Why SOC 2 Type II Certification Matters in Print and Mail

What would happen to your operations if a third-party print and mail provider had a security weakness in its processes?

There are some firms that would not be seriously affected by this. But there are other firms that this scenario would be a disaster for. It could incur legal penalties, fines, and loss of consumer trust.

If an organization falls into the second category, then it needs to work with SOC 2 Type II certified print and mail vendor.

A firm that has passed a SOC 2 Type II assessment has proved to an independent auditor that their processes keep client data secure over an extended period of time.

But how does SOC 2 Type II differ from other types of certifications? And what criteria do print and mail firms need to meet in order to become SOC 2 Type II certified?

We’ll answer those questions in this blog post, so keep reading to find out!

What is a SOC 2 Type II Audit?

A SOC 2 Type II audit is an independent audit that evaluates whether an organization has designed and operated effective controls to protect customer data over a period of time.

In order to learn more about what sets SOC 2 Type II apart from other certifications, let’s break down this definition:

Who Administers SOC 2 Type II Audits for Printers and Mailers?

SOC 2 Type II certified printers and mailers are audited by a Certified Public Accountant (CPA) following the standards set out by the American Institute of Certified Public Accountants (AICPA).

The AICPA established the SOC 2 framework in 2010, in order to help companies evaluate the measures their outside vendors implement. The organization’s System and Organization Controls (SOC) reports allow firms in highly-regulated industries to gain and distribute more information about the security and compliance of their processes.

Third-party oversight from the AICPA is part of what lends SOC-certified organizations their credibility. Any firm can claim that they are following security standards, but working with an unbiased, outside expert allows them to prove that they actually do meet the guidelines they have promised to meet.

What Controls Are Measured in a SOC 2 Type II Audit?

SOC 2 Type II certified print and mail organizations are measured against one or more of the AICPA’s Trust Services Criteria.

We’ll break down these standards more fully later in the blog post, but, to provide an overview, the five Trust Services Criteria are:

• Security
• Availability
• Processing Integrity
• Confidentiality
• Privacy

Every organization obtaining SOC 2 Type II certification is required to be evaluated on security. The other four criteria are optional.

How Long Are the Controls in a SOC 2 Type II Audit Evaluated For?

SOC 2 Type II certification requires organizations to have their security controls audited for an extended duration of time. This makes it stronger than other certifications, such as a SOC 2 Type I assessment, in which audits are only conducted at a single point.

The observation window for a SOC 2 Type II audit is typically between three and twelve months. The AICPA does not provide a required observation length, but this timeline is what most organizations choose to demonstrate that their controls can work in practice throughout a client relationship.

Why SOC 2 Type II Certification Matters for Highly-Regulated Printing

Organizations that handle sensitive client information need to keep that information secure.

A data leak of any size, whether it’s the revealing of client information to one unauthorized party or it’s a large-scale data breach, may be a violation of federal regulations. The consequences could include fines, legal penalties, and reputational loss in industries where customers only work with firms that they trust to keep their data safe.

Because of this, financial services teams, banks, healthcare providers, and other highly-regulated organizations have specialized needs when selecting third-party vendors. SOC 2 Type II certification helps these organizations evaluate their options.

SOC 2 Type II certified print and mail firms have demonstrated that they are capable of meeting stringent security and compliance requirements over long periods of time, which is what these organizations require from an outsource provider.

Differences Between SOC 2 Type II and Other SOC Reports

Clarifying the differences between SOC 2 Type II and other measures that it may be confused with can help clarify why this framework is so important. So let’s break it down!

What Is the Difference Between SOC 2 Type I and SOC 2 Type II?

The difference between a SOC 2 Type I and a SOC 2 Type II certified print and mail firm is how long their security and other controls have been evaluated for.

SOC 2 Type I assessments are conducted during a single point in time. They confirm that an organization has controls in place that work properly at a given moment, but not whether they continue to work over time.

SOC 2 Type II assessments are carried out over a period of several months. They allow auditors to get a much larger sample size of data, and confirm that a given organization consistently implements the proper security controls.

Many new organizations will get a Type I assessment before getting a Type II, as Type I may help quickly prove compliance before a more thorough assessment can be conducted. However, most organizations prefer a SOC 2 Type II certified vendor because they have proved that their security controls are dependable.

