Leaving your customer information open without security measures is like leaving your house unlocked—wildly unsafe and risky. Data breaches occur on a regular basis—in fact, Varonis reports that a cyber attack occurs every 39 seconds. And the consequences, deadly. Important information can get stolen without IT for finance, including the following:
- Credit card numbers
- Social Security Numbers
- Medical records
- Other sensitive information
To help protect consumers’ data, the FTC initiated a Safeguard Rule that will go into effect midyear. However, the new rule is here to prevent that from happening and ensure not only your data is safe, but your reputation and customer trust.
What the FTC is Asking of You
The Federal Trade Commission (FTC) announced that they will implement a new Safeguard Rule to protect customer information in the hands of non-banking financial institutions. This rule requires companies to have and maintain a comprehensive written information security program that is both appropriate for their size and complexity, and designed to protect customer information.
The broad requirements of this IT for finance rule include:
- Establishing appropriate administrative, technical, and physical safeguards to protect customer information
- Assessing risks in their environment and taking steps to control them
- Evaluating service provider’s ability to maintain adequate security measures
- Overseeing service provider’s compliance with their obligations
- Training employees on security measures related to customer information.
- Implementing MFA or something with similar protection
You have time to gear up as this rule doesn’t go into effect until June 9, 2023. So start now and create a comprehensive customer information security program to ensure your customers’ data is secure in IT for finance! The FTC has all the details on its website, so check it out for more information.
Who This Applies To
Because this rule was made to protect customer information, it applies only to non-banking financial institutions and requires IT for finance. However, you may not be sure if you fall under this category—this includes the following:
- Debt collectors
- Loan servicers
- Money transmitters
- Fintech companies
- Other consumer finance-related businesses.
If you are a non-banking financial institution and require IT for finance, it’s important to understand this rule and start taking steps now to bring your customer information security program up to the standard set forth by this rule. Doing this not only protects your customers’ information but also protects your reputation and customer trust.
Telewire Can Help Keep You Compliant
At Telewire, we take great pride in keeping customer data safe. There’s nothing worse for an organization than experiencing a data breach, so we create solutions to help our clients get ahead of the game. We have a variety of products and services to help you meet the FTC’s Safeguard Rule requirements.
Our multi-factor authentication system provides an additional layer of security when accessing sensitive information or accounts and we specialize in IT for finance.
But beyond that, we also provide the following:
- Password management services
- Data encryption solutions
- Access control solutions
- Security monitoring and alerting services.
These security measures help ensure your customer information is kept safe and secure so you can remain compliant with the FTC’s Safeguard Rule. Contact us today to learn more about how Telewire can help you stay compliant today!
