Many businesspeople have heard about the GLBA, but are uncertain as to its meaning. The GLBA that I am addressing here refers to federal regulations concerning protecting privacy rights of individuals relating to financial information. Financial institutions and their clients have a very intimate relationship, and this law was enacted to safeguard against the potential misuse of private information.

GLBA And You

GLBA defines the privacy obligation of financial institutions relating to their clients' most personal and private information. The law states that financial institutions must not only respect what it calls client's "nonpublic personal information" but must also strive to protect that information. It explicitly states that these institutions must "protect the security and confidentiality" of said information.

This requirement poses a dilemma for financial institutions. How do they protect that information? There are of course many ways to do this. They protect computerized information with restricted access to their systems and through security devices like firewalls. This works great for written information, but what about non-written information? Spoken information is just as important and is also protected.

Financial institutions can meet GLBA standards regarding verbal communication by using sound masking systems in their offices. Sound masking systems keep voices from traveling farther than a very short distance so they can not be overheard. No one else can accidentally or intentionally overhear something they shouldn't so nonpublic personal information stays private.