The CMMC Compliance Certification is the Department of Defense’s way of ensuring that organizations are capable and adequately equipped to protect the kind of Controlled Unclassified Information (CUI) they collect and store. The solution for compliance with CMMC may be easier than you think.

As technology continues to improve and AI-assisted attacks proliferate, data security comes to the forefront. In response, companies are seeking to improve their data protection strategies beyond what has been available. This is especially true as it relates to CMMC requirements. As we’ve seen through recent attacks on secure information, these improvements are necessary for companies looking to stay one step ahead of security attacks.

In July 2024, AT&T suffered a massive data breach affecting 73 million customers. This incident highlights the ongoing vulnerability of large telecommunications companies to cyber attacks and the need for stronger data protection measures.

In May 2024, Dell experienced a significant cyberattack that potentially affected 49 million customers. The attack went undetected for nearly three weeks, raising concerns about Dell's cybersecurity practices.

Data breaches are not limited to large companies; in fact, 46% of all cyber breaches impact businesses with fewer than 1,000 employees (StrongDM). These data breaches show us that most sensitive data is at risk of being accessed and leaked. So how do you prevent these data leaks and help to protect CUI as mandated by CMMC?

CMMC Compliance can help with that – and FenixPyre helps companies get there faster and more affordably.

Table of Contents

• What is CMMC or the Cybersecurity Maturity Model Certification?

• Why is CMMC important?

• Who needs CMMC Certification?

• Understanding CMMC Certification Levels

• More About CUI

• CMMC Compliance FAQs

What is CMMC or the Cybersecurity Maturity Model Certification?

The CMMC Compliance Certification is the Department of Defense’s way of ensuring that organizations are capable and adequately equipped to protect the kind of Controlled Unclassified Information (CUI) they collect and store.

CMMC is a structure of compliance levels that helps the government determine how capable an organization is to secure vulnerable or controlled unclassified information based on the CMMC certification requirements.

The CMMC compliance certification was announced by the Department of Defense in 2019 and applies to all companies in the defense industrial base (DIB). However, CMMC 2.0, a newer version, was released in November 2021. The CMMC 2.0 compliance levels are precise, therefore organizations can determine where they best fit within the levels to maintain national security protocols.

Check out this useful CMMC guide to help with CMMC compliance.

Why is CMMC important?

As hackers become more sophisticated in their pursuit of secure information, organizations must be knowledgeable about how to protect and secure the CUI they possess.

The CMMC compliance requirements check how capable an organization’s cybersecurity standards are in protecting the sensitive government information they hold. CMMC certification requirements look beyond firewalls and access systems that are necessary but do not encompass enough protection to satisfy the requirements.

The CMMC guidelines ask critical questions:

• How credible is the staff regarding espionage or sabotage?

• What about the work culture and ethics of the organization?

• Beyond having comprehensive knowledge of their data protection, are they actively optimizing and improving their data protection strategies to combat the cyber threat?

Performing a CMMC compliance self-assessment can help you understand where your business currently falls in the process. The checklist gives a clear direction in what organizations should be doing to protect CUI within their level of vulnerability. As an organization that holds access to CUI and values your business with the DoD, you should seek a CMMC compliance certification and continue to increase your level of data security.

Who needs CMMC Certification?

The DoD requires all organizations that work as prime contractors or subcontractors to have a CMMC certification. These cybersecurity standards ensure a more collaborative relationship and minimize any barriers to complying with DoD requirements. If you are working with an MSP or other outsourced IT services, they too will have to demonstrate compliance and can be a key partner as you work toward certification.

The DoD is the largest employer in the world, with a total of over 2.87 million employees. This figure is even larger when considering the DoD’s partnership with defense organizations.

Since the Department of Defense works with a variety of prime contractors, CMMC certifications come in multiple levels, depending on how vulnerable each organization’s data is. The more vulnerable the secured information is, the higher the requisite CMMC compliance certificate and mandatory practices that must be put in place.

A CMMC Certification is a great way to show that your organization is serious about cybersecurity and data protection. With this advanced level of compliance, your clients, partners, and vendors will know that you have the resources to offer data protection measures that follow a strict protocol of security.

