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Card-Linked Offers Raise Privacy Concerns

FINANCIAL PRIVACY—U.S.

April 16, 2012

The Wall Street Journal reports on card-linked offers and the corresponding privacy concerns raised by the new practice. To gain new sources of revenue, lenders are using transaction data to offer cardholders discounts based on their shopping habits. Some worry the card-linked offers will be an invasion of consumer privacy and fear the potential effects of a security breach. According to the report, vendors and their clients note that individual consumers' identities are masked and no personal information leaves the financial institution's system. A financial technology company analyst said banks will adopt the technology slowly, adding, "You're walking on a razor's edge with privacy." (Registration may be required to access this story.)
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