What Is the Difference Between SOC 1, SOC 2, and SOC 3?

The AICPA currently issues three types of SOC reports: SOC 1, SOC 2, and SOC 3. Each of these report types serves a different purpose for organizations in highly-regulated industries.

SOC 1 reports are for service organizations that use data from clients’ internal financial reporting. Completion of this assessment indicates that a given vendor can interact with their payroll information, financial statements, or other data in ways that maintain information accuracy.

SOC 2 reports, on the other hand, are for organizations looking to confirm that a given vendor can handle its data securely. The type of protocols covered in SOC 1 and SOC 2 are different.

One similarity between SOC 1 and SOC 2 is that both reports are designed for internal compliance experts. SOC 3 reports, as opposed to the other two types, are made for the general public. The information in a SOC 3 report can be easily communicated to and understood by the clients of a financial services provider, healthcare firm, or other company. SOC 3 reports are often used for marketing purposes by SOC 2 certified firms.

SOC 1 and SOC 3 reports, like SOC 2, have two subtypes: Type I and Type II. Type I reports are from one point in time, while Type II reports are from an evaluation over a period of several months.

What Criteria Are SOC 2 Type II Certified Print and Mail Firms Evaluated On?

As mentioned earlier, the SOC 2 Type II assessment covers up to five areas: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Let’s break down each of these categories, and learn what measures SOC 2 Type II certified print and mail firms might take in order to earn their certification:

Security

This is the criteria that every SOC 2 Type II certified print and mail organization is required to have passed an evaluation on. Security refers to measures that keep systems and data from unauthorized internal and external access.

SOC 2 Type II assessments measure security based on the following 9 categories:

      Control Environment: Does the organizational culture support security? Are the right governance structures in place, and are leaders held accountable for outcomes?

      Communication and Information: Is all relevant security information communicated to all relevant parties? Do employees know what the security procedures are? Are third parties informed about any events that may affect them?

      Risk Assessments: Does an organization undergo periodic risk assessments? How are these assessments conducted, and at what frequency?

      Monitoring Activities: How does an organization confirm that its protocols are functioning properly?

      Control Activities: Are the right security controls in place to help organizations meet their specified security objectives?

      Logical and Physical Access Controls: Are protocols in place to verify that those trying to access data are authorized to do so? Is unauthorized access blocked?

      System Operations: Does an organization have visibility into its operations? Does it have a recovery plan?

      Change Management: Are changes tested and properly vetted for security before being deployed?

      Risk Mitigation: Does an organization identify, prioritize, and mitigate risks?

Availability

Availability refers to the ability of an authorized user to gain access to the information they need in a timely manner. Organizations that prioritize data availability are able to provide working systems and easy-to-view information, even in the face of cyberattacks, natural disasters, or other incidents.

Auditors judge availability protocols based on whether they meet the following criteria:

      Capacity Management: Is system capacity managed to support the organization’s availability objectives? Is capacity adjusted during peak usage times to prevent systems from getting overwhelmed?

     Backups and Environmental Controls: Are appropriate environmental protections and backup procedures in place? Do redundant copies of data exist, to protect against data loss?

     Recovery Testing: Can an organization meet its specified data recovery objectives?

Processing Integrity

This category confirms that a SOC 2 Type II certified print and mail organization processes data completely, accurately, timely, and in accordance with specified requirements. It includes protocols that prevent errors and unnessecary changes to client information.

Processing integrity is measured based on the following criteria:

      Quality of Input Information: Is all data entering a system complete, accurate, and properly formatted for processing?

      Input Policies and Procedures: Does an organization have clearly documented procedures for how data is entered into a system?

      Processing Policies and Procedures: Does an organization have clearly documented procedures for how data is processed?

      Output Policies and Procedures: Is information delivered to the intended recipients in a timely manner?

      Storage and Archiving: Does an organization securely store inputs, items in processing, and outputs?

Confidentiality

Protocols that fall under the confidentiality criteria are designed to protect sensitive business information, such as intellectual property or other business assets.

Confidentiality is assessed based on these two categories:

      Identification and Protection of Confidential Information: Can an organization keep confidential information secure?

