FTC Updates Security Requirements for Financial Institutions

The Federal Trade Commission announced Wednesday updates to the Safeguards Rule that strengthen security for consumer financial information following an uptick in data breaches.

The updates outline specific criteria financial institutions must meet, including limiting access to consumer data and using encryption to secure that data.

“Financial institutions and other entities that collect sensitive consumer data have a responsibility to protect it,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “The updates adopted by the Commission to the Safeguards Rule detail common-sense steps that these institutions must implement to protect consumer data from cyberattacks ...