Maintaining Cybersecurity Compliance: An IT Service Provider Can Help

Keeping up with changes to cybersecurity compliance and governance can be challenging because of their ever-evolving nature. 

Organizations face a dual challenge: safeguarding against risks, data breaches, and financial harm while simultaneously navigating the rapidly changing IT environment shaped by societal trends.

To navigate this complex regulatory landscape, businesses of all sorts can benefit from partnering with an IT service provider specializing in cybersecurity compliance. Their expertise in current regulations and creating tailored solutions help organizations stay compliant while focusing on their core operations. 

Let’s explore how an IT service provider can aid in achieving and maintaining compliance, various regulations around the world, and the risks of non-compliance.

The Need For Cybersecurity Compliance: Data Breaches Are At Record Highs

As the digital landscape continues to change, the frequency and severity of data breaches have escalated, presenting significant challenges for organizations across all sectors. These breaches not only compromise sensitive information but also have severe repercussions for businesses, including financial losses, regulatory penalties, and damage to reputation. 

Consider the following statistics:

• 2023 was a record-breaking year for data breaches in the United States. Data breaches increased 72% higher than the previous record-setting year of 2021 and 78% higher than 2022. (Identity Theft Resource Center) 
• In 2023, 3,205 data breaches affected more than 353 million victims, with some individuals experiencing multiple impacts. (Cybersecurity Dive)
• The global average cost for a data breach reached a record $4.88 million in 2024, a 10% increase over 2023 and the largest uptick since the pandemic. (Security Intelligence) 
• Hackers were able to steal up to 4TB of data from Change Healthcare in February 2024. The company reportedly paid a $22 million ransom, but the total breach cost may reach well over $1 billion. (Security Intelligence)
• An undisclosed Fortune 50 company paid a record-breaking $75 million ransomware payment to cyberattackers Dark Angles in 2024. (Dark Reading)

The Importance of Cybersecurity Compliance for Businesses

A cyberattack can be devastating for a business, resulting in financial losses, reputational damage, and even legal trouble.

Why is cybersecurity compliance so important for businesses? By staying current with the latest regulations and best practices, your organization is better able to: 

• Protect your data: Businesses collect and store a lot of data, including customer information, financial data, and intellectual property. A cyberattack can compromise this data, leading to financial losses and reputational damage.
• Reduce the risk of downtime: A cyberattack can take down your business's computer systems, bringing your operations to a halt. This can result in lost productivity and revenue.
• Build trust with customers: Customers are increasingly concerned about the security of their data. By having a strong cybersecurity posture, you can show your customers that you take their privacy seriously.
  
  

How an IT Service Provider Helps Your Business With Cybersecurity Compliance 

Businesses need to build a sturdy defense to protect themselves from cyberattacks. By partnering with managed IT service providers, organizations can leverage expert guidance and advanced security solutions tailored to their specific needs. 

Cybersecurity solutions include:

• SOC-as-a-Service: Provides 24/7 monitoring and real-time threat detection, leveraging a Security Operations Center (SOC) to identify and respond to potential security threats, minimizing the risk of breaches and data loss.
• Virtual Chief Information Security Officer (vCISO): Offers strategic security management and expertise, helping businesses develop and implement comprehensive cybersecurity policies, ensuring regulatory compliance and adherence to industry best practices.
• Cyber Incident Response Planning: Prepares businesses for potential cyber incidents by developing and testing response plans, ensuring swift and effective responses to security breaches to minimize impact and ensure business continuity.

Staying on top of ever-changing regulations is nearly impossible, especially when you have several other aspects of your business to focus on. Let FNTS focus on your IT security needs so your team can focus on your strategic initiatives. Contact us today!

Keeping Up to Date With Cybersecurity Regulations for Top Industries

Healthcare, financial services, professional services, and manufacturing are among the industries hardest hit by data breaches. According to the Identity Theft Resource Center, there was an increased lack of transparency in breach notices, with nearly 1,400 public breach notices failing to contain information about an attack vector in 2023. This number was up from 716 in 2022.

