PURCHASE, N.Y.—Mastercard has allegedly been keeping detailed records of the spending habits of its credit card-holders, which it then sells to third-party companies — often without customers' knowledge, according to a new report published by the Public Interest Research Group (PIRG) and reported by CBS News.
Citing the PIRG report, CBS News said Mastercard has built a separate division dedicated to the selling of customer transaction data and it has become a huge revenue stream for the global payments technology company. In a statement to CBS MoneyWatch, Mastercard denied selling customers' data, CBS News said.
‘Most Consumers Not Aware’
CBS stated the problem is that “most consumers are not aware of the degree to which their data is being tracked and sold or that the sale of such personal data exposes them to identity theft and scams,” in addition to "creepily invasive" advertising, citing the PIRG report.
"Mastercard is so opaque about its data sales it's almost certain most cardholders don't realize what the company is doing with their data," R.J. Cross, policy analyst for U.S. PIRG, told CBS MoneyWatch.
‘Aggregated & Anonymized’
The PIRG report alleges Mastercard sells the data in an "aggregated and anonymized” format, meaning third-parties don't have customers' individual information. While that mitigates some of the consumer risks that come with data monetization, it does not prevent companies from "reaching people on an individual level based on data" or being bombarded with annoying ads, according to USPIRG.
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