How To Put Consumers In Control Of Their Data, According To Truework’s CEO

Over the past two decades, digital footprints have augmented consumers’ lives. While widespread digitization has brought welcome benefits, it has also opened the floodgates to identity theft and other cybersecurity concerns. As a result, many people feel helpless when it comes to keeping their personal information private.

In 2019, Pew Research examined the relationship between consumers and online privacy. The results showed that most Americans felt they had lost control of their data. For example, 81% of participants in the Pew study said they couldn’t do anything about the data companies collect about them.

Some regulations and laws such as the California Consumer Privacy Act (CCPA) and the European General Data Protection Regulation (GDPR) address this issue. However, the system still has gaps. That’s why I turned to the insights of entrepreneur and privacy rights advocate Ryan Sandler, CEO of Truework.

Sandler’s company has grown to become one of the most trusted platforms offering third-party income and employment verification. Truework recently raised $50 million in a Series C funding round. The company intends to use the inflow of capital to continue growing and protecting its network of consumers, businesses and non-profit users.

Serenity Gibbons: Let’s get straight to the heart of the matter and talk about the top concerns consumers have about their data when it comes to income and employment verification.

Ryan Sandler: Believe it or not, one of the main concerns is data accuracy. The Wall Street Journal recently wrote about consumers who were denied loans because of bad credit. This is heartbreaking and shouldn’t be happening.

Other concerns relate to what I call the “four Cs”: coverage, complexity, time to close, and cost. In terms of coverage and complexity, consumers want a system that gives them a streamlined and secure way to send all of their data in one place for employers and lenders to see. Having everything available in one place reduces the time it takes to complete. Ultimately, this efficiency impacts the costs associated with verifying the protected data.

gibbons: That’s a lot of concerns. Do you think they are all valid?

Sandler: They are absolutely valid. Consumers haven’t had control over their data for a while, and that’s a problem Truework is trying to fix. Building the future with a consumer-centric mindset feeds into every decision we make at Truework. We put millions in control of their data and streamline the lending process for both lenders and borrowers. Working at LinkedIn, I was shocked to discover that income data was often sold behind the scenes without consumers’ knowledge — or permission.

Your income, my income… this is some of our most private data. Many people do not discuss their salaries with their family members or friends, and they certainly do not want this information to be sold without their input or knowledge.

gibbons: That’s scary. It also seems to point to the fact that companies have a responsibility to protect consumer data, including employee data.

Sandler: do they. Businesses are expected to protect private data from potential data breaches. Of course, that starts with their infrastructure as well as their ability to keep up with security certifications and best practices. But companies need to go one step further and also get consumer permission to share data.

gibbons: You mention your company, Truework. How do Truework’s processes solve these key consumer data problems?

Sandler: Let’s start with the cover. We use a “waterfall” system that allows us to securely and quickly obtain income and employment data for up to 95% of US-based workers, including gig economy workers. We are set up as a one-stop, single integration clearinghouse utilizing the most up-to-date verification and data sources.

When a business, such as an employer or lender, needs to verify a consumer’s information, we verify the 35 million records on our instant network. When we have information from someone in these records, we email them asking permission to release the information. If we don’t have the information, we ethically and responsibly seek for it as part of the comprehensive waterfall system. Our goal is to be consumer-centric, giving back control and privacy at every step.

gibbons: I understand Truework is also a Credit Reporting Agency (CRA), correct?

Sandler: Yes. Truework acts as the CRA. As a CRA, consumers can report inaccurate data that they become aware of. This increases the confidence of both consumers and lenders and employers who rely on the data received. In the rare event of an income reporting error, we do not charge customers for the dates and make it easy for the consumer to change them.

gibbons: How do you see the future of consumer protection?

Sandler: I expect we will continue to see more laws and regulations to better protect consumer data. From our perspective, and with our success, we have proven that when you put consumer needs first, you can greatly address privacy concerns while enabling a safe and fast flow of data from consumer to lender.