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ARTICLE · 22 MAY 2024

Reminder: FTC Safeguards Rule Notification Requirement Now In Effect

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On May 13, the FTC's amendment to the Safeguards Rule relating to the reporting of data breaches and security incidents, which were announced in October of 2023, became effective. As a reminder, the FTC's Safeguards...

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On May 13, the FTC's amendment to the Safeguards Rule relating to the reporting of data breaches and security incidents, which were announced in October of 2023, became effective.

As a reminder, the FTC's Safeguards Rule requires non-banks, such as mortgage brokers, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security program to keep their customers' information safe. In October 2021, the FTC announced it had finalized an amendment to the Safeguards Rule to reinforce the data security safeguards that financial institutions are required to put in place to protect their customers' financial information (see our previous post on this final rule here).

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