The Case For Transparency After Data Breaches
techradar.pro, Tuesday, January 16th, 2024
Data breaches necessitate transparency & proactive strategies
As data breaches increasingly make headlines, discussions around transparency and disclosure are coming to the fore. Organizations, in fear of reputational damage, often hesitate to reveal breaches. However, transparency remains the best path to remedy security shortcomings and ensure long-lasting consumer confidence.
The Federal Trade Commission has recently approved an amendment to the Safeguards Rule, requiring non-banking financial institutions to report certain data breaches and security events. Specifically, those in which information affecting 500 or more people has been acquired without authorization. This demonstrates a regulatory momentum towards mandating transparency and disclosure within the financial industry.