Imagine this: you’re a successful young entrepreneur, and life has passed you by quickly. You’re not sure when or how it happened, but you’ve become a first-time parent to a beautiful baby girl who’s growing as quickly as her tiny body can manage. Pretty soon you’ll have to start thinking about which school she should be attending, and the child care center to choose.
You narrow the search down to 2 centers, but you’re torn between them. Both centers are similar in terms of quality of care, but they’re different in one key aspect. The first one looks amazing, but is wide open to prying eyes and allows access to anyone. The other has decent space for kids to play, but has a fence surrounding the property so there is decent privacy.
If you chose the second center, then you’ll understand why it was important for Coinhako to receive the SOC 2 certification.
What is SOC 2?
SOC 2 stands for Systems and Organization Controls 2 and was created by the AICPA in 2010. It is designed to provide auditors with guidance for evaluating the operating effectiveness of an organization’s security protocols. The SOC 2 security framework dictates how companies should handle customer data stored in the cloud — in essence, AICPA designed SOC 2 to establish trust between service providers and their customers.
How is the SOC 2 certification achieved?
To achieve an SOC 2 certification, a company has to be audited to ensure they are compliant with the requirements to manage and store customer data based on five Trust Services Criteria (TSC):
- Processing integrity
During a SOC 2 audit, an independent auditor will evaluate a company’s security posture related to one or all of these Trust Services Criteria (TSC). Each TSC has specific requirements, and a company puts internal controls in place to meet those requirements.
The Security TSC is always included in a SOC 2 audit, while the other four are optional.
Security is also referred to as the Common Criteria, since many of the security criteria are shared among all of the Trust Services Criteria.
Difference between SOC 2 and ISO 27001
Both SOC 2 and ISO 27001 are similar in that they have security controls that involve processes, policies and technologies to safeguard sensitive information, but there is a difference in their execution.
ISO 27001 focuses on the development and maintenance of an information security management system (ISMS). An ISMS provides a systematic approach for managing an organization’s information security. To achieve compliance, a risk assessment must be conducted to identify and implement security controls and regularly review their effectiveness.
SOC 2 is a lot more flexible with its five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy, but only the first of those is mandatory. Organizations can implement internal controls related to the other principles if they want, but it’s not necessary to achieve certification.
The importance of SOC 2
Attaining the SOC 2 certification takes a significant amount of planning, work, and money to achieve, but the benefits that come with it is unparalleled.
Protect brand reputation
A lax security leading to a data breach or exposure will definitely cause users to leave a company in droves. In addition, a breach can destroy your brand reputation and cost millions to recover and clean up. The SOC 2 processes and controls can protect a company from these devastating consequences.
Stand out among the crowd
The SOC 2 certification is a tangible way to give users the peace of mind they need — anyone can say they make the customer’s safety and security a top priority, but the SOC 2 certification proves our top-notch security and shows our commitment to keeping data safe.
During the SOC 2 audit, any gaps in security will be found and steps are taken to improve, but it is not limited to just security — it also shows you ways you can streamline our controls and processes. This way, we can make security improvements that increase efficiency, leaving more time and resources to invest in your products and services and boosting quality and customer satisfaction.
Our commitment to information security
It’s easy to claim that we value security, but to actually take steps to achieve it is a whole different ball game. Pasi Koistinen, Coinhako’s very own Chief Information Security Officer had this to say:
"Passing the SOC 2 audit is a testament to our team's diligent efforts in managing and safeguarding Coinhako's internal and client data. This achievement not only serves as evidence of the strength of our data protection and cloud security practices but also assures our clients that stringent security controls are in place to protect their valuable information. Security is an ongoing effort, and we are dedicated to upholding the highest information security standards for our clients and their assets."
With that in mind, you can rest easy knowing that your funds and crypto remain accessible and safe on Coinhako.
Disclaimer: All writers’ opinions are their own and do not constitute financial advice. As a company, we do our best to provide information that is accurate and valuable. The contents of this blog post are intended for educational purposes only. Individuals are advised to perform due diligence before purchasing any cryptocurrencies as these assets are subject to high volatility, and understand the risks associated with trading cryptocurrencies.