CUNA supports the Federal Trade Commission’s (FTC) proposed changes to its Safeguards Rule, which requires financial institutions to develop, implement and maintain a comprehensive security system to protect consumer information. The FTC is reviewing the rule in the wake of recent data breaches.
“Enhanced data security requirements should help safeguard consumers’ private information. We generally support FTC’s amendments to the Safeguards Rule; although… we think that the definition of financial institution should be broadened as much as possible to maximize consumer protection,” the letter reads. “Unfortunately, more needs to be done so that data is properly secured no matter what type of entity possesses it.
“It is for this reason that CUNA and our members believe Americans’ privacy will not have the protection Americans deserve until Congress passes a law with both strong privacy and data security protections that regulates based on the type of information handled or maintained,” it adds.
There are currently 115 privately insured credit unions currently subject to the requirements in the FTC’s Safeguards Rule.
CUNA also reiterated the need for stringent federal data security requirements for any entities that handle consumers’ personal information, and that only federal data security laws with federal enforcement authority would best equip all businesses and individuals that handle personal information.