In an era of data breaches and privacy scandals, people have grown wary of sharing their personal information—especially their location. While almost 80% of people have location sharing activated on their phones some of the time and 16% do all of the time, many people still try to resist it due to privacy concerns.
However, location sharing isn’t about giving more of your personal information away. It’s about protecting it.
Location sharing can safeguard personal information from data breaches and privacy leaks without needing to collect personally identifiable information (PII). It can also enhance online interactions in an unintrusive way, offering seamless onboarding and creating tailored digital experiences.
Personally identifiable information (PII) is any information that can be used to identify a person. It includes:
- Name
- Date of birth
- Social security number
- Passport or license numbers
- Biometric records
- Medical records
- Email addresses
- Phone numbers
- And more!
Yet many people still view location sharing as a means for organizations to control people’s data and know their whereabouts at all times. The frequent use of location sharing to deliver more targeted experiences or to create more detailed customer profiles fuels the misconception that businesses collect location data to gather personal information about their audience without much additional benefit for the users.
The reality is that users can experience enormous benefits from location sharing.
Not only would users be able to secure their personal information without needing to collect PII – they would also experience less friction during onboarding and transactions while getting more personalized experiences curated for their region.
Many misconceptions about location sharing lead users to resist sharing their location despite its various benefits. Below are three common misconceptions surrounding location sharing.
Common misconceptions of location sharing
Misconception #1: Sharing your location means you will be more susceptible to online risks
People often believe that sharing their location will put them more at risk of spam, data breaches, or risks associated with scammers or hackers. However, reality is far from this. Location and device data are some of the most effective and unintrusive forms of risk management, allowing online platforms to proactively prevent and detect fraud without collecting personally identifiable information like names, emails or personal records.
With accurate location and device data, digital platforms can identify risks of various forms of fraud before they occur, such as identity theft, account takeovers or multi-accounting – all of which are common red flags for hacking and data breaches. For example, if an online platform can see that multiple users are trying to access an account from entirely different regions, that someone’s location jumps from country to country within seconds, or that their current location doesn’t align with their location history, these are all crucial indicators of fraud that platforms can use to proactively safeguard their users from bad actors.
Advanced solutions like GeoComply take it to the next level, leveraging years of historical location and device data (from billions of transactions a month), as well as advanced machine learning, to create situation-driven insights and detect suspicious behaviours far before they have a chance to occur. Additionally, advanced solutions layer robust device fingerprinting with location intelligence, detecting not just suspicious location patterns but high-risk devices that have a history of frequent device resets, advanced spoofing tools, regularly changing phone numbers and even suspicious device ages.
Misconception #2: People who don’t share their location will be completely safe and untraceable.
Contrary to the common misconception that withholding location information will leave users “untraceable,” companies can still track IP and mobile information, which not only greatly limits user protection but can even put users more at risk of online fraud. IP addresses are known to be easily hijacked by bad actors, often being used by criminals as a cover for illegal activity. In 2022, over 200 million users were victims of IP abuse. In fact, companies that only leverage IP information have less robust measures in place to prevent unauthorized access or the presence of illicit activity, such as money laundering or financial crime, on their platforms.
Despite being an unreliable, outdated form of geolocation, IP is still the industry standard for geolocation across various sectors.
Additionally, alternative risk management measures from advanced geolocation and device intelligence can be more intrusive and friction-heavy. For example, alternatives like multi-factor authentication, knowledge-based authentication (aka lengthy security questions), and biometrics not only add more barriers for the user but also require users to give up data that is far more personal than location information.
Knowledge-based authentication (KBA) leads to an estimated 30 percent user drop-off rate.
Location sharing is not only a seamless and secure alternative to sharing personally identifiable information but also ensures the most frictionless, tailored experience for users. Choosing not to collect location data will only put platforms at a higher risk of fraud and create unnecessary barriers for the user.
Misconception #3: Once someone shares their location, they will lose control over their data, and it will be stored forever.
A saying goes that once something is on the internet, it’s there forever, which people can take to heart when it comes to location sharing. However, many apps and services allow users to delete their location history or control the level of access applications have. Modern operating systems like iOS and Android offer robust location permission controls, allowing users to control the access of individual apps and even clear location data stored by the device itself. Regulations like GDPR and CCPA further reinforce these rights, protecting user data from unauthorized access and processing.
Fun fact: People in the European Union (EU) have the right to request a copy of the data that businesses hold about them and to request that it be deleted.
Several regulations across different regions are in place to ensure the protection of private information, including mandating companies to receive consent before collecting information and to disclose how the information is used. There are also protective measures in place by regulatory bodies, such as the Federal Trade Commission, that ensure organizations do not misuse location data or mislead their users. Each organization’s privacy policy outlines its scope to how information is collected and used, as well as users’ data request rights (including the right to request the deletion of personal information).
The benefits of location sharing in the modern age
Location data, layered with device fingerprinting, plays a crucial role in risk management for digital platforms. By frequently monitoring where a user is attempting to access their account from and the characteristics of the device they’re using, platforms can identify anomalies that indicate fraudulent activity. For instance, if a user typically logs in from New York but there’s a sudden login attempt from Nigeria, it’s a key likelihood that it’s fraud. Similarly, if the device being used has a history of being associated with fraudulent accounts, altering device information or conducting frequent device resets, it’s a blaring red flag that the device is being used for suspicious activity. These real-time analyses, combined with rich historical data, allow platforms to proactively manage risk before any damage actually occurs.
Furthermore, location sharing enables a more seamless and personalized user experience by streamlining onboarding processes, reducing friction during transactions and allowing businesses to tailor offerings to specific regions or preferences. For example, with precise geolocation, platforms can offer special features to different regions and even tailor risk management measures based on the risk level of the region. By adjusting their offerings and risk management levels, platforms can discover untapped revenue opportunities in new regions. Enabling location sharing creates a safer and more personalized digital environment, catering to unique user needs and providing a seamless layer of security.
Looking forward: the future of location sharing
As technology evolves, location sharing will continue to become the norm in people’s digital lives. While a significant portion of the population uses location services at least some of the time, hesitation still remains, stemming from a misunderstanding of how location data is used. The reality is that location sharing can enhance security, facilitating smoother online experiences while offering additional protection.
The future of location sharing lies in embracing it as a benefit rather than resisting its inevitable adoption. In today’s digital AI-powered age, even amateur fraudsters can automate schemes like account takeovers and identity theft. Empowering users to understand their control over their data and the clear benefits of location sharing is the key to unlocking its full potential and ensuring the safety and integrity of the online ecosystem.
Want to see how location sharing can benefit your organization? Connect with one of our experts today!
