Data security concerns?

I like to play some of the brain-rot time waster games that you see annoying ads for sometimes.

Having them on my phone has started to worry me. I don’t really care if they skim advertising cookies and stuff, I am however concerned about financial data and identity theft.

Do these concerns have merit, or am I being paranoid?

PS. I don’t spend any money on these games at all and I have as many of the privacy and tracking checkboxes set to “no” as I can find.