Secure financial information is critical for small business

Like the nation’s largest financial institutions, millions of small to medium-sized businesses (SMBs) are required by law to protect consumers’ personal financial information, warned the Information Technology Solution Providers Alliance (ITSPA), a national, nonprofit alliance that helps SMBs understand how technology and local technology providers can help them succeed.

"Almost any SMB that works with customers’ money is considered a ‘financial institution’ by the Federal Trade Commission and must take proactive steps to ensure the security of customer financial records," said ITSPA Chairman Andrew Levi. "Unfortunately, many SMB businesses, unless they work for a bank, credit union or brokerage, have never heard of the Gramm-Leach-Bliley (GLB) Act, legislation that protects consumers’ nonpublic personal information.

"SMBs must be extremely careful not to reveal or share nonpublic personal information such as customers’ names, addresses, Social Security numbers and account numbers. Similarly, SMBs shouldn’t reveal information found in customer credit reports or applications, or facts taken from legal documents pertaining to summons, bankruptcies and divorces.

"SMBs should examine all aspects of their operations to identify risks that might result in unauthorized disclosure, alteration, misuse, loss or theft of financial information, and assess the safeguards they have in place to control these risks," said Levy. ITSPA recommends that SMBs also do the following:

•Develop an information security program. After performing a risk assessment, prepare a written policy containing physical, technical and administrative safeguards to protect customer financial information.

•Implement financial security changes. These include introducing data encryption, waste disposal procedures, locks for desks and cabinets, protection for laptop customer data, and security on home office equipment.

•Purchase PCs and other equipment with "transparent security." SMBs that plan to update office equipment should purchase PCs and mobile products such as wireless laptops and desktops that have sufficient performance to allow future software security to be loaded.

•Make sure service providers comply. Companies you share customer financial information with must also comply with GLB regulations. Develop written agreements with service providers to implement and maintain GLB compliance safeguards.

•Adjust your security program when needed. As SMBs grow, it’s important to modify information security programs to protect against new risks. Seek help from legal counsel and/or local IT solution providers when security issues arise.

This story provided by North American Precis Syndicate, Inc.