Financial Services: Staying Compliant with Federal Banking Regulations

The financial services industry faces a complex regulatory landscape, with recent updates to federal and state laws imposing stricter cybersecurity and data privacy requirements. These regulations aim to enhance consumer protection and bolster industry resilience against cyber threats:

• FTC Safeguards Rule: This rule, updated in 2023, imposes stricter cybersecurity requirements on non-bank financial institutions. Key changes include mandatory multi-factor authentication and enhanced data protection measures.
• New York State Department of Financial Services (NYDFS) Cybersecurity Regulation: The NYDFS is updating its cybersecurity regulation to include stricter governance, security safeguards, and testing requirements for financial institutions operating within the state.
• California Consumer Privacy Act (CCPA): While primarily a data privacy law, CCPA also impacts cybersecurity by requiring businesses to implement reasonable security measures to protect personal information.
• SEC Cyber Disclosure Rule: Effective from December 18, 2023, this rule mandates that public companies report material cybersecurity incidents on Form 8-K within four business days of determining the incident's materiality. Smaller reporting entities had until June 2024 to comply. This rule emphasizes the need for transparency and timely disclosure of cyber incidents to stakeholders, enhancing accountability and preparedness in the financial sector
• Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA): Signed into law in March 2022, CIRCIA requires covered entities within the critical infrastructure sector to report significant cyber incidents and ransomware payments to the Cybersecurity and Infrastructure Security Agency (CISA). This regulation aims to improve national cybersecurity by ensuring timely and coordinated responses to cyber threats​
• Gramm-Leach-Bliley Act (GLBA) Safeguards Rule: This rule has undergone a major update, requiring non-banking financial institutions to implement enhanced security measures, including multi-factor authentication and robust risk assessment processes. 
  
  

Healthcare: Enhancing Patient Access to Care Records

Recent cybersecurity regulations in the United States aimed at enhancing the security of the healthcare sector include several significant developments:

• Health Insurance Portability and Accountability Act (HIPAA): While not entirely new, HIPAA remains the cornerstone of healthcare cybersecurity. Recent focus areas include:
  • Increased Enforcement: The Office for Civil Rights (OCR) has stepped up enforcement actions, resulting in significant penalties for non-compliance.
  • Expansion of Covered Entities: The definition of covered entities has broadened, capturing more healthcare providers.
  • Risk management focus: HIPAA now emphasizes a risk-based approach to security, requiring healthcare organizations to conduct thorough risk assessments and implement appropriate safeguards.
• HHS Cybersecurity Strategy: In December 2023, the Department of Health and Human Services (HHS) released a paper outlining new cybersecurity strategies to improve the cyber resilience of the healthcare sector. This strategy includes establishing voluntary Healthcare and Public Health Cybersecurity Performance Goals (HPH CPGs) that set minimum and advanced practices for cybersecurity. HHS also aims to incorporate these goals into existing regulations and programs, including Medicare and Medicaid requirements and updates to the HIPAA Security Rule​.
• Federal Incentives and Enforcement: HHS is working with Congress to secure funding to incentivize hospital cybersecurity investments and enforce requirements through financial penalties. This includes integrating cybersecurity performance goals into financial reimbursement criteria, which could result in reduced payments to hospitals that fail to meet these standards starting in fiscal 2029​.
• Upcoming Regulations: New regulations expected to be issued by HHS will mandate minimum cybersecurity standards for hospitals. These standards will likely focus on essential cybersecurity practices such as multifactor authentication and strong encryption. The administration's goal is to ensure that hospitals are better equipped to prevent and respond to cyber threats, thereby reducing disruptions to patient care.
  
