Information Security Program
FTC Rules for Safeguarding Customer Information require financial institutions (including colleges and universities) to implement an information security program. These rules stem from the Gramm-Leach Bliley Act which was passed in 2000. It contained specific requirements regarding the privacy of customer financial information and colleges and universities are deemed to be in compliance if they are in compliance with FERPA.
The FTC Rules for Safeguarding Customer Information were published in May, 2002 and apply to colleges and universities because they engage in making and servicing loans (Perkins and College loans). These rules require financial institutions (including colleges and universities) to implement a program to ensure the safeguarding of customer information. The program must contain the following components.
- Designate one or more employees to coordinate the safeguards;
- Identify and assess the risks to customer information in each relevant area of the company’s operations, and evaluate the effectiveness of the current safeguards for controlling these risks;
- Design and implement a safeguards program, and regularly monitor it and test it;
- Select appropriate service providers and contract with them to implement safeguards,
- Evaluate and adjust the program in light of relevant circumstances.
Employees Designated to Coordinate an Information Security Program
St. Lawrence University employees designated to coordinate an information security program are as follows:
Carol Gable, Associate Vice President, Business Office
James Mattice, Director of Infrastructure and Applications
Kim Hissong, Associate Vice President for Development
Pat Farmer, Director of Financial Aid
Christine Zimmerman, Director of Institutional Research
Valerie Ingram, Director of Donor Relations
Identify and Assess Risks to Customer Information
This group identified St. Lawrence University customers as its students and their families, donors, and alumni. Customer information is defined in the FTC Rule on Privacy of Consumer Financial Information (16CFR Par 313) as any record that contains nonpublic personal information (NPI). NPI is described as
- personally identifiable financial information; and
- any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available.
The ruling goes on to state that NPI does not include publicly available information which is information that someone may have a reasonable basis to believe is lawfully made available to the general public. Organizations have a reasonable basis to believe that information is made available to the general public if
- they have taken steps to determine that the information is of the type that is available to the general public and
- provided customers with the opportunity to direct that the information not be made available to the general public and
- complied with such directions.
The Student Records section of SLU’s Student Handbook describes the university’s compliance with FERPA and notifies students that the university has the right to release their “directory” information. It goes on to describe “directory” information and states that students or parents may have this information excluded from the directory if they contact the Dean of Student Life’s office. The university’s other customers, alumni and donors, are also given the option of having their information excluded from public listings and directories created by the university.
For these reasons, NPI at St. Lawrence University, is deemed to be limited to information that is normally private or related to a customer’s finances. Examples include social security numbers, credit card numbers, bank account numbers and balances, income information, credit history. Lists of names and other public information may also be considered NPI if inclusion on the list is based on a customers financial information such as loan recipients, income levels, etc.
University departments with access to customer financial information are listed below.
Business Office and Student Financial services
Several employees need to know customers’ social security numbers in order to meet their job responsibilities in areas such as payroll, student loan administration, collections. This information is stored in some systems and displayed on some screens and reports used by these employees .
Some employees have access to customers’ bank account numbers in order to meet their job responsibilities in areas such as payroll and cash collection. Bank account information required for the university to pay students receiving wages or stipends via direct deposit is stored in two systems and displayed on some screens and reports used by Business Office employees. Checks received in the Business Office display bank account information and are deposited to the bank as soon as possible.
Several employees need to know customer’s payment, financial aid, and loan history in order to meet their job responsibilities in the student accounts area. This information is stored in the student information system and displayed on some screens and reports used by these employees. It is also reflected in bills, letters, and tax documents (1042-S and 1098-T) send to students and their families.
Some employees need to know customers’ salary information in order to meet their job responsibilities in the payroll area. This information is stored in the payroll system and displayed on some screens and reports used by these employees. It is also reflected in tax documents sent to the student and government agencies.
In order to process financial aid applications and awards, several employees have access to data reported on students FASFA (Free Application for Federal Student Aid) which contains information on the student and family income and net assets. Employees also have access to the students’ financial aid history.
In order to collect, deposit, and account for gifts, the Advancement Service division has access to information received by phone or mail which contains bank account and credit card information.
