What is one recommended action to protect nonpublic personal information (NPI)?

Prepare for the Bank Compliance Training Test with interactive flashcards and multiple-choice questions, complete with hints and explanations. Master compliance concepts to succeed on your exam!

Regularly updating passwords and utilizing firewalls is a critical action to protect nonpublic personal information (NPI). This practice enhances security by making it more difficult for unauthorized individuals to access sensitive data. Regular password updates reduce the risk of breaches that can occur when passwords remain static for long periods, as compromised passwords may be exploited if they are known by third parties.

Additionally, firewalls serve as a protective barrier between internal networks and external cyber threats, monitoring incoming and outgoing traffic to block malicious activities. Together, these measures create a fortified environment that greatly reduces the likelihood of NPI being accessed, stolen, or misused.

Other actions such as using unsecured public Wi-Fi, storing records online without encryption, and sharing passwords not only fail to safeguard NPI but can actively expose it to unauthorized access and security breaches. Therefore, keeping security measures stringent and proactive is essential for compliance with regulations governing the protection of personal information.

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