FTC Strengthens Security Safeguards for Consumer Financial Information Following Widespread Data Breaches

2022-01-21T10:04:03-06:00

The Federal Trade Commission announced a newly updated rule that strengthens the data security safeguards that financial institutions are required to put in place to protect their customers’ financial information. In recent years, widespread data breaches and cyberattacks have resulted in significant harms to consumers, including monetary loss, identity theft, and other forms of financial distress. The FTC’s updated Safeguards Rule requires non-banking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security system to keep their customers’ information safe. “Financial institutions and other entities that collect sensitive consumer data [...]