SOC 2 is a widely recognized auditing framework coming from the American Institute of Certified Public Accountants (AICPA) created to ensure that service providers, particularly those acting in the technology and cloud computing fields, manage customer data in a secure manner. SOC 2 compliance provides additional assurance that strong security controls are implemented to protect customer data.
SOC 2 certification can be thought of as a seal of approval showing that a company's data protection measures meet established industry standards. Many organizations adhere to SOC 2 so that they can differentiate themselves in a security-conscious market and build trust with their customers.
SOC 2 compliance code incorporates the criteria and controls that should be implemented for compliance, based on the Trust Services Criteria, including areas such as access controls, system monitoring, and risk management practices. There isn't a single, universal “code,” though - the SOC 2 framework is a broad set of guidelines that proves an organization is committed to data security and privacy.
SOC 2 stands for Service Organization Control 2.
“Service Organization” refers to companies providing services to other organizations.
“Control” refers to the measures/safeguards these companies put in place to ensure data security and compliance.
The “2” is used to distinguish it from SOC 1 (focused on financial reporting), and SOC 3 (a simpler report intended for public use).
SOC 2 helps organizations demonstrate their commitment to data security, availability, and privacy.
SOC 2 compliance is built around the following Five Trust Principles:
A SOC 2 report, the result of a SOC 2 audit, details how an organization meets these principles through its internal controls and processes.
At its heart, SOC 2 compliance is about meeting the Trust Services Criteria (TSC), which are: Security, Availability, Processing Integrity, Confidentiality, and Privacy. These are the foundation for SOC 2 audits that determine how well an organization protects its data and maintains operational integrity.
To be compliant, organizations must have three key components:
The SOC compliance process extends beyond merely putting the components into place, as these need to be constantly monitored and enhanced. SOC 2 Type II reports assess the operational effectiveness of controls over six to twelve months.
The control environment encompasses management's overall attitude, awareness, and actions regarding controls. Risk assessment is another important component that involves identifying and managing risks. Monitoring activities define the process for ongoing evaluation of control effectiveness. Control activities consist of specific measures taken to address identified risks. Communication and Information defines the proper methodology for communicating important information to employees - including how risks, incidents, and control measures are managed.
Organizations that attain SOC 2 compliance enjoy several notable benefits, and what this means is that they gain enhanced trust and reliability in their services.
1. Better Security: SOC 2 requires organizations to implement strong security controls such as access management, encryption, and incident response. These prevent unauthorized access, reduce vulnerabilities, and defend against attacks like ransomware.
2. More Customer Trust: SOC 2 compliance is a trust badge. Customers, especially those found in industries like finance, healthcare, and cloud services, will choose service providers that can prove their data is protected.
3. Competitive Advantage: SOC 2 compliance is a requirement for doing business in many industries. Some customers require their service providers to meet strict endpoint security standards, and being compliant can help organizations win contracts that would otherwise be out of reach.
4. Simplified Compliance: SOC 2 compliance overlaps partially with other frameworks like ISO 27001 and NIS2. Once it becomes compliant, an organization can also meet other regulations faster and with less effort.
5. Better Internal Processes: A SOC 2 compliant organization is required to document procedures. It also assesses risks on a regular basis and maintains ongoing monitoring. All these practices lead to better risk management and more efficient business operations.
In conclusion, why is SOC 2 compliance so important for business? The modern world is becoming increasingly more data-driven and compliance offers a clear path to projecting trust, reducing risk, and proving to everyone that an organization is really serious about data protection. It provides evidence that a company has invested in protecting its customers' data, which is essential for business success and longevity in a competitive market.
SOC 2 compliance sounds great in theory, but what exactly is its real-world impact? Let's go through some real-life examples:
Reports are for service organizations that store, process, or transmit customer data:
Some industries that need compliance more than others are: Healthcare - for patient data protection and HIPAA compliance; Finance - for sensitive financial information and customer trust; E-commerce - for customer payment information and personal data to prevent fraud; Legal Services - for client confidentiality, legal documents and communications; and Education - for student records and FERPA compliance.
SOC 2 is technically not mandatory. It's a voluntary framework created by the American Institute of Certified Public Accountants (AICPA) to offer service organizations guidelines for data security. In practice, though, client contracts and industry expectations make it “not optional”. Let’s explore why this compliance is often considered necessary to stay competitive.
