Bill Overview
Title: Consumer Information Notification Requirement Act
Description: This bill requires federal financial regulators to set forth rules regarding data breaches. Specifically, these rules must require financial institutions, banks, and other specified entities to notify customers of breaches likely to result in identity theft, fraud, or economic loss.
Sponsors: Rep. Luetkemeyer, Blaine [R-MO-3]
Target Audience
Population: People who use financial institutions, banks, and other specified entities globally
Estimated Size: 330000000
- This bill affects the customers of financial institutions, banks, and other specified entities.
- Financial institutions, banks, and specified entities serve a wide range of customers including individual consumers and businesses.
- The bill specifically targets data breaches that could lead to identity theft, fraud, or economic loss, affecting those whose data might be compromised.
- Given that the entire global population uses financial institutions, the bill potentially impacts anyone who has dealings with these organizations.
Reasoning
- I will select individuals from different demographics to reflect varying impacts of the bill, such as varied economic backgrounds, ages, and levels of integration with financial institutions.
- Based on the target demographic, I will consider that the policy might have low direct impact on individuals not closely watching for identity theft but high impact for those who rely heavily on digital financial services.
- Not all individuals will experience a drastic change in wellbeing, as many may already have strong measures in place or remain unaffected by data breaches. The policy's success depends on its implementation and awareness drive.
- Considering costs, the policy focuses on implementing notification regulations, which might not directly result in drastic change but could increase peace of mind over time.
Simulated Interviews
Software Engineer (Seattle, WA)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think it's great that there will be transparency regarding data breaches.
- I expect my stress levels regarding information security to decrease with these notifications in place.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Bank Manager (Boston, MA)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This will increase my workload in terms of compliance, but it's necessary for customers' trust.
- A more informed clientele means fewer surprise issues to manage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 6 |
College Student (Austin, TX)
Age: 22 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- I am worried about fraud and identity theft, so this policy will help me feel more secure.
- Instant notification will allow me to respond faster to any potential threats.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Small Business Owner (Omaha, NE)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Protecting my business from financial loss due to theft is critical, so I support this policy.
- I feel more assured that I'll be aware of breaches that might impact my finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 6 |
Retiree (Miami, FL)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- I don't use online banking much, so I worry less about data breaches.
- I suppose the notifications would help if there was an issue, but I don't see it affecting me much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Freelance Designer (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Having an immediate notification system is critical for my work as I handle multiple transactions daily.
- This policy will enhance my trust in the digital payment systems I use.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 7 | 6 |
IT Security Specialist (Los Angeles, CA)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- The policy is a step in the right direction but it depends on effective implementation.
- From my perspective, it will make managing breaches more systematic and transparent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Teacher (San Diego, CA)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 16/20
Statement of Opinion:
- I'm mostly unaware of such issues, but being informed might help me feel safer.
- It's a good initiative, but I doubt it will change much in my day-to-day life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Warehouse Worker (Chicago, IL)
Age: 42 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- I don't use online banking much, but I still worry about identity theft.
- If I get notified quickly, I can act fast, which helps me feel more at ease.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Entrepreneur (San Francisco, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 11/20
Statement of Opinion:
- This policy will be a net positive for the safety of small businesses.
- Understanding and being notified of breaches quickly will help mitigate damage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $700000000)
Year 2: $450000000 (Low: $250000000, High: $650000000)
Year 3: $400000000 (Low: $200000000, High: $600000000)
Year 5: $400000000 (Low: $200000000, High: $600000000)
Year 10: $400000000 (Low: $200000000, High: $600000000)
Year 100: $400000000 (Low: $200000000, High: $600000000)
Key Considerations
- The cost of implementation may vary significantly across institutions depending on their current IT infrastructure and data security policies.
- The exact effectiveness of reducing identity theft and economic fraud will depend on the specificity and timeliness of notifications issued to consumers.
- The bill's impact on small financial entities might differ from larger institutions due to differing resource availability.
- Benefits to consumers and potential damage reductions could strengthen public trust over time, increasing engagement with financial services.