Cybersecurity Spells Trouble For New York Firms
New York’s financial sector is preparing for a long and troublesome road to compliance as newcybersecurity regulations officially enter into force.
The new rules designed by the New York State Department of Financial Services (NYDFS) took effect on Monday, introducing unprecedented requirements on financial institutions operating in the state to protect their systems and consumers against hackers.
Entities are now also required to notify the regulator of a security breach within 72 hours of detection.
According to John Wagster, an attorney at law at Frost Brown Todd, the reporting requirements are more robust, but should not cause problems for tech savvy companies which already follow best practices.
“A number of the requirements are already on the books in other states, but reporting periods are shorter, internal practices must be documented and potential penalties are tougher,” he said.
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