Protect Client Data. Prove Compliance. Preserve Trust.
FTC Safeguards Rule Compliance
The FTC Safeguards Rule (16 CFR Part 314) applies to a wide range of businesses — including CPA firms, financial advisors, lenders, insurance providers, and other entities that handle consumer financial data. Non-compliance can result in significant regulatory penalties, reputational harm, and business disruption.
Office Heroes provides a complete, scalable solution to meet the Safeguards Rule — from risk assessments to written security programs — backed by real-time monitoring and compliance-ready documentation.
What Is the FTC Safeguards Rule?
The Federal Trade Commission requires non-banking financial institutions to:
- Appoint a Qualified Individual (QI)
- Perform written risk assessments
- Implement technical safeguards (MFA, encryption, access control)
- Conduct regular security testing (pen testing, vulnerability scans)
- Maintain a written incident response plan
- Report annually to governing bodies
- Notify the FTC of major breaches within 30 days
These requirements became enforceable as of March 28, 2025. If your firm isn’t fully aligned, you could be at risk.
How Office Heroes Solves FTC Safeguards Compliance
We combine best-in-class technology and regulatory alignment into one integrated compliance framework:
Security Built for the Rule
- MFA enforcement, device encryption, role-based access controls
- Endpoint protection with patching, backup, and antivirus
- Microsoft 365 hardening and integration (Intune, Azure AD, Defender)
Compliance Documentation & Reporting
- Co-developed Written Information Security Program (WISP)
- Annual board-level reporting templates
- FTC-aligned incident response documentation
- Risk register and vendor oversight tools
Automation & Oversight
- Real-time change detection and alerting
- Semiannual penetration testing & vulnerability scans
- Automated staff security training and phishing simulation
FTC Safeguards Rule – Control Mapping
Below is a clear, side-by-side guide that pairs each FTC §314.4 requirement with the straightforward steps Office Heroes takes to ensure your business stays fully compliant.
| Requirement | What We Deliver | Why It Matters |
|---|---|---|
| Appoint a Qualified Individual | Assign an experienced compliance expert to lead and oversee your security program, governance, and reporting. | Ensures accountability and expert oversight of your company’s regulatory responsibilities. |
| Risk Assessment | Perform annual risk assessments using automated scans and expert reviews to identify and manage vulnerabilities. | Proactively detects weaknesses before they can be exploited, keeping your business secure. |
| Technical Safeguards | Implement multi-factor authentication, endpoint security, encryption, and strict access controls across systems. | Protects sensitive customer data from unauthorized access and theft. |
| Monitoring & Testing | Conduct biannual penetration tests, continuous vulnerability scans, and real-time change detection to strengthen defenses. | Maintains strong security posture and ensures defenses are always up to date. |
| Staff Training | Provide engaging employee training through a compliance learning management system and phishing simulations. | Reduces the risk of human error and ensures all staff understand best practices. |
| Service Provider Oversight | Track and manage third-party risks by continuously monitoring vendor performance and compliance. | Minimizes risks introduced by external vendors or partners. |
| Program Evaluation | Regularly review and update your security strategy with data-driven insights and governance dashboards. | Keeps your compliance program aligned with evolving regulatory requirements. |
| Incident Response Plan | Set up response templates and clear workflows for addressing security incidents, ensuring readiness when it matters. | Speeds up incident handling and ensures regulatory breach notifications are met on time. |
| Board Reporting | Generate clear, auto-updated compliance reports tailored for leadership and board presentation. | Keeps decision-makers informed and engaged in the company’s security strategy. |
| Breach Notification Support | Maintain detailed forensic logs and documentation to support FTC-mandated breach notifications. | Ensures your company meets regulatory reporting obligations during a security event. |
| Written Information Security Program (WISP) | Develop and maintain a comprehensive, customized WISP aligned with current FTC standards, including periodic updates. | Provides the formal, documented program required under the Safeguards Rule. |
Industries Covered by the FTC Safeguards Rule
The FTC Safeguards Rule applies to a wide range of non-bank financial institutions. If your organization handles consumer financial data—even incidentally—you may be required to comply.