Understanding CMMC 2.0 Certification Levels

CMMC 2.0 is the second revision of the CMMC initiative and the one you should pay attention to. Released in November 2021, the new program focuses on cutting costs for SMBs and keeping cybersecurity requirements in tandem with federal requirements and back to pure NIST SP 800-171 controls. The DoD reshaped CMMC to prioritize security throughout the DoD supply chain. This new approach remains accessible to smaller companies and is made up of maturity processes as well as cybersecurity best practices.

Most significantly, CMMC 2.0 reduced the levels of compliance to three.

• Level 1 (Foundational): This level is for FCI-focused (information not intended for public release) companies and represents basic cyber hygiene. The criteria for getting certification at this level are the 15 controls in FAR 52.204-21, focus on the protection of FCI, and Basic Safeguarding of Covered Contractor Information. Annual self-assessments will also be required. Data protection is an important component at Level 1.

• Level 2 (Advanced): This level applies to CUI-focused companies. Level 2 reflects the 110 security controls and 14 levels established by the National Institute of Technology and Standards (NIST) for CUI protection and the implementation of safe practices, this aligns with NIST SP 800-171. Data security is critical for Level 2.

• Level 3 (Expert): This level will incorporate all 110 controls from NIST SP 800-171 (which are also required for Level 2) plus a subset of controls from NIST SP 800-172, however, the specific subset of NIST SP 800-172 controls to be included is still under development by the DoD. One main difference for Level 3 certification – it will require a government-led assessment conducted by the Defense Contract Management Agency (DCMA) Defense Industrial Base Cybersecurity Assessment Center (DIBCAC), rather than a third-party assessment. The DoD estimates that less than 1% of defense contractors will require CMMC Level 3 certification. Data security is imperative at Level 3.

The Department of Defense (DoD) anticipates that CMMC requirements will begin appearing in contracts in Q1 2025 and will be a phased approach. CMMC 2.0 compliance takes time, but key new technology for data security, like FenixPyre, gives you a significant jumpstart on compliance for every level.

More About CUI

To understand the certification levels and where your organization falls, you must be able to determine whether your organization deals with CUI. Controlled Unclassified Information (CUI) refers to any information that needs to be safeguarded or controlled according to relevant laws, Executive Order 13526, or the Atomic Energy Act.

Former President Barack Obama created the CUI program by Executive Order 13556. The goal was to create a streamlined method for safeguarding and sharing information through strict security controls. The Information Security Oversight Office (ISOO) serves as the Executive Agent (EA) of the National Archives and Records Administration (NARA). This makes the EA responsible for overseeing the CUI program.

Information classified under CUI includes health-related information, patents, and budgetary and technical data. At all stages of information security, the CMMC’s cybersecurity requirement remains essential to any organization.

In addition, file encryption is essential for safeguarding CUI in regard to CMMC compliance. It encodes data into an unreadable format only accessible with a decryption key. The protection of CUI is mandated by government regulations, making file encryption important for organizations managing this type of data. Incorporating file encryption into their security strategy shows commitment to putting CUI protection first and achieving CMMC compliance.

How to do a CMMC Assessment

The CMMC 2.0 assessment is completed with the assistance of a certified third party. If the assessor determines that you meet all the requirements for that level of certification, then you will be certified.

Measuring yourself against the CMMC certification requirements is no easy task. In February 2022, the Deputy DoD CIO David McKeown said that based on the Department’s analysis of DoD contractors, “the CMMC 2.0 changes mean about 140,000 defense contractors that handle less sensitive “federal contract information” will only need to submit a self-assessment of their cybersecurity policies to comply with CMMC Level One requirement. However, all 80,000 contractors handling CUI will require third-party assessments.” This is why CMMC support is crucial. CMMC compliance support helps you understand the weaknesses in your system and how best to improve them to meet contract requirements.

They also help you understand the breakdown of CMMC compliance costs in time. You may also engage CMMC compliance software to provide training on any of the requirements that you fall short of.

