FTC Safeguards Rule Audits Are Here – Is Your Business Ready?

The Federal Trade Commission (FTC) has officially started auditing businesses for compliance with the Safeguards Rule, and if your business handles sensitive customer data, it’s time to ensure you’re prepared. The rule, which falls under the Gramm-Leach-Bliley Act (GLBA), requires certain businesses to implement security measures to protect customer information.

Who Is Affected?

If your business collects, stores, or processes consumer financial data, you may be subject to the FTC Safeguards Rule. Some of the affected industries include:

  • Accounting firms and tax preparers
  • Auto dealerships
  • Mortgage brokers
  • Finance and investment firms
  • Retailers offering financing
  • Law firms handling financial transactions
  • IT service providers managing financial data

How to Stay Compliant

To pass an FTC Safeguards audit, your business must have a comprehensive information security program that includes:

Risk Assessment – Identify vulnerabilities in your data security practices.

Access Controls – Restrict data access to only necessary personnel.

Encryption & Secure Data Storage – Protect sensitive information at rest and in transit.

Incident Response Plan – Establish a clear plan for handling security breaches.

Vendor Management – Ensure third-party providers maintain proper security standards.

Ongoing Monitoring & Training – Conduct security awareness training and continuously monitor for threats.

Take Action Now

With audits already underway, non-compliance can lead to hefty fines and reputational damage. Businesses should conduct an internal audit of their security policies, update weak areas, and ensure their compliance program is well-documented.

Need help getting compliant? IT Fusion can assess your security posture and guide you through the necessary steps.

Don’t wait until it’s too late—act now!