February 13, 2023

What is SOC 2 Type 2 and why does it matter?

System and Organisation Control (SOC) is a framework developed by the American Institute of Certified Public Accountants (AICPA) to help auditors assess the effectiveness of an organisation’s security protocols.

# Insights
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What is SOC 2 Type 2?

System and Organisation Control (SOC) is a framework developed by the American Institute of Certified Public Accountants (AICPA) to help auditors assess the effectiveness of an organisation’s security protocols.

SOC 2 assesses whether a service provider’s processes meet specific criteria for managing customer data based on five trust service principles – security, availability, processing integrity, confidentiality, and privacy.

There are two types of SOC 2 compliance reports. The first, Type 1, describes a solution provider’s systems and whether their design meets relevant trust principles from a specified date. The second, Type 2, details the operational effectiveness of those systems over a specified period, typically 3-12 months.

Why does SOC 2 Type 2 matter?

SOC 2 Type 2 is considered one of the most in-depth and rigorous compliance frameworks. Conducted by external auditors, it provides an independent, third-party report. The report gives customers, regulators, business partners, and suppliers confidence that the solution provider they are engaging with has effective security measures for managing data.

The audit provides evidence that a solution provider has fulfilled its security obligation and established the necessary internal policies, procedures, and practices in place to protect sensitive data. While SOC 2 is not a legal requirement, many businesses and investors consider it a prerequisite for doing business.

How does Data Zoo’s SOC 2 Type 2 certification benefit my business?

At Data Zoo, we regularly conduct audits to ensure we follow best practices for information security, meet each of the five trust principles and maintain SOC 2 Type 2 compliance across all services we provide.

Businesses can benefit greatly from working with a SOC 2 Type 2 compliant partner, like Data Zoo. To achieve this attestation, a solution provider must implement and apply the best practices in data security. These practices result in security assurance, reputational protection, and streamlined regulatory compliance for your business.

A data breach can bring your operations to a halt and cause significant downtime, costing your business money and impacting customer retention. However, businesses that understand the value of SOC 2 Type 2 can make informed decisions throughout the vendor selection process and future-proof their operations.

The Data Zoo difference

In today's digital landscape, organisations face the challenge of meeting expanding privacy regulations and increasing end-user expectations for data handling transparency.

At Data Zoo, we place privacy and security at the core of our products, infrastructure, and policies. Our ecosystem is certified and adheres to the world's highest industry standards and regulations. This allows you to engender customer trust in your brand by ensuring data transparency, protection, privacy, and ownership.

This blog is a part of our in-depth series exploring compliance in the identity verification industry. Discover how to keep your customers' privacy safe, reduce risk, and create a positive customer onboarding experience.

Ready to learn more? Download our Privacy-First Guide to User Onboarding for a comprehensive look at privacy best practices.

Data Zoo puts privacy and security at the core of our products, infrastructure, and policies.

Get in touch to see what Data Zoo can do for you