IDENTITY THEFT IS a rapidly growing crime. Consumer financial information is a gold mine for an identity thief, who can use this information to establish a new identity. Identity theft victims spend time and money repairing damage caused by identity thieves to restore their good name and their credit. Identity theft is a crime that can have a large impact on a person’s financial situation.

Banks and other financial institutions use consumer financial information when they conduct business with their customers. This information is valuable and must be protected. The 2019 Verizon Data Breach Investigation Report stated 71 percent of the data breaches that it analyzed were motivated by financial gain. The financial industry is one of the top industries targeted.¹ This chapter focuses on the laws and regulations that financial institutions must follow to protect the security and privacy of consumer financial information.