The GLBA governs the collection, disclosure, and safeguarding of consumers' private financial information by financial institutions. It aims to protect consumer data and ensure transparency in data-sharing practices.

• Privacy Rule: Requires institutions to notify customers about their privacy policies and practices and provide opt-out options for sharing data with third parties.
• Safeguards Rule: Mandates the implementation of administrative, technical, and physical safeguards to protect customer information.
• Pretexting Protection: Prohibits unauthorized access to financial information through deceptive means.

Enacted in 1999, the GLBA requires compliance with its key provisions, including the Safeguards Rule, which has been updated periodically to address evolving cybersecurity threats.

• Financial Penalties: Significant fines for failing to comply with GLBA requirements.
• Legal Risks: Exposure to lawsuits and regulatory actions from data breaches or non-compliance.
• Reputational Damage: Breaches in compliance may erode customer trust and loyalty.

• Consumer Trust: Builds confidence in the institution’s data protection practices.
• Legal Safeguards: Ensures alignment with U.S. federal data protection laws.
• Risk Reduction: Minimizes the likelihood of data breaches and associated penalties.