A mortgage broker discovers that their computer system has been logging and storing customers' Social Security numbers in plain text in system backup files that are accessible to IT staff who don't normally handle customer information. Under GLBA's Safeguards Rule, this situation represents:
Correct Answer
B) A violation requiring immediate remediation and access controls
Under GLBA's Safeguards Rule, financial institutions must implement access controls that limit access to customer information to those employees who need it to perform their job functions. Storing sensitive information like SSNs in plain text accessible to unnecessary personnel violates the principle of least privilege and requires immediate remediation.
Why This Is the Correct Answer
Under GLBA's Safeguards Rule, financial institutions must implement access controls that limit access to customer information to those employees who need it to perform their job functions. Storing sensitive information like SSNs in plain text accessible to unnecessary personnel violates the principle of least privilege and requires immediate remediation.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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