There are several ways an IT managed service provider, like Xceptional, can assist your business in compliance with the Federal Trade Commission’s (FTC) Safeguards Rule. This blog post will walk you through what the FTC Safeguards Rule is, who it applies to, and how a managed services provider can help.

What is the FTC Safeguards Rule?

The Safeguards Rule was created by the FTC to help organizations to implement safeguards to protect the security, confidentiality, and integrity of customer information. Initially this rule was built with banks strictly in mind, but in 2021, the FTC updated the definition of financial institutions to include other non-financial industries such as automobile dealerships, mortgage lenders, tax preparers, and retailers with a credit card to name a few.¹ If your company handles financial consumer data, then your company needs to be in compliance with this regulation. 

Here are 10 ways an IT managed service provider can help with FTC Safeguards Rule Compliance: 

1. Security Assessments: Comprehensive security assessments can be conducted to evaluate the current state of a business' data security measures. Your provider should be able to help you identify vulnerabilities, gaps, and areas of non-compliance with the FTC Safeguards Rule.
   
   
2. Risk Management: An IT provider can help businesses develop and implement a robust risk management program. This includes identifying and assessing risks, establishing risk mitigation strategies, and creating incident response plans.
   
   
3. Policies and Procedures: Assist in the development and implementation of policies and procedures that align with the requirements of the FTC Safeguards Rule. This includes creating data security policies, employee training programs, and incident response procedures.
   
   
4. Data Encryption: Your IT provider can recommend and implement encryption technologies to protect sensitive customer information, both in transit and at rest. This ensures that data remains secure even if it is intercepted or accessed without authorization.
   
   
5. Access Controls: You can work with your managed service provider to help establish proper access controls to limit access to sensitive customer data only to authorized personnel. This may involve implementing multi-factor authentication, role-based access controls, and secure user management systems.
   
   
6. Network Security: Regardless of what IT provider your company works with, they should be able to provide guidance on implementing robust network security measures, such as firewalls, intrusion detection systems, and network monitoring tools. This helps detect and prevent unauthorized access to customer information.
   
   
7. Data Backup and Recovery: Assist businesses in setting up secure and reliable data backup and recovery systems. This ensures that customer data can be restored in the event of data loss or system failures.
   
   
8. Employee Training: Conduct cybersecurity awareness training programs for employees to educate them about the importance of data security, best practices, and their role in safeguarding customer information. This helps create a security-conscious culture within the organization.
   
   
9. Incident Response: Develop incident response plans and assist in the implementation of incident response processes. This includes promptly identifying, containing, and mitigating the impact of data breaches or security incidents.
   
   
10. Compliance Audits: Conduct regular audits to assess ongoing compliance with the FTC Safeguards Rule. Identify any areas that require remediation and provide recommendations for continuous improvement.

These are just a few of the many ways an IT managed service provider can assist you in becoming compliant with the FTC Safeguards Rule. Remember, your business does not want to be caught out of compliance as you’ll face a hefty fine. 

How can Xceptional help? 

Xceptional offers a Compliance-as-a-Service (CaaS) offering perfect for your organization’s compliance needs. We understand that navigating industry regulations is not easy and consumes a lot of time. Our CaaS offering is meant for Xceptional to take the load off your business, and for Xceptional to be your business’ guiding light navigating industry regulations. By leaning on an IT provider, you are not only ensuring compliance needs are met, but also enhancing trust and confidence among your customers, ultimately contributing to the success and reputation of your business. Contact Xceptional today if you are ready to embrace the Xceptional experience and are ready to get started on your journey towards FTC Safeguards Rule compliance.

Sources:

1. https://www.ftc.gov/business-guidance/resources/ftc-safeguards-rule-what-your-business-needs-know