      Retention and Disposal of Confidential Information: Does an organization maintain proper retention protocols for confidential information? Does it securely dispose of said information in accordance with retention requirements?

Privacy

This category assesses how an organization uses personal information, and confirms that this data is handled in ways that respect the rights of the end consumer.

The following criteria are used to measure how an organization implements privacy protocols:

      Notice and Communication of Objectives: Does an organization clearly communicate to individuals what personal data it collects and how it uses it?

      Choice and Consent: Are individuals informed about the choices available to them regarding the collection, use, retention, disclosure, and disposal of personal information?

      Collection: Does an organization collect only personal information relevant to the stated data collection purposes they have communicated to customers?

      Use, Retention, and Disposal: Is personal data used in accordance with an organization’s previously-specified purposes? Is it held in accordance with an organization’s retention requirements, and securely disposed of?

      Access: Upon request, can individuals see their personal data and make changes?

      Disclosure and Notification: Does an organization clearly define how data may be disclosed to third parties? Is information properly communicated to the relevant stakeholders?

      Quality: Is the information an organization holds accurate, up-to-date, and complete?

      Monitoring and Enforcement: Does an organization monitor compliance with its privacy program? Can individuals report concerns?

How Might SOC 2 Type II Certified Print and Mail Firms Meet the Assessment’s Criteria?

Let’s go through each of the prior categories, and note the protocols SOC 2 Type II certified print and mail firms may implement to keep client data safe:

How Might SOC 2 Type II Certified Print and Mail Firms Prioritize Security?

Some security measures that may be evaluated in a SOC 2 Type II audit for a print and mail firm include:

• The presence of a documented code of conduct.
• Regular security awareness training for all employees.
• Regular external risk assessments and pen testing.
• A 24/7 security team ready to respond to incidents as they arise.
• Multi-Factor Authentication (MFA).
• Role-based access controls, involving the assigning of roles to each employee who digitally access files and the restriction of information based on that role.
• Physical access controls to print production facilities, including badge controls.
• The use of SIEM systems to detect unusual activity across the system and identify risks.

How Might SOC 2 Type II Certified Print and Mail Firms Prioritize Availability?

These organizations can prioritize information availability by enacting some or all of the following protocols:

• Data redundancy, achieved with measures such as storing backup copies of data in a secondary data center.
• A secondary print and mail facility, capable of resuming production quickly in case of emergency at the first facility.
• The presence of a print and mail disaster recovery plan.

How Might SOC 2 Type II Certified Print and Mail Firms Prioritize Processing Integrity?

Print and mail firms that are SOC 2 Type II certified on processing integrity may use some or all of the following methods during data processing:

• The completion of thorough pre-print checks, only moving forward with production once proofs have been reviewed and approved.
• The presence of an on-site quality control team, ready to respond to all issues.
• The use of document matching and insertion verification barcodes in the production facility to confirm each printed document is in the right envelope.
• Secure physical or digital document storage, carried out in accordance with retention policies.

How Might SOC 2 Type II Certified Print and Mail Firms Prioritize Confidentiality?

If a print and mail firm is handling confidential business information, here are some of the steps it can take to preserve that confidentiality:

• End-to-end encryption of confidential files, in-transit and at-rest.
• Stringent access controls, including MFA, role-based access controls, and physical access controls such as badge entry.
• Secure physical or digital document storage, carried out in accordance with retention policies.

How Might SOC 2 Type II Certified Print and Mail Firms Prioritize Privacy?

Customer trust is of paramount importance for organizations in highly-regulated industries. Here’s how SOC 2 Type II certified print and mail firms might protect that trust:

• Clear privacy notices describing applicable personal information collection and use practices.
• Documented procedures for making and for responding to privacy-related inquiries, requests, and complaints.

D4 Solutions: SOC 2 Type II Certified Print and Mail for Your Needs

If you’re in a highly-regulated industry, such as finance, banking, healthcare, or government, D4 Solutions is a print and mail firm well-equipped to handle your projects.

Our SOC 2 Type II and HIPAA audited workflows keep client data secure throughout production. Our team asks the right questions at the beginning of the process, which allows us to design a workflow suited for your firm. Security and productivity are supported by our dedicated quality control team and our 24/7 incident response team.

Reach out now, and one of our print and mail experts will be in touch to discuss your needs.