Data security is paramount for handling the sensitive information involved in Beneficial Ownership Information (BOI) reporting. The type of information collected for each Beneficial Owner (i.e. individuals who directly or indirectly own or control your company) is highly sensitive and can expose owners and companies to extreme risks if mishandled. Because of this, it is extremely important to ensure that your company is using the right solution to file your report and prevent the data from falling into the wrong hands. Unfortunately, many of the current methods for BOI reporting leave much to be desired in terms of data protection. That's where OwnerFile comes in, offering an unparalleled security edge.
What Information Is Required from Beneficial Owners on a BOI Report?
Beneficial owners must report:
Individual’s name
Date of birth
Residential address
An ID# from an acceptable ID document (passport, U.S. driver’s license, etc, and name of issuing state or jurisdiction of the ID document)
An image file of that identifying document which is not expired
What are Some Issues with Current Methods of BOI Reporting in Terms of Security?
Many current BOI filing approaches involve manual, paper-based processes or basic less secure digital systems. These methods pose significant risks:
Vulnerability to Physical Damage or Loss: Paper documents are susceptible to damage or loss, posing a risk to the integrity of sensitive information.
Limited Security Measures: Traditional digital systems may lack advanced security protocols, leaving data exposed to breaches. They do not adhere to best practices in cybersecurity and data privacy and do not ensure that data is encrypted during transmission.
Human Error: Manual data entry and management increase the likelihood of errors, compromising data accuracy and security.
What are OwnerFile’s Advanced Security Features for Beneficial Ownership Information Reporting?
OwnerFile addresses these concerns head-on with its robust security framework. We are launching with an initial Alpha version of our system that is still intended to be more secure than almost any other offering in the market. The Alpha tool will be leveraging two platforms that are both ISO, SOCII, and GDPR compliant, as well as providing encryption for the data throughout the process. But our flagship tool, which will be ready for release in just a few short months, will have an even stronger security profile:
End-to-End Encryption: OwnerFile will use end-to-end encryption to protect data both in transit and at rest. This means that your data is encrypted from the moment it’s entered into the system until it reaches its destination, making it virtually inaccessible to unauthorized parties.
Secure Data Storage: Data will be stored on AWS servers, utilizing the highest possible data protocols. It’s the same server setup used by companies from Nasdaq to Netflix. These servers are monitored round the clock to prevent unauthorized access and data breaches.
Multi-Factor Authentication (MFA): To access the OwnerFile system, users will have to pass through multiple layers of authentication. This might include text messages or third-party authentication tools, ensuring that only authorized personnel can access sensitive information.
Regular Security Audits: OwnerFile will conduct annual security audits to identify and rectify potential vulnerabilities. This proactive approach keeps the platform’s security measures up to date with the latest standards and threats.
Compliance with Data Protection Regulations: OwnerFile will be designed to be compliant with ISO, SOCII, and GDPR standards, ensuring that our data handling practices meet the strictest protocols.
Comparing OwnerFile with other Beneficial Ownership Information methods
When compared to traditional BOI filing methods, the advantages of OwnerFile’s security features are clear:
Risk Mitigation: While paper-based methods are prone to physical risks, OwnerFile’s digital platform mitigates these risks through secure, encrypted storage.
Enhanced Data Privacy: OwnerFile’s encryption and secure servers offer a higher level of data privacy than most traditional digital systems.
Reduced Human Error: Automation and streamlined processes in OwnerFile reduce the chances of human error, enhancing both data accuracy and security.
The Impact of Superior Data Protection
The benefits of OwnerFile’s advanced security features extend beyond mere compliance:
Building Trust with Stakeholders: Demonstrating a commitment to data security helps build trust with your owners, managers, and regulatory bodies.
Peace of Mind: Knowing your sensitive data is well-protected allows you to focus on other aspects of your business.
Future-Proofing Your Business: As cyber threats evolve, having a system like OwnerFile ensures you’re prepared for emerging security challenges.
Choose Ownerfile to Guarantee your Beneficial Ownership Reporting Information is Secure
In an era where data breaches are increasingly common, having a secure system for managing BOI filings is not just a luxury; it’s a necessity. OwnerFile stands out with its advanced security features, providing small business owners with a reliable, secure, and efficient way to manage their compliance needs. By choosing OwnerFile, you’re not just complying with regulations; you’re also protecting the very backbone of your business—its data.
With OwnerFile, rest assured that your sensitive information is in safe hands, allowing you to navigate the complexities of BOI filings with confidence and security.
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