What is the FTC Safeguards Rule, and Who Does It Apply To?
The FTC Safeguards Rule is a Federal Trade Commission (FTC) regulation that requires companies in the financial sector to take specific cybersecurity steps to protect their consumer data. This rule allows the FTC to enforce the Gramm-Leach-Bliley Act (GLBA), and applies to a broad range of businesses, tax preparers, law firms, and institutions that are “significantly engaged” in providing financial products and services.
To comply, entities must adopt and incorporate written information security programs designed to protect their consumers’ personally-identifiable information. They’ll also need to take steps to locate reasonably foreseeable external and internal security risks, assess their potential impact, and select service providers who can incorporate and maintain reasonable data security safeguards. Organizations will additionally need to undergo routine auditing and evaluation.
Organizations that fail to comply with the Safeguards Rule will also violate the GLBA. GLBA violation consequences can involve imprisonment of up to 5 years or up to $100,000 per violation. The FTC can also force non-compliant companies to institute mandatory security upgrades and undergo extensive independent auditing.
How Does FTC Safeguards Rule Hosting Work?
Moving your data into the cloud is one easy way you can meet your Safeguards Rule compliance requirements. Abacus Private Cloud offers a secure virtual cloud hosting platform that allows you to leverage dedicated IP addresses, SSL-A-rated servers, 256-bit AES encryption, 2FA, and other FTC-recommended safeguards when storing and working with client data. Working with our hosting team can also help you save $3,966 monthly compared to on-site solutions.
What Do I Need to Do to Audit and Maintain Compliance with the FTC Safeguards Rule?
Our hosting team routinely audits all accounts and can provide SSAE-18 reports for clients upon request. We also automate critical software and firmware updates, apply patches, and provide around-the-clock support for your hosting questions.
Are there AbacusNext Clients Who are Compliant with the FTC Safeguards Rule?