The FTC Safeguards Rule is a regulation that aims to protect sensitive customer information by setting requirements for financial institutions. In the context of the FTC Safeguards Rule, the term “financial institution” is defined more broadly than how many of us would typically think of it. It applies to “any institution the business of which is engaging in an activity that is financial in nature or incidental to such financial activities”. This is further defined in section 4(k) of the Bank Holding Company Act of 1956 12 U.S.C § 1843(k) (scroll to page 11 of the PDF).
Breaching the FTC Safeguards Rule can result in severe consequences, including:
As much as $100,000 per violation with an additional $10,000 against officers and directors.
Allstate Computers specializes in compliance and cybersecurity solutions, offering services tailored to the FTC Safeguards Rule:
Don’t wait until it’s too late – the FTC Safeguards Rule went into effect on June 9th, 2023. If you’re not already compliant and have a breach, your company and it’s officers and directors could be exposed to expensive civil penalties Let Allstate Computers help your organization become compliant and protect your customers’ sensitive information.
Contact Allstate Computers today to start your journey towards FTC Safeguards Rule compliance!