DEV Community: Irina Maltseva

Building a SaaS Product? Don't Forget These 7 User-Facing Features

Irina Maltseva — Thu, 30 Jul 2026 12:47:48 +0000

I've spent over ten years in SaaS, helping launch products and, right now, co-building one of my own. In that time I've noticed the same pattern over and over.

When building a SaaS product, developers naturally focus on the core: designing the architecture, building product features, improving performance, and making sure the system can scale.

But users rarely evaluate a product on its main feature set alone. Their experience is shaped by everything around it, like how easily they get started, how they communicate with others, how they find help, how they manage their account, and how much control they have over their data.

Overlooking these user-facing features creates friction that quietly hurts adoption, retention, and satisfaction. A technically impressive product can still struggle if users can't figure out how to use it, get support when they need it, or trust how their data is handled.

So here are seven user-facing features every SaaS product should consider, and why building them in early is cheaper than bolting them on later.

7 User-Facing Features Every SaaS Product Should Consider

1. User Onboarding and Product Guidance

A user's first interaction with your product often determines whether they continue exploring or leave.

For example, imagine a project management tool where a new user opens a completely empty table with no instructions. They may understand the concept of the product, but they still have to figure out what action to take.

Compare that with an empty state that includes an example project, a sample task, and a clear prompt like “Create your first project.” The second experience gives users a path forward.

These details may seem minor, but they reduce uncertainty during the most important stage of the user journey.

Key onboarding features to consider

Interactive product tours: Product tours can introduce users to important workflows without requiring them to read documentation before getting started. They are especially useful for products with multiple features or complex interfaces.
Setup checklists: Checklists help users understand the steps required to reach their first success milestone. They can also give users a sense of progress as they complete important setup tasks.
Guided workflows: Instead of showing users every available option immediately, guided workflows introduce features gradually based on what the user is trying to accomplish.
Tool tips and contextual guidance: Small explanations placed at the right moment are often more effective than long documentation pages.
Welcome emails and in-app messages: Communication outside and inside the product can remind users about unfinished setup steps, highlight useful features, or provide helpful resources.
Visual resources: For more complex products, visual resources such as product walkthrough videos and screen recordings can also help users understand workflows faster, especially when explaining technical features. You can simply record these videos with Riverside or any tool of your choice.

From an engineering perspective, onboarding features are usually cheaper to implement early. Adding empty states, guidance, and setup flows after the product already assumes users have data can require much larger UI changes.

2. Authentication and User Account Management

Authentication is one of the first interactions users have with a SaaS product, but account management continues throughout the entire customer lifecycle. A smooth account experience gives users confidence that they can securely access and control their product usage.

Essential account features include:

Signup and login
Password reset and account recovery
Single sign-on (SSO) where relevant
User profiles
Role and permission management
Account deletion
Plan changes

For B2B SaaS products, role management becomes especially important. Take an AI lead generation platform like Artisan, where a team shares one prospect database and reps, AEs, and account managers all run outbound from it. A company administrator needs different controls than an individual sales rep. Someone has to decide who can edit shared lead lists, who can launch campaigns, and who only sees their own accounts, while enterprise customers may require advanced permissions and security settings on top of that.

Developers should also consider account management beyond authentication. Users expect to update their information, manage access, change plans, and control their accounts without needing to contact support.

3. In-app Communication and Collaboration Features

Many SaaS products are no longer used by individuals working alone. They support teams that need to collaborate, share information, and coordinate work.

Examples of communication features users value:

In-app messaging
Comments and mentions
Team notifications
Activity feeds
Shared workspaces
Video meetings or collaboration features

For example, a project management platform becomes much more valuable when team members can comment on tasks, mention colleagues, and receive updates without switching between multiple tools.

Technical considerations

Building communication features requires careful consideration around:

Real-time updates: Users expect collaboration features to update quickly. Technologies such as WebSockets or event-driven architectures can help support real-time experiences. This feature can also benefit from modern infrastructure approaches. For instance, edge computing platforms like Cloudflare Workers can process requests closer to users, which reduces the latency that makes collaboration feel instant.
User permissions: Not every user should have access to every conversation or piece of information. Permission systems need to be designed carefully.
Data synchronization: Collaborative features need reliable data syncing across multiple users and devices.
Security: Communication data often contains sensitive business information, making encryption and access controls important.

