Tracking pixels like Meta and TikTok pixels are popular tools for online businesses to monitor the behavior and preferences of their website visitors, but they come with risks. While pixel technology has been around for years, privacy regulations like the CCPA and GDPR have created new, more stringent rules, making the practice of collecting data through tracking pixels highly controversial. Tracking pixels on your website means website owners are considered data controllers and liable for any data breaches they cause, making pixel security a top business priority.
What is a tracking pixel?
Have you clicked on an ad and been taken to a seller’s website but decided not to buy anything? The ad you saw a while back turned out to be some exciting, limited-time offer from the same provider on tracking pixels.
A tracking pixel is a small, transparent image or code snippet embedded in an HTML page. When a user visits the website, their web browser downloads the HTML code and displays the website, which includes the tracking pixel. Note that in most cases the pixel itself is hosted on a separate server from the website, which allows the server to collect information about the user’s behavior and preferences, mostly without their knowledge.
Users don’t notice a tracking pixel, but it collects valuable information about their behavior that savvy marketers can use to optimize retargeting campaigns, serve more relevant ads, provide better website experiences, increase conversions, and more.
What are the risks?
Stricter privacy regulations such as GDPR and CCPA have presented new challenges to online businesses in recent years. Tracking pixels designed to surreptitiously collect user data may violate these rules and conflict with privacy laws.
The most serious risk associated with tracking pixels is potential damage to users’ data. A rogue or misconfigured pixel can send personal data to an unauthorized third-party server, effectively stealing personal information from users. Even though they are created and managed by third parties like Google, Meta and TikTok, this can be a big problem as the website owners can be held responsible for any data breach caused by the pixels they host.
In Europe, laws such as GDPR include several provisions that are relevant to tracking pixels. For example, Article 4 of the GDPR defines personal data as “any data relating to an identified or identifiable natural person”. Article 6 It sets out the conditions for lawful processing of personal data, including obtaining consent from the individual. Therefore, website owners who use tracking pixels must comply with the GDPR on data protection, including obtaining explicit consent from individuals, providing transparency about data collection and processing practices, and ensuring the security of personal data.
Similar laws exist around the world, and in some jurisdictions additional laws cover certain industries, such as HIPAA, which covers patients. Personal health information.
If tracking pixels collect content about your customers from your website, you may be at risk of liability if that information is shared or misused without the owner’s consent.
If pixel security fails, the damage to your business can be significant. Data protection authorities can impose significant fines, and negative publicity can damage your business’s reputation and profitability. In addition, website owners may take legal action from individuals or groups seeking legal action through the courts.
Poor pixel security results
These are not theoretical concerns. There have been instances where companies have relied on third-party tracking pixels to go above and beyond. For example, in 2022, based in Boston Mass. Gen. BrighamNot-for-profit hospital and physician network pays $18.4 million to settle class-action lawsuit over breach Meta Pixel. The software used “cookies, pixels, website analytics tools and related technologies” on multiple websites, and collected personal data without users’ consent.
Tax preparation companies H&R block, TaxAct and TaxSlayer advertise on Facebook, so they use meta pixels to track ad performance. Unfortunately, users’ data was compromised in late 2022 when MetaPixel was found to be sending sensitive financial and contact information to an unauthorized third-party server. Some include income information, file status, and even details of college tuition grants for the beneficiary’s children.
Still, the potential for punitive legal action and reputational damage is high, not to mention fines. When you consider that Amazon has been fined $746 million in 2021 for not obtaining cookie consent for GDPR violations, it becomes clear that pixel security should be one of your top priorities.
Real-world case study: Tik Tok pixel misconfiguration
This may all sound a little hopeless, but it’s not. Waterproof Pixel security is well within the capabilities of modern surveillance systems. With that in mind, Reflectiz recently published a case study to show what can and should happen when a company experiences a pixel security problem.
In this case study, a large financial services company moved its services online and began targeting the younger Gen Z market segment by placing ads on TikTok. Reflectiz’s continuous monitoring platform detected that the TikTok Pixel script was receiving sensitive input data on one of the login forms on the company’s website. It seems that TikTok has updated the Pixel, and the new version has been accessing users’ personal data and transmitting it to their servers.
Reflectiz’s solution detected the rogue pixel immediately, saying it tracked users’ activities without their consent and sent the data to an unauthorized third-party TikTok server. Reflectiz’s investigative team immediately forwarded the details of the pixel code change to the company. It also communicated clear mitigation measures on how to terminate unauthorized activities of Pixel, avoiding the possibility of any costly Pixel security data breach.
Tracking pixel technology is important to optimizing online marketing efforts, but it also poses risks that online businesses can’t afford to ignore. Stricter privacy laws have increased the risk of privacy breaches, which can lead to fines and brand damage. To avoid these risks, online businesses should implement advanced monitoring solutions like Reflectiz to ensure their website is free from costly privacy issues.
Learn more about Reflectiz monitoring solutions if you’re concerned about pixel security. Book a demo Today with Reflectiz!
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