Final answer:
The GLB Act Safeguards Rule requires financial institutions to secure customer information, while the FACT Act Disposal Rule mandates proper disposal of consumer report data to prevent unauthorized access.
Step-by-step explanation:
The GLB Act Safeguards Rule and the FACT Act Disposal Rule are both designed to protect consumers' personal information but have different applications and requirements. The GLB Act Safeguards Rule, part of the Gramm-Leach-Bliley Act (GLBA), requires financial institutions to implement a comprehensive information security program to protect the confidentiality and integrity of consumer information. It focuses on ensuring the security and confidentiality of customer data, protecting against any anticipated threats to the data, and guarding against unauthorized access to or use of customer data that could result in substantial harm to any customer.
In contrast, the FACT Act Disposal Rule, part of the Fair and Accurate Credit Transactions Act (FACTA), pertains specifically to the disposal of consumer report information and records. The rule mandates that anyone who uses a consumer report for a business purpose must take appropriate measures to dispose of the report and any information derived from it in a manner that prevents unauthorized access to or use of the information. This often entails shredding, pulverizing, or otherwise destroying paper documents and wiping electronic media so the information cannot be read or reconstructed.
Both rules share the common goal of protecting sensitive consumer information, but the Safeguards Rule requires a broader range of protective measures to secure customer information, while the Disposal Rule focuses specifically on the proper disposal methods of consumer report data.