The CMMC compliance certification is a welcome development for helping organizations plan to secure data safely. This certification has also become the ticket to DoD contract awards. Though the new NIST CMMC compliance has yet to be fully implemented, companies can begin to work with FenixPyre as a guide.

FenixPyre can help you satisfy many components of CMMC compliance using simple and cost-effective technology that addresses access control, data protection at rest, in transit, and during sharing and collaboration, and forensic logging for reporting. It does not affect your workflows and is invisible to end users.

CMMC Compliance FAQs

What is CMMC Compliance?
CMMC Compliance stands for Cybersecurity Maturity Model Certification and is a framework designed by the Department of Defense (DoD) to ensure that organizations taking on federal contracts protect sensitive information from malicious cyber threats.

How does CMMC Compliance work?
The CMMC model consists of three distinct maturity levels with corresponding control requirements, ranging from basic preventive measures aimed at safeguarding data to more advanced cybersecurity practices such as continuous monitoring and auditing. Organizations intending to take on DoD contracts must be certified according to the appropriate level depending on the nature of the contract they are pursuing.

Who needs to meet CMMC Compliance standards?
Any organization applying for a contract with the Department of Defense must demonstrate compliance with the relevant level of CMMC Certification before being considered for the project. Keep in mind this also applies to subcontractors as well.

How do I obtain CMMC Certification?
Obtaining certification under this framework requires organizations to assess their cybersecurity posture against the applicable maturity level’s controls and provide evidence that proves their compliance with all required measures and best practices recommended within each standard’s domain areas (e.g., access control, media protection). Organizations that need higher than Level 2 must engage a third-party auditor certified by DoD to obtain independent assessment and verification of their security posture against specific maturity level criteria set out in the framework.

What risks are associated with not meeting CMMC Compliance standards?
Beyond the loss of ability to gain government contracts, companies may face cybersecurity gaps, which can lead to threats or risk organizational reputation damage, financial losses due to decreased sales, or potential civil litigation resulting from data breaches or other cyber incidents caused by insufficient security safeguard measures in place at your organization/clients’.

Are there any tools available that can help me achieve CMMC Compliance?
Yes – several commercial tools have been developed specifically for helping companies audit, assess, and manage their security posture against any given level within this maturity model (CMMC Level 1 through 3). Additionally, many traditional IT management tools, such as log analytics solutions or vulnerability scanners, have been adapted to assess risk across multiple domains as required by this regulatory compliance scheme. These tools and platforms will help illustrate gaps. Since data security is such a critical area for CMMC, seek out solutions that will help protect your data no matter where it ‘lives’ or how it is used or stored, has the ability to encrypt data without being a burden to your users, and allows you to operate ‘business as usual’ without modifying your workflow or operational processes.

Are there any resources available that explain how to implement these controls?
Yes – There are multiple sources available online that provide guidance on how to implement different control measures as per each specific level’s criteria within this framework; such documents typically include detailed recommendations regarding technical implementation steps needed in order to achieve full compliance status according to the criteria established by DoD’s Cybersecurity Maturity Model Certification (CMMC) program stated objectives/purposes.

Learn how FenixPyre can quickly and cost-effectively accelerate your journey to CMMC 2.0 compliance.

Working as a contractor for the Department of Defense (DoD) can be a rewarding and lucrative path. However, in order to reap these rewards, you will have to first comply with the Cybersecurity Model Maturity Certification (CMMC) framework, which is overseen by the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD-A&S). Achieving CMMC 2.0 compliance is no easy feat. It requires strict adherence to several layers of requirements, all of which are analyzed by an official CMMC assessment performed by an accredited CMMC Third Party Assessment Organization (C3PAO).

In this guide to CMMC compliance, we’ll walk you through the highlights of CMMC and the many traps contractors can fall into during the assessment process.

What Does It Mean to Be CMMC 2.0 Compliant?

Intellectual property and sensitive data theft are national security issues that cost the U.S. economy billions of dollars every year. Many of these attacks happen throughout the Defense Industrial Base (DIB) supplier base. In response, the DoD has established numerous security measures and frameworks over the years. The Cybersecurity Maturity Model Certification (CMMC) is a key framework designed to enhance the protection of Federal Contract Information (FCI) and Controlled Unclassified Information (CUI) within the DIB.

