Financial information: what you’re actually sharing, and why it matters
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Key takeaways
Financial information includes any data about income, accounts, transactions, or creditworthiness.
It’s specifically protected under various privacy and consumer protection laws, though the rules vary by context.
Sharing financial information is a normal, necessary part of using banking and money transfer services.
Knowing which financial information a request actually requires helps in spotting an unnecessary or suspicious ask.
Protecting financial information matters just as much when sending money internationally as it does domestically.
Financial information includes any data about money, and understanding what counts helps in protecting it appropriately. Here’s what to know.
What is financial information?
Financial information is any data related to income, bank accounts, transactions, credit history, or overall financial situation, including things like account numbers, transaction history, credit score, and income details. This category is broad by design, since it needs to cover the many different types of personal financial data that institutions collect, use, and are obligated to protect under various privacy frameworks.
Why financial information receives special protection
Because financial information can reveal so much about a person, and because it can be misused for fraud or identity theft if it falls into the wrong hands, it’s subject to specific legal protections that don’t apply the same way to less sensitive categories of personal information. According to the FTC(opens in new window), the Gramm-Leach-Bliley Act requires financial institutions to explain their information-sharing practices to customers and to safeguard sensitive customer data, through requirements that apply broadly across banks, lenders, and many other companies that handle consumer financial information.
Sharing financial information for a money transfer
Sending an international money transfer necessarily involves sharing certain financial information, identity, bank account or payment details, and information about the transaction itself, with the provider facilitating the transfer. This is a normal, expected part of how a regulated transfer service verifies identity, complies with anti-fraud requirements, and actually moves money, and a legitimate provider will generally be transparent about exactly what information it collects and why.
For a specific, practical example of a piece of financial information worth understanding, see this explanation of a canceled check(opens in new window).
Quick calculation
Imagine a legitimate transfer provider asks for a name, identification, and payment details to process an illustrative 500-unit transfer, information genuinely necessary to verify identity and complete the transaction. If a separate, unsolicited message asks for a full account password or a one-time verification code on top of this standard information, that additional request goes well beyond what’s actually needed to process a transfer, a mismatch worth recognizing as a warning sign rather than assuming every request for financial information is equally legitimate just because it arrived alongside a real transaction.
Recognizing when a request for financial information goes too far
A legitimate financial institution or transfer provider will never need an account password or a one-time login code to help someone, since these credentials are meant to stay solely in that person’s control. Learning to recognize the difference between information a service genuinely needs, name, identification, payment method details, and information no legitimate request should ever require, a password or a login code, is one of the most practical protections against financial fraud targeting specific financial information.
Keeping your own financial information organized and secure
Beyond protecting information from unauthorized requests, keeping personal financial information organized, such as knowing account numbers, having copies of recent statements, and understanding a credit report, makes many everyday financial tasks considerably easier, from applying for a new account to resolving a billing dispute quickly. Reviewing financial information periodically, including checking a credit report for accuracy, helps in catching an error or a sign of fraud before it becomes a larger problem.
Financial information and your credit report specifically
A credit report is one of the most consequential pieces of financial information about a person, compiling borrowing and repayment history into a record that lenders, and sometimes landlords or employers, use to assess reliability. In the U.S., everyone is entitled to a free copy of their credit report from each major credit bureau, and reviewing it periodically for accuracy is one of the most valuable things to do with this financial information, since an error on the report, whether from a mistake or from fraud, can meaningfully affect access to credit and the rates offered until it’s corrected.
Financial information and identity verification
Many financial institutions now use specific pieces of financial information, such as recent transaction history or account details, as part of verifying identity when contacting customer support. Understanding that these questions serve a legitimate security purpose, rather than assuming any request for account details over the phone is automatically suspicious, helps in distinguishing a normal verification process from a genuine phishing attempt, which typically asks for something a real verification call never would, like a full password.
Financial information shared with family
Deciding how much financial information to share with family, particularly across a cross-border relationship where trust and financial support intersect closely, is a personal decision without a single right answer. Being clear and consistent about what feels comfortable to share, rather than an inconsistent mix of transparency and privacy that can create confusion or mistrust over time, tends to support healthier financial conversations within a family relying on that support.
Common questions about financial information
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Is it safe to share my financial information with a money transfer provider?
Sharing the specific information a legitimate, regulated provider requires, generally identity and payment details, is a normal and necessary part of using the service. The concern arises specifically when a request asks for something beyond what’s genuinely needed, such as an account password.
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What laws protect my financial information?
Protections vary by country and by the type of institution involved, but in the U.S., laws like the Gramm-Leach-Bliley Act and various consumer protection regulations require financial institutions to disclose their information practices and implement safeguards, though the specific requirements differ across different types of financial services.
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How can I tell if a request for my financial information is legitimate?
Consider whether the specific information requested is actually necessary for the service being used, and be especially cautious of any unsolicited request, whether by phone, text, or email, asking for a password or login code, since a legitimate provider will never need these to assist.
In Summary
Financial information is a broad category covering much of what makes up a person’s financial identity, and understanding both what it includes and how to recognize a request that goes beyond what’s genuinely necessary protects anyone managing a domestic account or sending money internationally. See how much you can save on your next transfer while keeping financial information secure throughout the process.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.