You should also consider whether to build communication infrastructure themselves or integrate existing solutions. Building from scratch may make sense for products where communication is the core functionality, but third-party solutions can reduce development time for supporting features.

4. A Real Support and Self-Service Experience

Even the most intuitive SaaS products will have users who need help.
A strong support experience does not mean simply adding a contact email. It requires multiple layers that help users solve problems quickly.

Resources that improve self-service experiences include:

Product documentation
Knowledge bases
FAQs
Video tutorials
Developer guides
Help centers

Documentation is often the first support channel users interact with. Clear explanations and searchable resources can reduce repetitive support requests.

For more complex workflows, visual resources such as screen recordings and tutorial videos can make technical concepts easier to understand.

However, self-service should not replace human support entirely. Some situations require escalation paths, including direct communication through chat, email, or voice support. Once you're handling that at any real volume, an AI support assistant like Nextiva's XBert can field the routine calls and chats and hand off to a human when an issue needs one, instead of every request landing on your team.

From an engineering perspective, it is useful to track support touchpoints. Understanding which features generate the most questions can reveal where the product experience needs improvement.

Documentation should also evolve alongside the product. Outdated guides can create more confusion than having no documentation at all.

5. Smart Notifications and Product Updates

Notifications help users stay informed, but poorly designed notifications can quickly become frustrating. The goal is to send the right information at the right time.

Effective notification systems may include:

In-app notifications
Email alerts
Push notifications
User notification preferences
Product announcements
Status updates

For example, a user may want immediate notifications for security issues but prefer weekly summaries for product updates.

A few considerations

Event-driven architecture: Many notification systems rely on events triggered by user actions or system changes.
Notification queues: Queues help prevent notification systems from overwhelming application resources during high activity periods.
Personalization: Different users may need different types of updates depending on their role and behavior.
User control: Giving users control over notification settings helps prevent notification fatigue.

6. Billing and Subscription Management

For SaaS products, billing is part of the user experience. A confusing subscription process, unclear pricing, or limited account controls can create unnecessary friction.

Account and billing features users expect:

Self-service account settings
Subscription management
Payment methods
Invoice access
Usage tracking
Plan upgrades and downgrades

Users should be able to understand what they are paying for and manage their subscriptions without unnecessary support requests.

For SaaS companies serving customers globally, billing also becomes more complex. Developers may need to consider different payment methods, invoicing requirements, and tax compliance rules across regions, which is where dedicated global tax compliance software like Sphere comes in.

Building transparent billing experiences helps create trust while reducing operational overhead.

7. Feedback Collection and User Insights

You can't build the right features if you don't know what users actually struggle with. Feedback collection is how you find out before you write the code.

Ways to collect meaningful feedback
The useful channels: in-app surveys, feature request boards, user interviews, feedback forms, and product analytics.

Each answers a different question. A feature request board tells you what users think they want. User interviews tell you why. Product analytics tell you what they actually do, which is often a different story than what they say.

The real value comes from combining the two kinds. Qualitative feedback explains the "why" behind a drop-off; analytics show you where the drop-off happens. On their own, each is easy to misread. A survey full of complaints about one feature might describe a screen that analytics show almost nobody visits.

So understand behavior before you build.

Decide What to Build and What to Integrate

Not every feature on this list should be built in-house. Some are core to your product and worth owning outright. Others are solved problems where a third party will do it better than you can, for most teams, that includes:

Communication infrastructure: real-time messaging, video, and voice
Customer support systems: help desks, knowledge bases, and contact channels
Billing and compliance solutions: payments, invoicing, and sales tax

When you're weighing whether to integrate rather than build, four things decide whether a tool is worth it:

API availability - can you integrate it cleanly, or will you fight it?
Scalability - will it hold up as your usage grows?
Security - does it meet the standards your users expect of you?
Long-term maintenance - who keeps it running once it's live?

