The proposed New York State cybersecurity regulation is now in effect for the financial sector.
The New York State Department of Financial Services (DFS) has updated its proposed cybersecurity regulation to protect the state from cyber-attacks, which was effective as of March 1, 2017.
What exactly does the new regulation stipulate that it didn’t before? The short answer is this: all financial institutions, including banks, insurance companies, and other financial services agencies regulated by DFS must not only establish, but maintain a cybersecurity program that will protect consumers and the safety of the state’s financial industry as a whole.
“New Yorkers must be confident that the banks, insurance companies and the other financial institutions that they rely on are securely handling and establishing necessary protocols that ensure the security and privacy of their sensitive personal information,” said Superintendent Vullo in a press statement. “This updated proposal allows an appropriate period of time for regulated entities to review the rule before it becomes final and make certain that their systems can effectively and efficiently meet the risks associated with cyber threats.”
Cybersecurity is a huge priority in the financial sector simply because of how regulated the industry is. The reason cybersecurity is so critical is because financial institutions are in the business of trust. If the customers lose faith in the ability to protect their information or provide a service reliably, the servicer’s reputation and business will undoubtedly suffer.
Many financial institutions intertwine services from multiple vendors, partners, and other third parties. This is where security glitches happen. In New York State, it behooves the financial sector to consider cybersecurity from the earliest planning stages of third party integrations. This ensures regular testing and updates and better protection for financial customers, a must under the new regulation.
As threats for financial institutions have demonstrated, financial agencies have their hands full when it comes to protecting their customers. Fortunately, with the assistance of cybersecurity professionals, these organizations can stay protected from hackers.
As the Identity Protection Company, Legal Shred is here to ensure that its customers have the latest information about changes that might affect their security.
Read on to learn more about cybersecurity and identity protection:
- Cybersecurity 101: Protecting Your Identity Online
- Identity Theft Statistics – ID Theft Hits All-time High in 2016
- Identity Protection: How to Avoid Scams
- 3 Simple Rules Employees Should Follow for Optimal Identity Protection