Are You Prepared for the FTC Safeguards Rule?

5 Things Every CPA Needs to Know (Before It’s Too Late!)

As a CPA, your clients trust you to safeguard their sensitive financial information. But did you know that failing to comply with the FTC Safeguards Rule could not only jeopardize that trust but also expose your firm to steep penalties and legal challenges?

If you’re a CPA with fewer than six employees and think this rule doesn’t apply to you—or that you’ll never be affected—think again. Here’s what you need to know to protect your business, your clients, and your professional reputation.

1

Compliance with the FTC Safeguards Rule Is Not Optional—It’s Mandatory

The FTC Safeguards Rule mandates that financial institutions, including CPA firms, establish a Written Information Security Program (WISP). This isn’t just a bureaucratic exercise; it’s a legal requirement designed to protect sensitive client data from cyber threats.Risk of Ignorance: Non-compliance can result in penalties up to $100,000 per violation—not to mention lawsuits and reputational damage if a breach occurs.

The Good News: Building a compliant WISP doesn’t have to be overwhelming or expensive—especially if you work with a team like DataCorps that specializes in creating these programs for small CPA firms like yours.

2

Your WISP Must Be Unique to Your Firm

A WISP isn’t a one-size-fits-all template. It’s a tailored document that outlines how your firm identifies, assesses, and mitigates risks to client data. This is critical because:

  • The FTC will evaluate your WISP based on your specific operations, risks, and safeguards.
  • An off-the-shelf template won’t provide the level of protection—or compliance—you need.At DataCorps, we guide you through the entire process, offering customizable templates and hands-on implementation to make compliance simple and actionable.

3

Cost Is Minimal Compared to the Potential Losses

We get it—every dollar matters to a small firm. But consider this:

  • The average cost of a data breach for organizations with fewer than 500 employees is $3.31 million. Business
  • Losing even one major client due to a breach could be catastrophic to your business.By investing in a WISP and supporting cybersecurity measures now, you’re avoiding the devastating financial impact—and emotional stress—of a future breach.

4

It’s Not Just About Compliance—It’s About Trust

Your clients rely on you to protect their most sensitive data. A security breach doesn’t just cost money—it costs confidence and credibility. Without proactive measures, your firm could:

  • Lose clients to competitors who prioritize data security.
  • Struggle to rebuild your reputation in the wake of a breach.When you show your clients that you take their privacy seriously, you’re not just meeting a legal requirement—you’re building loyalty and trust.

5

Good Cybersecurity Practices Are Just Smart Business

The controls required under the FTC Safeguards Rule aren’t just compliance tasks—they’re the foundation of good business in today’s digital-first world. Plus, by adding a cyber liability insurance policy, you can offset costs related to:

  • Forensics and breach investigations.
  • Legal notification requirements.
  • Retaining breach counsel. Don’t wait for a breach to happen—be proactive and protect what you’ve worked so hard to build.

How to Get Started (Without Breaking the Bank)

At DataCorps, we make compliance simple and affordable for small CPA firms. Right now, you can schedule a Technology Business Review & Assessment for just $1,000 (a $3,500 value). Here’s what you’ll receive:

  1. A detailed written report outlining your current risks and gaps.
  2. Actionable recommendations for achieving compliance.
  3. A credit of the assessment fee toward remediation work if you hire us to implement the solutions.

Take the First Step Now!
Click below to schedule your Technology Business Review & Assessment today.

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Ask Yourself:

  • How confident am I that my firm’s client data is safe from hackers or breaches?
  • What would I say to a client if their personal information was compromised under my care?
  • Can I afford the financial penalties and reputational damage of non-compliance?

You don’t have to navigate this alone. With DataCorps, you’ll gain peace of mind, knowing your firm is protected—and compliant—with the FTC Safeguards Rule.

Secure your future. Protect your clients. Schedule your assessment today.