Incogni’s researchers found that customers, to claim the benefits offered by such apps, often end up bearing additional costs by sharing their personal and sensitive information including, in some instances, sexual orientation and health information.

Among the highest-valued brands, Nike and H&M stand out by collecting a significant number of data points, including photos, videos, and messages, while PUMA, Under Armour, The North Face, and again H&M were identified as sharing an alarming volume of sensitive data with third parties.

Fashion retailers and online clothing stores frequently encourage users to opt for their official apps, often luring them with attractive discounts, bonuses, or exclusive offers. While it’s expected for online purchases to involve the collection of some personal data, like names, addresses, and payment details, to proceed with the order, Incogni’s research uncovered a more worrying trend. Shoppers are unknowingly parting with sensitive information such as sexual orientation and contact lists, which are sometimes not only collected but also shared with third parties.

Incogni’s researchers carefully examined the practices of the most popular apparel shopping apps from 59 countries, including those of the top-valued apparel brands in 2023, totaling 180 apps. The study focused on data-collection and sharing practices, scrutinizing the reasons provided by app developers for acquiring specific types of data.

The researchers also identified which data points were optional, allowing consumers to retain control over at least some sensitive information.

The study’s key findings reveal a concerning landscape: 45 out of 180 investigated apps collect photos (including Nike, H&M, Victoria’s Secret, and Moncler), 12 apps collect videos (including Nykaa, Vinted, and Meesho), 9 apps collect search history (including Victoria’s Secret and Puma), and 6 apps collect information on sexual orientation (Showniq – AI Stylist Của Bạn, Nike SNKRS: Shoes & Streetwear, Instreet, Boots TH, Pantaloons-Online Shopping App, and Zalando).

Among these apps, 24 share photos (including Adidas) with third parties, 2 share sexual orientation (Showniq – AI Stylist Của Bạn and Pantaloons-Online Shopping App), and 1 app (Myntra – Fashion Shopping App) shares health information.

The highest number of data points are collected and shared by the most popular apps from customers in Oceania (15.9 and 8.7 data points, respectively), Europe (14.2 and 9 data points), and North America (12.3 and 8.1 data points).

The most popular apps by valuation, i.e.: Nike, H&M, The North Face, Adidas, Victoria’s Secret, Moncler, Under Armour, PUMA, Levi’s, and UNIQLO US, on average collect 14.4 data points, and share an average of 8.5 data points from the following categories: location, personal info, financial info, health and fitness, messages, photos and videos, audio files, files and docs, app activity, web browsing, app info and performance, and device and other IDs.

Notably, 2 out of the 10 most popular apps are also found among the 10 most data-collecting apps. Nike and H&M collect 18 data points each and are tied for the 7th most data-collecting app with 4 other apps.

These apps share a concerning amount of personally identifiable and otherwise sensitive data with third parties, including email addresses and phone numbers, for the purposes of advertising or marketing.

“While we understand that some of these data points are collected to improve the shopping experience or process orders, some seem to go beyond what’s necessary to provide the service. This is especially concerning given the presence of some questionable data-sharing practices and the increasing number of data breaches. Collected data, including sensitive information, might end up in the public domain in the aftermath of a breach. We urge consumers to be cautious about the data they share and call for greater transparency in app data-collection practices”, – underlines Darius Belejevas, Head of Incogni.

Incogni’s researchers used the rankings provided by AppMagic (in the Shopping: Fashion & Beauty category) to find the most popular apps in 59 countries. For each country, they noted the top 10 popular free apps in the category for the year 2023.

App names and their rankings were noted on December 18th. Our researchers separately identified the top apparel brands by valuation,² filtering for those brands that offer apps facilitating purchases.

These brands’ apps were added to the list for investigation, bringing the total number of studied apparel apps to 180.

Incogni’s researchers went on to collect information found in the data safety sections of the Google Play Store pages of the identified apps.

The information was aggregated on country and regional bases for some analyses. Data collection from the Google Play Store took place on December 19th.

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• In 2022, people over the age of 60 lost a combined total of $3.1B to fraudsters and other criminals, the highest amount recorded by far.
• 103,000 crimes (across 30 categories) were reported and almost 60% of them (accounting for 12 out of the 30 categories) were likely facilitated or made worse by criminals having access to people’s personal data.
• Investment scams, a data-enabled crime, affected 4,700 elders in 2022, contributing the loss of almost $1B ($990M) to criminals.
• Investment scams were the fastest-growing type of elder fraud after cryptocurrency scams.
• Researchers found almost 8,000 people over 60 years old who were affected by a personal data breach.
• California was the most affected state, with the average victim losing over $54,000.
• Since 2020, the numbers of reported victims have been dropping slightly year-on-year, but total losses have continued to skyrocket regardless.

As information technology advances at a rapid pace, senior citizens are finding themselves increasingly vulnerable to a wave of cybercrimes, especially those involving phishing and fraud.

Despite improvements in digital literacy among the elderly, their limited data security knowledge makes them easy targets for criminals exploiting personal information.

In the latest study conducted by Incogni, it has been revealed that crimes targeting people over 60 have reached alarming levels, with a total loss of $3.1 billion in 2022 alone.

More concerning is the fact that almost 60% of these crimes were facilitated or exacerbated by criminals having access to victims’ personal data.

The research highlights that 12 out of 30 identified crime types, including identity fraud, depend on the availability of victims’ personal information.

Some crimes captured under the elder fraud umbrella, like identity fraud, depend entirely on such data availability.

Key findings from Incogni’s research shed light on the severity of the issue. Investment scams emerged as a significant threat, leading to nearly $1 billion in losses in 2022.

Criminals exploit victims’ income, savings, and asset information, making these scams highly successful and financially devastating for the elderly population.

Tech support scams affected 18,000 individuals over 60 in 2022, highlighting the vulnerability of older adults when it comes to modern technologies.

These scams resulted in total losses of $590 million, emphasizing the urgent need for enhanced digital security measures.

Business Email Compromise (BEC), primarily targeting businesses, also impacted individuals over 60, causing $477 million in losses.

This indicates that older individuals in positions of authority or entrepreneurship are particularly at risk due to their business-related online activities.

Confidence and romance scams, on the other hand, were exacerbated by the loneliness that older individuals too often experience, underlining the need for increased awareness and protection.

These types of scams led to losses of $420 million in 2022, affecting 7,200 elders.

Incogni’s previous study revealed that Americans may benefit significantly from data protection laws, such as the California Consumer Protection Act (CCPA), which restrict the activities of data brokers and might mitigate the risks associated with elder fraud crimes.

“Protecting senior citizens from the rising tide of elder fraud crimes enabled by personal data vulnerabilities is extremely important today – said Darius Belejevas, Head of Incogni. – We encourage lawmakers, businesses, and individuals to come together and implement effective data protection measures to safeguard the elderly population from these harmful scams”.

Incogni’s researchers examined the Annual Reports and Elder Fraud Reports published by the Internet Crime Complaint Center (IC3), a division of the FBI, investigating numbers regarding internet crimes against people over 60.

This information was collected from people reporting such crimes to the IC3. The researchers aggregated yearly losses and victim counts per crime type from these reports with additional supplementation with 2022 data concerning state-level information.

Using the information gathered, Incogni’s researchers explored trends in victim counts and amounts lost per crime type.

They noted crimes exacerbated by private information being made available through data brokers, people search sites and other sources.

[Source] 

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