Privacy Issues in the Banking Industry

Identity theft is the stealing and use of someone’s personal information and is one of the fastest growing crimes in the nation (Dole, 2005). According to Federal Trade Commission estimates, identity thieves victimize approximately 10 million Americans every year at a cost of an astonishing $50 billion (2005). Identity theft has been going on for years now and is easily done with the help of today’s technology. According to the Federal Trade Commission, there are six common ways that identity thieves get a hold of personal information. The varieties of methods that are used are dumpster diving, skimming, phishing, changing the victim’s address, stealing, and pretexting (Federal Trade Commission). Once someone’s identity is stolen,

As human beings and citizens of the world, everyone values their privacy. It is a right that is often looked over and taken for granted by most. Since the beginning of time, there have been concerns about individuals’ rights to privacy and their personal information remaining confidential. Our founding fathers had concerns about this which is why, “…this right has developed into

Have you ever received a credit card bill at the end of the month with a ridiculous amount of money needed to be paid that you never spent? This is because of identity theft. The FTC estimates that each year, over 9 million people are affected by identity theft. According to Sally Driscoll, this is because almost anyone with a computer and a slight bit of computer knowledge can pull off identity theft. Experts also claim that identity theft is the fastest-growing crime in the world. Identity theft is a global problem that cannot be stopped without effective measures. The problem is, effective measures are very hard to come by when dealing with identity theft because almost any security protocol can be by-passed.

The GLB Safeguard Rule requires that financial institutions develop security programs to protect data; they also must provide provisions to protect customer’s information and it requires institutions to give customers a written privacy notices that explain how their information is shared.

As a principal part of the Gramm-Leach-Bliley (GLB) Act, the Financial Privacy Rule (or Privacy Rule) revolves around protecting the privacy of consumer information and sets the standards for privacy notices, opt-out notices, and how nonpublic personal information can be used or disclosed. (FTC)

In recent years, the world has seen significant changes in technology. With new technology come new challenges. One of those new challenges is identity theft. Identity theft can happen through the internet, ATM, emails, or even a phone. Identity theft can happen when any person(s) takes an individual’s information, such as their Social Security number, or even banking information for financial gain. “Close to 100 million Americans have their personal information placed at risk of theft each year when records in databases are lost, stolen or accessed by unauthorized individuals” (Information systems and technology, n.d.). Identity theft not only costs the person, whose

laws that outlaw discrimination and other unfair treatment in consumer finance” This does give them the

Security and privacy, distinctive subjects of priority in a human being life. Privacy, the all-time, basic and fundamental ability of being free of public attention; the reason of the existence and

Gramm-Leach-Bliley Act (GLBA) – This U.S. based legislation was enacted in 1999. It requires that all financial institutions or companies that offer financial services (loans, credits financial advice, insurance)

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions or companies that offer consumers financial products or services like loans, financial or investment advice, or insurance to explain their information-sharing practices to their customers and to safeguard sensitive data. (Gramm-Leach-Bliley- Act, 2015)

Although no laws have been passed, in 2011 the Consumer Financial Protection Bureau(CFPB) was passed. The CFPB regulates the financial services Americans depend on daily to ensure those services work fairly to the advantage of the American people. Its purpose is to also ensure that the federal consumer financial laws are enforced so that consumers may access markets for financial products and so that the markets are fair and competitive. CFPB aims to make markets safe, very accessible and help customers avoid people who abuse their powers(The

Congress granted sweeping powers to the CFPB that critics suggest exceed what legislators intended when they passed the Dodd-Frank Act. The bureau has investigated discrimination in auto lending, targeted credit unions, implemented rules for debit cards and created a controversial consumer complaint hotline. A recent CFPB proposal would allow consumers to rate financial companies on a scale of 1 to 5 in surveys without any guidelines for the ratings.

The two regulatory requirements that my financial institution must consider before going public are The Gramm-Leach-Bliley Act, and Sarbanes-Oxley Act (SOX). The Gramm-Leach-Bliley Act is a law that requires financial institutions to explain their information sharing practices to their customers and to protect sensitive data. There are three requirements for the Gramm-Leach-Bliley Act, the first is that insurance companies, banks, and brokerage companies are required to secure stored personal financial information. Next the company must advise you on their policy on sharing vital information. The final requirement is that the company has to give the consumer the option to choose whether they want their personal financial information shared.

Since previous laws only apply to major financial or PII industries, other industries in the public sector that store and handle consumer account information and non-public sensitive information have no legal obligations to protect such data. Representatives Randy Neugebauer (R-TX) and John Carney (D-DE), Senators Tom Carper (D-DE) and Roy Blunt (R-MO) introduced legislation in the House and Senate, called the Data Security Act of 2015, titled H.R. 2205 and S. 961. This bill is meant to better protect consumers from identity theft and account fraud by establishing a clear set of national standards that would help prevent and respond to data breaches.

Privacy either encourages or is a necessary factor of human securities and fundamental value such as human embarrassment, independence, distinctiveness, freedom, and public affection. Being completely subject to mutual scrutiny will begin to lose self-respect, independence, distinctiveness, and freedom as a result of the sometimes strong burden to conform to public outlooks.