| Entities | |
| Topics and Issues | Algorithms (15) Data brokers (53) Fraud prevention (4) |
In July 2024, CFPB Director Rohit Chopra spoke at the July 10 meeting of the U.S. Financial Literacy and Education Commission. Chopra is the vice chair of the commission. Chopra spoke about fraud in consumer payments.
In his remarks, Chopra noted the sharp rise in fraud in consumer payments and said that data brokers have a role in that increase:
Data brokers and generative AI
While most people think that they would never be taken by a scam, it can be difficult to spot scams due to the enormous amount of personal data that is now available for sale to target individuals, along with technology that facilitates the cloning of voices and biometric indicators, which has made the ability to impersonate and microtarget easier and easier. Data brokers can even facilitate knowledge about whether individuals are newly widowed or suffering from a personal tragedy, exposing them to more vulnerability.
(citations omitted). His remarks naturally did not mention the powerful role data brokers play in preventing fraud.