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Allstate sued for allegedly tracking and selling 45M Americans' location data

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Allstate sued for allegedly tracking and selling 45M Americans' location data

Nowadays, almost every app you download asks for location permissions, meaning it wants to track where you are and your movements. For an app like Google Maps, requesting location access makes perfect sense. It’s also reasonable for apps like Uber or DoorDash, which rely on location for their services. 

However, many apps that have nothing to do with location still ask for it, and we often grant these permissions without thinking twice. When you give an app access to your location, that data is stored and, in some cases, might even be sold. According to Texas Attorney General Ken Paxton, this practice is not uncommon. 

A recent lawsuit filed by Paxton alleges that the insurance company Allstate collected and sold the location data of 45 million Americans’ smartphones.

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Illustration of a company tracking customer’s data. (Kurt “CyberGuy” Knutsson)

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Allstate was allegedly collecting and stealing data

In a press release, Paxton announced that he had sued Allstate and its subsidiary, Arity, for unlawfully collecting, using and selling data about the location and movements of Texans’ cellphones. The data was gathered through secretly embedded software in mobile apps, such as Life360. “Allstate and other insurers then used the covertly obtained data to justify raising Texans’ insurance rates,” the press release stated.

The insurance provider allegedly collected trillions of miles’ worth of location data from more than 45 million Americans nationwide. The data was reportedly used to build the “world’s largest driving behavior database.” When customers sought a quote or renewed their coverage, Allstate and other insurance companies allegedly used the database to justify raising car insurance premiums.

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Paxton claims the actions violated the Texas Data Privacy and Security Act. The lawsuit alleges customers were not clearly informed their data was being collected and did not consent to the practice.

“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” said Paxton. “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.”

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We reached out to Allstate and Arity for comments. A rep for the Allstate Corporation provided CyberGuy with this statement: “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”

Illustration of a person laying out how company tracking works. (Kurt “CyberGuy” Knutsson)

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Car manufacturers apparently do this all the time

Car manufacturers have also been accused of selling similar data to insurance companies. Last year, Paxton sued General Motors for allegedly collecting and selling the private driving data of more than 1.5 million Texans to insurance companies without their knowledge or consent. In addition to insurance companies, data brokers are frequent buyers of customer data. Critics say these brokers fail to adequately protect the information, leaving it vulnerable to hackers. Earlier this month, hackers claimed to have breached Gravy Analytics, a major location data broker and the parent company of Venntel, which is known for selling smartphone location data to U.S. government agencies.

Illustration of a hacker looking at someone’s personal data. (Kurt “CyberGuy” Knutsson)

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HOW TO REMOVE YOUR PRIVATE DATA FROM THE INTERNET

5 ways to stay safe from unwanted tracking

1. Avoid installing the insurance company’s app: Many insurance companies encourage users to download their apps to “simplify” claims, payments or policy management. However, these apps often collect and track your location data under the guise of improving their services. If the app is not absolutely essential, manage your account through the company’s website or contact customer service directly instead.

2. Don’t give location permissions unnecessarily: When an app requests location access, ask yourself whether it genuinely needs this information to function. For example, a weather app may need approximate location data, but a flashlight app does not.  Always choose “Deny” or “Allow only while using the app” unless absolutely necessary. Most modern devices also allow you to provide an approximate location rather than a precise one, which is a safer option when location access is unavoidable.

3. Review and manage app permissions regularly: Over time, you may forget which apps have been granted permissions. Regularly go through your device’s app settings to check and adjust permissions. On most devices, you can access this under settingsprivacyapp permissions (specific steps vary by operating system). Revoke access for any apps that don’t need it or seem suspicious.

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4. Turn off location services when not in use: Keep location services off when you don’t need them. This reduces the chances of apps or devices tracking you passively in the background. For tasks like mapping or food delivery, turn location services on temporarily, then turn them off when you’re done. For added security, avoid connecting to public Wi-Fi networks, which can also be used to track your location indirectly.

5. Use privacy-focused tools and apps: Invest in tools designed to safeguard your privacy. Virtual private networks (VPNs) can mask your location online and prevent unwanted tracking while browsing.  VPNs will also protect you from those who want to track and identify your potential location and the websites that you visit. For best VPN software, see my expert review of the best VPNs for browsing the web privately on your Windows, Mac, Android and iOS devices

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Kurt’s key takeaway

If Allstate is indeed unlawfully collecting and selling people’s location data, Attorney General Paxton is right to hold them accountable by filing a lawsuit. In an era where cybercriminals exploit every opportunity to scam individuals, companies that fail to protect customer data are unacceptable and should face consequences. Data has become the new oil, and everyone seems eager to exploit it — often at the expense of ordinary people. Businesses that prioritize profits over privacy erode trust and put consumers at risk, making it crucial to enforce strict accountability for such practices.

