Tag Archive for: notification

Bank Computer Security Incident Notification Requirements

/in


Thursday, December 16, 2021

The three prudential bank regulators published Final Rules for Computer-Security Incident Notification Requirements (Final Rules) on November 23, 2021. The purpose of the Final Rules is to promote timely notification of computer-security incidents that materially and adversely affect an insured depository institution. The new rules apply to insured depository institutions and to bank service company providers performing covered services for financial institutions. The Final Rules take effect on April 1, 2022, with full compliance extended to May 1, 2022. 

Notification required under the Final Rules must be made by an insured depository institution to its primary federal banking regulator as soon as possible and no later than 36 hours after the banking organization determines that a notification incident has occurred. Notification must be made by a bank service provider to each affected banking organization as soon as possible when the bank service provider determines it has experienced a computer breach incident that has materially disrupted or degraded the covered service for more than four hours.

Key to the duties to report are the definitions of two terms: “computer security incident” and “notification incident.” A computer-security incident is an occurrence that results in actual harm to the confidentiality, integrity, or availability of an information system or information that the system processes, stores, or transmits. A notification incident is a computer-security incident that has materially disrupted or degraded, or is reasonably likely to materially disrupt or degrade, a banking organization’s (i) ability to carry out banking operations, activities, or processes or to deliver banking products and services to a material portion of its customer base, in the ordinary course of business; (ii) business lines, including associated operations, services, functions, and support that, upon failure, would result in a material loss of revenue, profit, or franchise value; or (iii) operations, including associated services, functions, and support, as…

Source…

Data Breach Notification Laws in the United States: What is Required and How is that Determined? | Burr & Forman

/in


Has your business considered what obligations you would have to notify people in the event of a cyber-attack that compromises some or all of your IT systems? Have you cataloged all the data you collect and where it is stored so that you can determine whose information is impacted by a breach? If not, you are certainly not alone. With the continuing increase in cyber-attacks and particularly ransomware, combined with laws that are imposing shorter and shorter notice deadlines, it is important for all businesses to understand the scope of their potential notification obligations in the event they fall victim to an attack.

Breach Notification Laws

Breach notification requirements obligate organizations that are collecting, storing, processing, or otherwise in possession of personally identifiable information to notify the individuals if the information is compromised in a security breach. In addition to notifying the identified individuals, many states require that the Attorneys General offices and the Credit Reporting Agencies be notified, depending on how many identified individuals in the state received notices. If you are missing contact information for some of the identifiable individuals, if the number of identified individuals is particularly high, or if the cost of the required notifications is excessive, you may have the option to, or be required to, provide substitute notice in lieu of or in addition to individual notices. In most cases, substitute notice requires notification to be placed prominently on your website as well as distributed through the media, in print, on television, and/or by radio.

In the United States, certain Federal Laws govern obligations to report data breaches in particular industries, including:

  • The Health Insurance Portability and Accountability (HIPAA) Act provides notification requirements for a security breach that compromises protected health information held by a covered entity or its business associates.
  • The Gramm-Leach Bliley Act (GLBA) requires covered financial institutions to notify customers whose non-public personal information is compromised by a security breach.
  • The Computer-Security Incident Notification Requirements for…

Source…

Computer-Security Incident Rule Creates New Notification Requirements for Banking Organizations and Bank Service Providers | Steptoe & Johnson PLLC

/in


On November 18, 2021, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) issued a joint final rule (the “Computer-Security Incident Rule” or the “Final Rule”) establishing computer-security notification requirements for banking organizations and their bank service providers. The Final Rule, which has an effective date of April 22, 2022, and mandatory compliance date of May 1, 2022, contains two major components.

 

First, a “banking organization” must notify its primary federal regulator of any “computer-security incident” that rises to the level of a “notification incident” no later than 36 hours after the banking organization determines the notification incident has occurred. Second, a “bank service provider” must notify each affected banking organization customer as soon as possible of a “computer-security incident” that has caused, or is reasonably likely to cause, a material service disruption or degradation for four or more hours. The purpose of the Computer-Security Incident Rule’s notification requirements is to provide earlier awareness of emerging threats to banking organizations and the broader financial system.

 

The Final Rule defines a “computer-security incident” as an occurrence that, “(i) results in actual or potential harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits; or (ii) constitutes a violation or imminent threat of violation of security policies, security procedures, or acceptable use policies.”

 

A “computer-security incident” that would rise to the level of a “notification incident” triggering the Final Rule’s notification requirements includes, but is not limited to:

  • A ransomware or malware attack that encrypts a core banking system or backup data;
  • A large scale distributed denial of service attack that disrupts customer account access for an extended period of time;
  • A failed system upgrade or change that results in widespread user outages for customers and banking organization…

Source…

Connecticut Expands Data Breach Notification Requirements And Establishes A Cybersecurity “Safe Harbor” – Technology

/in



United States:

Connecticut Expands Data Breach Notification Requirements And Establishes A Cybersecurity “Safe Harbor”


To print this article, all you need is to be registered or login on Mondaq.com.

On June 16 and July 6, 2021, Connecticut Governor Ned Lamont
signed two new cybersecurity laws that continue the national trend
of expanding cyber incident disclosure obligations, shortening
notification timelines, and incentivizing the implementation of
recognized cybersecurity standards. Both laws take effect on
October 1, 2021.

“An Act Concerning Data Privacy Breaches” Amends
Connecticut’s Existing Data Breach Law

The amended data breach law includes three key changes:

  • The time businesses have to notify affected Connecticut
    residents and the Office of the Attorney General of a data breach
    has been shortened from 90 days to no later than 60 days after
    discovery of the breach;


  • If notice cannot be effected within the new 60-day window, a
    novel and significant amendment requires companies to provide
    preliminary substitute notice to individuals, and follow up with
    direct notice as soon as possible; and


  • The law significantly expands the definition of “personal
    information” that may trigger notification obligations to
    include an IRS identity protection personal identification number,
    certain medical information, biometric information, a user name or
    email address in combination with a password or security question
    and answer (regardless of whether or not the individual’s name
    is accessed in combination with it), and a number of other data
    elements commonly included in other states’ data breach notice
    laws.

“An Act Incentivizing the Adoption of Cybersecurity
Standards for Businesses” Establishes a Cybersecurity
“Safe Harbor” Statute

The new law will establish…

Source…