What the FTC Safeguards Rule Means for Your Business This Year (and Why Ignoring It Could Cost You More Than Just Fines)
“Wait, the FTC can fine me now?”
If your business collects or stores customer financial info, even something as simple as a Social Security number or a credit application, you could be on the hook for more than you think in 2025. And no, this isn’t just a big bank or Fortune 500 issue anymore.
Thanks to the updated FTC Safeguards Rule, a surprising number of small businesses in Metro Atlanta are suddenly on the compliance radar, and the deadline for getting your act together has passed.
Let’s break down what this means for your business, without the legal jargon.
So, What Is the FTC Safeguards Rule?
In simple terms, it’s a federal rule that requires businesses to protect customer financial data. It falls under the Gramm-Leach-bliley Act (GLBA), and the goal is to reduce the risk of identity theft, fraud, and data breaches.
The rule has been in place for a while, but the updates that took effect last year and continue into 2025 have drastically expanded who it applies to and what you need to do to stay compliant.
Who Needs to Care About This? (Hint: Probably You)
If you’re a small business that fits into any of these categories, you’re likely covered under the rule:
- Tax preparers and accountants
- Mortgage brokers and real estate agencies
- Car dealerships
- Credit repair and debt counselors
- Financial consultants
- Even some independent contractors who handle financial information
If you handle things like names, addresses, income info, Social Security numbers, or credit histories, you’re on the hook.
What Does the Rule Require in 2025?
Here’s the quick checklist version:
- Appoint a qualified individual to oversee your information security program
- Complete a written risk assessment
- Develop and implement safeguards to control risks
- Regularly monitor and test those safeguards
- Train your staff
- Keep an incident response plan in place
- Ensure your service providers are also compliant
- Encrypt customer data
- Dispose of customer info securely
Yeah, it’s a lot. But you don’t have to do it alone.
What Happens If You Ignore It?
Let’s talk real-world consequences:
- Hefty fines from the FTC
- Denied cyber insurance claims (yes, they ask about this!)
- Breach lawsuits from customers
- Loss of trust and reputation
If you think you’re too small to be targeted, think again. Small businesses are being hit because they’re easier to breach. And if you don’t have safeguards in place, you might not just get hacked; you might get fined for it, too.
What You Can Do Without Losing Your Mind
If this feels overwhelming, start here:
- Get a cybersecurity risk assessment from a local provider (we know a guy)
- Use policy templates built for SMBs
- Schedule basic training for your team (phishing is still the #1 threat)
- Set a calendar reminder to review your policies annually
- Talk to your IT provider about encryption and backup standards
Takeaway
The FTC Safeguards Rule isn’t optional, and it’s not just for “other” businesses anymore.
If you store customer financial data, you are expected to protect it with the utmost care.
The good news? You don’t have to do it alone.
Need help figuring out where your business stands?
We’ll break down the compliance checklist, review your current setup, and help you develop a plan that’s tailored to your size and budget.
[Book a Free Safeguards Readiness Call with AlphaCIS]
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