Since it's so widely adopted, it's a practical requirement for businesses that handle sensitive data, especially those that want to be credible and meet industry expectations. Before deciding to invest in compliance, it is good practice for businesses to carefully consider both their needs and client requirements, so that they can decide if there is an opportunity in this process.
To be compliant, you need to implement a combination of technical and procedural controls that address the five Trust Services Criteria (TSC):
On top of these criteria:
How do you get ready for compliance?
You can use this checklist for guidance on the specifics of the process:
And remember:
A compliance audit is a full assessment of your systems and controls and the goal is to make sure that you meet the Trust Services Criteria (TSC) of the American Institute of Certified Public Accountants (AICPA).
The main goals of a SOC 2 audit are:
An audit will review your policies, procedures, and technologies such as: access management and encryption, disaster recovery plans, incident response and system monitoring, and data handling.
The two types of SOC 2 audits are:
For Type II audits, this includes ongoing monitoring to ensure controls remain effective during the audit period.
These audits must be performed by licensed Certified Public Accountants (CPAs) or CPA firms accredited in information security and the AICPA's attestation standards. They are often referred to as "service auditors".
In addition to the CPA, audit firms may have IT professionals who help evaluate the technical aspects of the organization’s controls, such as system monitoring and data encryption, however the final report and validation must come from the CPA to ensure the audit is objective and credible.
A third-party professional assessment is used to build trust with clients, partners, and regulators who require SOC 2 reports in order to verify that you meet industry security requirements. This can provide a full and objective review of your data protection practices so stakeholders are confident in your services.
Both Type 1 and Type 2 evaluate compliance with the Trust Services Criteria (TSC) - however, scope, duration, and purpose are not the same.
It is generally considered that Type 1 is a good starting point for new organizations to show control design. Type 2 is better for organizations with mature security programs. A Type 2 report is a full audit of an organization’s internal controls over a specific period of time (usually 6 to 12 months). It looks at not only the design of the controls but also how they operate over time. Type 2 gives clients and stakeholders more assurance, showing that an organization’s security controls are working consistently and effectively during the audit period.
Aspect |
SOC 2 Type 1 |
SOC 2 Type 2 |
Scope |
Assesses the design of controls |
Evaluates the design and the controls' operational effectiveness |
Time Frame |
Single point in time (snapshot) |
Typically, 6 to 12 months |
Focus |
Design suitability of controls |
Design suitability and operating effectiveness of controls |
Comprehensiveness |
Reduced |
Rigorous |
Evidence Collection |
Limited to design review |
Extensive testing and evidence gathering over time |
Confidence Level |
Moderate |
Reduced |
Typical Use Cases |
Initial compliance efforts, newer organizations |
Established security programs, organizations requiring long-term assurance |
Client Preference |
Less preferred by clients |
More preferred due to the higher level of assurance |
Main differences:
The Service Organization Control (SOC) framework has three types of reports and each is designed for a different purpose, audience, and scope:
Aspect |
SOC 1 |
SOC 2 |
SOC 3 |
Focus |
Financial reporting controls |
Security, availability, processing integrity, confidentiality, and privacy |
Same as SOC 2 but summarized |
Primary Audience |
User entities and auditors |
Management, regulators, business partners, and customers |
General public |
Detail Level |
Detailed |
Highly detailed |
High-level summary |
Scope |
Financial controls |
IT and data security controls |
Same as SOC 2 but less detailed |
Distribution |
Restricted |
Restricted |
Unrestricted |
Typical Users |
Financial service providers |
Technology companies, cloud service providers, data centers |
Public marketing or assurance purposes |
SOC 1 (which stands for Service Organization Control 1) is about an organization's internal controls over financial reporting. It ensures financial information is secure and accurate. It's critical for service organizations like payroll processors or loan servicing companies. SOC 1 looks at how a service organization's internal controls impact its clients' financial reporting. Primarily used by organizations whose services impact their clients' financial audits.
SOC 2 is broader in scope. It's about the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. It's mostly used by technology and cloud service providers to prove they protect sensitive data and have strong IT security controls.
