Why the FTC Safeguards Rule Deadline is Critical for Your Business:
1. The June 9th deadline is closer than it appears
The extended deadline is a welcome reprieve and provides a little breathing room, but don’t get complacent. You may need every minute of the extra 6 months to comply.
2. There’s no magic compliance button
There’s just no way around it – compliance is difficult and time-consuming. It requires new technology, extensive documentation, and often disruptive procedural and policy changes.
3. It’s not your father’s FTC Safeguards Rule
It’s not 2003 anymore and the amended rule brings more requirements and higher penalties for non-compliance. You can’t rely on the “same old, same old” approach to security.
4. Join the club
The “financial institutions” covered by the original rule were a very select “club”. It was mostly banks – and not just anybody was asked to join. Car dealers, mortgage brokers, insurance companies and now members of compliance club. Welcome!
5. It takes years to build a reputation, and minutes to tear down
Just one hack or breach can quickly demolish your company’s good reputation. And your trusted brand can be instantly tarnished beyond recognition.
6. When you assume, you make an a*s out of you and me
Just because the old rule didn’t apply to your business, don’t assume the new rule doesn’t. Many more types of businesses now must comply. So don’t assume – your company might be covered.
7. If you must ask the price, you can’t afford it
Non-compliance can be so expensive, it can bankrupt a company. Fines for a breach can reach $11k per day, and a consent decree violation costs up to $43k. Now that’s sticker shock.
8. Even if it ain’t broke, you still must fix it
For companies covered by the new rule, sticking with the status quo won’t cut it. No matter how secure you think your company is, you still must comply.
9. It’s the journey, not the destination
You never “arrive” at compliance, or at least stay very long. After completing the first leg of your compliance journey, you must still maintain compliant policies and procedures. And always be on guard against security threats.
10. Kids don’t try this at home
Most companies don’t have the expertise and bandwidth to tackle compliance alone, especially in the span of six short months. You need professional help – like an IT Service Provider.
Need Help? K3 Is Here
The deadline for the FTC Safeguards Rule is fast approaching and it is critical for businesses to ensure they are in compliance. Compliance is a difficult and time-consuming process that requires new technology, extensive documentation, and often disruptive procedural and policy changes. The amended rule brings more requirements and higher penalties for non-compliance, so it is important for businesses to take the necessary steps to ensure they are compliant. Non-compliance can be costly, with fines for a breach reaching $11k per day and a consent decree violation costing up to $43k. Many companies may not have the expertise and bandwidth to tackle compliance on their own and may need professional help. If you have any questions or need assistance with compliance, please don’t hesitate to contact us.