With as many as 75% of smartphone users having at least one budgeting app installed, Incogni researchers analyzed 20 popular budgeting apps recommended on various online platforms. Among the most concerning findings is the fact that 60% of studied apps share users’ data with third parties, nearly one third of all data collected is shared, and one in four of these budgeting apps share users’ financial information with third parties.
“Budgeting apps are generally a good thing, giving people tools to monitor and organize their finances in ways that are much more user-friendly than the alternatives, like spreadsheets. But users need to be cautious when installing any apps, especially those that handle information as sensitive as budgeting apps do,” advises Darius Belejevas, Head of Incogni.
While users may expect discretion from apps that handle data as sensitive as financial information, the research showed that 60% of the investigated apps share at least some data with third parties, including personal information such as phone numbers and names (shared by 7 apps). One in four apps specifically share financial data, with NerdWallet disclosing that they may even share credit scores. Other apps share things like user payment info, purchase history, and other financial information.
Key insights:
- Nearly one-third of data collected by these apps is shared with third parties.
- One out of four of the budgeting apps share your financial information with third parties.
- 60% of investigated apps shared at least some data with third parties.
- More popular apps collect more data—those with over 5M downloads collect 12.3 data points, on average, and those with fewer than 5M, collect 7.6.
- Some apps request access to users’ calendars, Bluetooth settings, and contacts, all of which could have serious privacy and security implications.
Users of some of these budgeting apps pay a steep price in data for easier budgeting. Mobills: Budget Planner, for example, collects 22 data points out of a possible 38. With data being called the “oil of the digital age,” and how much damage sensitive financial information can cause in the wrong hands, this raises the question of how financially smart it actually is to use these apps.
Some of the permissions the budgeting apps requested also raised privacy concerns. The sample set included permissions like adding or modifying calendar events and sending emails to guests without the owners’ knowledge, reading contacts, and turning on Bluetooth and connecting to available devices. We found that, on average, the investigated apps request 11 permissions each and Wallet: Budget Expense Tracker asks for the most permissions at 18.
Using budgeting apps can be good for consumers’ wallets, but not all of them may turn out to be good investments for data privacy. Personal information and especially financial information can lead to security issues, identity theft, and considerable monetary losses. That’s why it’s so important for users to exercise discretion when it comes to apps that handle their data.
Methodology
Incogni’s researchers sought out and made a list of 20 popular budgeting apps on the Google Play Store that were recommended on social media, blogs, and articles around the web. They then collected three main types of information about these apps as made available on their respective Google Play pages:
- What user data is collected;
- What user data is shared with third parties;
- What permissions are requested by the apps.
The analysis was focused on comparing apps with each other and dataset averages across the collected data types.
Data collection took place between July 17, 2023 and July 18, 2023.
The data used in this research is available here: Public dataset
About Incogni.com
Incogni.com is a data privacy service from the cybersecurity company Surfshark that regularly sends official data removal requests to personal information brokers on behalf of its clients. The Incogni team is equipped with legal experience that their customers may not have. Instead of having to read through reams of legalese and having to remember which brokers answered their emails, Incogni subscribers can simply monitor the process via regular updates.
