Forwarded From: "Spencer, Will" <wspencert_private> 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. -o- Subscribe: mail majordomot_private with "subscribe isn". Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]
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