Technology
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)
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.”
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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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 settings > privacy > app permissions (specific steps vary by operating system). Revoke access for any apps that don’t need it or seem suspicious.
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.
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
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OpenAI announced yet another reorganization Friday, consolidating certain areas and making company president Greg Brockman the official lead of all things product.
In a memo viewed by The Verge, Brockman wrote that since OpenAI’s product strategy for this year is to go all-in on AI agents, the company is combining its products to “invest in a single agentic platform and to merge ChatGPT and Codex into one unified agentic experience for all.”
To do this, the company is making a suite of org chart changes, although it’s still operating under some of the same ones from last month. That’s when AGI boss Fidji Simo went on medical leave and OpenAI announced that Brockman would be in charge of product strategy and CSO Jason Kwon, CFO Sarah Friar, and CRO Denise Dresser would take control of business operations.
It’s all part of OpenAI’s recent strategic shift to focus on key revenue drivers like coding and enterprise and stop pouring resources into “side quests” ahead of its potential IPO later this year and amid investor pressure to turn a profit.
In Simo’s continued absence, Brockman’s role leading product strategy is now official, as well as the company’s “scaling” arm. Under Brockman will be four different pillars. The first is core product and platform, led by Thibault Sottiaux, who has been OpenAI’s engineering lead for Codex, and the second is critical enterprise industries, led by ChatGPT head Nick Turley. Third is the consumer pillar, such as health, commerce, and personal finance, which will be led by Ashley Alexander, who has been its healthcare products VP. The fourth pillar — core infrastructure, ads, data science, and growth — will be led by Vijaye Raji, who has been OpenAI’s CTO of applications.
Brockman wrote in the memo that OpenAI’s goal is now to “bring agents to ChatGPT scale, in order to give individuals and organizations significantly more value and utility from our products.”
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You’re going about your day when your phone buzzes. A text hits your phone. It looks official. It sounds urgent. And suddenly, you are being told you owe money for a traffic violation. That is exactly what Todd from Texas experienced. He emailed us and said:
“I received this text message today. It was so baffling because I haven’t lived in California for nearly a decade. I didn’t click on anything or respond. How can I tell if this is for real or if this is a scam?”
If you’ve gotten a message like this, you are not alone. This type of scam is spreading fast, and it is designed to pressure you into acting before you think. Let’s break down what is really going on.
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FAKE AGENT PHONE SCAMS ARE SPREADING FAST ACROSS THE US
This message may look official, but several red flags show it is likely a scam designed to pressure you into paying quickly. (Kurt “CyberGuy” Knutsson)
What the traffic ticket scam text looks like
At first, the message seems convincing. It claims to be a “final reminder” from the California DMV, and it warns of penalties like license suspension and added fees. It even includes a link that appears somewhat official. However, once you slow down and take a closer look, the red flags quickly start to pile up.
The biggest red flags in this message
Here are the key warning signs to watch for in messages like this.
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1) The phone number makes no sense
The message comes from a number with a +63 country code. That is the Philippines, not California. Government agencies in the U.S. do not send official legal notices from international numbers. That alone is a major warning sign.
2) No name, just “Dear Driver”
Legitimate notices from a DMV or court almost always include your full name or at least some identifying information. “Dear Driver” is vague on purpose. It allows scammers to send the same message to thousands of people.
3) The link isn’t a real DMV website
The message includes this link:
ca.mnvtl.life/dmv
That isn’t a government domain. Official DMV websites in California use “.ca.gov” or similar trusted domains. Scammers often create lookalike links to trick you into clicking.
4) Urgency and threats
The message pushes you to act quickly with a deadline. It lists consequences like license suspension and extra charges. Scammers rely on fear. When you feel rushed, you are more likely to click without thinking.
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5) Asking you to reply to proceed
The text says to reply with “Y” to get instructions. That is another trap. Responding confirms your number is active, which can lead to more scam messages.
6) Generic language and odd phrasing
Parts of the message feel slightly off. The tone is formal but not quite right. That subtle awkwardness is common in scam messages sent to large groups of people.
7) Overloaded threats designed to scare you
The message piles on consequences like license suspension, added fees, court action and even credit damage. In this case, it even mentions a license suspension and a $160 late payment charge. That combination is meant to overwhelm you and push you to act fast. Real agencies usually provide clear, specific notices, not a long list of escalating threats in a single text.
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Scam texts like this often arrive out of nowhere and try to create urgency before you have time to question them. (Kurt “CyberGuy” Knutsson)
What this means for you
Even if you have never driven in California, you could still receive this message. Scammers cast a wide net and hope someone takes the bait. If you click the link, you could be taken to a fake payment page. That page may ask for your credit card details, personal information or login credentials. In some cases, it can also install malware on your device or redirect you to credential-stealing pages. This isn’t about a ticket. It is about getting your data. State DMVs typically do not send final legal notices or payment demands by text message.
Why these scams keep working
These messages work because they tap into something most people fear. Legal trouble, fines and losing driving privileges. They also look just real enough to pass a quick glance. That is all scammers need. As more services move online, these scams will continue to evolve.
Unlike typical DMV scams, this message impersonates a court and escalates the threats to make the situation feel more serious (Kurt “CyberGuy” Knutsson)
Ways to stay safe from traffic ticket text scams
Start with a simple rule. Never trust a payment request that shows up out of nowhere. Here are practical steps you can take:
1) Do not click the link
If you are unsure, do not tap anything in the message. That includes links and reply options.
2) Use strong antivirus software
If you accidentally click a link, strong antivirus software can help detect malware and protect your data. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com
3) Verify directly with the DMV
Go to your state’s official DMV website by typing it yourself into your browser. Do not use the link in the text.
4) Check the sender carefully
Look at the phone number. International numbers or random strings are a clear warning sign.
5) Ignore generic greetings
Real notices will usually include your name or case details. Vague language is a red flag.
6) Consider a data removal service
Scammers often get your number from data broker sites. Removing your personal info from those databases with a data removal service can reduce these messages. 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
7) Block and report the number
On your phone, block the sender and report it as spam. This helps reduce future attempts.
8) Turn on spam filtering
Enable spam filtering on your phone or through your carrier to catch more of these messages before they reach you.
Kurt’s key takeaways
Todd did the right thing. He paused, questioned the message and did not click. That one decision likely saved him from handing over personal information. When it comes to messages like this, skepticism is your best defense. If something feels off, trust that instinct.
Should phone carriers and tech companies be doing more to block scams like this before you ever see them? Let us know by writing to us at Cyberguy.com
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Copyright 2026 CyberGuy.com. All rights reserved.
Honda revealed prototypes of two new hybrid models, an Accord sedan and the Acura RDX SUV, during its annual business briefing this week, built on a platform that it says will begin launching next year. The RDX was announced earlier this year as Honda’s first SUV to feature the next-gen version of its two-motor hybrid system.
In March, Honda announced it would take a writedown of up to 2.5 trillion yen ($15.7 billion) on its EV investments. Now Honda says its EV-related losses will be “resolved” by 2029, and that it will reevaluate its EV plans in 2030.
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