In New York and beyond, threats to data are a major risk for businesses. To combat this, the New York Department of Financial Services (NYDFS) has set strict rules to keep banks and other financial groups safe and to protect the personal information of customers. These rules, known as the NYDFS cybersecurity rules, put in place security measures necessary for companies working in New York City and beyond. In this post, we’ll dive into why these rules are crucial for New York City businesses and why working with a expert cybersecurity team like DAG Tech is key to meet the new requirements.

Navigating NYDFS Cybersecurity Regulations

The NYDFS cybersecurity regulations, also known as 23 NYCRR 500, were introduced in March 2017 to enhance cybersecurity defenses and to protect consumers’ personal and financial information. These regulations apply to a wide range of financial institutions, including banks, insurance companies, mortgage brokers, and other entities operating under NYDFS domain. The regulations mandate stringent cybersecurity measures, which include:

Cybersecurity Programs: Entities are required to establish and maintain comprehensive cybersecurity programs designed to protect sensitive data and mitigate cyber threats. These programs must include risk assessments, vulnerability management, access control, and incident response protocols.
Data Protection: NYDFS regulations mandate strong requirements for data protection. These include encryption of non-public information, data retention policies, and secure data disposal practices. Covered entities must implement security measures to safeguard sensitive data from unauthorized access or involuntary disclosure.
Third-Party Oversight: The regulations emphasize the importance of third-party or outsourced risk management, requiring covered entities to conduct assessments and ensure they adhere to published cybersecurity standards.
Incident Response and Reporting: Covered entities must establish incident response policies to detect, respond to, and recover from cybersecurity incidents (also known as Business Continuity and Disaster Recovery – BCDR). Also, they are required to report any significant cybersecurity events to NYDFS within 72 hours of discovery.

The Importance for New York City Businesses

For businesses in New York City, compliance with NYDFS cybersecurity regulations is not just a legal requirement, but a mission critical imperative. These imperatives include safeguarding sensitive information, preserving and building consumer trust, and avoiding expensive data breaches and regulatory penalties. New York City is home to many financial institutions and businesses that handle vast amounts of sensitive data on a daily basis. Failure to comply with these regulations can result in stiff consequences, including fines, reputation damage, and legal issues.

In today’s digital economy, cybersecurity threats are constantly evolving and pose significant challenges to businesses of all sizes. By adhering to NYDFS cybersecurity regulations, New York City businesses can enhance their cyber resilience, mitigate risk, and show their commitment to protecting consumer data and good business practices (GxP).

Partnering with an Expert Cybersecurity Provider like DAG Tech

Understanding and adhering to NYDFS cybersecurity regulations can be difficult for businesses, especially those with limited in-house cybersecurity expertise. That’s where expert cybersecurity providers like DAG Tech come into play. As a trusted leader in managed cybersecurity, DAG Tech offers comprehensive solutions home grown and battled tested in NYC.

Partner with DAG Tech to achieve NYDFS compliance:

Expertise and Experience: DAG Tech brings vast expertise in cybersecurity, regulatory compliance, and risk management. Our cybersecurity team stays up to date with the latest developments and industry best practices, to ensure our clients remain compliant and resilient.
Tailored Solutions: We understand that every business is unique, with its own set of cybersecurity challenges and requirements. At DAG Tech, we offer custom cybersecurity solutions designed specifically to address the needs and regulatory obligations of New York City businesses.
Proactive Risk Management: Our proactive cybersecurity approach allows us to identify and mitigate potential risks before they escalate into major security incidents. From conducting comprehensive risk assessments to implementing strong cybersecurity controls, we help businesses stay protected.
24/7/365 Security Operations Center (SOC) Support and Incident Response: In the event of a cybersecurity incident, time is of the essence. DAG Tech provides around-the-clock SOC services, support, and high priority incident response. These help businesses detect, contain, and mitigate cyber threats, reducing the impact on our clients operations and reputation.
Continuous Monitoring and Compliance Management: Achieving compliance is not a one-time effort, but an ongoing process. DAG Tech offers a full suite of ongoing managed cybersecurity and CxO services.