In the modern age of technology, protecting consumer data has never been more crucial. The Federal Trade Commission (FTC) Safeguards Rule sets standards for how businesses must protect customer data and ensure its confidentiality. The FTC recently updated its Safeguards Rule, which has significant implications for businesses’ cybersecurity measures. In this post, we’ll discuss how the updated FTC Safeguards Rule impacts your business’s cybersecurity and actionable tips on how to comply with the new regulations.
New requirements after FTC Safeguards 2.0
The updated FTC Safeguards Rule introduces new requirements for businesses to better secure customer information. The new regulations include a specific mandate to implement a written information security program (WISP) that outlines the business’s plan to protect customer data.
The WISP must include a risk assessment, employee training program, and a plan for responding to security incidents.
Regular risk assessments
Regular risk assessments are a significant aspect of the updated rule. Risk assessments help identify potential threats to customer data and the vulnerabilities in the business’s systems. To comply with the updated rule, businesses must assess their cybersecurity measures regularly and adapt them to address new threats.
Employee data security training
Another key requirement is employee training. Employees play a significant role in protecting customer data, and the updated FTC Safeguards Rule recognizes this fact. Businesses must provide adequate training to their employees on how to safeguard customer data and respond to potential security incidents.
Consequences of non-compliance
Non-compliance with the updated rule can result in significant fines and damage to a business’s reputation. Businesses found to be non-compliant may be subject to fines of up to $43,792 per violation. In addition, the FTC may investigate and publicly disclose any non-compliance, which can damage a business’s reputation and lead to a loss of consumer trust.
Actionable tips for compliance
To ensure compliance with the updated FTC Safeguards Rule and protect customer data, businesses can take the following actionable steps:
- Develop a written information security program (WISP) that outlines the business’s plan to protect customer data.
- Conduct regular risk assessments to identify potential threats and vulnerabilities.
- Provide employee training on how to safeguard customer data and respond to potential security incidents.
- Work with managed services to achieve compliance with the updated regulations and safeguard customer data.
Consumer data protection is key
Protecting customer data should be your top priority. Compliance with the updated FTC Safeguards Rule is crucial for businesses’ cybersecurity and safeguarding their reputation and customer trust. By implementing a WISP, conducting regular risk assessments, providing employee training, and working with managed services and Applied Tech, businesses can comply with the updated regulations and protect their customer’s data.
- “The FTC’s Safeguards Rule.” Federal Trade Commission, www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying.
- “FTC Announces Increased Civil Penalties for HSR Violations and Other Rulemakings.” Federal Trade Commission, www.ftc.gov/news-events/press-releases/2020/01/ftc-announces-increased-civil-penalties-hsr-violations-other.