Blue Light IT

https://www.bluelightit.com/wp-content/uploads/2022/12/FTC-Safeguards-Rule.jpg The FTC Safeguards Rule may be completely new to you or maybe you have some familiarity. Either way, you probably have questions and are wondering what you need to know. Here are a few answers to frequent questions. What is the FTC Safeguards Rule? The FTC Safeguards Rule “requires covered financial institutions to develop, implement and maintain an information security program with administrative, technical and physical safeguards designed to protect customer information.” In other words, tax preparers must implement cyber security plans to protect client data, with a looming deadline of mid-2023. Failure to do so may result in an FTC investigation. Learn how to comply with these rules and read more guidance on data security in IRS Publication 4557, Safeguarding Taxpayer Data. When will the rule take effect? On June 9, 2023, the FTC will start enforcing the Safeguards Rule to ensure that entities

https://www.bluelightit.com/wp-content/uploads/2022/12/VPN-Coffee-shop.jpg What is a VPN? A VPN is a Virtual Private Network. This network is used when you are away from your home or office and using public WiFi to connect to the internet, and can also be used at home to further increase network security on your personal network. Outside your private home/work WiFi, your data may need to be more secure due to a complete lack of security on public networks. A VPN will create a secure connection so your data can’t be intercepted by cybercriminals or hackers who want information such as passwords, bank account information, and other sensitive material. How is a VPN More Secure? In today’s world, we have many different types of common security issues, such as: A hacker could intercept your data while using public WiFi. In this situation, the hacker may intercept your online banking information or other sensitive information on your laptop or mobile device. Using a VPN improves your

https://www.bluelightit.com/wp-content/uploads/2022/12/cybersecurity-for-cpas.jpg Cybersecurity threats increased by over 80 percent from 2014 to 2020. As we faced a global pandemic, industries across the board were pushed to improve their cybersecurity systems. Those that failed to do so ended up paying the price, to the tune of $1.5 trillion annually. With the sudden increase in cybercriminal activity, security threats for CPA firms and other financial institutions have no longer become a matter of “if” but a matter of “when.” Why should CPAs consider cybersecurity a top priority? Partner mitigation risk.  As an accounting firm, you have access to a lot of clients’ sensitive information. If your clients’ data is breached or leaked online because of inadequate security systems, there are severe penalties financially immediately and other disadvantages down the road. As a result, prioritizing cybersecurity to secure your clients’ confidential data is critical. Why CPAs Should

https://www.bluelightit.com/wp-content/uploads/2022/12/image.png What we know:  Affects all firms providing one or more of these services: CPA, bookkeepers, accountants, tax prepares, financial advisors, car dealerships, and any other firm which handles consumer financial information.   example: If your firm only works with businesses, but provides W2 to your customer employees, than you have to comply with the rule.  The deadline to comply is June 9 th 2023  FTC has substantially strengthened the Safeguards rule with new requirements to increase and improve protection of sensitive consumer information  To ensure compliance with the requirements, you must take steps now  Do I really need to comply? If you work with consumer data (full name, social security number, address, income etc) chances are you need to comply. Especially if you are familiar with form W-12  When filling out the W-12 form you attest under point 11 (Data Security Responsibilities) that you have a data