In a move to enhance online security, Minnesota lawmakers and the Minnesota Department of Commerce have approved a new bill aimed at safeguarding user data, set to take effect on Thursday.
Michael Crow, Senior Director of Financial Institutions for the Minnesota Department of Commerce, emphasized the importance of the initiative in light of increasing information breaches affecting non-bank entities like mortgage servicers.
The new law mandates mortgage, money services, and consumer finance nonbanks to establish cybersecurity programs to protect against and manage cybersecurity events, develop response plans for such incidents, and promptly notify Commerce of any cybersecurity events impacting 500 or more consumers.
Crow highlighted the requirement for institutions to implement information security programs and incident response plans in the event of a breach, underscoring the need for vigilance in the face of cyber threats.
Local computer technician Vince Guera from Computer Resource Center in Rochester acknowledged the necessity of such measures in today’s digital age, where online transactions and data storage are prevalent.
Minnesota’s proactive approach makes it the first state in the nation to enact three model acts aimed at bolstering consumer protections.