The average cost of a data breach is $3.86 million. With more and more companies relying on the cloud to store customer data, safeguards have been in put in place to protect this valuable data—and that’s where SOC 2 comes in.
What is SOC 2?
SOC 2 is a security compliance requirement developed by the American Institute of CPAs (AICPA). The requirement’s goal is to ensure that cloud-based systems are set up in a manner that guarantees security, availability, processing integrity, confidentiality, and privacy of customer data.
What Does SOC 2 Compliance Require?
SOC 2 requires that companies develop and follow written security policies and procedures, which must stand up to a technical audit. Organizations must monitor for unauthorized and suspicious activity that could compromise customer information. This includes both known and unknown malicious activity, which can range from common phishing schemes to previously unidentified threats. Monitoring for unknown activity requires that organizations establish a baseline of normal activity in the cloud.
Again, incidents that threaten the security, availability, processing integrity, confidentiality, or privacy of customer data must be prevented. SOC 2 is intended to provide customers peace of mind that suspicious activity is being monitored, prevented, and that corrective action will be taken immediately if any incidents occur.SOC 2 is intended to provide customers peace of mind that suspicious activity is being monitored. Click To Tweet
To Whom Does SOC 2 Apply?
The requirement applies to any technology service providers that store customer information in the cloud. Most SaaS companies fall under this umbrella. Considering the widespread use of cloud storage today, you can imagine how far-reaching SOC 2’s impact is.
What Kind of Alerts Are Required?
You must be alerted instantly whenever there is unauthorized access to customer data. SOC 2 requires alerts for file transfer activities, exposure or modification of data, controls, and configurations, as well as unauthorized privileged filesystem, account, or login access. If alerts are not received and resolved quickly, you risk compromising sensitive data.
It’s critical to establish a baseline for your cloud environment so that you can define threat indicators and establish appropriate alerts. Without that baseline, you might suffer from frequent false alarms.
What Types of Audit Trails Are Required?
To meet SOC 2 compliance requirements, organizations must meet be able to provide detailed audit trails. These audit trails provide context around malicious activity—offering insight into the who, what, when, where, and how—to help organizations uncover the root cause of the activity and provide an appropriate security response. Not only do you need to know how to stop an active attack, you also need to know how to prevent similar attacks to your system in the future.
Check out our website to learn more about Reflektive’s SOC2 Security Compliance.