GLBA Safeguards Rule Compliance

The Gramm-Leach-Bliley Act (GLBA) Safeguards Rule, first issued in 2003 and significantly updated in 2021–2022, requires financial institutions to develop, implement, and maintain a comprehensive information security program to protect customer data. Unlike the GLBA Privacy Rule, which governs data sharing, the Safeguards Rule focuses on the security and integrity of customer information against threats, unauthorized access, and misuse. The updates introduced more prescriptive cybersecurity requirements, including risk assessments, encryption, and incident response planning, reflecting the growing sophistication of cyber risks.The rule applies to a broad set of financial institutions, including banks, credit unions, mortgage lenders, payday lenders, auto finance companies, securities firms, insurance companies, and fintechs. It is especially important for firms that collect or process large volumes of sensitive consumer data, as it establishes minimum security expectations and aligns with global cybersecurity and privacy trends.