Banking and Finance Law Daily Wrap Up, CONSUMER FINANCIAL PROTECTION BUREAU—CFPB issues data breach advisory, (Jan 27, 2014)

By Charles A. Menke, J.D.

In the wake of recent security data breaches at major retailers, the Consumer Financial Protection Bureau has issued a consumer advisory to assist consumers. “In light of recent data breaches, we want to be sure that consumers know how to protect themselves and where to turn if they do suspect fraud,” CFPB Director Richard Cordray said in a release announcing the CFPB’s action. The advisory includes steps consumers can take to protect themselves from data theft and also contains information on where to get help if consumers suspect their information has been compromised.

The CFPB advises consumers to:

• Monitor accounts: Consumers should review their account activity regularly, preferably online, if possible, and report even the smallest problem promptly.

• Immediately report suspected fraud: Consumers should contact their bank or credit card provider immediately if they suspect an unauthorized debit or charge. If fraudulent charges appear, the consumer should ask the card provider to close access to the account and issue a new card before more transactions are posted.

• Maintain records: Consumers detecting fraud should follow-up a verbal alert with written communication. Consumers should retain copies of any written communications as well as tracking dates of follow-up telephone calls.

• Avoid scams: Consumers should be wary of anyone who initiates contact by phone or email seeking to verify account information.

The advisory urges consumers to contact the CFPB if their bank or credit card provider’s response to a report of fraudulent account activity is unsatisfactory.

RegulatoryActivity: CFPB IdentityTheft Privacy