The following industries are explicitly covered and must meet the FTC’s data protection and compliance requirements:
CPA firms and accounting practices
Auto dealerships (new and used)
Mortgage brokers and lenders
Payday lenders and title loan companies
Consumer finance companies
Wire transfer services
Check-cashing businesses
Debt collection agencies
Credit counseling organizations
Investment advisors (not registered with the SEC)
If you operate in one of these sectors, the FTC expects you to implement technical safeguards, conduct regular risk assessments, train staff, and maintain a written information security program (WISP).
Industry-Specific Requirements
While the FTC Safeguards Rule sets universal standards for protecting consumer financial data, specific industries face distinct compliance challenges depending on the nature of their operations and the sensitivity of the data they handle.
Below is a summary of the key safeguards each industry must address under FTC Rule §314.4. This overview helps clarify which compliance actions matter most for your sector and where to focus your efforts:
CPA Firms / Accountants
| Designate a Qualified Individual; maintain a written security program (WISP); conduct annual risk assessments; implement encryption and multi-factor authentication (MFA); oversee vendors; train staff; establish incident response plans; provide annual board reporting |
Auto Dealerships
| Assign a Qualified Individual; secure financing and credit systems; apply encryption and MFA; manage vendor risks; ensure staff are trained on security best practices; maintain formal incident response procedures |
Mortgage Brokers / Lenders
| Appoint a Qualified Individual; perform formal risk assessments; enforce encryption, MFA, and strict access controls; oversee vendors; maintain incident response and breach notification procedures; provide governance-level reporting |
Payday / Title Loan Companies
| Assign a Qualified Individual; safeguard sensitive customer data using encryption and MFA; manage third-party vendor risks; deliver ongoing employee security training; maintain incident detection and handling capabilities |
Finance Companies (Consumer)
| Designate a Qualified Individual; assess and mitigate risk; apply role-based access control, encryption, and MFA; monitor vendor performance; deliver security awareness training to staff; maintain documented incident handling processes |
Wire Transfer Providers
| Appoint a Qualified Individual; secure transaction systems using encryption, MFA, and access control; continuously monitor systems for unauthorized changes; manage vendors; maintain breach notification and incident documentation |
Check-Cashing Services
| Designate a Qualified Individual; perform risk assessments; secure financial data with encryption and access controls; monitor vendor relationships; train staff on data security; maintain incident response procedures |
Debt Collectors
| Assign a Qualified Individual; implement encryption, MFA, and secure communication protocols; oversee vendor risks; train staff on cybersecurity best practices; document incident management procedures |
Credit Counselors
| Appoint a Qualified Individual; safeguard client confidentiality through encryption, MFA, and access control; conduct risk assessments; oversee vendor risks; provide security training to staff; maintain and update incident response plans |
Investment Advisors (non-SEC)
| Designate a Qualified Individual; conduct formal risk assessments; apply encryption, MFA, and secure data handling processes; oversee third-party vendors; train staff; document incident response and breach notification; provide annual board reports |
Need a full checklist for your industry?
Download our comprehensive FTC Safeguards Compliance Checklist to ensure you’re aligned with all current requirements.
Explore Our Compliance Tiers
Whether you’re just getting started or preparing for an audit, Office Heroes has a package that fits:
- Guardian: Foundational security & FTC baseline
- Titan: Testing, continuity, and risk remediation
- Overwatch: Full compliance tracking, GRC oversight, audit readiness
Download the FTC Safeguards Checklist for Your Industry
Ensure you’re aligned with the latest FTC requirements.
Includes the 5 critical actions your business should take this quarter.
🔒 Access requires email.