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Do you think companies like Allstate should be required to make their data practices crystal clear to customers? Let us know by writing us at Cyberguy.com/Contact

For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter

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No, Flock isn’t threatening people for debating surveillance

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No, Flock isn’t threatening people for debating surveillance

We’re aware of at least two forged letters circulating on the internet, including this one, that purport to be cease-and-desist letters from our legal department. To be clear: these letters did not come from me or from anyone at Flock.

Flock welcomes and encourages public debate about our technology. We have not and would not seek to discourage, prevent, or prohibit such discussion and debate. In fact, we would be happy to participate in any such discussions the group in question might host in the future.

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Fake VA shoe offer targets veterans

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Fake VA shoe offer targets veterans

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A flyer offering “free athletic shoes from VA” may look official at first glance. It uses VA-style branding, talks about health and wellness and even lists the MyVA phone number. That is what makes it so dangerous.

VA says the message falsely claims Veterans can receive free athletic shoes from VA. The agency says the promotion did not come from VA and has no connection to any official VA program.

The scam appears to be spreading through a flyer and online posts. It tells Veterans they may be eligible for free athletic shoes “at no cost to you.” It also shows popular shoe brands, steps to “redeem” shoes and a process that appears to involve a VA provider.

That may be enough to get someone to click, call, share or forward before they stop to think.

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MEDICAL IDENTITY THEFT FOLLOWS YOU INTO THE DOCTOR’S OFFICE

Veterans are being warned not to click links, scan QR codes or share personal information tied to a fake VA shoe offer. (Kira Hofmann/picture alliance via Getty Images)

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Fake VA shoe offer: what VA says

VA says the free athletic shoe promotion is fake. It did not come from an official VA program, including VPRs, Central Office or Whole Health.

That is important because the flyer borrows the look and feel of a trusted government agency. It also uses health language to make the offer sound like a wellness benefit.

But let’s be real here. A free pair of shoes can sound harmless until the next step asks for your personal details.

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Why the fake VA shoe flyer looks so believable

This scam works because it mixes familiar names with an official-looking design. The flyer uses VA branding, a health-focused message and well-known athletic shoe brands.

It also presents the offer as a benefit. That can make people feel like they may miss out if they do not act.

Scammers know that veterans and families often deal with a lot of paperwork, benefit updates and health care messages. A fake flyer can slide into that confusion and feel more believable than it should.

How scammers use real VA details to build trust

One sneaky detail stands out. The flyer lists the MyVA number, but that alone does not make the flyer real.

Scammers often mix real information with fake offers. A real phone number, real logo or familiar agency name can make people lower their guard.

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That is why you should verify the offer through VA.gov, your official VA account or your local VA facility before responding.

What the fake VA shoe offer could steal

The flyer may look like it is only about shoes. The bigger risk comes next.

A fake offer like this could lead to a phishing page, a bogus form, a QR code trap or someone asking for sensitive details. That could include your Social Security number, VA login information, health information, address, bank details or credit card number.

Scammers may also use the information to target you again. Once they know you responded to a fake VA offer, they may try a follow-up call, text or email.

DR OZ WARNS MEDICARE SCAMMERS ARE STEALING BILLIONS — AND YOUR PERSONAL INFORMATION COULD BE NEXT

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A fake flyer claiming Veterans can get free athletic shoes from VA is spreading online, but the agency says it is not tied to any official program. (U.S. Department of Veterans Affairs)

What to do if you see the fake VA shoe offer

Do not share it. Do not forward it. Do not fill out a form. Do not scan any code connected to it.

Also, do not provide personal, financial or health information because of this flyer.

Instead, warn veterans, family members and colleagues without spreading the image. A quick heads-up can help someone avoid a costly mistake.

Ways to stay safe from VA scams

A few smart habits can help you spot fake VA messages before they turn into a bigger problem.

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1) Verify the offer through VA.gov

Go directly to VA.gov or use your official VA account. Do not rely on a flyer, social media post, text message or forwarded image.

2) Do not scan QR codes or click links

A scam flyer may send you to a fake website that looks official. Type the web address yourself or search for the VA page directly.

3) Never share VA login details

Do not give anyone your VA.gov username, password or sign-in code. VA says it will not ask you to share login credentials in an email.

4) Protect personal and health information

Treat your Social Security number, address, date of birth, medical information and benefits details as sensitive. A free offer should never require that kind of information from a random form.

