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Understanding the FTC Data Breach Reporting Requirements

June 18, 2024
4
 Min Read
Compliance

More Companies Need to Report Data Breaches

In a significant move towards enhancing data security and transparency, new data breach reporting rules have taken effect for various financial institutions. Since May 13, 2024, non-banking financial institutions, including mortgage brokers, payday lenders, and tax preparation firms, must report data breaches to the Federal Trade Commission (FTC) within 30 days of discovery. This new mandate, part of the FTC's Safeguards Rule, expands the breach notification requirements to a broader range of financial entities not overseen by the Securities and Exchange Commission (SEC). 

Furthermore, by June 15, 2024, smaller reporting companies—those with a public float under $250 million or annual revenues under $100 million—must comply with the SEC’s new cybersecurity incident reporting rules, aligning their disclosure obligations with those of larger corporations. These changes mark a significant step towards enhancing transparency and accountability in data breach reporting across the financial sector.

How Can Financial Institutions Secure Their Data?

Understanding and tracking your sensitive data is fundamental to robust data security practices. The first step in safeguarding data is detecting and classifying what you have. It's far easier to protect data when you know it exists. This allows for appropriate measures such as encryption, controlling access, and monitoring for unauthorized use. By identifying and mapping your data, you can ensure that sensitive information is adequately protected and compliance requirements are met.

Identify Sensitive Data: Data is constantly moving, which makes it a challenge to know exactly what data you have and where it resides. This includes customer information, financial records, intellectual property, and any other data deemed sensitive. Having an automated data classification tool is a crucial first step. This includes ‘shadow’ data that may not be well known or well managed.

Data Mapping: Create and maintain an up-to-date map of your data landscape. This map should show where data is stored, processed, and transmitted, and who has access to it. It helps in quickly identifying which systems and data were affected by a breach and the impact blast radius (how extensive is the damage).

"Your Data Has Been Breached, Now What?"

When a data breach occurs, the immediate response is critical in mitigating damage and addressing the aftermath effectively. The investigation phase is particularly crucial as it determines the extent of the breach, the type and sensitivity of the data compromised, and the potential impact on the organization.

A key challenge during the investigation phase is understanding where the sensitive data was located at the time of the data breach and why or how existing controls were insufficient. 

Without a proper data classification process or solution in place, it is difficult to ascertain the exact locations of the sensitive data or the applicable security posture at the time of the breach within the short timeframe required by the SEC and FTC reporting rules. 

Here's a breakdown of the essential steps and considerations during the investigation phase:

1. Develop Appropriate Posture Policies and Enforce Adherence:

Establish policies that alert on and can help enforce appropriate security posture and access controls - these can be out-of-the-box fitting various compliance frameworks or can be customized for unique business or privacy requirements. Monitor for policy violations and initiate appropriate remediation actions (which can include ticket issuance, escalation notification, and automated access revocation or de-identification).

2. Conduct the Investigation: Determine Data Breach Source:

Identify how the breach occurred. This could involve phishing attacks, malware, insider threats, or vulnerabilities in your systems.

According to the FTC, it is critical to clearly describe what you know about the compromise. This includes:

  • How it happened
  • What information was taken
  • How the thieves have used the information (if you know)
  • What actions you have taken to remedy the situation
  • What actions you are taking to protect individuals, such as offering free credit monitoring services
  • How to reach the relevant contacts in your organization

Create a Comprehensive Plan: Additionally, create a comprehensive plan that reaches all affected audiences, such as employees, customers, investors, business partners, and other stakeholders.

Affected and Duplicated Data: Ascertain which data sets were accessed, altered, or exfiltrated. This involves checking logs, access records, and utilizing forensic tools. Assess if sensitive data has been duplicated or moved to unauthorized locations. This can compound the risk and potential damage if not addressed promptly.

How Sentra Helps Automate Compliance and Incident Response

Sentra’s Data Security Posture Management solution provides organizations with full visibility into their data’s locations (including shadow data) and an up-to-date data catalog with classification of sensitive data. Sentra provides this without any complex deployment or operational work involved, this is achieved due to a cloud-native agentless architecture, using cloud provider APIs and mechanisms.

Below you can see the different data stores on the Sentra dashboard.

