Bank of Idaho CEO Calls on Congress for Data Security Standardization

Rhea-AI Summary

Bank of Idaho President and CEO Jeff Newgard testified before Congress, advocating for data security standardization across all entities handling consumer financial data. Representing the Independent Community Bankers of America, he emphasized the need to assign liability for breaches to incentivize stronger security. Newgard called for uniformity in cybersecurity regulations, highlighting the current patchwork system as problematic. His testimony underscored the importance of closing legal gaps and sharing information across the economic landscape to strengthen the overall security ecosystem.

Positive

• Advocacy for enhanced data security standards could position the Bank of Idaho as a leader in cybersecurity.
• Testimony by the CEO raises the bank's profile in legislative discussions, potentially leading to favorable regulatory outcomes.

Negative

• Current patchwork of cybersecurity regulations may expose the bank to risks until standardized measures are implemented.

WASHINGTON, D.C. / ACCESSWIRE / November 4, 2021 / Bank of Idaho President and CEO Jeff Newgard testified Wednesday before the House Financial Services Subcommittee on Consumer Protection and Financial Institutions.

Newgard testified as a representative of The Independent Community Bankers of America (ICB), calling on Congress to extend Gramm-Leach-Bliley Act data security standards to retailers, technology companies, and other parties that process or store consumer financial data. He was one of a panel of four witnesses to testify Wednesday morning, appearing remotely as part of the hybrid-format hearing.

Newgard said extending the banking industry's security standards to all players in the payment system would deter security breaches.

"When a data breach occurs, we believe that liability for that breach should be assigned to incentivize stronger security. The cost of a breach should be born by the party that incurs the breach, be that a retailer, a credit reporting agency, bank, or credit union," he said. "Too often, the breached entity evades accountability, while financial institutions are left to mitigate damages to their customers. Uniformity and harmonization will strengthen the ecosystem by eliminating redundancy, closing gaps and strengthening weak links."

Newgard, who chairs ICBA's Cyber and Data Security Committee, had further testimony which focused on three themes: The need to close gaps in law standards, promoting greater uniformity in regulatory efforts, and a call to share information across the economic landscape.

"Right now we have a patchwork throughout all the states, and that becomes very problematic," he said about existing cybersecurity regulations and enforcement agencies. "I would say that one size does not fit all institutions … but having some standardization and harmonization would be great.

CONTACT:
Tyler Kraupp
Phone: 1.208.390.0667
Tyler.Kraupp@bankofidaho.net

SOURCE: Bank of Idaho Holding Co

View source version on accesswire.com:
https://www.accesswire.com/671295/Bank-of-Idaho-CEO-Calls-on-Congress-for-Data-Security-Standardization

FAQ

What did Jeff Newgard testify about regarding data security on November 4, 2021?

Jeff Newgard testified about the need to extend data security standards to all parties involved in consumer financial data processing, emphasizing accountability for data breaches.

What organization was Jeff Newgard representing during his testimony?

He was representing the Independent Community Bankers of America (ICBA) during his testimony.

What were the main themes of Newgard's testimony to Congress?

The main themes included closing gaps in legal standards, promoting uniformity in regulatory efforts, and encouraging information sharing across the financial landscape.

How could the proposed data security standards affect the Bank of Idaho?

Proposed standards could enhance the bank's security measures and potentially reduce liability during data breaches.

What is the significance of the Gramm-Leach-Bliley Act in Newgard's testimony?

Newgard called for the extension of the Gramm-Leach-Bliley Act's data security standards to protect consumer financial data more effectively.