RSSData brokers selling sensitive consumer information are covered under the Fair Credit Reporting Act, according to a Dec. 3 proposed rule from the Consumer Financial Protection Bureau.
The proposal would require such data brokers to abide by accuracy requirements, including allowing consumers to access their information and keeping up safeguards against misuse. Companies would need to secure explicit authorization from consumers to obtain or share their credit reports, “rather than burying permissions in fine print,” according to the bureau.
The fate of the proposal, unveiled under CFPB Director Rohit Chopra, remains uncertain as President-Elect Donald Trump prepares to take office on Jan. 20. It is unclear whether a new director will pursue the matter.
According to the CFPB, countries with poor relations to the United States such as China and Russia can acquire detailed personal information about government employees, military service members and veterans, and other Americans for only pennies per person. “This enables the creation of detailed dossiers for potential espionage, surveillance or blackmail operations, allowing relatively small investments to be leveraged into mass surveillance operations,” according to the bureau.
Identity thieves and scammers allegedly acquire detailed financial profiles to go after senior citizens and financially-distressed individuals, using the data to execute complicated fraud schemes and steal retirement savings. According to the bureau, the sensitive information also poses risks to judges, police officers, prosecutors and other government workers. The risk of escalating violence against domestic abuse survivors also rises if their information is available.
According to the CFPB, data brokers often evade the Fair Credit Reporting Act by saying they aren’t subject to its requirements, despite selling personal and financial information.
“By selling our most sensitive personal data without our knowledge or consent, data brokers can profit by enabling scamming, stalking, and spying,” said CFPB Director Rohit Chopra. “The CFPB’s proposed rule will curtail these practices that threaten our personal safety and undermine America’s national security.”
