New Security Breach Notification Rules

Financial institutions covered by Gramm-Leach-Bliley will have to notify customers in the event of a security breach and it is likely that their information could be misused, under new rules announced yesterday.

Four agencies will enforce the rules: the FDIC., the Federal Reserve, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Companies will be allowed to conduct an internal investigation for a likelihood of misuse before reporting the security breach.

This announcement follows highly publicized security breaches and calls for more state laws and a national law like the California security breach notification law.