  

Regulations Affecting Professional Services, Manufacturing, & Supply Chain

Recent cybersecurity regulations in the United States target the manufacturing and supply chain sectors to enhance resilience against cyber threats. Key developments include:

• Executive Order 14017 on Securing America's Supply Chains: This order focuses on strengthening the resilience of U.S. supply chains, particularly for critical sectors like Information and Communications Technology (ICT). It emphasizes domestic investment, secure and transparent supply chains, international collaboration, and workforce development. The order also calls for the revitalization of U.S. ICT manufacturing and the implementation of supply chain risk management practices​.
• National Cybersecurity Strategy Implementation Plan: Released in May 2024, this plan outlines 100 initiatives across five pillars, including defending critical infrastructure and investing in a resilient future. It focuses on supply chain risks, ransomware threats, and software vulnerabilities, encouraging public-private collaboration and promoting best practices for supply chain risk management​​.
• Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA): This act mandates reporting of significant cyber incidents to the Cybersecurity and Infrastructure Security Agency (CISA). It aims to enhance national cybersecurity resilience by facilitating timely assistance, identifying cross-sector trends, and sharing critical information to prevent further attacks​​.
• Increased SEC Reporting Requirements: The U.S. Securities and Exchange Commission (SEC) now requires publicly listed companies to disclose comprehensive information on cybersecurity risks and incidents. Companies must detail the nature, scope, impact, and response measures of cyber incidents within four business days of discovery. This regulation aims to improve transparency and enable better-informed investment decisions​.
  
  

Government and Infrastructure: Patching at Risk Networks and Systems

In response to rising cyber threats, recent U.S. government initiatives have strengthened the framework for protecting critical infrastructure: 

• National Security Memorandum on Critical Infrastructure Security and Resilience (NSM): Issued in April 2024, this memorandum updates the framework for securing U.S. critical infrastructure, replacing Presidential Policy Directive 21. It designates the Cybersecurity and Infrastructure Security Agency (CISA) as the National Coordinator for Critical Infrastructure Security and Resilience, enhancing its role in managing risks and coordinating efforts across federal, state, and local governments, as well as the private sector. The memo also establishes minimum security requirements for critical infrastructure sectors​​.
• Executive Order 14028 on Improving the Nation's Cybersecurity: This order, issued in May 2021 and continuously updated, mandates stronger cybersecurity standards across federal agencies and contractors. Key measures include implementing Zero Trust Architecture, enhancing cloud security, improving software supply chain security, and establishing a Cyber Safety Review Board. The order also promotes the adoption of multi-factor authentication, encryption, and secure software development practices across federal agencies​​.
  
  

Risks of Non-Compliance with Cybersecurity Regulations

Non-compliance may leave organizations vulnerable to increased cyber threats. Insufficient cybersecurity measures often create openings that malicious actors can exploit. This leads to data breaches, loss of sensitive information, and operational disruptions, complicating recovery efforts. Legal consequences can also arise, including lawsuits from affected parties, adding further complexity and financial strain to an organization's response to cyber incidents.

Neglecting cybersecurity regulations can have serious repercussions for organizations across various industries. The most immediate threat is the possibility of substantial financial penalties, as regulatory bodies typically impose fines for non-compliance, especially in the case of major data breaches. Beyond the financial implications, organizations risk damaging their reputation and losing the trust of customers and stakeholders, which can lead to reduced revenue and market share.

Ultimately, the risks tied to non-compliance highlight the critical need for implementing robust cybersecurity practices and ensuring alignment with regulatory standards.

Need Help Staying On Top of Cybersecurity Compliance?

Compliance with these cybersecurity regulations can be complex and costly. However, strong cybersecurity can also enhance customer trust and protect an institution's reputation.

Your tech team doesn't have to be swamped by regulatory modifications. Partner with FNTS, a trusted advisor to highly regulated industries. We provide expert monitoring, assessment, and implementation to ensure compliance, mitigate risks, and protect your brand reputation.

Contact us today to learn how your company can stay compliant with regulations and build public trust in the ever-changing world of cyber security.