Sentra Dashboard data stores

Sentra Makes Data Access Governance (DAG) Easy

Sentra helps you understand which users have access to what data and enrich metadata catalogs for comprehensive data governance. The accurate classification of cloud data provides advanced classification labels, including business context regarding the purpose of data, and automatic discovery, enabling organizations to gain deeper insights into their data landscape. This both enhances data governance while also providing a solid foundation for informed decision-making.

Sentra's detection capabilities can pinpoint over permissioning to sensitive data, prompting organizations to swiftly control them. This proactive measure not only mitigates the risk of potential breaches but also elevates the overall security posture of the organization by helping to institute least-privilege access.

Below you can see an example of a user’s access and privileges to which sensitive data.

An example of a user’s access and privileges to which sensitive data

Breach Reporting With Sentra

Having a proper classification solution helps you understand what kind of data you have at all times.

With Sentra, it's easier to pull the information for the report and understand whether there was sensitive data at the time of breach,  what kind of data there was, and who/what had access to it, in order to have an accurate report.

Example of Sentra's Data Breach Report

To learn more about how you can gain full coverage and an up-to-date data catalog with classification of sensitive data, schedule a live demo with our experts.

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Meni is an experienced product manager and the former founder of Pixibots (A mobile applications studio). In the past 15 years, he gained expertise in various industries such as: e-commerce, cloud management, dev-tools, mobile games, and more. He is passionate about delivering high quality technical products, that are intuitive and easy to use.

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Latest Blog Posts

Ward Balcerzak
Ward Balcerzak
May 15, 2025
3
Min Read
Data Security

Why I Joined Sentra: A Data Defender’s Journey

Why I Joined Sentra: A Data Defender’s Journey

After nearly two decades immersed in cybersecurity, spanning Fortune 500 enterprises, defense contractors, manufacturing giants, consulting, and the vendor ecosystem, I’ve seen firsthand how elusive true data security remains. I've built and led data security programs from scratch in some of the world’s most demanding environments. But when I met the team from Sentra, something clicked in a way that’s rare in this industry.

Let me tell you why I joined Sentra and why I’m more excited than ever about the future of data security.

From Visibility to Vulnerability

In every role I've held, one challenge has consistently stood out: understanding data.
Not just securing it but truly knowing what data we have, where it lives, how it moves, how it's used, and who touches it. This sounds basic, yet it’s one of the least addressed problems in security.

Now, we layer on the proliferation of cloud environments and SaaS sprawl (without mentioning the increasing proliferation of AI agents). The traditional approaches simply don’t cut it. Most organizations either ignore cloud data discovery altogether or lean on point solutions that can’t scale, lack depth, or require endless manual tuning and triage.

That’s exactly where Sentra shines.

Why Sentra?

When I first engaged with Sentra, what struck me was that this wasn’t another vendor trying to slap a new UI on an old problem. Sentra understands the problem deeply and is solving it holistically across all environments. They’re not just keeping up; they’re setting the pace.

The AI-powered data classification engine at the heart of Sentra’s platform is, quite frankly, the best I’ve seen in the market. It automates what previously required a small army of analysts and does so with an accuracy and scale that’s unmatched. It's not just smart, it’s operationally scalable.

But technology alone wasn’t what sold me. It was the people.
The Sentra founders are visionaries who live and breathe this space. They’re not building in a vacuum, they’re listening to customers, responding to real-world friction, and delivering solutions that security teams will actually adopt. That’s rare. That’s powerful.

And finally, there’s the culture. Sentra radiates innovation, agility, and relentless focus on impact. Every person here knows the importance of their role and how it aligns with our mission. That energy is infectious and it’s exactly where I want to be.

Two Decades. One Mission: Secure the Data.

At Sentra, I’m bringing the scars, stories, and successes from almost 20 years “in the trenches”:

  • Deep experience building and maturing data security programs within highly regulated, high-stakes environments

  • A commitment to the full people-process-technology stack, because securing data isn’t just about tools

  • A background stitching together integrated solutions across silos and toolsets

  • A unique perspective shaped by my time as a practitioner, leader, consultant, and vendor

This blend helps me speak the language of security teams, empathize with their challenges, and design strategies that actually work.

