FTC safeguards rule compliance for CPA and Accounting Firms, are you ready?

FTC safeguards rule compliance for CPA and Accounting Firms
Compliance / Cybercrime / Finance & accounting / FTC / Onetech360

FTC safeguards rule compliance for CPA and Accounting Firms, are you ready?

The FTC (Financial Trade Commission) mandates new technologies and security controls for CPAs and Accounting firms. These measures aim to safeguard the security, confidentiality, and integrity of customer information held by financial institutions, including accounting firms, tax professionals, enrolled agents, and wealth management advisors. If you missed the FTC safeguards rule compliance deadline for CPA and Accounting Firms, which was set for June 9th, 2023, you could be subject to fines ranging from $10,000 to $100,000 per violation. Gross breaches could even result in up to 5 years in prison, as exemplified by intentional abuse of protected information.

The FTC’s Call to Action

The financial world is no stranger to stringent regulations, but the FTC’s latest mandate has raised significant questions and concerns among professionals in the industry. Let’s explore three key aspects of these new regulations and their impact on CPA firms, particularly in New York, New Jersey, and Pennsylvania:

Do the New FTC Regulations impact my CPA Firm?

The Code of Federal Regulations, specifically § 314.2(h), clearly states that the FTC’s requirements apply to your CPA firm. Compliance is not a choice but a necessity; failure to comply could lead to severe consequences, including substantial fines and potential legal trouble.

Can I postpone being compliant?

As of June 9th, 2023, the updated FTC regulations have been enacted, which means that all CPA firms are subject to the rules, penalties, and fines. Delaying compliance is not an option.

Are the New FTC Safeguards Regulations Complicated?

Understanding and adhering to the new FTC safeguards regulations can be daunting. These regulations are complex, and ensuring your CPA firm is in full compliance may require professional IT support, which the Safeguards Rule now mandates. The stakes are high, considering the sensitive customer data that CPA firms handle.

Is your CPA firm FTC compliant?

Find out if your CPA is following the guidelines set by the FTC.

FTC safeguards rule compliance for CPA and Accounting Firms. How do the regulations impact CPA firms in New York, New Jersey, and Pennsylvania

All CPA firms, regardless of location, store critical consumer information, including customer names, addresses, tax details, credit card numbers, and other financial data. This wealth of knowledge makes them prime targets for hackers and cybercriminals. Therefore, all CPA firms nationwide must take significant steps to enhance data protection.

Most CPA firms will likely seek external support to meet the Rule’s security obligations. However, evaluating various vendors and tools to meet the different requirements can take time and effort, adding to the existing burden on these firms.

Compliance with the new FTC regulations is not just a legal obligation but a moral one, as it ensures the security, confidentiality, and integrity of customer information. Your CPA firm must act swiftly to avoid penalties and protect sensitive data if you have not started to follow the new guidelines.

In the end, it’s not just about compliance with regulations; it’s about building trust with customers and maintaining the highest data security standards in the financial sector.

Onetech360 has been providing IT services to Accounting firms for over a decade. Call us to learn more about our IT services for accounting firms.