In November 2004, the FTC filed a complaint against Nationwide Mortgage Group, Inc. In its complaint, the FTC stated that Nationwide collected sensitive customer information, but that it had no policies and procedures in place to protect that information. It also stated that Nationwide failed to monitor its computer network for vulnerabilities that would expose stored customer information to attack. What rules did the Nationwide violate?

the Nationwide violate is Safeguards Rule because The FTC Safeguards Rule is a Federal Trade Commission (FTC) regulation that requires companies in the financial sector to take specific cyber security measures to protect their customers' data. The rule enables the FTC to implement the Gram-Leach-Bleeley Act (GLBA) and to provide "products that are heavily engaged in business" to a wide range of businesses, tax preparers, law firms and corporations.

To be compliant, entities must adopt and include written information security programs designed to protect their users' personally identifiable information. They need to take steps to identify appropriate external and internal security risks, assess their potential impact, and select service providers who can incorporate and maintain appropriate data security safeguards. In addition, organizations must undergo regular auditing and evaluation.