Key Data Types Protected under CMMC 2.0

• Federal Contract Information (FCI): Information not intended for public release, generated by or for the government under contract.

• Controlled Unclassified Information (CUI): Information that must be protected from unauthorized disclosure according to laws and regulations, such as International Traffic in Arms Regulations (ITAR) data.

Benefits of CMMC 2.0 Compliance

CMMC compliance helps ensure the robust protection of CUI through compliance requirements across various domains. Being CMMC compliant makes an organization a preferred contractor for the DoD and other government branches. Additional benefits include eligibility for Safe Harbor provisions, which protect certified entities from certain penalties and audits. Companies are encouraged to conduct a self-assessment to understand their readiness for certification, evaluating policies and practices against the framework's levels and domains.

Understanding the CMMC 2.0 Framework

CMMC 2.0 simplifies the original CMMC structure, focusing on streamlining the certification process and reducing the burden on DIB companies. The updated model categorizes requirements into fewer levels:

• Level 1: Basic safeguarding of FCI.

• Level 2: Aligns with NIST SP 800-171 to protect CUI, serving as the necessary certification level for most contractors.

• Level 3: Designed for companies handling highly sensitive defense projects, requiring advanced cybersecurity measures.

Each level provides a scalable approach to cybersecurity, ensuring contractors meet specific security requirements based on the sensitivity of the information they handle. Data security related to CUI is critical to address at all levels.

Next Steps in Achieving CMMC 2.0 Compliance

While self-assessment is a valuable starting point, it does not guarantee compliance. A deeper understanding of the CMMC 2.0 framework, its requirements, and the certification process is crucial. Contractors should aim to integrate cybersecurity practices as specified for their required CMMC level, preparing for assessments and potential audits to maintain compliance. CMMC 2.0 represents a critical step towards securing the DIB against evolving threats and ensuring the integrity and security of defense information.

Domains of CMMC 2.0

CMMC 2.0 consists of 17 domains, each representing a distinct set of security practices to safeguard FCI and CUI. These domains are derived from Federal Information Processing Standards (FIPS) 200 and NIST SP 800-171, with three additional domains: Asset Management, Recovery, and Situational Awareness. The domains include:

• Access Control (AC): Restrictions on data access.

• Asset Management (AM): Identification and management of assets.

• Audit and Accountability (AU): Ensuring traceability of activities.

• Awareness and Training (AT): Providing cybersecurity awareness.

• Configuration Management (CM): Maintaining system standards.

• Identification and Authentication (IA): Managing roles and access rights.

• Incident Response (IR): Reporting and managing incidents.

• Maintenance (MA): Regular system maintenance.

• Media Protection (MP): Safeguarding digital and print media.

• Personnel Security (PS): Security protocols for personnel changes.

• Physical Protection (PE): Restricting physical access.

• Recovery (RE): Systematic data backups.

• Risk Management (RM): Assessing potential risks.

• Security Assessment (CA): Evaluating security measures.

• Situational Awareness (SA): Threat monitoring.

• System and Communications Protection (SC): Communication security.

• System and Information Integrity (SI): Identifying and rectifying weaknesses.

Processes and Practices in CMMC 2.0

Achieving compliance with CMMC 2.0 involves integrating processes and practices for building resilient cybersecurity infrastructure:

• Level 1: Basic Cyber Hygiene.

• Level 2: Intermediate Cyber Hygiene.

• Level 3: Good Cyber Hygiene.

This streamlined structure focuses on essential practices for defense contractors to meet cybersecurity requirements.

Potential Pitfalls of CMMC 2.0 Compliance Assessment for Contractors

Passing the CMMC 2.0 audit is challenging. Here are common issues:

1. Open items on a Plan of Action and Milestones (PoAM): Unlike NIST 800-171, CMMC does not accept open PoAM items. Close all items before assessment.

2. Overshooting Your Target Level: Only pursue the certification level needed. Most contractors require Level 2 certification.

