Definition
The Gramm-Leach-Bliley Act, or GLBA, is a United States federal law designed to protect consumers' nonpublic personal information held by financial institutions. It mandates that these institutions implement safeguards to secure sensitive data and clearly communicate their privacy policies to customers. GLBA requires financial companies to explain their information-sharing practices to their customers and to protect that data from unauthorized access. This law is crucial for maintaining customer trust and preventing data breaches in the financial sector. For instance, a bank must ensure its online portal uses strong encryption and multi-factor authentication to comply with GLBA. It is often confused with other privacy regulations like HIPAA, which applies to healthcare information. GLBA concepts are frequently tested in cybersecurity certifications such as CompTIA Security+ and CISSP.