RESEARCH OUTLINE
Research topic: The issues in cybersecurity regarding the financial industry as there are ethical concerns on collecting data.
- Introduction
- Narrative
The research paper will give a narrative on the increased use of the internet and cyberspace by businesses. It will show that the integration of networks, hardware, and software has made companies and businesses vulnerable to cyber-attacks and data breaches. It will use the financial industry as an example of a business area prone to data breaches.
- Introduction to the problem
The research paper will focus on the Gramm-Leach Bliley Act enacted in 1999 to regulate the financial industry and ensure consumer data privacy. It will state a brief history of the GLBA. The research shall show how the (GLBA) has regulated the use of cyberspace to protect consumer financial data. It will also state the ethical concerns that have been raised over the use of consumer data by financial companies.
- Thesis Statement
Consumer data privacy is not guaranteed despite the Gramm-Leach-Bliley Act regulating the use of data in cyberspace, as large data breaches have occurred within the last 10years. Legal regulation needs to be re-addressed in the ethical collection of data.
- Research Questions
- Has the Gramm-Leach-Bliley Act fulfilled its objective of safeguarding consumer data privacy? The Act’s contents will be discussed, emphasizing Title V of the Act concerning consumer privacy.
- Does GLBA have in place adequate measures to promote cybersecurity in the financial industry?
- What effect does GLBA have on cyberspace’s economic, social, political, and cultural development?
- What ethical concerns arise from the implementation of GLBA?
- Statement of Significance
Consumers of financial services have the right to have their personal information kept confidential.
- Review of the Literature
The research will analyze and compare the views of different authors on the impact of the Gramm-Leach-Bliley Act.
- Method and Justification
- Method
The research paper will source information from textbooks, peer-reviewed journal articles, professional publications, business and government publications, and websites.
- Justification
The paper will demonstrate that we ought to understand the laws regulating consumer privacy as the consumers in the financial industry.
- Findings
The research paper will find that the Gramm-Leach-Bliley Act is a regulation enacted to protect consumer data that companies in the financial industry hold. It will demonstrate that the (GLBA) has its successes and failures, as summarized below.
- Successes of GLBA
- It has ensured that financial institutions develop precautions to ensure consumer data protection and protect against unauthorized access.
- It has ensured that customers are notified of the financial institution’s policies disclosing non-public personal information to affiliates and non-affiliated third parties.
- Consumers are allowed to opt-out from a limited number of non-public personal information.
- It has, to an extent, enhanced the confidentiality and security of customers’ non-public personal information.
- Failures of GLBA
- GLBA opt-out agreement provisions do not require the financial institution to provide standard protection to their customers regardless of whether they opt-out of the agreement. The burden lays on the customer to protect his or her privacy.
- The GLBA notices to customers are confusing and, at times, misleading. Transparency is limited.
- Customers have no control over affiliate information sharing.
- GLBA has a weak enforcement mechanism and customer compensation for the breach.
- Discussion
- Ethical Concerns
The research will show that financial institutions are unethically using customer information to their advantage. Several examples will be given, including case studies such as the 2017 Equifax data breach and the Yahoo data breaches in 2014 and 2017.
- Conclusion
The research will conclude that the GLBA does not guarantee consumer data privacy. It will give the following recommendations;-
- GLBA should provide an obligation to the financial institutions to provide opt-out processes that are simple and easily accessed through their offices or a specific website on opt-out information.
- Financial institutions should be compelled to include how they intend to use non-public information in their reports.
- For proper enforcement of the GLBA, states should be given concurrent jurisdiction to enforce the Act’s provisions.
- Customers to be afforded a private right of action in order to get compensation under GLBA.