[ISN] Senate Banking chief introduces privacy bill

Forwarded From: "Spencer, Will" <wspencer@DMWGroup.com>

Senate Banking chief introduces privacy bill
By Joanne Morrison

 WASHINGTON (Reuters) - A key U.S. Senator Wednesday introduced
legislation designed to protect the private financial information of
consumers by cracking down on so-called information brokers who illegally
obtain it. 

 ``Consumers deserve to have their personal financial information
protected from exploitation by 'information brokers' and other
criminals,'' said Senate Banking Committee Chairman Alfonse D'Amato. 

 The New York Republican's bill is similar to legislation which cleared
the House Banking Committee in August. The legislation would make it a
federal crime to use false pretenses to gain someone's financial
information. 

 That would include misrepresenting one's identity or otherwise deceiving
bank officers or employees, a common practice among information brokers
who openly advertise their ability to obtain information about personal
account balances, stock portfolios and other financial holdings. 

 D'Amato noted that recent technological changes which often benefit
consumers, such as increased consumer access by telephone, have also made
it easier for information brokers to collect personal consumer
information. 

 By gleaning even partial information like birth dates, Social Security
numbers and account numbers, information brokers can gain access to
private consumer information, he warned. 

 ``This reform bill targets con artists who steal personal financial
information from consumers and then sell it to the highest bidder,''
D'Amato said. 

 The bill would impose up to five years in prison and fines of $250,000
for individuals and $500,000 for corporations. 

 Illegal information gathering has been growing as technology has improved
access to private consumer information. Changes in the financial industry,
with banks consolidating and getting into other lines of business, has
also heightened the risk of consumer privacy breaches. 

 Regulators have also raised concerns about consumer privacy.  Last month,
the Federal Reserve, Comptroller of the Currency, Federal Bureau of
Investigation and others issued a joint warning to banks that they have an
obligation to protect their customers' privacy. 



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