Cyber-attacks are sharply on the rise, making the financial sector, especially mortgage companies, increasingly vulnerable. This has led to heightened fraud challenges, prompting both the industry and the FTC to strengthen consumer protection guidelines.
FTC Safeguards Rule
Originating from the Gramm-Leach-Bliley Act of 1999 and first introduced in 2003, the Safeguards Rule requires financial institutions to develop, implement and maintain a comprehensive information security plan (ISP). In December 2021, the FTC updated the Safeguards Rule to expand the definition of “financial institution” to include businesses like mortgage lenders and added new requirements to bolster their cybersecurity measures.
Requirements
The current FTC Safeguards Rule, Section 314.4(c), outlines nine components required for compliance:
- Designate a qualified individual to oversee your security program. This person must have the skill set and experience to fill the role and may be a partner, employee, or an outside service provider.
- Perform a risk assessment to identify and inventory customer information, determine where it is stored, and assess potential risks and threats to the security, confidentiality, and integrity of that information. Must be in writing and repeated periodically to remain current.
- Design and implement the following safeguards:
- Implement access controls to limit and monitor access to sensitive information,
- Encrypt all data in transit and while stored on your system.
- Perform penetration testing to assess all applications that store, access, or transmit customer information.
- Implement multifactor authentication.
- Securely dispose of customer information.
- Build change management controls into your ISP, based on the results of our risk assessment and emerging threats.
- Log user activity and continuously monitor for any unauthorized access to customer information.
- Validate the effectiveness of controls through monitoring, penetration testing and vulnerability assessments. Provide ongoing security awareness training for all staff, including security personnel.
- Periodically assess the security practices of service providers.
- Keep the ISP current, continuously updating safeguards to address new risks.
- Develop a written Incident Response Plan.
- Require the qualified individual to report, at least annually, to the leadership or board on the company’s compliance.
Navigating New Standards
The updated Safeguards Rule mandates that mortgage lenders implement stringent security measures to protect sensitive customer data, such as bank statements, identity proofs, tax records, and social security numbers. These mandatory regulations address the complex challenges of handling sensitive data, underscoring the importance of a robust commitment to cybersecurity.
How Does My Tampa IT Assist Mortgage Lenders?
My Tampa IT supports mortgage lenders in navigating these regulations, satisfying the requirement for appointing a “qualified individual” and offering customized solutions for comprehensive data protection. Beyond ensuring compliance, we enhance productivity through proactive maintenance and offer rapid, reliable technical support to minimize disruptions. We also provide strategic guidance to help you make informed business decisions that support your success and growth.
Contact Us
Don’t let compliance complexity hinder your progress. Contact My Tampa IT for effective strategies to simplify compliance, secure your data, maximize your team’s productivity, and reduce your cyber risk.
