FTC Updates Financial Data Security Rule Over GOP Rebuke

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By Allison Grande (October 27, 2021, 10:30 PM EDT) — Financial institutions will have to encrypt customers’ personal data and designate a cybersecurity point-person as part of a revised data security rule finalized by the Federal Trade Commission on Wednesday, despite objections from the agency’s two Republican commissioners, who called the changes unnecessary. 

In a 3-2 vote along party lines, the FTC commissioners approved changes to the Gramm-Leach-Bliley Act’s Safeguards Rule to require mortgage brokers, motor vehicle dealers, payday lenders and other non-banking financial institutions to develop, implement and maintain a comprehensive system to secure their customers’ data. 

The rule revisions include more specific criteria for what data security protections financial institutions…

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