The modern information age has many security risks and concerns. Data, the new gold of our era, is extraordinarily vulnerable to many malicious cyberattacks like malware, phishing, ransomware and data leaks. The average cost of a ransomware attack on businesses is $133,000. There is no doubt that working with data requires implementing fundamental security measures to prevent irreversible consequences.
It’s not only you and your employees; more and more companies rely on third-party vendors for key business operations such as cloud providers and SaaS companies. Outsourcing can leave your company exposed to many cybersecurity risks. With the proliferation of public cloud databases and digital storage, data breaches have become rampant. According to Accenture, security breaches have increased by 67% since 2014. With these emerging threats, data privacy legislation and auditing procedures such as Service Organization Control Type 2 (SOC 2) are prudent to ensure companies are managing data securely.
In this article, we will explain the SOC 2 audit, why companies get SOC 2 certified and how background screening is vital to acquire your SOC 2 accreditation.
What is SOC 2?
Developed by the AICPA, Service Organization Control Type 2 (SOC 2) is an auditing procedure to ensure internal controls are in place and are operating effectively. SOC 2 reports how a company is managing customer data based on five “trust service principles”—security, availability, processing integrity, confidentiality and privacy. This report is a vital component of information assurance and lets other businesses ensure that you as a service provider securely manage your data to protect the interests of other organizations and the privacy of your clients.
Who is required to be SOC2 compliant?
If you are a service provider or your organization generally stores customers’ data in the cloud, SOC 2 compliance report is applicable to your business. While this report is not mandatory, for many companies it’s a key requirement when considering a third-party vendor to have an assurance that their data is safe and protected. New services within outsourcing arrangements that drive SOC adoption include:
- Software as a service (SaaS)
- Infrastructure as a service (IaaS)
- Platform as a service (PaaS)
- Cloud providers
Why be SOC2 compliant?
Information and data security has become one of the top concerns for almost all businesses especially when outsourcing is part of the strategy for the key business operations. When it comes to third-party vendors, businesses are seeking an assurance that shows a service provider put the same amount of effort to keep their data secure. With the proliferation of security issues and its hefty fines and reputational damages, SOC 2 compliance is not just a key differentiator among other competitors but also a necessity for service providers.
The role of a background check in getting SOC 2-compliant
Background screening is an important security step to ensure only trustworthy and qualified employees are hired. It’s also one of the controls that you need to implement for passing your SOC 2 audit. Background screening ensures due diligence is done for employees who have access to sensitive information and privileged accounts within your organization and reduces the risks of insider threats. Performing background checks allows obtaining evidence of security checks like:
- Confirming candidates’ identity
- Checking that they have the experience and qualifications that they claim
- Ensuring that they’re not a security risk to your company
- Verifying that they’re legally allowed to work at your company
Certn is a SOC 2-certified background check provider that is trusted by over 2800 companies. It’s lightning-fast and insanely simple, making background checks a breeze. Many service providers have selected Certn because:
- It’s SOC 2-certified and compliant with the FCRA, GDPR
- Quick turnaround times
- Responsive and friendly support
- Intuitive UI and mobile-friendly