A tool with a clean API and a track record of staying up is usually cheaper over five years than the equivalent you'd maintain yourself, even if building it looks faster this quarter.

My rule of thumb is to build the thing users come to you for, integrate the things they simply expect to exist. Your backend earns you the right to compete, but your user-facing features decide whether users stay. The ones developers skip, from onboarding to billing to feedback, are exactly the parts users actually touch.

So pick one gap from these seven and scope it into your next milestone, whether that means building it or integrating it. The products that retain aren't the ones with the cleanest schema. They're the ones users never had to fight to use.

What If Your App Becomes a Tool for Scammers?

Irina Maltseva — Mon, 02 Jun 2025 10:59:24 +0000

Scammers don’t need to work on building and supporting their own apps—they just borrow yours. Once your app starts this exploitation, it's hard to quit, and damage is rapidly released. The outcome is happier and less painful when developers build with protection.

Use these stories as your roadmap to recognize abuse, respond promptly, and rest knowing security and stability stay on top. If you’re cleaning up a breach or just tightening defenses, take what you need from these strategies to stand strong against slippery app scammers.

Option 1: Many Scam Tactics Abuse Apps

You build useful apps (we hope). Calendaring, messaging, budgeting or gaming—apps aim to enrich our digital experiences and ease the work of living. Whether you’re launching a SaaS company or just building a niche tool, it’s painstakingly produced, carefully tested, polished up, and you’re proud of its evolution.

Then you hear the chirp of another email... A confused user is wondering about a login alert because "they didn't do it". With the next chirp, another user warns you they've outwitted several phishing attempts. Ding, ding, ding! They keep coming.

Finally, you receive a link to a fake version of your app hosted on a third-party store—complete with branding, descriptions, reviews, and an identical onboarding screen to set their trap.

You pour over the logs:

Sessions from unexpected countries...
Spikes in traffic from rarely used endpoints...
Dozens of urgent support tickets arrive daily...

Your app's doppelganger is scamming people—quite successfully too—and it's time for damage control:

Patch vulnerabilities from every possible angle
Delicately notify users without stirring panic
Alert app stores to remove the imposter
Brace yourself for legal concerns

You also need to keep calm to ensure your product survives. This isn’t paranoia when it's the reality of building for the public. Bad actors move fast. You need to out-wit, out-last, and out-pace them so you can enjoy the happier outcome of app development with scam repellent built-in.

Option 2: Devs Prepare Apps for Safer Experiences

Here's a better app experience. Imagine the same app—intentional with every dot and dash—enjoyed by the same loyal users. Here comes the scam app creeping along, and you're more than ready for it. As login attempts from unusual locations spike, anomaly detection alerts you, temporarily locking down those sessions.

Like a combination of self-defense moves, your multi-factor authentication flow kicks in while API monitoring finds a script attempting to abuse password reset functions. Not today, scammers—their predictable malice is blocked at every turn, automatically.

Imagine you receive a message sharing the details of a suspicious little app using your logo—and your team is already well-aware. Since you've embedded metadata to spot fake apps before they manipulate users, the App Store and Play Store can start the takedown process within the hour.
Rather than users alerting you, your team pushes a pre-written, in-app banner:

"Head's up. We found a fake version of our app attempting to scam our valued users. Think you're affected? Take these steps to verify security and stay safe."

Nobody would be thrilled by the notification, but it reduces possible panic and demonstrates trust—not just for features, but to protect the people who benefit from them.

This is what scam-proofing app security looks like. While no single security measure is perfect or infallible, simple preparations could save you weeks of damage control—not to mention financial loss, legal consequences, and user turnover.

How Scammers Choose Apps and Manipulate Users

Scammers don’t need your permission to weaponize your work. They have many options available. These four common methods allow scam artists to advantage of users of well-meaning apps:

Fake app clones: Replicating your app’s brand and publishing a lookalikes on other download sites or stores—even on major stops like the Play and App Store—siphons off unsuspecting users.
In-app phishing: With chat features, email messages, or push notifications, scammers often trick users into revealing personal info.
Remote access: With finance or productivity apps, bad actors engineer situations to gain permissions and steal personal data.
Authentication abuse: Week login or transaction verification processes can be easy locks for scammers to pick.