Office Heroes + You = Regulatory Confidence
We partner with you to ensure your firm not only meets FTC requirements, but builds a long-term security culture. You’ll get:
- Expert onboarding and support
- Seamless Microsoft 365 integration
- No-jargon reporting your board will understand
- Proactive threat detection and response
Whether you’re a CPA firm, lending agency, insurance office, or financial advisor — Office Heroes simplifies compliance, reduces audit risk, and protects your client data.
[Coming Soon] Annual FTC Compliance Audit & Retainer Service
For organizations seeking a formal annual review, written executive summary, and third-party validation of FTC Safeguards compliance.
🔐 Stay tuned — launching Q3 2025.
FAQ's
Frequently Asked Questions
Have questions about managing your business’s FTC Safeguards compliance? Our FAQ section has the answers you need.
Our suite of solutions at Office Heroes is designed to address a wide range of technical controls mandated by the FTC Safeguards Rule, including encryption, endpoint security, and regular testing of your systems. However, FTC compliance encompasses both technical and administrative aspects.
While our tools provide robust protection and automate many security processes, achieving full compliance also requires:
- Designating a Qualified Individual: An appointed person responsible for overseeing and managing your information security program.
- Developing Written Policies and Procedures: Comprehensive documentation outlining your security measures, risk assessments, and incident response plans.
How Office Heroes Helps:
- Guided Documentation: Our team assists you in drafting the necessary written policies and procedures, ensuring they align with FTC requirements.
- Comprehensive Support: Beyond providing tools, we offer expert guidance to help you integrate these solutions into a cohesive security strategy.
- Ongoing Assistance: We continuously support you in updating your documentation and policies as your business evolves and as new FTC guidelines emerge.
Example:
Suppose you need to establish a formal incident response plan. In that case, Office Heroes will not only provide the tools like RocketCyber for threat detection but also help you document the processes and assign responsibilities to ensure your plan is comprehensive and compliant.
At Office Heroes, we understand that every business has unique needs and varying levels of existing security infrastructure. Whether you’re just starting your compliance journey or looking to enhance your current setup, we offer flexible and scalable solutions tailored to your specific requirements.
Our Approach:
- Personalized Assessment: We begin by thoroughly evaluating your current security posture and compliance status to identify strengths and gaps.
- Customized Packages: Based on your assessment, we design a bespoke package that includes only the tools and services you need, ensuring cost-effectiveness and relevance.
- Seamless Integration: Our team ensures the new tools integrate smoothly with your existing systems, minimizing disruption and maximizing efficiency.
- Gap Closure: We focus on addressing any missing compliance steps, ensuring that no critical requirement is overlooked.
Benefits:
- Scalability: As your business grows or as regulatory requirements evolve, our solutions can expand with you, providing ongoing support.
- Cost Efficiency: By only implementing the necessary tools, we help you avoid unnecessary expenses while achieving comprehensive compliance.
- Expert Guidance: Our consultants provide continuous support, helping you make informed decisions about which tools to adopt next based on your evolving needs.
Example:
Suppose your business uses Microsoft 365 Business Premium but lacks comprehensive vulnerability scanning. In that case, Office Heroes can introduce SaaS Alerts to enhance your security posture without overwhelming you with additional tools you might not need immediately.
Effective reporting to your board or senior officers is a critical component of FTC compliance, ensuring transparency and accountability within your organization. Office Heroes streamlines this process by providing the necessary tools and support to generate comprehensive, actionable reports.
How Office Heroes Facilitates Reporting:
Compliance Manager GRC:
- Automated Reporting: Easily generate detailed compliance reports that cover all aspects of the FTC Safeguards Rule, including risk assessments, control implementations, and incident summaries.
- Customizable Dashboards: Tailor your reports to highlight the most relevant information for your board, ensuring they receive clear and concise updates.
- Scheduled Reports: Set up automatic report generation and distribution annually or as needed, ensuring timely and consistent communication.
