GLBA
U.S. law for financial privacy notices and data safeguards
ISO 27018
International code for PII protection in public clouds.
Quick Verdict
GLBA mandates privacy notices and security for US financial firms handling NPI, while ISO 27018 provides voluntary cloud PII controls for global providers. Companies adopt GLBA for legal compliance; ISO 27018 for audited privacy assurance and market trust.
GLBA
Gramm-Leach-Bliley Act
Key Features
- Mandates privacy notices and opt-out rights for NPI sharing
- Requires written information security program with safeguards
- Applies broadly to non-bank financial institutions and activities
- Designates Qualified Individual with annual board reporting
- Imposes 30-day FTC breach notification for 500+ consumers
ISO 27018
ISO/IEC 27018:2025 PII protection in public clouds
Key Features
- Privacy controls for PII processors in public clouds
- Subprocessor transparency and location disclosure
- Mandatory breach notification to customers
- Prohibits PII use for marketing without consent
- Supports data subject rights fulfillment
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
GLBA Details
What It Is
Gramm-Leach-Bliley Act (GLBA) is a U.S. federal regulation enacted in 1999. It establishes privacy and security obligations for financial institutions handling nonpublic personal information (NPI). Primary purpose: ensure transparency in data sharing and robust safeguards against unauthorized access. Adopts a risk-based approach via Privacy Rule and Safeguards Rule.
Key Components
- Privacy Rule (16 C.F.R. Part 313): notices, opt-outs for nonaffiliated sharing.
- Safeguards Rule (16 C.F.R. Part 314): written security program with administrative, technical, physical controls.
- **Pretexting provisionsanti-social engineering protections. Built on governance, risk assessment; requires Qualified Individual, board reporting; no formal certification, but FTC enforcement.
Why Organizations Use It
Mandated for financial entities; avoids penalties up to $100,000/violation. Enhances risk management, customer trust, vendor oversight. Builds resilience, competitive edge in data handling.
Implementation Overview
Phased: scoping, risk assessment, controls (encryption, MFA), training, testing. Applies to banks, non-banks (e.g., tax firms, auto dealers); U.S.-focused. Ongoing audits, breach notifications required.
ISO 27018 Details
What It Is
ISO/IEC 27018:2025 is a code of practice extending ISO/IEC 27001 and ISO/IEC 27002 for protecting personally identifiable information (PII) in public clouds where providers act as PII processors. It provides privacy-specific controls addressing cloud challenges like multi-tenancy and cross-border data flows via a risk-based approach.
Key Components
- ~25–30 additional privacy controls mapped to ISO 27001 Annex A
- Core principles: consent/choice, purpose limitation, data minimization, transparency, accountability
- Built on ISO 27000 family; no standalone certification—assessed in ISO 27001 audits
- Covers PII lifecycle: consent, processing, storage, transmission, deletion
Why Organizations Use It
- Builds trust, accelerates procurement, differentiates CSPs in market
- Aligns with GDPR, HIPAA processor obligations
- Enhances risk management, cyber insurance terms
- Boosts reputation; 85% consumers avoid insecure firms
Implementation Overview
- Integrate into existing ISMS via gap analysis, SoA updates
- Activities: subprocessors disclosure, breach procedures, staff training, audits
- Applies to CSPs all sizes/industries globally
- Certification as ISO 27001 extension; annual surveillance audits (179 words)
Key Differences
| Aspect | GLBA | ISO 27018 |
|---|---|---|
| Scope | Consumer financial privacy and security (NPI) | PII protection in public cloud services |
| Industry | Financial institutions (broad, US-centric) | Cloud service providers (global) |
| Nature | Mandatory US federal regulation | Voluntary ISO code of practice |
| Testing | Risk assessments, pen tests, board reporting | ISO 27001 audits with privacy controls |
| Penalties | Civil penalties up to $100K per violation | No legal penalties (certification loss) |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about GLBA and ISO 27018
GLBA FAQ
ISO 27018 FAQ
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