What should a financial institution do to protect consumer information?

Encrypting all data and limiting access are critical practices for protecting consumer information. Encryption transforms data into a format that can only be read or processed by someone who has the decryption key, effectively safeguarding sensitive information from unauthorized access, particularly in the event of a data breach.

Limiting access ensures that only individuals who require the information for legitimate purposes can access it, thus reducing potential exposure. This combination enhances overall data security by ensuring that the information remains confidential and secure from both external and internal threats.

While sharing information only with authorized personnel is important, it does not offer the same level of security that encryption provides. Storing data in a paper format only lacks the efficiencies and protections available in digital formats, and providing information upon consumer request can lead to risks if proper identification or verification processes are not followed.