What is the FTC Safeguards Rule?
The FTC’s updated Safeguards Rule requires non-banking financial institutions, such as mortgage lenders, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security system to keep their customers’ information safe.
This rule seeks to strengthen the data security safeguards that financial institutions have in place to protect customer data.
Why and when does my business need to be in compliance?
Data breaches are on the rise and attackers are finding new ways to exploit vulnerabilities and gain access to even the most secure networks. Once the deadline passes, if your non-compliant organization falls victim to a breach, the FTC can impose additional restrictions and penalties.
Compliance with several requirements within the FTC Safeguards Rule were due December 9, 2022, and the remaining must be achieved by June 9, 2023.
Can my organization get in compliance without outside help?
Your organization can definitely get in compliance on its own. However, the process is extremely cumbersome, complicated, and costly.
It is estimated that for an organization to be fully compliant with the FTC Safeguards Rule, the average cost would be $250,000 annually.
By partnering with OCD Tech, you will not only save thousands of dollars – you will have the peace of mind that all of the compliance criteria are completed and correct.
What needs to be done to be in compliance?
- Maintain a written information security plan (WISP)
- Designate a “Qualified Individual”
- Perform a risk assessment
- Periodically review access controls
- Manage data, personnel, devices, and facilities
- Use encryption at rest and in-transit
- Maintain a secure software development lifecycle (SDLC)
- Actively oversee managed service providers (MSPs)
- Establish an incident response plan
- Implement multifactor authentication (MFA)
- Maintain data retention policy
- Maintain change management process
- Monitor and log activity
- Perform continuous monitoring or penetration testing
- Maintain policies and procedures
- Establish security and awareness training
- Send a report, at least annually, to internal management on the status of compliance
Please note: The rule applies to all financial institutions, regardless of size. However, if your organization holds data for fewer than 5,000 consumers, some requirements do not apply.
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Let us walk you through the process and work to setup your roadmap to compliance. Contact us for more information.