The FTC settled with Ascension Data & Analytics, LLC for violating the Gramm-Leach-Bliley Act's Safeguards Rule by failing to ensure its vendor properly protected consumer data. The company must strengthen its security safeguards and increase oversight of vendors. No monetary penalty was imposed.
The company is required to implement and maintain a comprehensive information security program, ensure third-party vendors have adequate safeguards, and increase oversight of vendors.
In-house legal teams should review all vendor and data processing agreements, particularly those involving financial or consumer data. Focus on clauses addressing data security standards, third-party vendor oversight, compliance with the Gramm-Leach-Bliley Act (GLBA) Safeguards Rule, encryption requirements, access controls, regular risk assessments, audit rights, and breach notification procedures. Changes may be needed to mandate that vendors implement specific security measures (e.g., encryption, password protection), require annual security audits or certifications of GLBA compliance, include indemnification for data breaches, and grant termination rights for non-compliance with security obligations.
Entity
Ascension Data & Analytics, LLC
Also known as: Ascension Data & Analytics
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/12/ftc-finalizes-order-mortgage-analytics-firm-requiring-it-strengthen-security-safeguards-increase
mortgage analytics company settles ftc allegations it failed
https://www.ftc.gov/news-events/press-releases/2020/12/mortgage-analytics-company-settles-ftc-allegations-it-failed
1923126ascensionslaughterdissent
https://www.ftc.gov/system/files/documents/public_statements/1599131/1923126ascensionslaughterdissent.pdf
https://www.ftc.gov/news-events/news/press-releases/
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
Ascension Data & Analytics, LLC, a mortgage analytics company, settled FTC allegations that it violated the Gramm-Leach-Bliley Act's Safeguards Rule by failing to ensure its vendor adequately protected consumer data. The vendor stored sensitive mortgage information in plain text on a cloud server, leading to unauthorized access. Ascension must implement a data security program, undergo biennial assessments, and report future breaches.
$750K
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$35.0M
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$1.5M
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