New York Department of Financial Services (NYDFS) Cybersecurity Regulation

The New York Department of Financial Services (NYDFS) Cybersecurity Regulation (23 NYCRR 500) is a set of cybersecurity requirements designed to protect financial institutions and consumers from cyber threats. It applies to banks, insurance companies, mortgage lenders, and other financial service providers operating in New York.

To ensure strong cybersecurity practices, NYDFS mandates that covered entities:

• Establish a cybersecurity program to identify and mitigate cyber risks.
• Implement data encryption for sensitive information both in transit and at rest.
• Use access controls and multifactor authentication (MFA) to prevent unauthorized access.
• Carry out regular risk assessments and audits to identify vulnerabilities.
• Report cybersecurity incidents to NYDFS within 72 hours of detection.

Non-compliance with NYDFS regulations can result in heavy fines, reputational damage, and increased regulatory scrutiny.