NY Department of Financial Services Enforces First-in-the-Nation Cybersecurity Rules and Fines Mortgage Lender $1.5 Million for Failure to Comply
In March 2017, New York State’s Department of Financial Services (“DFS”) implemented the nation’s first cybersecurity rules requiring all regulated entities, such as banks, insurers, financial businesses, and regulated virtual currency operators, to fortify their cybersecurity protocols by implementing and maintaining cybersecurity policies (the “Cybersecurity Regulation”). These protocols and policies include, among other things, establishing a detailed security plan, increasing the monitoring of third-party vendors, appointing chief information security officers, and reporting breaches to the Superintendent of the Department of Finance within 72 hours of identifying a Cybersecurity Event. The Cybersecurity Regulation is codified at 23 NYCRR 500.
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