The FTC’s Safeguards Rule mandates that “non-banking” financial institutions must securely manage and store their customers’ information. This requirement applies to organizations such as mortgage brokers, motor vehicle dealers, and payday lenders, necessitating the development, implementation, and maintenance of a comprehensive security program for safeguarding customer data.
The federal agency recently announced an amendment to the previously approved Safeguards Rule, which obligates financial institutions to promptly report any security breaches they discover within their systems.
