Accounting, tax, and financial firms manage some of the most sensitive data in the world.
You know what’s at stake if your firm is breached. And so do organizations like the FTC and IRS.
That’s why they established regulations and guidelines like the FTC Safeguards Rule and IRS Publication 4557. These create a framework for protecting consumers’ financial data and staying compliant with federal cybersecurity standards.
But let’s be honest. You already have a ton on your plate. You don’t have time to ALSO become a federal cybersecurity compliance expert.
That’s where we come in.
We’ll help you quickly get up to speed on the ins and outs of the FTC Safeguards Rule and IRS Publication 4557. We’ll also show you how CyberFOX’s Password Boss helps you meet many of the requirements — no federal cybersecurity compliance degree required!
Your crash course to the FTC Safeguards Rule and IRS 4557 compliance requirements
The FTC Safeguards Rule was introduced in 2003 under the Gramm-Leach-Bliley Act (GLBA) and further revised in 2021 and 2023. Today it outlines the stringent data protection requirements financial institutions must follow to keep customer data safe.
One of the core requirements is building and maintaining your firm’s Written Information Security Plan, or WISP.
What’s a WISP?
A WISP documents the exact cybersecurity strategy your firm follows to protect clients’ financial information.
It’s not just a checklist or a form you fill out once and then move on with your life. It’s a living document that outlines your firm’s security controls, risk assessments, employee training procedures, and incident response plans.
FTC Safeguards MFA rule
In addition to building and maintaining a WISP, the FTC Safeguards Rule also requires firms to implement multi-factor authentication (MFA).
Anyone who wants to access sensitive customer data must verify their identity using at least two of the following factors:
- A knowledge factor – something they know (like a password)
- A possession factor – something they have (like a phone for verification codes)
- An inherence factor – something they are (like a fingerprint)
IRS Publication 4557
The FTC isn’t the only group focused on protecting consumers’ financial information. The IRS also gets in on the fun with its Publication 4557.
This document provides a framework for safeguarding taxpayer data. Its best practices align closely with the requirements of the FTC Safeguards Rule, including establishing a WISP to formally document how your firm keeps customer data safe.
How the FTC Safeguards Rule and IRS Publication 4557 protect your clients — and your firm
The stakes are already high when it comes to password security: data theft, ransomware, and loss of customer trust to name a few.
But for firms that handle sensitive financial data, the risk is magnified.
Hackers see your firm as a prime target because of all the juicy financial data you manage. Meanwhile, regulatory agencies are watching closely to make sure you’re properly protecting customer information.
One slip-up can unleash a nightmare of investigations, penalties, and damaged client relationships that could haunt your firm for years.
Take the next step toward stronger security and compliance
With the right tools, you can easily follow the FTC and IRS requirements — without becoming a federal cybersecurity compliance expert overnight.
That’s where CyberFOX’s Password Boss comes in.
Password Boss lets you set MFA policies that keep users compliant (without driving them crazy).
It also helps you create (and enforce!) a WISP that would impress even the most hardened FTC compliance analyst.
And when auditors come knocking (because they will), Password Boss has your back with detailed reports that show you’re meeting all the necessary compliance standards.
But here’s the best part. Password Boss also dramatically cuts down on those annoying “I forgot my password” tickets that eat up your day. Your users get secure, easy access to what they need. And you get to deal with fewer headaches. Win-win.
Don’t wait until a breach or audit forces you to scramble. Take control now.
Get a demo of Password Boss today and see how easy staying compliant with financial data regulations can be.