Think You’re Covered? The Compliance Blind Spots Costing NY & NJ Firms Thousands
Home 9 Cybersecurity 9 Think You’re Covered? The Compliance Blind Spots Costing NY & NJ Firms Thousands

With evolving cybersecurity threats and increased scrutiny from federal and industry-specific regulators, companies across New Jersey and New York are under growing pressure to prove that their technology and their data are secure.

Cyberattacks are up. Enforcement is rising. And whether it’s HIPAA or the FTC Safeguards Rule, the rules are tightening and the penalties are steep.

Why Compliance Isn’t Just a Checkbox

Both Protected Health Information (PHI) and consumer financial data are among the most heavily regulated and frequently targeted types of data. That means healthcare providers and CPA firms must meet strict federal security standards or face the consequences.

What’s at stake?

  • Fines up to six figures per violation
  • Cyber insurance claim denials
  • Lawsuits and reputational damage
  • Business disruption or shutdown

The Most Critical Compliance Regulations in 2025

HIPAA Compliance for Healthcare Practices

If your organization handles PHI through an EHR, billing platform, or even email, you are required to meet HIPAA security and privacy standards.

Here’s what that includes:

  • Encryption of electronic health records (ePHI)
  • Risk assessments to identify vulnerabilities
  • Employee training on HIPAA compliance and cybersecurity
  • A documented incident response plan
  • Business Associate Agreements (BAAs) with third-party vendors

Compliance Tip: If your IT provider has not helped you complete a HIPAA risk assessment in the past year, you are likely out of compliance.

FTC Safeguards Rule for Accounting and Financial Firms

As of 2023, the FTC Safeguards Rule applies to a broad range of non-bank financial institutions, including CPA firms, bookkeepers, payroll processors, and financial consultants.

To comply, your firm must:

  • Maintain a written information security program
  • Designate a qualified individual to oversee compliance
  • Conduct regular risk assessments
  • Implement access controls, encryption, and MFA
  • Oversee all service providers that handle client data

Penalties for noncompliance include $100,000 per incident for your firm and $10,000 in personal fines for individuals responsible.

Compliance Tip: Your IT provider should be conducting annual risk assessments, verifying third-party vendor controls, and ensuring your systems meet Safeguards Rule requirements.

5 Steps to Strengthen Your Compliance Right Now

  1. Schedule a Compliance-Focused Risk Assessment
    A general IT health check is not enough. This must be compliance-driven.
  2. Review and Update Security Controls
    Ensure your systems use encryption, MFA, and modern firewalls.
  3. Train Staff on Privacy and Security Protocols
    Compliance failures often start with human error.
  4. Create and Test an Incident Response Plan
    Know who is responsible and what happens if data is compromised.
  5. Work with a Compliance-Aware IT Provider
    Choose a partner who understands HIPAA and the FTC Safeguards Rule, not just generic IT support.

Get a FREE Compliance Risk Assessment

At ACT, we specialize in helping mid-sized medical and accounting firms across New Jersey and New York strengthen cybersecurity and meet federal compliance requirements.

We will review your current IT posture, flag compliance gaps, and give you a clear roadmap to stay protected and audit-ready.

📍 Local experts in NJ and NYC
✅ HIPAA and FTC Safeguards Rule specialists
📅 Click here to book your FREE assessment

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