In order to effectively solicit and report gifts, many employees in Development have access to donor information which identifies their income level and giving history. Many donors also provide account information to the Development employees they have a relationship with when discussing gifts to the university.
Employees in the programming and support areas have access to data stored in the various systems, much of which is considered customer financial information.
Employees have electronic access to several databases which contain customers’ private financial information. Some of this information may be downloaded to these employees’ hard drives for warehousing and reporting purposes.
The risks that any of this information may be used in an unauthorized manner include the following.
- Employees with access to this information may use it in an unauthorized manner.
- Other individuals may inappropriately obtain the information and use it in an unauthorized manner.
- The university may provide this information to service providers that have not taken appropriate safeguards and the information is used in an unauthorized manner
Safeguards to Control Identified Risks
The university will implement the following procedures for the purpose of safeguarding the financial information of its customers. The procedures are described in the order of the associated risks identified above.
Risk: employees with access to this information may use it in an unauthorized manner.
- Carefully check references prior to hiring employees who will have access to customer information.
- Request that employees sign an agreement to follow the university’s confidentiality and security standards for handling customer information. Require volunteers to sign an agreement.
- Limit access to customer information to those employees and volunteers who have a business reason for seeing it.
- Impose disciplinary measures for any breaches.
Risk: other individuals may inappropriately obtain the information and use it in an unauthorized manner.
- Communicate to employees and volunteers the importance of safeguarding this customer financial information (via confidentially agreement, training, posted notices). Practices such as sharing passwords, posting passwords near the computer, and logging on to a system for someone else should be discontinued.
- Communicate to customers our commitment to safeguard their financial information. For example, include information on this program in the student handbook and the university’s website and caution customers against transmitting sensitive data via e-mail.
- Control access to this information so that it is only available to employees that actually require it to do their jobs. Steps to control access include
- Adequately secure documents and reports in locked cabinets and rooms.
- Ensure access to physical space where such information is stored is limited to appropriate employees.
- Caution customers against transmitting sensitive data, like account numbers, via electronic mail.
- Display information on reports and screens only as needed.
- Implement automatic system logouts after specific period of inactivity.
- Fully encrypt all transfers of data.
- Implement measures to prevent and respond to unauthorized system intrusions. These include the following.
- Maintain adequate firewalls to fully protect the university’s internal network.
- Regularly run anti-viral software on all systems
- Grant external access only via VPN (Virtual Private Network).
- Dispose of outdated customer information promptly and in a secure manner. Such measures include the following.
- Shred documents and reports containing such information that are no longer required for business purposes.
- Delete e-mails containing such information as soon as possible.
- Reformat storage devices such as diskettes and CD’s containing private financial information before disposal.
- Delete all information from any hardware storage devise before retiring or transferring machines
Risk: the university may provide this information to service providers that have not taken appropriate safeguards and the information is used in an unauthorized manner.
- Limit authorization for such contracts to the Vice President of the University and Dean of Academic Affairs (or his/her designate)
- Before entering contractual relationship, inquire about the service provider’s compliance program with the FTC Ruling for Safeguarding Financial Information. Review supporting documentation.
Contractually require service providers to implement and maintain such safeguards. Below is a recommended addendum to such contracts.
In order to provide specific services for St. Lawrence University and its constituents, certain customer financial information may be forwarded to your organization as an outside service provider. This information can only be used for the purpose of providing the contracted services. Your organization must meet the standards of the Federal Trade Commission Rule for Safeguarding Customer Information (16 CFR Part 314). Any subcontractors used by your organization which may receive customer financial information pertaining to St. Lawrence University must also meet these requirements. Upon request, your organization must provide St. Lawrence University with the results of any audits and testing of your organizations safeguards.
Monitor and Testing
The employees designated to coordinate this program are responsible for regularly monitoring the safeguards within their respective divisions to ensure adequacy and compliance. These employees will meet at least annually to review the following:
- how these safeguards have been monitored in their areas and what the findings were,
- new or changed business practices that may require modifications to these safeguards,
- any other issues relevant to the safeguarding of customer financial information.