Allstate slammed with lawsuit after scheme to spy on millions of Americans is uncovered: 'Without their knowledge or consent'
Allstate Insurance and its subsidiary Arity are being sued for collecting, using, and selling over 45 million Americans' driving data to insurance companies without consent, according to Malwarebytes.
This case comes amid a tumultuous year for insurance companies, mainly on the home insurance front, as many have recently come under fire for dropping coverage ahead of major weather disasters.
Allstate partnered with app developers such as Life360 to covertly gather driving data from users and then use that driving data as justification for raising rates. In addition to using the data for their customers, Allstate has also sold data to other insurance companies so they can raise rates as well. This scheme is being called the "world's largest driving behavior database."
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"Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate's tracking software," Texas Attorney General Ken Paxton said. "The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better, and we will hold all these companies accountable."
General Motors and other car manufacturers are under investigation for similar breaches. Allstate is being accused of purchasing that data from manufacturers as well, including Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram.
While there are clear dollar-and-cents consequences of inadvertently sharing location in instances like this, there are bigger risks if those wheeling and dealing in data don't do so securely. Bad actors who gain illicit access to location data can engage in stalking and identity theft.
Most uses of location data range from benign advertising to beneficial emergency services. The crux of the issue is consent. End users need to know what they're getting by providing their location data to an organization.
Allstate is being sued under the Texas Data Privacy and Security Act. Some states have more robust data privacy laws than others, and they can all be tracked here. Robust federal action is also being taken against location data brokers.
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