The Easy Guide to FTC Compliance

Navigating the New Safeguards Rule

FTC Safeguards Rule and the Industry Impact

What Now?

Introduction

The Federal Trade Commission (FTC) Safeguards Rule is a regulation that requires 13 different entities that are financial institutions to implement 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 (see page 4 for a full list of entities covered)

The Safeguards Rule applies to all financial institutions that are subject to the FTC's jurisdiction, including banks, credit unions, mortgage lenders, and payday lenders. The rule also applies to non-financial institutions that offer financial products or services, such as investment firms and insurance companies

The 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

Implement appropriate safeguards to control the identified risks

Regularly monitor and test the effectiveness of the safeguards

Correct any deficiencies in the safeguards

Risk Assessment

The first step in complying with the 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 to control those risks

Safeguards

The 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 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 protecting systems, networks, and data from unauthorized access, use, disclosure, disruption, modification, or destruction It is an essential part of any organization's information security program

There are a number of things that organizations can do to improve their cybersecurity posture.

These include:

What is a PEN Test?

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 This quick, easy, and non-evasive test has a market value of $997

What is a Vulnerability Assessment?

A Vulnerability Assessment is a process of identifying and assessing security vulnerabilities in a computer system or network Vulnerability Assessments are used to identify potential security risks and to prioritize remediation efforts This assessment has a market value of $497

How can these services help me comply with the new compliance law?

Our PEN Test and Vulnerability 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 Vulnerability Assessment with a qualified information security manager To schedule your required PEN Test and Vulnerability Assessment, click the button below

Schedule Now

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 for a 10-minute discovery call to schedule your initial consultation call

13 Entities That Are Financial Institutions: automobile dealers, tax preparation firms, mortgage lenders, finance companies, check cashers, payday lenders, mortgage brokers, wire transferors, collection agencies, credit counselors, non-federally insured credit unions, and investment advisors that are not required to register with the SEC

Website: www.vectorchoice.com

Email: info@vectorchoice.com

Phone: 877-468-1230