The average cost of a data breach has climbed to $4.45 million, according to IBM. Companies don’t just need to improve their own data security; they also need to verify that their vendors and service providers are adhering to best practices. Here at Liberate, we take data security seriously, and that’s why we recently completed the SOC 2 compliance certification.
SOC 2 stands for Service Organization Control Type 2. It’s a cybersecurity framework developed by the American Institute of Certified Public Accountants (AICPA), and it’s widely considered the gold standard of data security compliance.
According AICPA, SOC 2 is the SOC report on controls at service organization relevant to security, availability, processing integrity, confidentiality or privacy. The report gives users detailed information and assurance about the controls in place.
SOC 2 is different from SOC 1, which focuses on financial controls. SOC 2 is all about controls related to data security and privacy – exactly the information that a client worried about data breaches needs to know.
This is a voluntary standard, meaning that service providers aren’t legally required to go through the SOC 2 process. However, many organizations do so because they want to reassure their clients about data security.
When companies experience data breaches, the entry point is often a third-party vendor. If your data is exposed in a third-party data breach, you can still be held liable, and your organization may also suffer reputational damage.
To avoid this risk, you need to vet your vendors carefully. You can ask about data security and put requirements in your vendor agreements, but the only way to be truly confident that your vendors are practicing good security is to use an independent auditor.
SOC 2 certification is provided by independent auditors. When you work with SOC 2 certified vendors, you know the data security measures have been thoroughly evaluated. This means less work and less stress for you.
Our clients count on us for automation that fuels superior customer experiences at low operating costs, without sacrificing data security. Book a demo to learn more.
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