Looking Ahead

Joining Sentra isn’t just the next step in my career; it’s a chance to help lead the next chapter of data security. We’re not here to incrementally improve what exists. We’re here to rethink it. Redefine it. Solve it.

If you’re passionate about protecting what matters most, your data. I’d love to connect.

This is more than a job; it’s a mission. And I couldn’t be prouder to be part of it.

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David Stuart
David Stuart
May 5, 2025
4
Min Read
Compliance

What the HIPAA Compliance Updates Mean for Your Security

What the HIPAA Compliance Updates Mean for Your Security

The Health Insurance Portability and Accountability Act (HIPAA) has long been a cornerstone of safeguarding sensitive health information in the U.S., particularly electronic protected health information (ePHI). As healthcare organizations continue to face growing cybersecurity challenges, ensuring the protection of ePHI has never been more critical. 

In response, for the first time in two decades, the U.S. Department of Health and Human Services (HHS) has proposed significant amendments to the HIPAA Security Rule, aimed at strengthening cybersecurity measures across the healthcare sector. These proposed changes are designed to address emerging threats and ensure that healthcare organizations have robust systems in place to protect patient data from unauthorized access and potential breaches. This blog presents the major changes that are coming soon and how you can prepare for them.

Instead of considering compliance as a one-time effort, with Sentra you can monitor your compliance status at any given moment, streamline reporting, and remediate compliance violations instantly.

How Sentra Can Help You Stay Compliant

Sentra’s data security platform equips healthcare organizations with the necessary tools to stay compliant with the new HIPAA Security Rule amendments. By providing continuous monitoring of ePHI data locations and assessing associated risks, Sentra helps organizations maintain full visibility and control over sensitive data.

Key Benefits of Using Sentra for HIPAA Compliance:

  • Automated Data Discovery & Classification: Instantly locate and classify ePHI across cloud and on-prem environments.
  • Real-time Risk Assessment: Continuously assess vulnerabilities and flag security gaps related to HIPAA requirements.
  • Access Control & Encryption Monitoring: Ensure compliance with mandatory MFA, encryption policies, and access termination requirements.
  • Smart Compliance Alerts: Sentra doesn’t just detect generic cloud misconfigurations. Instead, it pinpoints security issues affecting sensitive data, helping teams focus on what truly matters.

Without a solution such as Sentra, organizations waste valuable time manually searching for and classifying sensitive data, diverting key employees from higher-priority security tasks. With Sentra, security teams gain an ongoing, real-time dashboard that ensures efficient compliance and faster risk mitigation.

What You Need to Know About the Proposed HIPAA Security Rule Updates

The latest proposed updates to the HIPAA Security Rule represent some of the most significant changes in years. These updates aim to modernize data protection practices and ensure healthcare organizations are better equipped to handle today’s security challenges. Below are the key highlights compliance and security teams should focus on:

Mandatory Implementation Specifications
All implementation specifications under the HIPAA Security Rule will become mandatory. Covered entities and business associates must now fully comply with all safeguards—no more "addressable" exceptions.

Stricter Encryption Requirements
Encryption of electronic protected health information (ePHI) will be required both at rest and in transit. Organizations must ensure encryption is in place across all systems handling sensitive data.

Required Multifactor Authentication (MFA)
MFA will become mandatory to protect access to ePHI. This added security layer significantly reduces the risk of unauthorized access and credential compromise.

Network Segmentation for Threat Containment
Organizations must implement network segmentation to isolate sensitive systems and limit the spread of cyber threats in the event of a breach.

Timely Termination of Access
Access to ePHI must be revoked within 24 hours when an employee leaves or changes roles. This reduces the risk of insider threats and unauthorized access.

Comprehensive Documentation Requirements
Healthcare organizations must maintain detailed, up-to-date documentation of all security policies, procedures, risk assessments, and incident response plans.

Asset Inventories and Network Mapping
Annual updates to technology asset inventories and network maps will be required to ensure accurate tracking of where and how ePHI is stored and transmitted.

Enhanced Risk Analysis
Organizations must conduct regular, thorough risk assessments to identify vulnerabilities and assess threats across all systems that interact with ePHI.

