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You put every effort into making your business the best it can be. While providing top-tier services and enhancing customer relationships are major parts of this, you also need to follow quite a few rules and regulations regarding cyber security and data protection. Among these is the FTC Safeguards Rule.
The Federal Trade Commission put this rule in place to ensure businesses abide by strict consumer data protection standards. Compliance here is vital, and our FTC Safeguards consultants can help. Here’s everything you need to know about this rule, what compliance entails, and how our experts can make it all easier for you.
The Gramm-Leach-Bliley Act dates back to 1999. This act led to the Safeguards Rule, or the Standards for Safeguarding Customer Information, which is the original name of the FTC Safeguards Rule.
The Federal Trade Commission introduced this rule in 2003 but amended it almost two decades later, in 2021, to keep up with the ever-changing landscape of technology. It applies to any company that handles sensitive customer data, including those that indirectly or directly offer financial services.
In short, this mandate requires any financial institution to enforce strict safety measures to protect customer data. This necessitates a security plan for enforcing customer data protection through various physical, technical, and administrative safeguards.
The cyber world is constantly changing, which means your organization can’t simply create a security plan and move on. Following the FTC Safeguards Rule requires you to continuously update this plan to keep up with evolving technology. Here’s where working with an FTC Safeguards consultant can prove highly valuable.
Our consultants know the ins and outs of the FTC Safeguards Rule and what different financial institutions need to comply with. We can work with automobile dealers, mortgage lenders, check cashers, collection agencies, and anyone else who falls within the scope of FTC Safeguards compliance.
FTC Safeguards compliance essentially shows that your company prioritizes customer information security. This specific cybersecurity compliance involves several steps, which include conducting risk assessments, establishing access controls, encrypting customer information, and conducting regular testing and monitoring. Financial institutions must also establish a specific incident response plan and designate a qualified individual to oversee the organization’s security efforts.
So, why does this compliance matter for your organization? Aside from potentially jeopardizing your customer’s sensitive data, failing to comply with this law also opens you up to severe legal and financial consequences while diminishing customers’ trust in your company. These consequences can range from a fine of $50,000 for each violation to imprisonment.
Given the severe consequences of non-compliance, companies must take every precaution to invoke sufficient security protocols. This compliance also shows customers that their personal data is safe with your organization.
Our FTC Safeguards consultants want to help your organization thrive when it comes to cybersecurity and data protection. Our experts can help you navigate the various elements of the FTC Safeguards rule and devise a plan that helps keep you compliant.
We’ll explore your existing data protection policies and encryption standards and then compare them to the requirements of the FTC Safeguards Rule. Should we find any discrepancies, we’ll help you address them and devise a strategy to ensure compliance with the Federal Trade Commission.
Here at Genius GRC, we’re highly skilled individuals with the experience to back it up. Our team of consultants wants you to succeed and understand the importance of maintaining robust data security policies.
We also know that the constant advancement in technology can make it difficult to keep up with compliance regulations. When running your company, you have more than just cybersecurity to focus on. Leave the FTC Safeguards Rule compliance tasks to us. We’ll keep you informed while allowing you to focus more on your organization’s other important operations.
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The consequences of FTC Safeguards non-compliance may include fines, lawsuits, operational interruptions, and a damaged reputation for the organization.
Financial institutions should hire an FTC Safeguards consultant to help them encrypt sensitive information, train staff, establish an incident response plan, and take any other steps necessary to comply with the FTC Safeguards Rule. Contact Genius GRC to see how we can help!
