“This change would make it significantly harder for malicious actors to exploit sensitive personal data,” Chopra emphasized. The proposal aims to restrict access to this information while preserving legitimate uses such as identity verification and fraud prevention.
Industry Resistance and Public Debate
Predictably, the banking industry has expressed reservations, warning of potential disruptions to anti-fraud systems that rely on credit header data. The CFPB has countered by stressing that the rule is crafted to ensure continued access for fraud prevention and law enforcement purposes.
“This is about balancing privacy with security,” Chopra explained, noting that pathways for government use in criminal and counterterrorism investigations would remain intact.
CFPB Data Brokers Regulation : Broader Implications
The proposed rule reflects growing bipartisan concerns over data privacy and national security. A CFPB fact sheet highlighted risks of data brokers’ activities, from endangering law enforcement officials to enabling cybercriminals and foreign intelligence.