The main differences between SOC 2 and SOC 3 are the level of detail, audience, and distribution. SOC 2 provides a detailed evaluation of a service organization's systems and controls, for management, regulators and business partners who need deep information. These reports are restricted and shared only under NDA (non-disclosure agreement). SOC 3 provides a summary of the same information for the general public. SOC 3 reports are publicly available and often used for marketing or public assurance purposes.
Note the difference between SOC Type 2 and SOC 3: SOC 1 and 2 reports are a detailed audit that evaluates the operating effectiveness of controls over a period of time (usually 6 to 12 months). SOC 3 is a high-level summary of SOC 2. It is a public facing document that demonstrates that an organization meets security standards without revealing the audit details.
SOC 2 compliance can be considered a complex and time-consuming project by most organizations that are only starting out. There are certain common challenges and below are some best practices on how to overcome them:
As a SOC 2 Type 2 compliant company, Bitdefender understands the strict requirements and provides tools suitable for all five Trust Principles: Security, Availability, Confidentiality, Processing Integrity, and Privacy.
GravityZone Business Security Enterprise offers a single platform for preventing, detecting, and responding to threats across endpoints, networks, and cloud environments. Through advanced threat protection capabilities, it supports the Security and Availability principles - protecting against unauthorized access and ensuring system uptime.
For organizations dealing with sensitive customer data, GravityZone Full Disk Encryption maintains data confidentiality through strong encryption management, aligning with the Confidentiality principle and helping to protect personally identifiable information (PII).
GravityZone Integrity Monitoring can prevent unauthorized changes to systems and files, ensuring their integrity is not compromised.
GravityZone Patch Management automates patching, addressing vulnerabilities promptly and supporting the Security principle by keeping systems up to date. Combined with GravityZone Risk Analytics, organizations can continuously monitor their security posture. They can identify and mitigate technical vulnerabilities and risky user behaviors, which is vital for maintaining Processing Integrity and Privacy.
To meet strict monitoring and reporting requirements, GravityZone's centralized management console offers broad visibility and control. This facilitates audits and simplifies SOC 2 reporting.
Bitdefender offers advanced detection and protection solutions like Endpoint Detection and Response (EDR), Extended Detection and Response (XDR), and Managed Detection and Response (MDR). GravityZone EDR and GravityZone XDR provide comprehensive detection and response capabilities across multiple layers, from endpoints to networks, and cloud environments, aligning with the Security and Processing Integrity principles of SOC 2. Bitdefender MDR enhances these capabilities by offering 24/7 monitoring through global Security Operations Centers (SOCs), where expert analysts detect, analyze, and respond to both internal and external threats.
GravityZone CSPM+ can review your cloud risks, identify cloud threats, and provide compliance mapping for various standards, including SOC 2.
There indeed are various alternatives to SOC 2. ISO 27001 is a popular standard for building secure systems. It is more rigid and has detailed guidelines. PCI DSS (Payment Card Industry Data Security Standard) is considered vital for businesses that handle credit card data. HIPAA (Health Insurance Portability and Accountability Act) is followed by healthcare organizations in order to protect personal health information, while NIST (National Institute of Standards and Technology) Cybersecurity Framework is used especially by U.S. organizations.
Often confused, SOC (Service Organization Control) and SOX (Sarbanes-Oxley Act) compliance are not the same. The first one is focused on protecting IT systems and data security - it ensures safe management of customer information. SOX is about financial reporting. It was introduced to stop financial fraud and helps define financial controls and transparency of publicly traded companies.
ISO 27001 is an international standard providing a prescriptive framework for creating an Information Security Management System (ISMS). The main difference is in their approach to security. The first one tells companies exactly what steps to follow to protect their data, including specific policies and risk assessments. SOC 2 is more flexible and allows companies to choose how they want to secure their systems based on broad guidelines. ISO 27001 is often used worldwide and is suitable for any company, while SOC 2 is commonly used by service providers to show clients their data is safe.
Please be advised that it is entirely your responsibility to check your compliance with any piece of legislation, including SOC2, and by presenting the above information Bitdefender expressly disclaims any and all liability regarding your compliance with SOC2 and your conduct in relation to SOC2 or any other legal requirements you may be subjected to. For the avoidance of any doubt, by using Bitdefender Solutions, including GravityZone, Bitdefender does not warrant in any way your compliance to any piece of legislation, including SOC2. The above does not represent legal guidance and you are encouraged to seek legal advice with respect to the above or any other legal related topic.