3. Cloud Confusion: Ensure everyone understands cloud security, especially given the remote work environment. Levels 2 and 3 require stringent cloud security measures.

4. Incomplete Policies and Procedures: Make sure all policies are complete, consistent, and fully implemented to avoid red flags.

Self-assessment is invaluable, but achieving CMMC compliance can be complex. FenixPyre is a CMMC and NIST SP 800-171 compliance solution that can ease the process, satisfying critical requirements.

Even though breaches are happening more frequently now, it is clear that businesses are still not adequately prepared for them. It is crucial to have secure file sharing for business documents, customer information, and SaaS data. Businesses have adopted products like Box and Sharepoint, for example, for the incredible ease of access and workflow. Ensuring data files are secure no matter how they are shared internally and externally is an important consideration for keeping your critical assets safe and covering compliance requirements. But when you need to share these valuable resources with others, especially when utilizing cloud or hybrid cloud, how can you do so without compromising your organization’s security?

Table of Contents

• 6 Recommended Ways to Share Your Files Securely

• Encrypt a File

• Use a Password Manager & Enable 2FA

• Adopt an Integrated File-Sharing Software

• Opt for a Robust and Simple File-Sharing System

• Adopt Secure Cloud Services

• Use End-to-End Encryption

File Encryption Software and How it Protects Sensitive Data?

• Working With Encryption Software

• What Types of Businesses Can Benefit from File Encryption?

Most Popular Types of File Encryption to Share Data

• Advanced Encryption Standard (AES)

• Triple DES (Data Encryption Standard)

• Rivest-Shamir-Adleman (RSA)

• Twofish

How Secure File Encryption Can Save You from Costly Consequences?

• Save You from Regulatory Fines

• Increase Consumer Trust

• Promotes Data Integrity

Find Out How to Share Your Files Securely with FenixPyre

6 Recommended Ways to Share Your Files Securely in the Cloud

"Protecting personal data is crucial whether you’re an individual or a business."

Your business deals with sensitive data regularly, whether it’s customer financial or healthcare information, your company’s IP, your customer list, or trade secrets specific to your sector. According to statistics on data breaches, money is a major driving force behind hackers’ desire to obtain data, and personal information is one of the most valuable types of data to infiltrate.

According to IBM’s Cost of a Data Breach Report, the average cost of a data breach is $4.88 million, a 10% increase from the previous year. Businesses of any size can be affected. In light of these findings, engaging in proactive data security is critical but has been difficult to implement until now.

Security during file transfers and while in use is essential for safeguarding your customers, your organization, and the reputation of your business. Securely sharing sensitive files can be accomplished by using tools such as FenixPyre. It assembles transparent protection into the individual files themselves, so they become self-protecting, allowing businesses to work unhindered without sacrificing security.

Let’s dive in to see how to safely secure files.

Let me know if you would like me to continue with the full detailed content for each recommended way to securely share files, or if there's another specific section you need first.

Encrypt a File

Encryption is the best method for securely sharing files. This means the file becomes unreadable until it’s decrypted. Only those with the encryption key can access it. Therefore, file encryption is a great way to ensure that your data is safe, even if it falls into the wrong hands.

Even though you may already have several security precautions (including encryption) in place when you upload files to the cloud, it is still preferable to encrypt them locally first (via disk-based encryption).

Usually, encryption takes place at two levels: full disk encryption and file-based encryption. The latter fills the gaps where disk encryption lacks. File-based encryption encrypts discrete files rather than the whole disk, providing an additional layer of security that requires a dedicated effort to crack. You can safely encrypt files and folders with various file encryption software and tools.

Encrypt your data before moving it online. Whether you are transferring data to a backup storage drive or uploading it to the cloud, you must ensure it is encrypted so no unauthorized source can access it.

Use a Password Manager & Enable 2FA

While encrypting files or keeping them on cloud storage services, make sure to use strong passwords that cannot be easily cracked. However, it might be difficult to remember a strong or complex password for every file or folder, so using a password manager ensures robust security.

