The Easy Guide to FTC Compliance
FTC Safeguards Rule and the Industry Impact
What Now?
Introduction
The Federal Trade Commission (FTC) Rule is a regulation that requires 13 different entities that are financial institutions to implement FTC safeguards to protect the security and confidentiality of customer information The rule was created in response to the growing number of data breaches that were affecting financial institutions and their customers
13 Entities That Are Financial Institutions:
Automobile Dealers
Tax Preparation Firms
Mortgage Lenders
Finance Companies
Check Cashers
Account Servicers
Payday Lenders
Mortgage Brokers
Wire Transferors
Collection Agencies
Credit Counselors
Non-Federally Insured Credit Union
Investment Advisors (that are not required to register with the SEC)
The FTC Safeguards Rule requires financial institutions to develop, implement, and maintain a comprehensive information security program
The program must be designed to:
Identify and assess the risks to customer information in each area of the institution's operations, an IT and general risk assessment
Implement appropriate FTC safeguards to control the identified risks
Regularly monitor and test the effectiveness of the FTC safeguards
Correct any deficiencies in the FTC safeguards
Risk Assessment
The first step in complying with the FTC Safeguards Rule is to conduct a risk assessment. This assessment should identify and assess the risks to customer information in each area of the institution's operations. The risks can be internal or external, and they can be physical, technological, or administrative.
Some examples of internal risks include:
Employee negligence or malfeasance
Theft or loss of data
Unauthorized access to data
Some examples of external risks include:
Cyberattacks
Natural disasters
Business disruptions
Once the risks have been identified and assessed, the institution must implement appropriate safeguards and cybersecurity to control those risks
Safeguards
The FTC Safeguards Rule specifies a number of safeguards that financial institutions must implement.
These safeguards include:
Access controls.
Encryption.
Auditing and monitoring.
Incident response
Training
Access controls are designed to prevent unauthorized access to customer information These controls can include passwords, firewalls, and intrusion detection systems
Encryption is used to protect customer information from unauthorized access Encrypted data can only be read by someone who has the encryption key
Auditing and Monitoring are used to detect and investigate security incidents These activities can help the institution identify and correct security weaknesses
Incident response is the process of responding to a security incident This process should include steps to contain the incident, investigate the cause, and recover from the incident
Training is essential for all employees who handle customer information Employees should be trained on the importance of security and the safeguards that they must follow
Compliance
The FTC Safeguards Rule requires financial institutions to comply with the rule on an ongoing basis This means that the institution must regularly monitor and test the effectiveness of its information security program The institution must also correct any deficiencies in the program
The FTC can take enforcement action against financial institutions that violate the Safeguards Rule This action can include fines, penalties, and other sanctions
Cybersecurity
Cybersecurity is the practice of safeguarding systems, networks, and data from unauthorized access, misuse, disruption, or loss, preserving confidentiality, integrity, and availability. As the technical core of an organization’s information-security program, it delivers controls the FTC Safeguards Rule expects (e.g., MFA/access control, encryption, monitoring, incident response) across endpoints, email, web, cloud, and Zero Trust architectures to protect customer information. .
There are a number of things that organizations can do to improve their cybersecurity posture.
What is a PEN Test?
A penetration test, often referred to as a PEN test, is an 'authorized' attempt to gain 'unauthorized' access to a computer system or network. PEN Tests are used to identify and assess security vulnerabilities. A quick google search prices PEN tests from $5,000 to $50,000.
What is a Risk Assessment?
A Risk Assessment is a process of identifying and assessing security vulnerabilities in a computer system or network Risk Assessments are used to identify potential security risks and to prioritize remediation efforts This assessment can run from hundreds to thousands of dollars
How can these services help me comply with the new compliance law?
Our PEN Test and Risk Assessment can help identify and mitigate your cybersecurity risks This will help you meet the requirements of the new cybersecurity law and protect your clients' sensitive data
At Vector Choice, we are providing a free PEN Test and Risk Assessment with a qualified information security manager To schedule your required PEN Test and Risk Assessment, scan the QR code below
Conclusion
Why Vector Choice? Our industry-leading cybersecurity, compliance, and managed IT services experts create a complete IT strategy based upon your precise business needs Once implemented, we offer ongoing comprehensive training to help your employees recognize and report harmful phishing attempts And our large, dedicated team of specialized support technicians are committed to helping you resolve issues quickly and as painless as possible Want to know more about what Vector Choice can do for you?
Contact us today to schedule your FREE PEN Test and Risk Assessment
