The Federal Trade Commission has approved an amendment to the Safeguards Rule under the Gramm-Leach-Bliley Act that creates a new data privacy regulatory reporting requirement for non-banking financial entities. Covered entities must notify the FTC within 30 days of discovery of a “notification event” that involves the unauthorized acquisition of unencrypted customer information of 500 or more consumers. The new rule, announced on October 27, takes effect 180 days after publication in the Federal Register, meaning approximately May 2024.

Fight back against this major cyber threat.

Business Email Compromise is one of the greatest cyber threats to businesses of all sizes and industries, particularly those involved in regular wire transfers of funds. According to the Federal Bureau of Investigation, between June 2016 and December 2021, BEC scams were reported in all 50 states and 177 countries, with more than 140 countries receiving fraudulent transfers. These statistics are based on information reported to the FBI by victims, law enforcement, and the banking community. Actual and attempted dollar losses associated with these reports exceed $43 billion. Because these numbers are based only on compromises that have been reported, the true cost of BEC scams is in all likelihood much greater.