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Recently, firms in the financial services sector have faced unprecedented cybersecurity threats and privacy challenges. The growth in the remote workforce and the increase in sophisticated cyberattacks on financial institutions have heightened the number of potential risks facing the industry.
As a result, the Federal Trade Commission announced the new updates on the Safeguards Rule to strengthen consumers’ data from security breaches and cybercriminals. Financial firms will have to identify qualified IT experts to oversee the implementation of this new rule. Essential Solutions, LLC has a team of IT professionals you can depend on for high-quality tech services in Louisiana. We can assist in all the program updates and compliance and implement cybersecurity solutions to prevent potential security breaches. Read on for more insights.
The Safeguards Rule applies to all financial firms, whether big or small, provided they are significantly engaged in availing of financial products or services. And although this rule doesn’t apply to banks, it applies to entities such as payday lenders, courier services, non-bank lenders, check-cashing businesses, professional tax preparers, real estate appraisers, and mortgage brokers. The rule also applies to other businesses like ATM operators and credit reporting agencies since they also store details about clients of other financial firms.
Moreover, all the entities under the Safeguards Rule should make the necessary steps in ensuring that their service providers and affiliates comply with safeguarding clients’ details.
All entities covered under the Safeguards Rule should have a security plan that clearly shows how their program safeguards clients’ details. Also, the plan should be appropriate to the entity’s complexity and size, the nature of its activities, and the sensitivity of the data it handles.
Below are the requirements that each entity must fulfill:
Most aspects of the Safeguards Rule, such as risk assessment, continuous monitoring and testing, and identifying a qualified individual, should take effect in a year from the day of publication. This means financial institutions should comply by October 2022. Note that the other portions should be effective 30 days after publication.
At Essential Solutions, LLC, we have well-trained and highly knowledgeable IT professionals who can assist you in implementing the new Safeguards Rule. We have an excellent reputation in Louisiana for consistently providing reliable IT solutions since 2002. Contact us today to schedule a no-obligation security review of your firm’s overall security strategy.
Essential Solutions, LLC is an IT company that relies on its strengths: customer satisfaction, quality service, and the fulfillment of our clients’ needs. Let us put our experience and expertise to work for you. Our IT solutions are an essential part of your success.