Your app doesn’t need to be buggy or low on oversight to get maliciously abused. In fact, the most useful apps are preferred targets because users recognize branding and piggyback on their comfort. This is why apps like budgeting tools or password managers are favored: they tend to be data-rich, valuable, and trustworthy targets.

What are common ways scammers abuse apps?

Publishing fake versions of your app to harvest data.
Using in-app features (like messages or forms) to phish users.
Exploiting weak login, password reset, or transaction flows.
Injecting fake SDKs or modding APKs in cracked versions.

Red Flags: Is Your App Being Abused?

Devs often don’t realize what’s happening until the scam has done considerable damage. Secure prevention is one of the best defenses against the nasty surprise of learning your app has breached user trust, caused financial loss, or compromised sensitive data.

While users are responsible for investing in their own identity theft protections (or even identity theft insurance)—developers can do their best to spot scams before they become app emergencies.

Early Signs of App Scams

These usage patterns and conspicuous shifts may signal that scammers are targeting your users and working to abuse your app.

Support surges: Tell-tale tickets related to suspicions, fraud, or unauthorized access will become more frequent.
Unusual usage: Payment issues, odd geographic access, and storms of unsuccessful login attempts are common warnings or even a sign of user's computer getting hacked.
User complaints: You might be messaged about fake apps or impersonation attempts from concerned users.
Negative mentions: If forums and other sources start advising people to avoid your app—an unknown scam could be at play.

Pattern recognition, luckily, is a common strength in dev culture. With this in mind, take time to investigate growing patterns. It won't be long before you stomp out a small "fire" before they become a brand disaster.

How can I tell if scammers are abusing my app users?

Routinely search for your app in app stores and marketplaces.
Set up alerts for reviews with words like "steal" or "scam."
Watch transactions, logins, and authentication for anomalies.
Use a honeypot or monitoring endpoint to spot weird traffic.

After-Scam Action Plan for Developers

Panic is natural, but the most productive response is getting to work and containing the threat.

If you find your app is part of a scam, act fast by taking these immediate steps. Also, it’s okay to ask for help: security agencies and open-source assistance are willing to jump in if developers are willing to speak up.

Patch leaks (if the backend is at fault), prioritizing security updates and pushing hot fixes.
Alert users with in-app messages, emails, or social banners to manage trust and offer transparency.
Report imposters to the platform. (Google Play and the Apple App Store have fast-track forms for these urgent issues.)
Update listings to distinguish your official app, version number, brand links, and developer information.
Notify partners (like payment processors or third-party authenticators) to collaborate on threat containment.
Document actions and brace for possible legalities. Regulators will want to see a paper trail if they need to get involved.

What should I do if scammers are using my app?

Send advice presenting the issue and your team's actions.
Block or suspend accounts that are suspicious and at-risk.
Ask counsel if regulators will need incident documentation.
Use "Play Protect" and similar defenses to anticipate threats.

How to Prevent App Abuse

Preventing scams may not save your life or someone else's, but it's a lot like brushing your teeth. It's essential for app hygiene. These are some of the best practices devs can use to anticipate scams and secure users from phishing attacks and account threats.

Strengthen auth: Implement MFA, biometrics (when possible), and avoid security measures based only on SMS.
Set alerts: Establish rules and automate alerts about rapid account creation, unusual spending, or other app-specific behaviors.
Add encryption: Make it as difficult as reasonably possible for app scammers to compromise or impersonate your tools.
Sign APKs: Especially for Android—obfuscating code, hiding metadata, and signage complicates reverse engineering.
Regularly update: Accurate, timely dependencies and libraries can reduce risks brought in by the supply chain.
Verify email auth: Prevent phishing and spoofing attacks that misuse your domain by regularly checking your DNS records with an SPF check tool to ensure your email authentication is correctly set up.
Educate users: Tell them what legit communication looks like and how to report scams. You could also create video tutorials that walk them through identifying scam apps or setting up security features.

