Privacy Rule or Safeguards Rule?

About this interactive

The Gramm-Leach-Bliley Act (GLBA) of 1999 covers financial institutions: any business offering financial products or services such as bank accounts, brokerage, loans or insurance. That includes a pawn shop or a car dealer that arranges loans. Its two main rules match the lesson's two highlights. The Financial Privacy Rule is about telling and choosing. A financial institution gives customers a privacy notice explaining what personal information it collects and how it shares it, gives a revised notice before sharing in a new way, and lets customers opt out of having their information shared with companies outside its corporate group. The Safeguards Rule is about protecting. The lesson's process (identify the threats to customer data, assess the risks, then put sufficient controls in place) is this rule. It also has the institution name one qualified person to run the security program, encrypt customer data, require multifactor authentication, train staff, test its controls regularly, and check that its service providers can protect the data. Penalties reach the people in charge as well as the organization: up to $100,000 per violation for the institution, and up to $10,000 per violation for its officers and directors, as the lesson says.

What you'll learn

Tell the two halves of the Gramm-Leach-Bliley Act apart in what a financial business does: telling customers how their information is shared and letting them opt out (the Financial Privacy Rule), against assessing risks and putting security controls in place (the Safeguards Rule)

Aligned to

CompTIA Security+

5.4 Summarize elements of effective security compliance.

ISC2 CISSP

1.4 Understand legal, regulatory, and compliance issues that pertain to information security in a holistic context

NIST NICE

K0678 Knowledge of privacy laws and regulations

Key terms

Gramm-Leach-Bliley Act: A U.S. federal law that requires financial institutions to explain how they share and protect customers' private financial information, and to implement security programs to safeguard that data. The GLBA Safeguards Rule mandates specific information security controls for financial institutions.
Financial Privacy Rule: A GLBA provision that requires financial institutions to notify consumers about their data collection and sharing practices and provide opt-out rights.
Risk Assessment: The process of identifying, analyzing, and evaluating risks to determine their potential impact.

Topics

Glba Financial Privacy Regulatory Compliance Safeguards Interactive Streak Sort

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