Stronger Incident Response Plans
Entities must be able to restore lost systems and data within 72 hours after a cyber incident. Regular testing and refinement of incident response protocols will be essential.

Annual Compliance Audits
Healthcare organizations will be required to conduct annual audits of their HIPAA Security Rule compliance, covering all technical and administrative safeguards.

Mandatory Technical Controls
Technical safeguards like anti-malware tools, firewalls, and port restrictions must be in place and regularly reviewed to protect systems from evolving threats.

What’s Next?

The proposed changes to the HIPAA Security Rule are currently in the Notice of Proposed Rulemaking (NPRM) stage, with a 60-day public comment period that opened on January 6, 2025. During this period, stakeholders can provide feedback on the amendments, which may influence the final rule. Organizations should actively monitor the comment period, engage in the feedback process, and stay informed on any potential adjustments before the rule is finalized.

Steps Organizations Should Take Now:

  • Review the proposed changes and understand how they impact your current security posture.
  • Engage in the public comment process to share concerns or recommendations.
  • Start assessing security gaps to align with HIPAA’s evolving compliance requirements.

Conclusion

The new HIPAA compliance amendments represent a major shift in how healthcare organizations must protect electronic Protected Health Information (ePHI). The introduction of enhanced encryption standards, mandatory multi-factor authentication (MFA), and stricter access control measures means organizations must act swiftly to maintain compliance and reduce cybersecurity risks.

Compliance is not just about meeting regulations, it is about efficiency. Organizations relying on manual processes to locate and secure sensitive data waste valuable time and resources, making compliance efforts less effective.

With Sentra, healthcare organizations gain a powerful, automated data security solution that:

  • Eliminates manual data discovery by providing a real-time, continuous inventory of sensitive data.
  • Prioritizes relevant data security risks instead of overwhelming teams with unnecessary alerts.
  • Ensures compliance readiness by automating key processes like access control monitoring and encryption verification.

Now is the time for healthcare organizations to take proactive steps toward compliance. Stay informed, participate in the public comment process, and start implementing security enhancements today.

To learn how Sentra can help your organization achieve HIPAA compliance efficiently, request a demo today and take control of your sensitive data.

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Yoav Regev
Yoav Regev
April 23, 2025
3
Min Read
Data Security

Your AI Is Only as Secure as Your Data: Celebrating a $100M Milestone

Your AI Is Only as Secure as Your Data: Celebrating a $100M Milestone

Over the past year, we’ve seen an incredible surge in enterprise AI adoption. Companies across industries are integrating AI agents and generative AI into their operations to move faster, work smarter, and unlock innovation. But behind every AI breakthrough lies a foundational truth: AI is only as secure as the data behind it.

At Sentra, securing that data has always been our mission, not just to prevent breaches and data leaks, but to empower prosperity and innovation with confidence and control.

Data Security: The Heartbeat of Your Organization

As organizations push forward with AI, massive volumes of data, often sensitive, regulated, or business-critical are being used to train models or power AI agents. Too often, this happens without full visibility or governance. 


The explosion of the data security market reflects how critical this challenge has become. At Sentra, we’ve long believed that a Data Security Platform (DSP) must be cloud-native, scalable, and adaptable to real-world enterprise environments. We’ve been proud to lead the way, and our continued growth, especially among Fortune 500 customers, is a testament to the urgency and relevance of our approach.

Scaling for What's Next

With the announcement of our $50 million Series B funding round, bringing our total funding to over $100 million, we’re scaling Sentra to meet the moment. We're counting on strong customer momentum and more than tripling revenue year-over-year, and we’re using this investment to grow our team, strengthen our platform, and continue defining what modern data security looks like.

We’ve always said security shouldn’t slow innovation - it should fuel it. And that’s exactly what we’re enabling.

It's All About the People


At the end of the day, it’s people who build it, scale it, and believe in it. I want to extend a heartfelt thank you to our investors, customers, and, most importantly, our team. It’s all about you! Your belief in Sentra and your relentless execution make everything possible. We couldn’t make it without each and every one of you.

We’re not just building a product, we’re setting the gold standard for data security, because securing your data is the heartbeat of your organization!

Innovation without security isn’t progress. Let’s shape a future where both go together!

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