Are you ready to safeguard your customers’ sensitive information? As we approach June 9th, 2023, it’s important to ensure your organization is compliant with the FTC Safeguards Rule. This regulation requires financial institutions to take certain measures to protect their customers’ personal information from potential security breaches.
Don’t worry, we’ve got you covered! In this article, we’ll provide you with everything you need to know about the FTC Safeguards Rules and compliance. We’ll cover who it applies to, give you a checklist of key requirements for compliance, and show you how DiamondIT’s solutions can help your organization meet these requirements.
So, sit back, relax, and let’s dive into the world of FTC Safeguards Rules and Compliance.
What is the FTC Safeguards Rule?
The FTC Safeguards Rule is a regulation that requires financial institutions to develop, implement, and maintain a comprehensive information security program to protect the confidentiality and integrity of customer information.
Who does it apply to?
The rule applies to any financial institution that is defined as a “financial institution” under the Gramm-Leach-Bliley Act (GLBA). The GLBA defines a financial institution as any institution that is “significantly engaged” in financial activities, such as lending, insuring, safeguarding or investing money. This includes accounting firms, banks, credit unions, mortgage lenders, insurance companies, collection agencies, investment advisers, auto dealerships, travel agencies, and other financial service providers.
FTC Safeguards Rule Compliance Checklist:
- Security Awareness Training: Implement a security awareness training program for employees to ensure they are knowledgeable about the risks and threats associated with handling sensitive customer information.
- Multi-Factor Authentication: Implement multi-factor authentication to ensure that only authorized individuals have access to customer information.
- Encryption At Rest: Encrypt sensitive customer information that is stored on servers or other storage devices.
- File and Data Access Logging: Implement file and data access logging to track who accesses sensitive customer information and when.
- Information Security Program: Develop, implement, and maintain a comprehensive information security program to protect the confidentiality and integrity of customer information.
- Designated Qualified Security Representative: Designate a qualified security representative who is responsible for overseeing the information security program.
- Risk Assessment: Conduct periodic risk assessments to identify potential risks and vulnerabilities to customer information.
- Data Retention Policy: Develop and implement a data retention policy to ensure that customer information is retained only as long as necessary.
- Change Management Policy: Implement a change management policy to ensure that changes to systems, software, or processes do not introduce new security risks.
- Vulnerability Assessment: Conduct periodic vulnerability assessments to identify potential security vulnerabilities.
- Vendor Management: Develop and implement a vendor management program to ensure that third-party vendors who have access to customer information comply with the FTC Safeguard Rule.
- Incident Response Plan: Develop and implement an incident response plan to address security incidents involving customer information.
- Technical Access Control: Implement technical access controls to prevent unauthorized access to customer information.
- Encryption In Motion: Encrypt sensitive customer information that is transmitted over networks or other communication channels.
- Data Classification: Classify customer information based on its sensitivity to ensure that appropriate security measures are in place to protect it.
- Secure Development Practices: Implement secure development practices to ensure that software and applications that handle customer information are designed and developed with security in mind.
- Data Destruction: Develop and implement a data destruction policy to ensure that customer information is securely and permanently erased when no longer needed.
- Annual Penetration Test: Conduct an annual penetration test to identify potential security weaknesses and vulnerabilities.
Failure to comply with these rules can result in serious penalties and enforcement actions. The penalties for noncompliance can include fines, injunctive relief, restitution, and other civil or criminal remedies. Additionally, financial institutions may be subject to reputational damage and loss of customers due to breaches or other violations. Enforcement actions can be initiated by the FTC, state attorneys general, or private plaintiffs, and may result in investigations, lawsuits, and settlements.
Becoming FTC compliant with DiamondIT
SecureCentric: DiamondIT’s comprehensive cybersecurity solution is an all-in-one security toolbox that empowers your company’s internal IT with the essential technology, tools, and support they need to concentrate on core security responsibilities. With SecureCentric we take a proactive approach to security by implementing lockdown environments, tools, and policies to keep your business safe.
What’s Included in SecureCentric?
- Security operations center
- Multi-factor authentication (MFA)
- Email encryption and filtering
- Managed firewalls
- Dark web scanning
- Security awareness training
- Phishing tests
- Elite endpoint detection and response (EDR)
- Cybersecurity Incident Response Team
- Ransomware Systems rollback
- Strategic Remediation
vCISO Services: DiamondIT’s (virtual Chief Information Security Officer) co-managed IT offering is a service that provides clients with remote access to experienced cybersecurity experts who act as their outsourced CISO for a fraction of the cost. These experts work in collaboration with the client’s existing in-house security team, offering guidance, support, and expertise on all aspects of the organization’s cybersecurity strategy.
What’s included in vCISO Services?
- Security Posture Assessment
- Security Awareness Training & Auditing
- Vulnerability Scans
- Risk Management
- Security Policies
- Compliance Review and Assistance
- Cyber Insurability Review
- Dark Web Monitoring
- Quarterly Security Review
How do vCISO Services and SecureCentric these two solutions address the FTC Safeguards Rule & Compliance?
These two solutions, when combined, are known as IT Secure.
IT Secure: your solution for FTC compliance
IT Secure takes care of the following FTC compliance checklist items:
- Security Awareness Training
- Multi-Factor Authentication
- Encryption At Rest
- File and Data Access Logging
- Information Security Program
- Designated Qualified Security Representative
- Risk Assessment
- Data Retention Policy
- Change Management Policy
- Vulnerability Management
- Incident Response Plan
In addition, DiamondIT can determine if the remaining FTC Safeguards Rule checklist items apply to your environment, and we can help with those too! Don’t wait until something happens that exposes your business and puts consumer data at risk. Book an IT consultation now and take the necessary steps towards becoming FTC compliant.