Hush Communications Backs Federal Trade Commission’s (FTC) Proposed Rules on Financial Records
Dublin, Ireland 15 October, 2001 – Hush Communications (www.hush.com) a leading provider of managed security solutions and key serving encryption technologies today said it was encouraged by and supports the Federal Trade Commission’s (FTC) proposed rules for protecting the customer-related information of financial institutions. Hush maintain that information security is fundamental to privacy and is in agreement with other groups, such as the Information Technology Association of America (ITAA), who have asked that the proposed rules be clarified to assure that financial institutions, not service providers, retain ultimate responsibility for determining appropriate customer record safeguards.
President and Chief Executive Officer Jon Matonis noted, “Financial institutions, themselves, are the best equipped to assess the sensitivity and worth of customer-related information and this assessment is imperative to the success of each organizations business. Furthermore, it forces them to recognize and understand the legal requirements to protect critical data as imposed by the FTC and other regulatory authorities which can only be a good thing for their partners and customers.”
Under the proposed rules each financial institution must assess the risk of loss or compromise of sensitive data and is responsible to put in place appropriate measures to manage such risk, and to comply with statutory requirements. Such risk assessment and management is now seen as both a legal imperative and a marketplace necessity. Financial institutions must make appropriate security-related choices about various solutions, implementation costs, customer convenience, maintenance efficiency and other factors.
Matonis added “The FTC proposal that responsibility for compliance with security requirements lies with the financial organization is entirely appropriate because they maintain the principal relationship with the customer. Therefore the financial institution owns the customer data being processed or stored and this responsibility cannot be diminished or transferred by outsourcing these functions to service providers. It is only fair that the financial institution implement security as a necessary component of their online business strategy.”
(Note: Proposed rule 16 CFR 314.4(d) is to be modified to reflect this fact.)
About Hush Communications
Hush Communications is the leading global provider of managed security solutions and encryption key-serving technology. It was awarded the full five stars for secure messaging product by Secure Computing Magazine, the Best Internet Security Freeware Award from Firewallguide.com and voted best Webmail service for travelers’ mails by the Net Internet magazine. Hush distributes its solutions to the financial, medical and legal markets, and to general portals and enterprises. These solutions include encryption products and management services in the secure communications industry. The company’s SDK (Software Development Kit) allows other Web-based infrastructure companies and application providers to design product and service offerings that utilize the Hush Key Server Network. Hush develops e-security solutions to suit personal privacy, SME’s and corporate enterprises. Hush has strategic alliances with NetNation Communications (www.netnation.com)(Nasdaq:NNCI), Security Portal (www.securityportal.com) and Worldport Communications (www.wrdp.com)(WRDP.OB).
Hush Communications Corporation is incorporated in the U.S. with operating subsidiaries in Dublin, Ireland, Salt Lake City, Utah, Vancouver, Canada and Anguilla, BWI. Hush is the provider of HushMail.Com and HushMail Private Label, the worldwide standards in secure messaging. For more information, visit the corporate site at www.hush.com.
Note to editors: Hush product names and logos are trademarks of Hush Communications Corporation. All rights reserved.