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The US Consumer Financial Protection Bureau (CFPB) has proposed a new rule to restrict the sale of sensitive personal and financial information, aiming to prevent misuse of data by scammers, stalkers and foreign actors.
Under the proposal, data brokers handling personal identifiers such as social security numbers and phone numbers or financial details, such as income and debt history, would be classified as "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA).
This designation would entail stricter data accuracy, security and consumer access requirements.
The CFPB highlighted risks associated with the current practices, including national security threats, such as espionage by foreign adversaries, and criminal exploitation of vulnerable populations like seniors.
The rule also seeks to protect law enforcement personnel and domestic violence survivors from being targeted through easily accessible data.
Key provisions include requiring explicit consumer consent for data sharing, restricting sales of sensitive financial data and ensuring accountability for brokers selling personal 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.”
