About Us | Contact Us
View Cart

Incident Response Boilerplate Update

By Adam Reynolds | Monday, October 15, 2018 - Leave a Comment

We have recently made a significant change to our Incident Response Policy regarding Disclosure Incidents.


At infotex we are always revising and updating our boilerplates. We have recently made a significant change to our Incident Response Policy regarding Disclosure Incidents. It is of course very important to comply with all applicable laws and regulations, but understanding which of these you are required to comply with, and when compliance is necessary, will prevent undue burden on your institution. We want our policy to queue up that financial institutions do not have to comply with state law if their policy requires them to comply with federal law (such as FDIC’s Financial Institution Letter 27-2005, the OCC Supervisor Letter 2005-13, SR 05-23 / CA 05-10 for Federal Reserve banks, and NCUA Rules and Regulation 748 Appendix B for NCUA institutions).  This will get you out of a lot of busy work required by the state if you don’t need the help of law enforcement.

If you DO need law enforcement’s help, they will ask you to hit on certain parts of state law.  (Usually notifying the State Attorney General’s office.)  And there may be other reasons you should comply with state law that arise out of the unpredictable incident itself.

Thus, our boilerplate USED to say:

  • Disclosure Incidents:  These are incidents which, because of some statute or regulation, require [name of financial institution] to notify customers, law enforcement, examiners, or the board of directors.  The [Incident Response Team (IRT) / IRT / Technology Steering Committee / Disaster Recovery Team] must comply with all applicable laws and regulations, including state laws such as [Indiana Code 24-4.9 / applicable law in your state] and federal regulations such as the [FDIC’s Financial Institution Letter 27-2005, the OCC Supervisor Letter 2005-13, SR 05-23 / CA 05-10 for Federal Reserve banks, and NCUA Rules and Regulation 748 Appendix B for NCUA institutions —> the FFIEC’s Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice] and/or any other applicable guidance or regulations as they are developed.

However, we feel this can be interpreted to mean that you are REQUIRED to comply with state law.  Not so.

In the newest version of our boilerplate, we have changed our wording to reflect that while federal regulations regarding disclosure incidents should always be followed, state regulations should only be addressed when absolutely necessary.  The new language is as follows:

  • Disclosure Incidents:  These are incidents which, because of some statute or regulation, require [name of financial institution] to notify customers, law enforcement, examiners, or the board of directors.  The [Incident Response Team (IRT) / IRT / Technology Steering Committee / Disaster Recovery Team] must comply with all applicable laws and regulations, including (only when absolutely necessary) the state laws such as [Indiana Code 24-4.9 / applicable law in your state] and always including federal regulations such as the [FDIC’s Financial Institution Letter 27-2005, the OCC Supervisor Letter 2005-13, SR 05-23 / CA 05-10 for Federal Reserve banks, and NCUA Rules and Regulation 748 Appendix B for NCUA institutions —> the FFIEC’s Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice] and/or any other applicable guidance or regulations as they are developed.

Please note that we have passed our interpretation of this issue on to our own attorneys, who have agreed that we are interpreting it correctly, with one all-caps stipulation:  THE BANK STILL HAS TO COMPLY WITH FEDERAL GUIDANCE.  (To which we said, hey, they’re banks, of course they will comply with the federal guidance!!)


Adam Reynolds is a Staff Auditor at infotex.


same_strip_012513


 

Latest News
    A Webinar Movie This presentation is intended for those who are planning to participate in an infotex incident response test. Please let us know what questions you have, when we have our Plan Walkthrough and Test Plan Approval meeting!
    What you need to know for compliance coast-to-coast. Back in 2020 we posted an article containing links to data breach laws from each state, and it has proven to be one of our more popular posts.  Because laws surrounding the use (and abuse) of technology are always evolving, we thought it was worth taking another […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! In the spirit of October and Halloween we have put together a gallery of our “spooky” Awareness Posters at halloween.infotex.com. Use them to help decorate for the holiday! Check […]
    With nearly three in four people using third-party payment services tied to their bank accounts, the risk isn’t limited to your own policies and procedures… An article review. When working on cybersecurity awareness messages for your customers you may be inclined to focus on your own systems, but a new study on security in digital […]
    PRESS RELEASE – FOR IMMEDIATE RELEASE BUSINESS NEWS NEW EMPLOYEE FOR INFOTEX infotex is excited to announce that Cody Smith has joined the team as the newest Data Security Analyst. Cody holds several industry certifications (including the most recent: SSCP) as well as a B.S in Cyber Security & Information Assurance from Western Governors University. […]
    It’s all about protecting Customer information . . . In 1999 the Gramm-Leach-Bliley Act (GLBA) directed the Federal Deposit Insurance Corporation (FDIC) and other federal banking agencies to ensure that financial institutions have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer financial information.  The FDIC and other federal banking agencies […]
    A Ghoulish Gallery! Just a few scary-themed Awareness posters from our collection, which you can see at posters.infotex.com! Below you will find both the vertical and horizontal versions of each of the posters, all you need to do is “right-click > “Save link as…” to download! Vertical 8.5″ x 11″ Format   Horizontal 11″ x […]
    What to Expect in an Annual Information Security Report to the Board Webinar-Movie Information security ranks as a top risk to financial institutions, both in terms of likelihood and overall impact. It is important that boards receive annual comprehensive reporting from management about the information security risks and incidents, and the actions taken to address […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around […]
    With the potential to break all existing forms of encryption, quantum computing poses a unique challenge… An article review. While quantum computing has been a buzzword for some time now the technology remains largely theoretical, with small scale proofs-of-concept that still suffer from serious limitations.  That hasn’t stopped security researchers from worrying about the technology’s […]