Even the most secure app isn't truly bulletproof. The point is not perfection, but adding incredible difficulty for scammers to abuse your app and game user trust in your brand.

What technical measures can prevent apps from scammer abuse?

Enable multi-factor authentication (MFA) with fallback controls. Implement CAPTCHAs or bot detection during key flows (signups, password changes).
Use SSL pinning and transport protocols.
Add rate limiting and device fingerprinting.
Integrate fraud detection APIs that flag suspicious behavior early.

Security Advice for Scam Awareness & User Safety

Your app's defenses are only half of the equation. Your users play an important role—as intended target—and should be guided to practice account safety, check their digital footprint regularly, and know how to respond to scams and threats.

Share security reminders in-app or alongside email newsletters.
Add report buttons for users to easily flag threats and weird activity.
Keep the status page to act as a security hub, offering trust to users.
Update help docs on security topics to support scam prevention.

While scams and threats may not feel like most positive use of your app's messaging or experience. It can support more sustained app's success and user trust. Giving users the tips and tools they need helps everyone stay safe while communicating modern brand values.

How can I help users avoid falling victim to scams involving my app?

Demonstrate official messages to inspire user confidence.
Show examples of common threats and phishing practices.
Refer to resources like Apple or Android scam prevention posts.

Scam Protections in the Dev Community

Since any app could be the target of a scam, the issue is bigger than you. It's the size of the entire app industry, actually. That means you don’t have to outsmart threats, scammers, and incidents all alone.

Trying to handle every ticket for fraud activity, breaches, or scams is a fast-track to burnout. Instead, support users and protect your app at scale by collaborating with devs and communities who share these dangers:

Join communities where other developers share recent trends and scam prevention tips.
Report fraud to institutions like the FTC or another regional cybersecurity regulator to investigate further.
Partner up with vendors who can offer automated scanning and scam monitoring tools.
Go open-source by contributing your own solutions or use someone else's for help securing your app.
Keep changelogs to watch reports, especially if your app has a large user base with personal information stored in-app.

Who should I contact if my app is scammed on a large scale?

App stores for Apple, Android, and other marketplaces.
Fraud detection vendors and services such as Riskified or Sift.
Cybersecurity aficionados on OWASP or security forums.
Regulatory bodies like the FTC and other authorities.

Long-Term Tactics to Restore Trust and Rebuild

Like physical crimes and accidents, the first 72 hours after an incident can be critical. Scams hit quickly, but many months afterward you may still be feeling the effects while adding to your digital protections.
For the most part, developers can bounce back from app scams because there are so many signals of threatening activity. Since you can't eliminate the threat of app scams entirely, focus your team on consistency and credibility:

Communicate ownership in an email, blog post, or social update that shares what happened, your response, and lessons learned.
Offer help to ease the negative experience with refunds, credit monitoring referrals, or refreshed support docs.
Stay connected by sending quick, relevant updates and "good news" for app users who may need reassurance.
Gather feedback from user messages and support tickets that flooded in with the chaos. This is a key part in customer journey optimization as highlighted by Nextiva, so that you can Improve where you can.
Update regularly to protect your app's backend and to offer visible proof that you're invested in secure experiences.

How can I rebuild trust with my users after a scam incident involving my app?

Publish "post-mortems" to discuss what went wrong and whatever steps your team has taken to protect users.
Dedicate support for any impacted users with a custom email address or support line.
Track progress and share updates about security updates and app protections "Coming Soon."
Beta test proposed security features within a controlled user group.

Your Best Defenses: Backend Security and Frontend Support

No one likes to think their app could get taken over by scammers—but the reality is that bad actors are tireless in their effort to manipulate, abuse, and scam.

There is some good news: you’re not alone. Using a balanced blend of prevention, detection, community, and communication—you can keep your app from being scammed. Many scam-related best practices are about empowering users with clarity and confidence. All said, scam prevention creates more resilient apps and engages your user base with proof of a careful dev team worthy of their trust.

