Gramm-Leach-Bliley Act (GLBA)

After the Equifax breach put the sensitive financial and personal information of millions of Americans into the hands of hackers, many financial firms asked themselves this question.

Under the Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA), financial companies must take proactive measures to protect their customers’ private information from falling into the wrong hands.

Beyond banks and mortgage brokers, if your firm is “‘significantly engaged’ in providing financial products or services” you are required to comply with GLBA rules on data security. Whether you’re a CPA, a financial advisor, operate a check cashing service, or provide any other type of financial service, your company must have and follow a written plan to safeguard names, addresses, social security numbers — any private information about your customers.

Firms that fail to protect this sensitive information face stiff fines and penalties — not just for the company, but for executives and employees too. Lawsuits can drag on for years. And worst of all, you’ll betray your customers’ trust — which you may never be able to recover.

So, of course you have procedures in place to protect your computer systems from unauthorized access — while you’re using them.

But what about at the end of their lifecycle?

How can you make sure that desktops, laptops, servers, copiers, tablets, smartphones — any place where sensitive data may have resided — are disposed of in a way that prevents your customers’ information from falling into the wrong hands?

Is your customer data protected from cyber criminals?