Is it allowed for U.S. financial institutions to sell consumer data collected solely for fraud prevention?

Last updated on October 3, 2025

No, it is not allowed. The Open Banking rule exempts fraud prevention data from mandatory sharing and prohibits its sale. Institutions must keep such data confidential and use it only for security purposes. Selling it violates federal privacy protections.

 

https://privacymatters.dlapiper.com/2024/11/cfpb-finalizes-open-banking-rule-under-section-1033-key-takeaways-for-accessing-consumer-financial-data/

11/1/2024

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