QR CODE EMAIL SCAM TARGETS EMPLOYEE REVIEWS

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VA says veterans should verify suspicious benefit offers through VA.gov, an official VA account or a local VA facility. (Antonio Diaz / Getty Images)

5) Call VA using a trusted number

If you have questions, contact VA through an official phone number, the VA website or your local VA facility. Do not trust contact details from a suspicious flyer alone.

6) Report the fake VA shoe offer

Veterans who suspect fraud can report it through VSAFE.gov or call 1-833-38V-SAFE. Reports help VA and other agencies track scams that target veterans.

7) Use strong antivirus protection

Strong antivirus software can help protect you if you click a bad link, scan a risky QR code or land on a fake website tied to a scam. Good protection can block malicious pages, warn you about suspicious downloads and help stop malware before it does damage. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

8) Consider a data removal service

Scammers often use personal details found online to make fake offers feel more believable. A data removal service can help reduce how much of your information is sitting on people-search sites, including your address, phone number and other details that can be used to target you. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.

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9) Take action fast if you responded

If you already clicked, scanned, called or shared information, change your VA.gov password right away. Use a trusted password manager to create and store a strong, unique password you do not use anywhere else. Turn on multifactor authentication if you have not already done that. Then watch your accounts for suspicious activity.

10) Warn others without forwarding the flyer

Tell family members, friends and veteran groups that the offer is fake, but do not send the flyer along with your warning. Even if your goal is to help, someone else may miss your warning, save the image or share it again. Instead, send a short message that says the free VA shoe offer is a scam and tell them to verify any VA benefit through VA.gov or their local VA facility.

Kurt’s key takeaways

A free pair of shoes can make you drop your guard, especially when the flyer uses VA branding and familiar shoe names. That is the whole trick. Scammers are using trust to push veterans and families toward a bad link, a fake form or a request for personal info. Slow down and verify it through VA.gov or your local VA facility. And if you want to warn someone, send them a message saying the offer is fake instead of forwarding the flyer itself. That keeps the scam from spreading.

Would this fake VA shoe offer have made you pause, or would the official-looking design have fooled you? Let us know by writing to us at CyberGuy.com.

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I spent a week using the Trump phone — it sucks

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I spent a week using the Trump phone — it sucks

The Trump phone was never a serious phone. Not when it was announced last June, in dodgy renders and with an incoherent spec sheet. Nor when Trump Mobile admitted — just two weeks later — that it wouldn’t be made in the US. Not even when the company revealed the final phone, first to me over a video call in February and then to the world in April through a short commercial with the slick sheen of AI.

It’s now on sale for $499, past the days of its tenuous, ever-shifting release dates. A few buyers even have the phone, The Verge among them, though more still seem not to.

It’s clear now that the T1 is a real phone, but that doesn’t mean it’s a serious one. Still, for the next thousand words or so, I will try to take it seriously.

$499

The Good

  • It actually exists
  • 3.5mm headphone jack
  • MicroSD card slot
  • It basically runs stock Android

A serious phone wouldn’t look like this

The T1 Phone is a curved slab of cheap gold plastic, the smartphone equivalent of a pair of knockoff wraparound Oakleys. The gold finish — more yellow in certain light, though it certainly does shine and shimmer — is tacky in every sense, with a sticky friction that makes it feel distinctly unpleasant to the touch. My phone arrived with a tiny scratch in the top-right corner.

The phone is fairly thin, and light, but its excessively curved waterfall display feels immediately dated. It also loses one of the chief advantages of that design — better in-hand feel — thanks to the oddly angular frame, which juts into my palm as I hold it.

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Almost every detail speaks to bad design. There’s the American flag logo, missing a stripe. The fact that “Trump Mobile” appears on the back twice, in two different orientations and two different fonts. Or the camera module, where the three lenses are spaced at irregular intervals.

Count the stripes.

I don’t think anything about this phone annoys me as much as the lens spacing.

God, I miss notification LEDs.

A headphone jack is less uncommon, but still pretty rare.

There are things to like. The 3.5mm headphone jack will have its fans, as will the microSD card slot inside the phone, or the fact that the phone ships with a case, charger, and braided USB cable. These are things that a certain type of Android fan has lamented the absence of for years.

I, for one, am more excited to be reviewing a phone with a notification light again, a true treat that I thought we’d lost forever. It’s a glimpse of a better world, one I didn’t expect from Trump Mobile of all companies. But like the curved screen, even these welcome touches betray that this is a dated, old-fashioned phone, one based on an old HTC design that already felt like a throwback two years ago.

