U.S. Senate Banking Committee Invites Feedback on Information Security Issues in Financial Sector

U.S. Senate Banking Committee Invites Feedback on Information Security Issues in Financial Sector

Written By ESR News Blog Editor Thomas Ahearn

The United States Senate Committee on Banking, Housing and Urban Affairs is inviting feedback on information security issues that include the collection, use, and protection of sensitive information by financial regulators and private companies, according to a press release on the Committee’s website.

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In the wake of high profile data breaches, Americans are concerned about how their personally identifiable information (PII) is collected, used, and protected by financial regulators and private companies, so issues with information security of PII will be a major focus of the Banking Committee moving forward.

Banking Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) have invited responses from interested stakeholders to any of the questions listed below in order to inform potential legislation in the 116th Congress. The responses will be collected until March 15, 2019.

  • What could be done through legislation, regulation, or by implementing best practices that would give consumers more control over and enhance the protection of consumer financial data, and ensure that consumers are notified of breaches in a timely and consistent manner?
  • What could be done through legislation, regulation, or by implementing best practices to ensure that financial regulators and private financial companies (including third-parties that share information with financial regulators and private financial companies) provide adequate disclosure to citizens and consumers about the information that is being collected about them and for what purposes?
  • What could be done through legislation, regulation, or by implementing best practices to give citizens and consumers control over how financial regulators and private financial companies (including third-parties that share information with financial regulators and private financial companies) use consumer data?
  • What could be done through legislation, regulation, or by implementing best practices by credit bureaus to protect consumer data and to make sure that information contained in a credit file is accurate?
  • What could be done through legislation, regulation, or by implementing best practices so a consumer can easily identify and exercise control of data that is being (a) collected and shared by data brokers and other firms and (b) used as a factor in establishing a consumer’s eligibility for credit, insurance, employment, or other purposes.

“Given the exponential growth and use of data, and corresponding data breaches, it is worth examining how the Fair Credit Reporting Act should work in a digital economy, and whether certain data brokers and other firms serve a function similar to the original consumer reporting agencies,” said Crapo.

“Outdated privacy laws don’t address the complex surveillance schemes these businesses profit from today,” said Brown. “Congress should make it easy for consumers to find out who is collecting personal information about them, and give consumers power over how that data is used, stored and distributed.”

Interested stakeholders should submit electronic copies of their responses to Committee staff at submissions@banking.senate.gov. The responses will be made public on the United States Senate Committee on Banking, Housing and Urban Affairs website at www.banking.senate.gov.

Data breach concerns have increased focus on information security with background screening firms in the U.S. and this trend was chosen by leading global background check provider Employment Screening Resources® (ESR) as first on the list of the “ESR Top Ten Background Check Trends” for 2019.

Attorney Lester Rosen, founder and Chief Executive Officer (CEO) of ESR and a noted background check expert, was interviewed for an article about protecting the information security of job candidates during background checks posted on the website of the Society for Human Resource Management (SHRM).

“The massive data breach suffered by nationwide credit reporting agency Equifax in September 2017 that impacted more than 145 million Americans – almost half of the country – was a wake-up call for all industries to improve their information security,” said Rosen, author of ‘The Safe Hiring Manual.’

“The need for screening firms that handle personal data of applicants to ensure information security is mission critical,” explained Rosen, who suggested employers use screening firms that undergo SOC 2 audits “to ensure high standards for the protection of privacy, security, and confidentiality of consumer information.”

ESR SOC 2 Audits Help Ensure Information Security

Employment Screening Resources® (ESR) undergoes annual SOC 2 audits to confirm ESR meets high standards for protecting the privacy, security, and confidentiality of consumer information used in the background check process. To learn more, visit www.esrcheck.com/Why-ESR/SOC-2/.

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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