FTC Safeguards Rule Compliance
The FTC Safeguards Rule requires financial institutions under their jurisdiction to have a qualified individual that develops, implements, and maintains an information security program to protect customer information.
Is your business required to comply with the FTC Safeguards Rule?
You might be surprised.
The FTC Safeguards Rule covers any financial institution not already subject to enforcement by another regulator like the SEC or DOI. It essentially defines a "financial institution" as an organization engaged in activity that is "financial in nature" or "incidental to such financial activities."
What does that mean? Well, if you're handling customer information in relation to financial matters, you are probably considered a "financial institution" and need to comply with the FTC Safeguards Rule.
Examples include:
Mortgage Brokers & Lenders
Collection Agencies
Tax & Accounting Firms
Bookkeepers
Credit Unions (Non-NCUA)
Auto & Powersports Dealers
Financial Advisors
Investment Advisors (Non-SEC)
...and more
What does that mean for you?
You must have an official information security program, documented in writing and based on the assessed risks your organization faces.
You must employ a qualified individual to run your information security program. This can be an employee, advisor, or a service provider.
You must design and implement appropriate safeguards to protect customer information. You must regularly test and monitor these safeguards.
You must implement security policies and procedures, in addition to providing your staff with the appropriate training to address security risks.
You must establish and maintain a written incident response plan for security events. You must also notify the FTC within 30 days of a security event.
Entoo Security can design, implement, and manage your security program.
Unless you’re a larger organization, you probably don’t have a team in place to do everything required by the FTC Safeguards Rule.
Entoo Security understands how to comply and can serve as the qualified individual building and running your program. And unlike many service providers, we can even support solo-practitioners.
We’ve designed a comprehensive, cost-effective blueprint that scales with your business, making compliance both simple and sustainable.