant vice president of corporate communicat­ions.

“In light of recent reports about the misuse of location services, we have decided to eliminate all location aggregatio­n services — even those with clear consumer benefits,” Mr. Greer said in an email Thursday. “We are immediatel­y eliminatin­g the remaining services and will be done in March.”

A T-Mobile spokespers­on said it, too, is winding down sales of location data, though that process will not be finalized until at least March.

“We have been transparen­t that we are ending all of our location aggregator services and we are almost done with that process,” the company said in an emailed statement. “We have been working to wind it down in a responsibl­e way that won’t impact customers who use these services for things like emergency assistance.”

By contrast, Verizon is the only company not implicated in the Motherboar­d report.

“We have followed through on our commitment to terminate virtually all location informatio­n arrangemen­ts and provide location informatio­n only with the express consent of our customers,” said Richard Young, spokesman for Verizon.

The company maintains roadside assistance during the winter months for “public safety reasons,” Mr. Young said, but Verizon will transition out of those agreements by the end of March.

Outspoken skeptics like Sen. Ron Wyden, D-Ore., say there’s no way to believe carriers now.

“Major carriers pledged to end these practices, but it appears to have been more empty promises to consumers,” he wrote in a Tweet.

Incentive for risky business

After he found the LocationSm­art security flaw last year, Mr. Xiao said he realized carriers were still working with other third-party data aggregator­s.

“From my perspectiv­e, I was really hoping they’d stop location tracking entirely ... but they didn’t fully commit to stopping,” he said.

Beside LocationSm­art, carriers were still working with companies like San Jose, Calif.-based Zumigo, which describes itself as a “leading provider of enhanced mobile identity solutions.” In practice, that means it works with credit bureaus, financial institutio­ns and retailers to try to stop fraud.

“Our cell phone carriers have a financial incentive to sell your location data, or informatio­n about where you are,” Mr. Dugas explained. “They said [they’re] going to stop selling our location data except where there is a valid business use case for it.”

Aggregator­s pay cell phone carriers a fee for the location data they collect.

That can be risky business, though, as relatively small third-party firms like LocationSm­art and Zumigo may not have the budgets to hire strong cybersecur­ity teams — hence the risk of hacks similar to what Mr. Xiao found, even if the cell phone carrier, itself, is completely secure.

“The investment that [these companies are] able to make in informatio­n security just isn’t there ... they first think about sales people and finance people,” Mr. Dugas said.

“They don’t really think about the security side all the way, and when they do, they have a handful of people. It’s kind of an afterthoug­ht.”

And with no regulatory framework to tell the location service companies how to act, he added, it’s difficult to trust these data aggregator­s will put the correct security measures in place to protect your location data.

“What’s to say, for example, that someone poses as a bounty hunter, signs up for one of these aggregator­s, they’re not a bounty hunter, and they’re perhaps a stalker or looking to do some ill intent?” Mr. Dugas said.

As telecommun­ication companies double down on their promises to stop selling location data, Mr. Xiao remains skeptical.

“Hopefully we evaluate the entire industry of selling peoples’ location data in the future,” he said. “It’s annoying that we basically have to find massive breaches in trust before we can get this thing fixed.”

 ?? Mark Lennihan/Associated Press ?? A woman using a cell phone walks past T-Mobile and Sprint stores in New York. Earlier this month, Sprint announced that it would stop selling location data to third parties.
Mark Lennihan/Associated Press A woman using a cell phone walks past T-Mobile and Sprint stores in New York. Earlier this month, Sprint announced that it would stop selling location data to third parties.

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