A serious phone would work outside the US

I live in the UK, meaning I may well have the only Trump phone outside of North America. It cannot maintain any signal stronger than 2G, meaning I can use it for texts and calls but not for data. As best as I can tell from digging through the T1’s FCC certification documents, the phone simply doesn’t support the network bands commonly used in Europe.

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The T1 Phone isn’t sold in Europe, and that misshapen flag makes its target market clear. But even Americans get to go on vacation every once in a while. From my experience, it seems unlikely that the T1 would work anywhere in Europe and perhaps not anywhere in the world outside North America.

A serious phone would use more than the minimum hardware

At first glance, the T1’s spec sheet might seem impressive enough: a 120Hz OLED screen, a 5,000mAh battery, a triple rear camera with 50-megapixel sensors.

But the truth is you could find similar specs on almost any $200 Android phone and superior ones on phones sold at this price. Hardware like this is cheap and commodified, something that’s only beginning to change thanks to the ongoing memory crisis. Here, amusingly, the T1 is generously specced: 512GB of storage and 12GB of RAM come as standard. Those, along with the inclusion of wireless charging, are the only things that really stand out on this spec sheet.

Real gold, guaranteed.

Real gold, guaranteed.

Despite all that RAM, and Qualcomm’s modestly capable Snapdragon 7 Gen 3 chipset, the T1 is often sluggish. It sometimes stutters when switching apps or triggering animations, making even basic apps like Duolingo frustrating to use. This hardware isn’t flagship, but it should certainly be more capable than this. I can only assume Trump Mobile didn’t develop the sort of software and firmware performance optimizations that other manufacturers do, handicapping the phone from the start.

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1/16

I took the T1 Phone out with me around London to test the camera.
Photo: Dominic Preston / The Verge

I suspect the camera’s limitations are for similar reasons. The three rear lenses and single selfie camera take basic, functional photos, at least in good light — with the exception of the 8-megapixel ultrawide, which is uniformly poor.

Other phone manufacturers spend millions optimizing their image pipelines, and none of that work is evident here. Daylight photos are vivid and oversaturated, nighttime shots are noisy, and the telephoto shows no signs of electronic stabilization at all, making it feel shaky and unstable. Incredibly, by default every shot is overlaid with a strangely small T1 watermark — as if anyone should want to take credit for these photos.

1/12

While David Pierce took the excuse to test it in DC.
Photo: David Pierce / The Verge

A serious phone would have made more effort in its software

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As the Trump phone lurched haltingly toward its launch, the going assumption from many was that it would be a bloated mess, loaded with spyware, crypto apps, and MAGA-themed experiences, putting the president’s leering face front and center.

The truth is rather more mundane. It runs Android — the nearly two-year-old Android 15, to be precise — with almost no modifications at all. This is, in fact, about as close to what the nerds call “stock” Android as you’re ever likely to get these days.

The only preinstalled apps that are out of the ordinary are Truth Social, Trump’s own social media network, and Doctegrity, a telehealth platform that’s included with Trump Mobile’s $47.45 cell service. Beyond that you get a single Trump Mobile wallpaper and those photo watermarks, and that really is that.

In a sense, that’s a good thing — I’m hardly lamenting the lack of bloatware. But there’s also no sign that Trump Mobile has the ability or the intent to optimize its phone’s software or deliver any features beyond the minimum.

Truth Social comes preinstalled, though you can get rid of it.

Truth Social comes preinstalled, though you can get rid of it.

More worryingly, Trump Mobile hasn’t announced how long it will support the phone with software updates. When I spoke to executives from the company in February, they seemed confused by my question about how many Android version updates the phone would receive, though they did insist that customers won’t “be locked into what’s there today.” For now, that means a 2024 version of Android with a February 2026 security patch; I wouldn’t hold my breath for either to be updated any time soon.

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A serious company would put more effort in

In a strange way, the T1 Phone isn’t all that terrible, but only because it proves how hard it actually is to make a truly terrible phone these days. It’s easy enough to throw together the baseline hardware, stick Android on top, and call it a day. For better or worse, that’s more or less exactly what Trump Mobile has done. Between the simple software and the dated hardware features, the T1 is an oddly compelling phone for some old-school Android fans, but Trump Mobile got there entirely by mistake.

Premium.

Premium.

This isn’t a serious phone. It’s a marketing stunt that got out of hand, a way to grab attention and juice the subscriber count for an overpriced cell service with the president’s name on it.

Trump Mobile doesn’t care about this phone. And after the year of reporting on it that’s led to this review, I’m thrilled to finally say: Neither should you.

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