FTC Amends Safeguards Rule to Require Non-Banking Financial Institutions to Report Data Security Breaches

Summary:

The Federal Trade Commission (FTC) has approved an amendment to the Safeguards Rule, requiring non-bank financial institutions to report data breaches and security events to the agency. The amendment aims to increase transparency and accountability among financial institutions, giving them an incentive to protect consumers' data. The rule requires institutions to notify the FTC within 30 days of discovering a breach involving at least 500 consumers, providing information about the incident. This amendment is expected to go into effect 180 days after publication in the Federal Register. The FTC's mission is to promote competition and protect consumers, and this amendment is part of that effort.