If nothing else, treat scam-proofing and app security like a code of conduct. Strive for secure workflow designs, clear value-driven communications, and keep red flags and user behavior in your vigilant line of sight.

What Happens When Apps Collect Too Much User Data?

Irina Maltseva — Thu, 20 Mar 2025 14:33:07 +0000

Name, email, phone number, ID number—these are all examples of user data that apps can gather freely. Depending on the allowed permissions, apps can also collect location data, contacts, SMS messages, browsing history, and even media files. While much of this data is necessary for the apps to function, many developers overreach, collecting data they don’t truly need.

This then begs the question, how much data is too much?

TikTok’s case

A few years ago, TikTok was found to be reading users’ clipboard data, even when they weren’t actively pasting anything. The company claimed it was an "anti-spam feature" designed to detect repeated content being pasted.

That's good for them, but what about the privacy and security of all the users who have passwords, links, and other sensitive text stored on their clipboards?

This is a great example of an app collecting too much user data. Reading clipboard data is not core to the app's functionality, and TikTok didn’t have explicit consent from users to read this data.

An industry-wide problem

Unfortunately, this is not a unique case. And while it’s easy to point fingers at TikTok, Facebook, Instagram, and the big social media apps, they’re not the only culprits.

Data has become the modern-day currency, and the allure for developers to collect more data than necessary is just too much.

In this article we will be looking at genuine reasons for user data collection, the motivation for excessive data collection, why it’s dangerous, and best practices for responsible data collection.

Remember, it’s no longer just a case of ethics. Now, there are laws and regulations governing how businesses collect and handle user data.

Legitimate reasons that apps need user data

It’s not uncommon for developers to justify excessive data collection with "improving the user experience." Still, a lot of apps have genuine reasons for collecting user data. These include:

Authentication and security

Name and email address are common data used for authentication which is critical for security. Additional measures such as two-factor authentication may require a user’s phone number to send the code.

Apps may also need device information such as the model and operating system to create a database of trusted devices. They may also track login times and IP addresses to help notify the user of abnormal behavior––say a login attempt at an odd time from an unknown IP.

User experience optimization

Any good app involves analytics-driven optimization to give users the best experience. This means tracking digital customer journey and user behavior data, such as screen views, button clicks, time spent on different sections, and navigation patterns. The developer can then use this data, for instance, to determine the most useful features in the app and optimize them accordingly.

Troubleshooting performance issues

It’s normal for apps to collect technical performance data, such as crash reports, app load times, screen rendering speeds, and battery usage. This data is useful for fixing performance bugs and ensuring the app runs smoothly even without the customer launching support tickets. Similarly, businesses use call center analytics to track system performance, optimize response times, and ensure seamless customer interactions.

Compliance and legal requirements

Depending on the industry, apps can collect data to satisfy regulatory requirements. For instance, financial institutions like banks and crypto exchanges must adhere to KYC (Know Your Customer) and AML (Anti-Money Laundering) laws. This means collecting additional personal information such as social security numbers, addresses, and photos.

Reasons apps collect too much user data

Advertising and monetization

They say money is the root of all evil and the statement holds true for data collection. Not all apps can rely on subscriptions to generate revenue. Some rely on ads.

The more user data an app collects, the more targeted ads it can push, which translates to more revenue. This is how data with legitimate use for ux optimization ends up being weaponized to create user profiles for easy targeting.

Algorithm and AI training

This is a new problem. The rising demand for AI-powered solutions has increased the value of user data. App owners have a bigger incentive to engage in unconsented data collection. Meta, X, and LinkedIn have all been found training their AI models with user data without consent.

Staying ahead of competitors

The drive to stay ahead can lead some app owners to engage in unethical data collection practices—not just on their own users but also on those using competing products. Facebook, always the poster boy for unethical data practices, was found to be using its VPN app (Onavo Protect) to identify other apps its users were actively using.

