“A 2014 study by the Government Accountability Office (GAO) confirmed that the CFPB collected financial data on up to 600 million consumer credit card accounts, without sufficient security and privacy protections,” Andrew Langer, president of the Institute for Liberty, a public policy advocacy organization wrote in a blog post for The Hill. “Now, the Inspector General of the Federal Reserve says that the data security protection of that information is still not secure and open to vulnerabilities.”
The Washington Examiner calls the database a “NSA-esque data-mining project,” and estimates it contains 991 million American credit card accounts, among other data.
It was also learned at a congressional hearing last week that the CFPB is working with the Federal Housing Finance Agency on a similar database that will focus on 53 million residential mortgages.
"We're collecting aggregated information," CFPB Director Richard Cordray told the committee, according to the Examiner.
But what can be done to protect the privacy of Americans?
“One simple solution would be to abolish the CFPB and start over as was suggested by Sen. Ted Cruz (R-Texas),” Langer wrote. “Another solution would be to put the CFPB under the appropriations process so that Congress, and ultimately the people, would have oversight hearings to monitor this powerful government regulatory bureau.”
The CFPB is building a database of information on financial transactions for every American citizen and that data is not secure, according to one public policy advocate.