Responsible Data Use Stops Fraud
Responsible data use enables critical fraud prevention and identity verification services that benefit consumers, businesses of all sizes, and the broader economy.
Why Is Responsible Data Use Essential?
- Keeps everyday transactions safe. When consumers shop, bank, apply for or use financial services, or engage in other routine activities, businesses use data to verify consumers’ identities, detect suspicious activity, and stop criminals from misusing personal information.
- Ensures consumers receive government benefits. Data helps the government confirm consumers’ eligibility for benefits and stop fraudsters from stealing these benefits, ensuring that assistance reaches eligible people and reducing waste, fraud, and abuse.
- Builds trust in the digital economy. Responsible data use helps create trust in the digital economy, giving consumers confidence and peace of mind as they pay bills, make mortgage payments, get insurance quotes, and otherwise participate in our economy.
- Saves money for businesses and consumers. Reduced fraud means lower operating costs, which helps businesses thrive and pass savings on to consumers.
What Happens If Responsible Data Use Is Prohibited?
- Fraud losses increase. Criminals will be able to exploit weakened verification systems more easily, leading to significant financial harm for both consumers and businesses.
- Identity theft goes undetected. Vulnerable populations, including younger people and the elderly, are frequent targets of financial abuse. Identity-theft protection tools rely on data analysis to protect these populations. Without these tools, identity theft may go undetected, causing lasting damage to a young person’s future or a retiree’s safety net.
- Online interactions become less safe. E-commerce protections, banking security, and other consumer safeguards depend on data. Without data-driven safeguards, online services become less secure and more vulnerable to abuse.
- Businesses and consumers face higher costs. Fraud is costly. Without the data and tools that detect and prevent fraud, businesses will experience increased costs and potentially face the difficult decision of whether to absorb these costs or pass them on to consumers. These impacts will fall disproportionately on disadvantaged consumers and small businesses.