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James I. Kaplan quoted in article “ID-Theft Protection Could Draw Regulatory Target on Small Banks”

American Banker

Below is an excerpt:

A spike in data breaches has raised consumer awareness about identity theft and similar exposures, making protective products more appealing. This opportunity, however, comes at a time when a number of big banks have been hit with regulatory enforcement actions and fines tied to payment protection and other ancillary services.

The potential for regulatory risk means that small banks must carefully vet the services they offer and any third-party vendors they use, industry observers said.

"It will be increasingly attractive for banks to offer these third-party products, but there's risk they have to bear in mind," said James Kaplan, a lawyer at Quarles & Brady. "Bankers have to think about how they will address those risks before regulators ask them about it."

Originally published in American Banker, March 18, 2015