While having advanced digital technology benefits us all every day, the risks associated with this continue to increase. Each year, cybercrime and data security breaches grow, with more than 3 billion individuals estimated to have been impacted in 2023.
The average cost of a data breach to businesses costs around $9.3 million per year and financial organizations are one of the heaviest targets. So, what can Financial Institutions do to mitigate the risks? By partnering with SOC 2 compliant vendors.
What is SOC 2 compliance?
SOC 2, or System and Organization Controls, is a cybersecurity framework that helps organizations more securely manage their customer and business data. SOC 2 and data privacy go hand-in-hand—they are an essential partnership designed to protect customer information through the management of third-party providers.
Compliance is designed to operate under five guiding principles that make up total compliance:
- Privacy
- Confidentiality
- Availability
- Security
- Processing Integrity
Following these principles, SOC 2 protection ensures that no one has unauthorized access to customer records so that only necessary workers can view these details. Systems must withstand possible high traffic levels, either due to users or cybercriminals attempting to infiltrate the network.
SOC 2 compliance for financial services providers means that customers can be assured that organizations are abiding by compliance regulations. Maintaining this level of compliance is both timely and expensive, but vendors who have this demonstrate that they are serious about protecting your customers’ data.
Benefits of SOC 2 compliance
SOC 2 compliance comes with numerous benefits. The importance of SOC 2 compliance should not be overlooked, not only from a security perspective, but also in terms of operational efficiency.
Proving trust to customers
By following a strict set of security standards, SOC compliant businesses show customers that they take their security seriously. This in turn can generate greater trust and build strong relationships between financial services providers and their customers.
Why work with an SOC 2 compliant organization?
Along with the financial services provider, any third-party vendors working with them must also be compliant. Choosing an SOC 2 compliant vendor is easy when they have been officially audited and hold SOC 2 compliant status.
Cloud service providers, data centers, HR outsourcing, accounting, and auditing companies, consulting firms, and IT providers may all be working together to support a larger infrastructure. However, if these businesses are not SOC 2 compliant themselves, they are not considered part of your business structure and are exempt from any SOC 2 audit your organization has completed.
An essential part of SOC 2 compliance and vendor management is maintaining open and honest communication with any businesses or third parties that the business partners with. They too will have access to customer records, so it is essential that both the bank and any partners are both compliant and adhering to these same standards.
Although this level of compliance is not required in the same way that HIPAA or GDPR is, this has become an industry standard when it comes to cybersecurity. For financial institutions who choose to partner with SOC 2 compliant vendors, there is an increased level of security and trust with that vendor.
Work with an SOC 2 compliant provider for your financial security needs
At Shields Business Solutions, we work with financial organizations to provide ATM Terminal support with high levels of security to protect both yours and your customers’ data.
We understand what it takes to provide security that mitigates the risk of cybercrime in your organization, along with safeguarding your customers’ sensitive information.
Our anti-theft and security solutions help address both physical and digital theft, with tools like VeraPass providing secure audited locking for added layers of protection on doors or servers. As an SOC 2 compliant vendor, we are proud to offer this level of safety and security to our financial services partners. You can rest assured that your data is safe with us.
Contact Shields Business Solutions today for more information on data security and protecting your customer data this year. You can also find out more about SOC 2 compliance, why we think it is important, and how we work to stay compliant every year. Subscribe to our blog for updates on security and more.
Thinking about adding additional security measures to your business this year? We can help you with ATM management to provide remote security, PCI compliance, and work on any maintenance needs you might have. We also offer armored transport services throughout the Tri-State area, including Harrisburg, Allentown, Greater Philadelphia, New York, New Jersey and Delaware. Contact us today to learn more.
