FTC Issues new Safeguards Rule Requiring Financial Institutions Provide Greater Protection of Consumer Information

The Federal Commerce Fee (“FTC”) not too long ago introduced an up to date rule to strengthen information safety safeguards for monetary establishments. 16 C.F.R. § 314. Because of this of rising cyberattacks and information breaches, the FTC augmented necessities to guard buyer monetary info. The up to date guidelines embody limiting entry and authentication protocols utilizing encryption to safe info and laid out incident response plans and safety packages primarily based on danger assessments. Institutions can be required to elucidate their insurance policies and practices, particularly administrative, bodily, and technical safeguards. Financial establishments may also should designate a single “qualified individual” to supervise the data safety program.  The person should additionally report back to the board of administrators of the establishment or to a senior info safety officer there. The rule additionally requires non-banking establishments akin to mortgage brokers, car sellers and small mortgage lenders, to develop and implement complete safety techniques to maintain buyer information protected.

These new safeguards mirror the FTC’s elevated deal with preempting cyberattacks by requiring that companies and establishments implement processes and procedures that safeguard person information.

The ultimate rule may be discovered here.

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