Apart from strong passwords, enhance your security by protecting your files with two-factor authentication (2FA). It’s a basic element of a zero-trust model. A next-gen security model has evolved by building security with data on an end-to-end model, using a combination of 2FA and attribute-based access control to ensure users can use data in your control but as needed.

Adopt Integrated File-Sharing Software

A good integrated file-sharing solution seamlessly integrates with your existing business application suite, allowing for smooth team communication. These solutions tend to be more robust than standalone file-sharing platforms because they’re built on top of existing networks and infrastructure.

Adopting an integrated file-sharing tool is one of the best ways to protect your data from cybercriminals. It prevents unauthorized users from receiving files, as everyone on the team has a dedicated user account.

Opt for a Robust and Simple File-Sharing System

Leveraging advanced technologies within your organization is a good idea, but technology comes with cyber attack risks. Protect your data and transfer it using a simple and secure file-sharing system that fits your workflows. If the file-sharing service is difficult to use, there’s a risk your data could get lost or become difficult to recover.

Always use a simple, turnkey, low-cost system to achieve state-of-the-art data security. These newer systems have shifted from complex infrastructure security to simple file security, providing stronger protection for your sensitive data.

Adopt Secure Cloud Services

The cloud is one of the best options for secure file sharing because it lets you access your files wherever you are. Using a secure cloud service provider, like Box, Microsoft Sharepoint, or Microsoft OneDrive, eliminates the risk of data loss due to stolen devices. Additional security measures, like zero-knowledge encryption solutions, can provide even more security.

Zero-knowledge cloud storage ensures your provider cannot access your files’ encryption keys, protecting the contents from unauthorized access. This approach enables you to share sensitive information securely.

Use End-to-End Encryption

In addition to secure cloud services, consider end-to-end encryption for all sensitive documents, spreadsheets, and presentations (even on mobile devices). This is especially important for files containing personal information that hackers could use in identity theft schemes.

File Encryption Software: How Does it Protect Sensitive Data?

File encryption software protects computer data, such as files and directories, from unwanted usage using cryptographic techniques that make data unintelligible without the correct key. File-based encryption helps prevent data loss and theft during transfers and when data is in use or at rest.

Working With Encryption Software

File encryption software helps secure your data from unauthorized access by using cryptographic algorithms to render data unreadable without the correct decryption key. Businesses use encryption software to avoid data theft and criminal attacks, ensuring data security across various levels of use.

What Types of Businesses Can Benefit from File Encryption?

Various industries rely on file encryption:

• Manufacturers: Protect IP, including product designs and processes.

• Defense Contractors: Required by law to protect classified government documents.

• Any Company with IP: Protects patents, brand names, customer lists, and marketing plans.

• Healthcare Organizations: Protects sensitive health data, complying with stringent security requirements.

• Financial Companies: Protects sensitive financial data.

• Energy Companies: Ensures uninterrupted power and protects critical infrastructure.

Most Popular Types of File Encryption to Share Data

Advanced Encryption Standard (AES): Encrypts data in blocks of 128 bits using keys of 128, 192, or 256 bits in various rounds.

Triple DES (Data Encryption Standard): An enhanced version of DES, commonly used in hardware and software applications.

Rivest-Shamir-Adleman (RSA): A public key cryptography system using a public and private key for secure communications.

Twofish: An adaptable encryption technique that ciphers 128-bit blocks, widely used for its robust security features.

How Secure File Encryption Can Save You from Costly Consequences

• Save You from Regulatory Fines: Compliance with data protection regulations like GDPR and HIPAA reduces the risk of penalties for data breaches.

• Increase Consumer Trust: Advertising compliance with encryption standards can provide a competitive edge.

• Promotes Data Integrity: Encryption strengthens data integrity, building trust in its accuracy and security.

Find Out How to Share Your Files Securely in the Cloud with FenixPyre

Data breaches can lead to significant financial and reputational losses. At FenixPyre, we believe in the power of data protection through visibility and transparency. Our security solutions allow you to detect potential breaches in real time, control access, and simplify compliance without disrupting workflows.

Adopting a data-centric security platform like FenixPyre ensures your files remain secure in cloud or hybrid environments, supporting safe sharing and collaboration on sensitive data.