Unit 4: Consumer Privacy and Data Protection

Implementing a plan for secure data disposal is an example of the ______ security principle.

"Pitch it"

Broker Alex is planning to share nonpublic personal information about his consumers with nonaffiliated third parties. He should ______.

Allow his consumers the choice of opting out

Cordelia wants to make sure that she properly disposes of all sensitive data. Which of the following is an acceptable disposal method?

Burning paper records

Wire fraud schemes often target _____.

Buyers

Gloria connected to her broker's network while working from home on her laptop, noticed a virus that seemed to be deleting her files. What should Gloria's first action be?

Disconnect from the network.

A comprehensive company policy on data security protects ______.

Everyone

Which industry is most impacted by the Gramm-Leach-Bliley Act?

Finance

In 2018, the European Parliament passed the ______, which includes some of key privacy and data protection requirements.

General Data Protection Regulation (GDPR)

Requires companies that offer consumers financial products or services to explain their information-sharing practices

Gramm-Leach Bliley Act

The ______ requires companies that offer consumers financial products or services to explain their information-sharing practices.

Gramm-Leach Bliley Act

Broker Alma wants to put a privacy policy on the brokerage website. What should Alma do?

Have her lawyer look at the policy before posting it.

Licensee Seth spends most of his time working from his home office. Because he so often works remotely, ______.

He must follow the same security guidelines as everyone else

Nicole's brokerage was the victim of a data breach, and confidential client information was stolen off of the network. Her client Owen later discovered that someone had used his information to open three new credit cards. Owen is a victim of:

Identity theft

The Safeguards Rule requires financial institutions to take measures to ______.

Keep customer data secure

Penny's office is in the process of developing a plan to better secure the information they acquire. Which of the following strategies should the brokerage adopt?

Keeping only information needed for a real business reason

What entity should you inform if your computer network is compromised?

Law enforcement

Which of the following pieces of information is considered NPI?

Loan balance

Reviewing data retention and security measures

Lock it up

______ involves protecting the information that you keep.

Locking it up

______ supports uniform standards for businesses, equal protection for consumers, and direct statutory obligations for all service providers handling consumer data.

NAR

Bank account numbers, Social Security numbers, payment histories, loan balances, and the like are all considered examples of ______.

Nonpublic personal information (NPI)

If you're planning to share _________ about your consumers with nonaffiliated third parties, then you should give them notice and allow them the choice of opting out.

Nonpublic personal information (NPI)

Broker Dina just realized that her network was hacked and valuable consumer data was compromised. What should Dina do next?

Notify anyone affected by the breach.

Broker Kesha wants to scale down on the type of data her office retains. Which of the following actions should she take?

Only keep information for which she has a valid business need.

Gemma's office has a detailed policy on consumer protection and data security. Which of the following statements is true?

Periodic policy reviews are a must.

Implementing a plan for secure data disposal

Pitch it

Brokerages may be impacted by the ______ Rule of the Gramm-Leach-Bliley Act when receiving nonpublic personal information from nonaffiliated financial institutions.

Privacy

Requires companies to give consumers notices that explain the institutions' information-sharing practices

Privacy Rule

Which of the following requires companies to give consumers privacy notices that explain the institutions' information-sharing practices?

Privacy Rule

Broker Lucinda's website includes a _________ that describes the type of personal information she collects and how she uses it.

Privacy statement

Broker Mack wants to address how he shares any collected information and what technologies his site uses to collect information about each time a user visits the site. He should disclose this information in a _________.

Privacy statement

Broker Edith plans to share personal information about her consumers with service providers for joint marketing efforts. In such cases, what is Edith required to do?

Provide her consumers with a privacy notice describing the disclosure; she does NOT have to supply them with an opt-out notice. Retake this Exam Return to Course Home

Licensee Shelby clicked on a email saying that she'd own an all-expenses-paid trip to the tropics. But when she clicked the link, she also gave a hacker control over her whole system. This is an example of ______.

Ransomware

Requires creditors to establish policies and procedures to protect against identity theft

Red Flag Rules

As a creditor, Ben must establish policies and procedures to protect against identity theft in order to adhere to the ______.

Red Flags Rule

Joan works for a financial institution under FTC jurisdiction. Which of the following requires her to have measures in place to keep customer information secure?

Safeguards Rule

Requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure

Safeguards Rule

Only collecting information needed for a legitimate business purpose

Scale down

______ involves keeping only what you need for your business.

Scaling down

Federal efforts to address consumer privacy protections are ______.

Slow moving

Broker Nabil is trying to figure out how or even if to protect his clients and customers from cyberattacks. Which of the following statements is TRUE?

Small business owners need to take steps to protect their clients and customers.

Most of the progress to address consumer privacy protections is currently being made at the ______.

State level

Developing an inventory checklist

Take stock

______ involves knowing what personal information you have in your files and on your computers.

Taking stock

Which of the following is a true statement about laws and rules governing data privacy?

There are no federal laws that apply specifically to real estate.