Credit unions (CUs) might not have the same national or regional reach as traditional banks, but their members don’t expect less when it comes to accessing digital-first services on par with those of legacy financial institutions (FIs).
The FTC takes in reports from consumers about problems they experience in the marketplace. The reports are stored in the Consumer Sentinel Network (Sentinel), a secure online database available only to law enforcement. While the FTC does not intervene in individual consumer disputes, its law enforcement partners – whether they are down the street, across the nation, or around the world – can use information in the database to spot trends, identify questionable business practices and targets, and enforce the law.
Beginning May 11, 2024, non-banking financial institutions regulated by the Federal Trade Commission (FTC) will be required to submit notifications of data breaches or other security events that impact 500+ consumers. The FTC issued a final rule (the Rule) amending its Safeguards Rule1 to impose this notification requirement.
You may have heard that “data is the new oil”—in other words, data is the critical raw material that drives innovation in tech and business, and like oil, it must be collected at a massive scale and then refined in order to be useful. And there is perhaps no data refinery as large-capacity and as data-hungry as AI. Companies developing AI products, as we have noted, possess a continuous appetite for more and newer data, and they may find that the readiest source of crude data are their own userbases.
In the aftermath of the most damaging and widespread fraud event in our history, this would be an exceptionally bad time to tie government agencies’ hands in protecting citizens and preventing fraud. But unfortunately, the Consumer Financial Protection Bureau (CFPB) is contemplating a new proposed rule to do just that.
.jpg)
.jpg)