FTC Safeguards & IT Services for Brunswick & Auburn
Massif MSP provides technical configurations that support your firm's alignment with the FTC Safeguards Rule and GLBA, providing the technical documentation you need for your required vendor oversight.
If you’re an accountant, CPA, or tax preparer you've known for 20+ years that the FTC Safeguards Rule and Gramm-Leach-Bliley Act (GLBA) likely applies to you and you should skip to the section labeled "Core GLBA Requirements" below. Whether you're a sole accountant or part of a larger firm, it requires you to create and maintain a written data security program to protect sensitive client financial information. Failure to do so may put clients and reputation at risk which the FTC penalizes.
What Is the FTC Safeguards Rule?
The FTC Safeguards Rule is a federal regulation that requires certain businesses to protect customer financial information. It comes from the Gramm-Leach-Bliley Act (GLBA) and applies to “financial institutions” which includes many accounting professionals.
In short: If you handle client financial data, you are expected to secure it.
Does This Apply to Accountants?
The FTC considers many accounting-related businesses to be financial
institutions, including:
CPAs and accounting firms
Tax preparers (independent or firm-based)
Bookkeepers handling financial records
Payroll service providers
You likely need to comply if you:
Prepare taxes or financial statements
Store client Social Security numbers or bank info
Provide financial advice or reporting services
Why This Matters for Firms in Maine
Accounting firms are prime targets for cybercrime because they store Social Security numbers, bank account details, and businesses' financial records. A data breach both removes client trust and causes regulatory issues.
We're Not Your Lawyer But These Are Core GLBA Requirements:
1. Create a Written Information Security Plan (WISP)
You must document how your firm protects client data.
This should cover:
What data you collect
Where it’s stored (cloud, server, local devices, paper files)
How it’s protected
This is foundational.
2. Appoint a Responsible Person
You must designate a “Qualified Individual” to oversee your security program.
For small firms, this can be:
The owner
A partner
An IT consultant
They are responsible for implementation and oversight.
3. Conduct a Risk Assessment
You need to identify risks to client data, such as:
Phishing emails targeting staff
Weak passwords
Unsecured Wi-Fi
Lost or stolen devices
This isn’t a one-time task, this needs to be planned annually and anytime you change devices or processes.
4. Implement Core Safeguards
At a minimum, most accounting firms should have:
Secure safeguards for paper records (locked storage, secure disposal, etc.).
Multi-factor authentication (MFA) for email and software
Encryption for stored and transmitted data
Access controls (limit who can see what)
Secure backups
Endpoint protection (antivirus, monitoring)
If you’re using tax or accounting software, make sure all of these are installed and configured with documented monitoring reviews.
5. Manage Your Vendors
If you use third-party tools (you will-consider any cloud accounting platforms, payroll processors, or file-sharing tools), you’re responsible for those too. For each tool you need to create and follow vendor flows to vet their security practices, use reputable providers, and have agreements in place where possible.
6. Create an Incident Response Plan to respond to breaches
This should include:
How you detect incidents
Who responds
How clients are notified
Steps to contain the damage
7. Monitor and Update Your Program
Your security plan must evolve as your firm changes.
Review:
Annually at minimum
After major changes (new software, new location, new process, etc.)
After any security incident
Recent updates to the rule added:
More specific technical requirements (like MFA)
Greater accountability for the designated individual
Stronger expectations around documentation
Translation: Be more deliberate and intentional than before.
What Happens If You Ignore This?
This can lead to:
FTC enforcement actions
Fines and legal costs
Mandatory audits
Lost clients or income
Damage to professional credibility and potential license reviews
Here’s a practical step-by-step path toward alignment:
Confirm FTC Safeguards rule applies to your business
Assume "yes", if you handle client financial data
Assign responsibility
Choose your “Qualified Individual”
Map your data
Where is client information stored and transmitted?
Perform a risk assessment
Identify your biggest vulnerabilities
Build your WISP
Document policies and safeguards
Implement security controls
Start with MFA, encryption, and user access limits
Train your staff
Phishing awareness is critical
Review annually
Keep your program up to date
Major Mistakes Accounting Firms Make
Assuming “we’re too small to be targeted”Using weak or reused passwords
Storing client data in unsecured email or drives
Failing to secure remote work setups
Not documenting anything (this is a big issue)
Helpful Tools and Resources
Consider using:
Password managers (for secure credential storage)
Secure client portals instead of email attachments
Cloud providers with strong security standards
IT or cybersecurity consultants for setup and audits
You don’t have to do everything yourself, but you are responsible for making sure it gets done.
Bottom Line
If you’re an accountant, the FTC Safeguards Rule is a business requirement your customers expect you to comply with.
Begin taking the right steps today:
Document your security plan
Enable MFA for all applications and devices
Train your team
From there, build a program that protects both your clients and your business.
If you looking for IT support to help you meet your personal objectives, use the form below:
