CFPB to bolster data security amid calls for greater online privacy

The Consumer Financial Protection Bureau (CFPB) in the US is to strengthen data privacy and cybersecurity with new regulations.

The regulations, under the Fair Credit Reporting Act, means companies will have to alter how they use and share credit reports and background reports, a report by Finextra revealed.

The Fair Credit Reporting Act stipulates how companies make reports on consumers and how they collect data on consumer reports for credit, insurance, housing, and employment. The Act aims to protect the privacy of consumers and ensure that companies make accurate credit reports.

Under the new regulation, companies will only be permitted to collect data when essential for their services.

CFPB director Rohit Chopra commented on the need for the CFPB to defend consumer privacy and reduce criminal misconduct by credit reporting companies, “Americans are now subject to round-the-clock surveillance by large commercial firms seeking to monetize their personal data. While Congress and regulators must do more to protect our privacy, the CFPB will be taking steps to use the Fair Credit Reporting Act to combat misuse and abuse of personal data on background screening and credit reports.”

Following the recent overturning of Roe v Wade, calls to increase online privacy have intensified, according to Cyberscoop.

In response to these recent rulings, President Joe Biden has claimed that ‘privacy is on the ballot’ at this year’s midterm elections in November.

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