Which act governs the protection of personal identifiable information in financial contexts and prohibits sharing with third parties?

Which act governs the protection of personal identifiable information in financial contexts and prohibits sharing with third parties?

• A. HIPAA
• B. FISMA
• C. FERPA
• D. Gramm-Leach-Bliley Act (GLBA)

Answer: (D)

The main idea here is safeguarding customers' personal financial information held by financial institutions and controlling how that data can be disclosed to others. The Gramm-Leach-Bliley Act (GLBA) is the law that governs this area. It requires financial institutions to provide customers with a privacy notice that explains what information is collected, how it’s shared, and how customers can opt out of certain sharing with non-affiliated third parties. It also mandates safeguards to protect nonpublic personal information—so data isn’t exposed to third parties without proper protections or consent. That focus on financial data and limited sharing with third parties is why GLBA fits best. Other acts address different kinds of information: HIPAA covers health information, FISMA governs federal information systems, and FERPA protects student educational records.

The main idea here is safeguarding customers' personal financial information held by financial institutions and controlling how that data can be disclosed to others. The Gramm-Leach-Bliley Act (GLBA) is the law that governs this area. It requires financial institutions to provide customers with a privacy notice that explains what information is collected, how it’s shared, and how customers can opt out of certain sharing with non-affiliated third parties. It also mandates safeguards to protect nonpublic personal information—so data isn’t exposed to third parties without proper protections or consent. That focus on financial data and limited sharing with third parties is why GLBA fits best. Other acts address different kinds of information: HIPAA covers health information, FISMA governs federal information systems, and FERPA protects student educational records.