How to Protect Your Private Information on the Internet

"Free credit report" offers are abundant on the internet, but they are not free. Because of intense competition, companies are using any means necessary to gather data on their target market. Often companies that offer free credit reports want your information so they can sell it to third parties where you have no control how or when your private information is used. Also, loyalty programs are widely used, offering consumers (supposed) discounts and benefits in exchange for their private information and the ability to track their purchases. An example of this is the "Reward Zone" at Best Buy. The consumer is given a card and a membership code, which they swipe or punch in every time they make a purchase. After they make $500 in purchases, they receive a $5 gift card. But what does the company gain? The ability to track exactly what you are buying, and for what price. They can track consumers' spending habits and send you special coupons, promotions, or "new arrival" newsletters based upon your previous purchasing habits. If you are price sensitive and only buy during really good sales, they will send you coupons more frequently. For example, I signed up for an account at Smartbargins.com. By providing them my private data, they promised to send me weekly newsletters with money-saving coupons. I received these newsletters, and when Smartbargains offered deals such as free shipping or 20% off select items, I would often click on the link and make a purchase. They were able to learn how price-sensitive I was and I now receive such coupons more frequently. If you went to Smartbargains.com today, you would see a site like Picture A.