If your business handles consumer financial data — even as a side service — it’s time to get serious about cybersecurity compliance.
The Federal Trade Commission’s updated Safeguards Rule took full effect on May 13, 2024, and it’s already reshaping how businesses across California are required to protect customer data and report data breaches.
At Cybersecure California, our mission is to help 1 million businesses stay protected and informed. This new regulation is already live — and noncompliance could cost you far more than just a fine.
📜 What Is the FTC Safeguards Rule?
The Safeguards Rule is part of the Gramm-Leach-Bliley Act (GLBA), and it requires financial institutions — broadly defined — to implement a written information security program to protect customer information.
In 2022, the FTC expanded the definition of “financial institutions” to include many more small and midsize businesses — including those in California offering:
- Customer financing (like auto dealerships, dental offices, HVAC companies)
- Tax preparation or bookkeeping services
- Loan brokerage, financial advisory, or credit services
- Any business collecting non-public personal financial information
If that sounds like your business — you’re already subject to the rule as of May 13, 2024.
⚠️ New Requirement: Report Data Breaches Within 30 Days
One of the most urgent updates in the amended Safeguards Rule is the 30-day breach notification requirement.
If your business experiences a security incident that involves:
- 500 or more consumers, and
- Unencrypted customer information was accessed or stolen,
You must report the breach to the FTC within 30 days of discovering it.
Failure to do so can result in:
- FTC investigations
- Public exposure
- Major reputational and financial damage
🔐 Key Requirements You Must Have in Place — Now
The FTC now expects that covered businesses are already in compliance. If you’re still scrambling to catch up, here’s what the rule requires:
✅ 1. Written Information Security Program
A documented plan outlining how your business protects customer data and mitigates risk.
✅ 2. Designated “Qualified Individual”
Someone must be responsible for implementing and overseeing your security program — internally or through a third-party MSP like Synergy Computing.
✅ 3. Risk Assessment
You must identify and assess risks to customer information across your operations — and update the assessment regularly.
✅ 4. Access Controls
Restrict access to sensitive data based on job role and business need. No more blanket access across the team.
✅ 5. Multi-Factor Authentication (MFA)
All systems accessing customer data must use MFA — period.
✅ 6. Encryption
Customer information must be encrypted both in transit and at rest (on your systems and in the cloud).
✅ 7. Employee Training
Ongoing training is required to help staff recognize phishing, social engineering, and other common threats.
✅ 8. Monitoring & Pen Testing
You must monitor your systems for unauthorized access and conduct either continuous monitoring or annual penetration testing.
✅ 9. Vendor Oversight
If you share data with vendors (like cloud providers, CRMs, or payment processors), they must meet the same security standards.
✅ 10. Incident Response Plan
A written plan detailing how you’ll respond to a data breach — including how and when you’ll notify customers and regulators.
🧯 What Happens If You’re Not in Compliance?
If your business is found noncompliant, the consequences can include:
- Regulatory fines
- Loss of your license to offer financing
- Lawsuits from customers or partners
- Damaged reputation and customer churn
- Difficulty securing insurance or future lending
📉 Why This Is Especially Critical for Small Businesses
While large enterprises often have internal compliance teams, most small businesses don’t — and that’s exactly what makes them targets.
Whether you’re a CPA, auto dealer, independent financial advisor, or dental office offering payment plans, you’re now held to federal-level standards for cybersecurity — whether you’re ready or not.
🛠 How Synergy Computing Can Help
At Cybersecure California, our job is to raise awareness.
At Synergy Computing, we take it a step further — helping businesses across the state get secure and stay compliant.
We offer:
- Risk assessments and gap analyses
- Written security program development
- Compliance-ready penetration testing
- Ongoing monitoring and employee training
- Secure cloud solutions and vendor oversight
- “Qualified Individual” services for SMBs without internal IT staff
📅 Don’t Wait for a Breach or an Audit
You’re already expected to be compliant.
Now’s the time to act — before the FTC, your clients, or a cybercriminal beats you to it.
👉 Click here to schedule your free compliance assessment
Or call Synergy Computing at 805-967-8744 to speak with a California-based expert who knows the regulations — and how to help you meet them.
Protect your clients. Protect your business. Protect your future.
The FTC Safeguards Rule is here — let’s make sure you’re ready.
📥 Need a Quick Compliance Reference?
Download our FTC Safeguards Rule Compliance Checklist — a simple one-page guide to help your business stay secure and meet federal requirements.
Perfect for CPA firms, auto dealers, financial service providers, and any business collecting consumer financial data.