Not all compliance rules are created equal. While general IT compliance applies to most organizations, certain industries face stricter legal mandates because of the sensitive data they manage. Healthcare providers, financial institutions, and any business that processes payment cards must follow specific laws that protect personal and financial information.
Here’s a closer look at the major compliance frameworks every organization in these industries should know.
HIPAA: Protecting Patient Information in Healthcare
The Health Insurance Portability and Accountability Act (HIPAA) sets the national standard for how healthcare providers, insurers, and their vendors handle protected health information (PHI), both digitally and physically.
If your business handles PHI, there is a good chance HIPAA applies to you.
Key requirements include:
- Access controls and activity monitoring: Technical and administrative controls must be in place to ensure that only authorized users can access patient data, and all activity must be logged.
- Applies to covered entities and business associates: A Business Associate Agreement (BAA) should be signed between such entities to ensure they understand and agree to adhere to the requirements for protecting the data.
- Breach reporting: Organizations must report data breaches within strict timelines.
- Encryption: Not mandatory, but strongly recommended. Under the HIPAA Security Rule, encryption is considered an “addressable implementation specification” – meaning it’s expected unless you can justify an alternative.
Why it matters: Failing to meet HIPAA standards can lead to severe financial penalties and loss of patient trust. Beyond compliance, strong data protection helps healthcare organizations maintain credibility and avoid costly downtime caused by security incidents.
Learn more: HIPAA Compliance – Do You Need It and How to Achieve It?
FTC Safeguards Rule: Protecting Financial Data
The FTC Safeguards Rule falls under the Gramm-Leach-Bliley Act (GLBA) and governs how financial institutions and service providers handle customer data. But “financial institution” here has a much broader meaning.
Types of entities this applies to:
- Tax preparers
- Mortgage brokers
- Loan processors
- Auto dealers offering financing
- Accounting and advisory firms handling financial information
Key requirements include:
- Formal risk assessments: You must identify, regularly evaluate, and mitigate potential risks to customer data.
- Employee training: Staff must understand how to handle sensitive data and recognize potential threats.
- System monitoring: Regular audits and threat detection are required to maintain ongoing compliance.
- Vendor oversight: You’re responsible for ensuring third-party IT partners follow security best practices.
In 2023, the FTC expanded and strengthened the rule, increasing enforcement and penalties for noncompliance.
Why it matters: A single weak point, like an untrained employee or unsecured vendor, can lead to a data breach that exposes financial information. Meeting the Safeguards Rule isn’t just about checking boxes; it’s about maintaining client confidence and reducing your cyber risk.
Learn more: What is the FTC Safeguards Rule?
PCI-DSS: Securing Payment Card Data
The Payment Card Industry Data Security Standard (PCI-DSS) is a global security framework designed to protect cardholder information wherever it’s stored, processed, or transmitted.
If your business accepts, stores, or transmits credit card payments you must follow PCI-DSS.
Key requirements include:
- Access control: Limit who can access cardholder data.
- Network segmentation: Isolate systems handling payments from the rest of your network.
- Encryption: Protect data during storage and transmission.
- Regular testing: Conduct vulnerability scans and penetration testing to verify system security.
Unlike HIPAA or FTC Safeguards, PCI-DSS isn’t enforced by the government, it’s enforced by credit card companies and payment processors. Noncompliance can lead to fines, increased transaction fees, or even the loss of your ability to accept card payments.
Why it matters: PCI-DSS compliance shows customers you take security seriously. It’s not just about avoiding penalties, it’s about protecting revenue and reputation.
Learn more: What Is PCI Compliance?
Bringing It All Together
No matter your industry, these compliance frameworks share one common goal: protecting sensitive data.
- For healthcare providers, that’s patient records.
- For financial institutions, it’s individuals’ financial information
- For retailers and service providers, it’s payment card data.
By aligning your IT systems with the right compliance standards, you’re building trust, preventing data breaches, and strengthening your business foundation.
If you’re unsure where to start, Netranom’s team can help assess your compliance posture and create a tailored roadmap to meet industry standards.
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