Government and surveillance cooperation

It’s not uncommon for government and law enforcement authorities to try and get app owners to secretly spy on their users. The UK government recently made headlines after demanding that Apple decrypt its cloud data to provide access to users’ private messages, multimedia, and other files.

Data hoarding

Sometimes, the app developer doesn’t have any immediate use for the excess data. They just collect and store it thinking it will be useful later.

The dangers of collecting too much user data

What starts as a simple attempt to improve user experience, can quickly spiral into serious privacy and security risks with negative implications for both the user and the app owner.

1. Privacy violation
The most obvious danger of collecting too much user data is invading people’s privacy. It’s a thin line between adding convenience to people’s lives through personalized ads and invading their privacy. And perhaps no story demonstrates this better than the one of a Minnesota dad who learned about his teenage daughter’s pregnancy thanks to Target’s pregnancy prediction algorithm.

Furious that his daughter was receiving baby product coupons in the mail, the father stormed a Target store accusing the manager of encouraging teen pregnancy. As it turns out, the company’s predictive model had identified the daughter as expecting based on her purchases of items like unscented lotion, supplements, and cotton balls.

Do you see the problem? When apps collect too much data, they risk exposing deeply private details in ways the data owner didn’t consent to. And the worst part? People often don’t realize how much they’re revealing about themselves until the data comes back to haunt them.

2. Security breaches

The more data an app stores, the more of a target it becomes for hackers. Sadly, data security is not a top priority for most app owners. They’re more interested in leveraging the data to further their business.

Again, users have no idea of the inherent risk posed by a particular app.

Even if the app is breached users won’t know that their data is exposed until a), they’re victims of a related attack, say the hackers use the stolen data to impersonate them online. Or b), the user checks if their information is on the dark web.

Another problem with collecting too much user data is that it has been proven to bypass security measures such as anonymization. In one study, the data was stripped of personal identifiers like name and email address. Still, the researchers reverse engineered the data set and re-identified the individuals using additional data like age, gender, and marital status.

3. Bias and discrimination

Collecting too much data can encourage algorithmic bias which is especially dangerous in areas like hiring, credit scoring, and law enforcement. This threat will only grow bigger as people increasingly embrace AI-assisted analytics for various uses.

One of the most infamous cases of algorithmic bias came from Amazon's AI Hiring Tool, which was trained on past resumes to identify strong job candidates. The problem? Most of the previous applicants were men. As a result, the algorithm learned to discriminate against women, systematically downranking resumes that contained words like "women’s chess club" or references to female-led organizations.

On the same note, predictive policing algorithms have been criticized for unfairly targeting low-income and minority communities not because of an explicit intent to discriminate, but because of how historical crime data was used.

4. Legal troubles

Excessive data collection can have legal consequences. Multiple regulations have been created to govern how businesses should collect and handle user data. They vary depending on the location, but the GDPR is the most comprehensive and far-reaching. The US has yet to develop a federal data protection regulation, but multiple states have established their own, starting with California (CCRA), Virginia (CDPA), Colorado (CPA), Utah (UCPA), and Connecticut (CTDPA).

Other laws and regulations to keep in mind include the UK Data Protection Act, the Children’s Online Privacy Protection Act (COPPA), and HIPAA which governs the collection and handling of sensitive medical data in the US.

Businesses that fail to comply with these regulations risk hefty fines, legal battles, and bans from operating in certain regions.

5. User trust erosion

Users have become more aware of data privacy. They continuously question the necessity of every piece of data they give to apps.

Once a user establishes that an app is tracking them too aggressively, misleading them about data usage, or sharing their information with third parties, trust is gone and they start looking for alternatives.

Meta’s WhatsApp had its moment in 2021 after users discovered that the app would start sharing data with Facebook. This news led to a mass exodus of users into competing apps, including Signal and Telegram, which positioned themselves as privacy-driven alternatives.

WhatsApp has enough users to mitigate the damaged reputation without significant revenue loss. Smaller apps, on the other hand, may not be as lucky.

