FTC Safeguards Rule Compliance for Financial Businesses — Free Assessment
The FTC Safeguards Rule (16 CFR Part 314) requires financial institutions to develop, implement, and maintain a comprehensive information security program. Since June 2023, the rule includes specific technical requirements including multi-factor authentication, encryption, penetration testing, and a designated qualified information security officer.
What FTC Safeguards Rule Requires
- Designate a qualified individual to oversee information security program
- Conduct annual written risk assessment
- Implement multi-factor authentication for all customer data access
- Encrypt customer information in transit and at rest
- Implement a secure development lifecycle for in-house developed apps
- Conduct penetration testing (annually) and vulnerability scanning (continuously)
- Implement multi-factor authentication for all system access
- Establish incident response plan covering detection, response, and recovery
- Provide security awareness training to employees
- Oversee all service providers with written contracts requiring appropriate safeguards
- Report to board of directors or equivalent annually
Key Control Requirements
| Area | Requirement |
|---|---|
| Qualified Individual | Designate individual responsible for information security program; report to board annually |
| Risk Assessment | Annual written risk assessment identifying reasonably foreseeable threats to customer information |
| Technical Safeguards | MFA for all customer information access; encryption at rest and in transit; penetration testing |
| Service Provider Oversight | Written contracts requiring safeguards; periodic assessments of service provider security |
| Incident Response | Written incident response plan; notification to FTC of security events affecting 500+ customers within 30 days |
How CyberStackHub Helps with FTC Safeguards Rule
Our free tools map directly to FTC Safeguards Rule requirements, so you can assess your readiness without hiring a consultant.
Disclaimer: CyberStackHub provides assessment tools and educational content. Our tools help you identify gaps and prepare for compliance — they do not constitute legal advice or a formal audit opinion. Work with qualified compliance professionals for formal assessments and certification.