Financial Crime World

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California Consumers Gain New Rights Over Personal Data

In a major victory for consumer privacy, California Governor Gavin Newsom has signed into law the California Consumer Privacy Act (CCPA), giving consumers unprecedented control over their personal data. Effective January 1, 2020, CCPA grants California residents the right to:

  • Know what personal information businesses collect, use, share, and sell
  • Delete personal information on file with a covered company
  • Opt-out of the sale of their personal information
  • Enjoy non-discrimination in pricing or services when exercising their rights under CCPA
  • Correct inaccurate personal information held by a business
  • Limit the use and disclosure of sensitive personal information

Scope of the Law

The law applies to businesses that generate over $25 million in annual revenue, process personal data of 50,000 or more individuals annually, or earn 50% or more of their revenue from selling California residents’ personal data.

CCPA vs. GDPR

While CCPA is a significant step forward for consumer privacy, it’s worth noting that the General Data Protection Regulation (GDPR) in the European Union offers even stronger protections. GDPR’s seven key principles include:

  • Lawfulness
  • Fairness and transparency
  • Purpose limitation
  • Data minimization
  • Accuracy
  • Storage limitation
  • Integrity and confidentiality (security)
  • Accountability

Financial Regulations and Compliance

The financial industry is also subject to strict regulations aimed at protecting consumer data. Financial institutions must implement robust security measures, including:

  • Encryption: a critical component of PCI DSS, which prohibits the storage of full contents of any track from the card’s magnetic stripe or chip
  • Firewalls: installed and maintained to prevent unauthorized access
  • Intrusion detection systems: monitor network traffic for signs of malicious activity
  • Logging and data collection: required policies and processes
  • Vendor management: thorough due diligence when engaging third-party vendors that handle customer data

Vendor Management

Financial institutions must also conduct thorough due diligence when engaging third-party vendors that handle customer data. This includes ongoing monitoring of vendor relationships to ensure continued compliance with security standards.

Centralizing Compliance Management

To streamline compliance management and optimize threat detection and response, many financial institutions are turning to third-party security operations experts. These professionals can help anticipate and respond to threats while ensuring adherence to complex laws and regulations.

Learn More

For more information on CCPA and financial regulations, download the California Consumer Privacy Act Checklist or visit our website for a comprehensive guide to enhancing security at your organization.