Comprehensive Data Integration:
- Centralized Information: Consolidate data from various Office Heroes security tools (e.g., RocketCyber and VulnScan) into unified reports, providing a holistic view of your compliance status.
- Real-Time Insights: Access up-to-date information on your security posture, enabling informed decision-making and proactive management.
Expert Support:
- Consultative Guidance: Our team assists you in interpreting the data and presenting it in an understandable and actionable manner for non-technical board members.
- Training and Resources: We provide training on how to use the reporting tools effectively and offer resources to help you explain complex security concepts to your leadership team.
Benefits:
- Clarity and Transparency: Explain to your board clearly your compliance efforts, security measures, and any areas needing attention.
- Informed Decision-Making: Equip your senior officers with the insights needed to make strategic decisions about security investments and risk management.
- Demonstrated Accountability: Show your commitment to FTC compliance and data protection through regular, structured reporting.
Example:
Using Compliance Manager GRC, you can generate an annual compliance report detailing your adherence to FTC requirements, highlighting improvements made over the year, and outlining upcoming compliance tasks. This report can be presented directly to your board, showcasing your proactive approach to data security and regulatory adherence.
The timeline for achieving FTC compliance with Office Heroes depends on the current state of your security measures and the size of your organization. However, our streamlined approach is designed to expedite the compliance process:
- Initial Assessment: Within the first week, our experts will begin conducting a comprehensive evaluation of your existing security infrastructure and compliance status.
- Implementation Phase: Depending on the complexity, most businesses can begin seeing significant improvements and tool integrations within 1-3 months.
- Full Compliance: Achieving complete compliance typically takes 3-6 months, factoring in the implementation of technical controls, development of written policies, and training of personnel.
Benefits of Our Approach:
- Efficient Processes: Our experience and expertise allow us to implement solutions swiftly without sacrificing quality.
- Minimized Disruption: We ensure that integrating new tools and processes is smooth, causing minimal disruption to your daily operations.
- Continuous Support: From day one, our team is available to assist you, providing guidance and troubleshooting to keep the process on track.
Example:
A mid-sized company partnering with Office Heroes started with an initial assessment and, within two months, had key tools like Graphus for anti-phishing and VulnScan for vulnerability management fully operational, alongside drafted compliance policies, setting the stage for full compliance within the next few months.
Office Heroes is committed to providing continuous support to ensure your organization remains compliant and secure against evolving threats. Our ongoing support includes:
- 24/7 Monitoring and Incident Response: With solutions like RocketCyber MDR and Kaseya CyberHawk, we offer around-the-clock threat detection and response to swiftly address any security incidents.
- Regular Updates and Patch Management: Tools such as Datto RMM and Advanced Software Management (Kaseya VSA)ensure your systems are always up-to-date with the latest security patches and software updates.
- Annual Compliance Reviews: We conduct yearly assessments to evaluate your compliance status, review your written policies, and make necessary adjustments based on new FTC guidelines or changes in your business operations.
- Ongoing Training and Education: Through BullPhish ID and other training tools, we provide continuous security awareness training to keep your employees informed about the latest threats and best practices.
- Access to Expert Consultants: Our cybersecurity professionals are always available to offer guidance, answer questions, and help you navigate complex compliance issues as they arise.
- Scalable Solutions: As your business grows, our services scale with you, adding new tools and expanding coverage to meet increasing security and compliance demands.
Benefits:
- Proactive Security Posture: Continuous monitoring and regular updates help prevent security breaches before they occur.
- Adaptability: Stay compliant with evolving regulations and adapt to new security challenges seamlessly.
- Peace of Mind: Knowing that experts are constantly overseeing your security measures allows you to focus on your core business activities without worry.
Example:
After initial setup, a client received ongoing support through monthly vulnerability assessments with VulnScan and quarterly training updates via BullPhish ID, ensuring their security measures stayed effective and compliant with FTC requirements.
