College of Wilmington Security & Privacy of Consumer Financial Information Discussion

User Generated

Fbha

Computer Science

College of Wilmington

Description

2 Case studies/examples (News articles) related to “Security and privacy of health Information” and role of state laws protecting medical records.

Explanation & Answer:
6 Pages
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: SECURITY AND PRIVACY OF CONSUMER FINANCIAL INFORMATION 1

Security and privacy of Consumer Financial Information
Name of Student
Name of Institution

SECURITY AND PRIVACY OF CONSUMER FINANCIAL INFORMATION

2

Introduction
The new millennium has brought about the introduction of new technologies that creates
an enabling environment on financial services in terms of gathering and retaining customer
information. However, the concept of security and privacy is increasingly becoming an issue of
concern by customers on the safety of their financial information. Also, ethics issues arise on
disclosure and sharing of customers’ information without their consent. Generally, the U.S does
not have specified law that regulates financial privacy. Furthermore, the United States
Constitution does not provide any protection against financial information access by third
parties. Therefore, even though there is a fourth amendment that makes it mandatory to seek for
a search warrant, there is no act that states financial institutions should seek permission from the
state before accessing and sharing financial information. However, at the federal level Financial
Privacy Right Act section, 3401-3422 provides privacy protection measures since it sets
procedures on how customer financial records may be accessed from financial institutions by the
federal government. This study explains two case studies related to security and privacy of
consumer financial information and the role of state laws protecting financial records.
Case study 1
In a broader sense, consumer protection is defined as regulations and rules that ensure
there is fairness between consumers and service providers. Regulation and intervention by the
government are justified when it comes to consumer protection. The reason is that it brings about
market power imbalances based on asymmetric on inherent information. Therefore, service
providers are given a limit on disclosure of their customers’ financial information with third
parties (Ardic, Ibrahim & Mylenko, 2011). The framework of customer protection is aimed at
introducing awareness and transparency on the part of financial institutions. This it promotes

SECURITY AND PRIVACY OF CONSUMER FINANCIAL INFORMATION

3

healthy completion in the market, eliminates unfair practices, educates customers, and prevents
fraud.
In the financial service industry framework of consumer protection has evolved
significantly since every financial activity is now done digitally. There are three contemporary
aspects of an effective customer protection framework. First, a financial institution should
introduce financial capability and literacy promotion by assisting customers to acquire the vital
knowledge and skills on how best to manage their finances (Ardic, Ibrahim & Mylenko, 2011).
Second, firms should create enforcement of an effective dispute resolution mechanism. Third, it
comprises of regulations and laws that govern relations between financial institutions and their
customers and ensure recourse rights, transparency, and fairness.
Over time there have been significant changes in terms of framew...


Anonymous
Excellent! Definitely coming back for more study materials.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags