Financial institutions are now required to notify the Federal Trade Commission about any security breach that involves the information of 500 customers or more. The breach must be reported no later than 30 days after it is discovered.

The New York Department of Financial Services recently amended its Cybersecurity Regulation. The revisions aim to strengthen cybersecurity and technology controls to address evolving threats to consumer data and ensure the continued integrity of financial systems. Here are a few key elements of the amendments to Regulation and what we think will be their immediate impact on financial institutions.

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.