New FTC rules take effect, expanding definitions and responsibilities of financial institutions.
(Savannah, Georgia) Financial institutions in the Savannah area are facing a deadline to comply with new safeguard rules from the Federal Trade Commission (FTC). Savannah-based Seimitsu, Inc., which specializes in IT managed services and high-speed broadband fiber services, is standing by to assist applicable companies with their compliance requirements ahead of the June 9 deadline.
“The FTC has expanded its definition of ‘financial institution’ to include companies ranging from auto dealers to real estate appraisers and more,” said Seimitsu president and CEO Sam Cooke. “The new law details that these companies are required to have a designated internal or external security officer responsible for designing, maintaining and implementing information security.
“The new rule defines a financial institution as having an inherently financial activity, or incidental to such financial activity, as described in Section 4(k) of the Bank Holding Company Act of 1956, 12 USC 1843. “(k),” said Seimitsu Chief Security Officer Retired Lt. Col. Scott Scheidt. “A financial institution is an institution that significantly engages in financial activities or that significantly engages in activities incidental to financial activities.”
Examples of newly defined financial institutions include mortgage lenders, mortgage brokers, auto dealers, payday lenders, finance companies, account servicers, check clearing companies, wire transfer operators, collection agents, credit counselors and others. financial advisors, tax preparation firms, and non-federal agencies. Insured credit unions and investment advisors not requiring SEC registration.
In addition to requiring financial institutions to have a designated security officer, the Act requires financial institutions to identify security risks to customer information and maintain written risk assessment plans to mitigate those risks. It also stipulates that it must be possible. Also, regular security he requires not only training, testing, evaluation, evaluation and reporting, but also the implementation of safety measures.
“If you are unsure whether your business will be subject to the new regulations, we are here to help,” Scheidt said. “Seimitsu understands the expectations of the FTC and is well positioned to provide consulting and support to meet its requirements. It is clear that it is necessary to strengthen the necessary data security protection measures.”
According to Scheidt, a cyberattack occurs every 39 seconds and can cause devastating losses in revenue and customer confidence for businesses large and small. Restoring service and customer trust after a cyberattack can be costly.
About precision
Founded in 1984 and named Georgia’s Family Business of the Year in 2016, Precision Corporation is a Savannah-based company that specializes in IT services and high-speed broadband fiber. With over 70 miles of our own fiber network, Seimitsu is able to offer a complete suite of customized business IT solutions, from installation and maintenance to infrastructure services, voice and cybersecurity. The business is owned by Seimitsu “Sam” Cook and his wife Cindy and is located at his 1523 Bull Street Savannah, GA 31401 USA. For more information, call +1.912.352.3690 or visit www.seitsu.com.
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