Understanding Cyber Grants for CPAs by Cyber Umbrella: Navigating the FTC Safeguards Rule
Especially with the new changes in the FTC safeguards rule, all CPA firms need to take another look at their cybersecurity to get into compliance, and to keep their clients’ sensitive data safe. This blog will discuss the ramifications of the rule and offer practical advice as to how the Cyber Grants for CPAs by Cyber Umbrella can help firms strengthen their cybersecurity stance.
Understanding the Importance of Cybersecurity for CPAs
With the growing digital world, CPA firms are becoming a bigger target for cyber crimes. That and the fact that they deal with so much financial and personal information. Therefore it is imperative that one understands cyber security in order to uphold the trust of the client as well as abide by the regulations.
Cyber security is not a technical problem, it is a business issue. And with a breach comes loss of money, legal action, and loss of reputation. As a result, CPAs need to make cybersecurity a priority in their strategic planning.
Why Cybersecurity Matters for CPA Firms
Common Cyber Threats Facing CPA Firms
Key Requirement 1: Designate a Qualified Individual
Key Requirement 2: Conduct a Risk Assessment
Key Requirement 3: Regularly Monitor and Test Safeguards
Key Requirement 4: Train Your Staff
Staff training is a key element in a strong cybersecurity plan. Your employees are the first line of defense against many cyber threats and that’s why their education and awareness is so important.
Implementing a comprehensive security awareness training program is vital. This program should consist of frequent email phishing exercises preferably once a month to keep the staff aware of what to look for and what to avoid.
Besides simulations, there should be quarterly training videos on physical security, clean desk policies, etc. These classes give the employees the ability to recognize these kind of behaviors and really protect that sensitive information.
Addressing Repeat Offenders
It is important to address employees who repeatedly fail to adhere to training protocols. If a person continually clicks on phising emails even after training, then one on one sessions should be established to further educate, and support. Try everything to get it through their heads that cybersecurity is a serious issue. If however they continue to be a risk then leadership may have to take more drastic steps because continual negligence will only lead to a break.
Key Requirement 5: Develop a Written Incident Response Plan
Any CPA firm must have a well established incident response plan (IRP). This plan serves as a fire drill, explaining what to do if there is a cyber emergency, like a ransomware attack.
The IRP must describe the steps that are taken from identifying a breach to the containment and communication of the problem. A response like that eliminates panic because everyone knows exactly what they’re supposed to do when the shit hits the fan.
Periodic Tabletop Exercises
Conducting regular tabletop exercises is essential for testing the effectiveness of your IRP. These drills should be conducted every six months and enable the staff to perform their duties in a mock security breach.
During these exercises, identify gaps in the plan and areas for improvement. With constant drilling, if a real situation does happen, your team will know what to do right away.
Key Requirement 6: Keep Your Information Security Program Current
The Role of Cyber Grants for CPAs by Cyber Umbrella
Cyber Grants for CPAs by CyberUmbrella is a great resource for CPA firms to use to build up their cyber security. These grants can assist companies in creating training programs, incident response plans, and keeping their security protocols up to date.
With the help of these grants CPA firms can establish a stronger cybersecurity infrastructure, staying in regulation as well as securing clients’ important information.
Conclusion and Next Steps
To sum it all up, the FTC Safeguards Rule is not something that can be overcome with a silver bullet, but must be attacked from many angles. Staff training, an incident response plan, and maintaining your information security program are all critical components to protecting your company.
Taking advantage of Cyber Grants for CPAs by Cyber Umbrella will really boost your cybersecurity efforts. As threats continue to evolve, staying vigilant and proactive is essential for protecting your clients and your business.
Take the first step today: assess your current cybersecurity posture and identify areas for improvement. You comply with regulations and you earn the trust of your clients by prioritizing cyber security.