WASHINGTON–CFPB Director Rohit Chopra offered an update on what the Bureau is thinking around data security and new rules around data brokers.
Speaking at an event at the White House on data protection and national security, Chopra said there is an emerging consensus that “intrusive surveillance and aggregation of personal data can create the conditions for harming national security and undermining freedom.”
Chopra addressed by President Biden’s recent executive order to protect Americans’ sensitive personal data, as well as the CFPB’s plans for new rules for what he called “so-called data brokers.”
Three Breaches of Note
Noting he previously served as co-chair of the International Conference on Data Protection and Privacy Commissioners (now known as the Global Privacy Assembly), he said three breaches are particularly worth noting:
- The 2015 intrusion into Anthem (the major health insurer)
- The 2017 breach at Equifax
- The 2018 breach at Marriott
Links to China
“Data breaches lead to losses in the form of identity theft and misuse of account information,” said Chopra. “But in these three breaches, as well as others, many have linked the breaches to activity by entities and actors based in China. For example, in 2020, the Justice Department charged four members of the Chinese People’s Liberation Army with orchestrating the operation at Equifax to obtain personal data on 145 million Americans. When Americans’ health information, financial information, and even their travel whereabouts can be assembled into detailed dossiers, it’s no surprise that this raises risks when it comes to safety and security.”
Chopra further noted bad actors can use stolen data to track Americans (including military service members), pry into their personal lives, and pass that data on to other data brokers and foreign intelligence services.
“This data can enable intrusive surveillance, scams, blackmail, and other violations of privacy,” said Chopra.
About Data Brokers
Meanwhile, Chopra said that a significant number of data brokers have gone into business to ingest and sell data to a wide range of entities, usually without the knowledge of the subject.
“Data brokers make this easy by assigning users to categories: he said. “Reporting and reviews of online market suggest that data brokers can help entities target ‘decision makers at government organizations primarily engaged in national security and international affairs’ and ‘military service-members and government employees.’ Data brokers also support targeting of specific geographic locations like government or military installations.”
Rules to be Proposed
Chopra said the CFPB is aiming to propose rules this year to ensure that data brokers comply with the Fair Credit Reporting Act, which would restrict certain business practices and ensure higher levels of accountability for companies engaged in this business model.
He added the proposals under consideration would define a data broker that sells certain types of consumer data as a “consumer reporting agency” to better reflect today’s market realities.
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