6. The hidden cost for developers

Beyond the legal, ethical, and security risks, excessive data collection also comes with a hidden financial cost. Storing large amounts of user data requires more servers, security infrastructure, and compliance resources. Companies that hoard data indefinitely spend more on storage and security without any real benefit.

In 2018, Microsoft had to delete petabytes of old telemetry data because it was too costly and useless.

Ethical responsibilities of developers to prevent excess data collection

App developers have the biggest role in ensuring data collection is ethical and doesn’t cross user boundaries. Most of these responsibilities are founded on ethics but are also bound by law thanks to the mentioned laws and regulations.

Here are some ways developers can prevent excessive data collection while still ensuring great user experience:

1. Transparency and consent

In very clear terms, the app owner should inform their users about the data collected, how it will be used, and if it’s shared with third parties. There’s this old trick where companies try to bury dubious collection practices under long privacy policies they know users won't read. Don’t try that. Also, don’t resort to legal and technical jargon such that even those reading the policy don’t understand what they agree to.

The ethical approach is simple:

Use clear, straightforward language to explain data collection
Obtain explicit consent from users before collecting data
Request permissions only when necessary, and not all at once
Give users an easy way to opt out without making them dig through settings menus

2. Data minimization

Only collect data that is necessary for the app to function properly. If you don’t need it right now, you won’t need it in the future. There’s no point in hoarding the data.

As a rule of thumb, developers need to answer these 3 questions honestly:

Do we really need this data for the app to function?
Are we storing the data longer than necessary
What would the implications be for us and our customers if we suffered a data breach tomorrow?

3. Data security

If you must collect sensitive customer data, you are responsible for protecting it. This starts with how you collect the data and continues with how you transmit and store it.

Some tips to secure user data include:

Depersonalizing the data e.g. through aggregation or anonymizing identifiers

Encryption both in transit and at rest
Implementing strong access control protocols. SSO and multi-factor authentication are not nice to have, but rather critical security features for modern-day applications
Regularly backing up critical data, using solutions designed to backup Nutanix, VMWare or Microsoft 365 environments for quick recovery in case of data loss or cyber incidents.

What if a data breach still occurs despite employing security best practices? Take responsibility. Notify everybody you believe has been affected. It’s an important part of retaining user trust. At least you were honest about it.

It also affords them a chance to take the necessary steps to protect themselves. Businesses go the extra step to pay for the victims’ credit monitoring, so they're notified if there’s an attempt to steal their identity and commit fraud.

4. Give users control over their data

Developers have a key responsibility to allow users manage, delete, and control their data. Unfortunately, many companies deliberately make this difficult, by hiding account deletion options or requiring a series of frustrating steps to disable tracking.

The best thing to do is:

Build systems that allow users to delete their data permanently with a single action
Provide easy-to-access privacy settings that don’t require digging through multiple menus
Offer clear opt-out mechanisms for tracking and data sharing

5. Avoid manipulative practices

Some developers use deceptive designs to trick users into unknowingly giving their data. A classic example is pre-checked permission boxes that enroll users for tracking without their realizing it. Another is web apps that default to “Accept All” cookies, forcing users to click through multiple steps to reject tracking. The hope is that users won’t bother adjusting settings, and their data can be collected with minimal resistance.

LinkedIn tried it last year, but it backfired. The networking app was found to have automatically opted in its users for AI-training data collection unless you manually opted out. The right way to do it would have been to inform users of the data collection and have them opt-in.

Conclusion

At a time when most of our lives are lived in the digital world, the data you collect could be a key differentiator. It’s, therefore, understandable why some app owners may resort to unethical practices to obtain the data. And it will only get worse now that we are ushering in the age of AI. Everybody is in a race to find data to train AI systems.

Amidst all this, it’s important to remember our ethical and moral responsibility. Don’t let the instant gains shortsight you into forgetting all the negative implications of violating your users’ digital rights. Also, guess what’s more fulfilling than having a high-income generating app? A loyal and engaged community of users that trust you.

I’m interested to hear your thoughts on invasive data collection. Have you ever been surprised by how much data an app collects? Share your thoughts in the comments. If you found this post insightful, don’t forget to leave a like!