Login.gov, a centralized website launched in 2017 to facilitate citizen access to various federal services, has raised privacy concerns due to its reliance on private-sector data brokers for user identity verification. The site, backed by an executive order from the Biden administration, connects to more than 20 government agencies, including the Social Security Administration and NASA.
The identity verification process for registering on Login.gov involves companies like LexisNexis, a major information conglomerate. In December, LexisNexis received a $34 million contract for this service. However, the involvement of data brokers, known for collecting and selling information on individuals, has sparked debate over privacy and the federal government’s role in supporting these practices.
Data brokers have been pushing against proposed federal privacy legislation that would restrict their data harvesting capabilities and offer citizens more control over their personal information. Despite these concerns, the federal government continues to engage these companies due to challenges in building in-house systems and the need for anti-fraud measures.
For instance, LexisNexis and TransUnion, another company involved with Login.gov, have secured significant contracts with the government for identity verification and fraud prevention. LexisNexis, for example, was awarded a $1.2 billion contract by the Department of Labor, later reduced to $528 million, for fraud detection in unemployment insurance programs. Accenture and Acxiom, also registered data brokers, hold contracts with the federal government for similar purposes.
The reliance on data brokers by the government highlights a paradox: much of the information used by these firms originates from government-issued documents, like social security numbers and state IDs. However, a longstanding law aimed at protecting Americans’ privacy restricts government agencies, but not private data brokers, from accessing this data directly.
This situation has led to concerns about the government’s dual role in regulating data brokers while simultaneously supporting their business through contracts. The General Services Administration (GSA), which oversees Login.gov, acknowledges the challenges but notes the lack of viable alternatives.
The GSA has been open about its data retention and usage policies, inviting public comment on these issues. As the discussion continues, the blurred lines between data protection and the government’s reliance on data brokers remain a focal point of debate.
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