32.1104
Protection of EFT information
The Government is required to protect contractors’ EFT information from improper disclosure to ensure payment security and confidentiality.
Overview
FAR 32.1104 requires the Government to safeguard contractors’ Electronic Funds Transfer (EFT) information from improper disclosure. This section emphasizes the importance of maintaining the confidentiality and security of sensitive banking data provided by contractors for payment purposes. The regulation is designed to prevent unauthorized access, use, or dissemination of EFT details, thereby protecting contractors from potential financial fraud or privacy breaches. While the primary obligation falls on the Government, contractors should be aware of these protections and ensure their EFT information is submitted securely and only through authorized channels.
Key Rules
- Protection of EFT Information
- The Government must implement measures to prevent improper disclosure of contractors’ EFT data.
- Confidentiality Obligation
- All personnel handling EFT information are responsible for maintaining its confidentiality and security.
Responsibilities
- Contracting Officers: Ensure that processes and systems protect contractors’ EFT information from unauthorized disclosure.
- Contractors: Submit EFT information only through secure, authorized means and report any suspected breaches.
- Agencies: Oversee compliance with information protection requirements and address any incidents of improper disclosure.
Practical Implications
- This section exists to protect contractors from financial risk and privacy violations related to EFT payments.
- It impacts daily contracting by requiring secure handling of sensitive payment data.
- Common pitfalls include mishandling or insecure transmission of EFT information, which can lead to data breaches or payment fraud.