As we have noted previously on the new DFS cybersecurity regulations, 23 N.Y.C.R.R. Part 500, the regulatory process is—by definition—vastly more swift and adaptable than the legislative process. What may get bogged down in legislative committee for months or years can be hammered out in a matter of days in the administrative state.
The sheer size of the recent Equifax breach—affecting nearly half of all Americans and potentially more than half of those over 18—is staggering. It is the nature of the breach, however, and the type of information taken, that gives the greatest pause.
Few things have upended the world of cybersecurity regulation in the United States recently more than the new cybersecurity regulations issued by the New York State Department of Financial Services (“DFS”) in March of this year. Found in 23 N.Y.C.R.R. Part 500, these new regulations are sweeping in scope and reach far beyond the financial services sector in New York, affecting entities that support that sector as well as a number of other entities that may not have thought of themselves as governed, even in part, by DFS.
In February 2017, the New York State Department of Financial Services (“DFS”) finalized a new set of cybersecurity regulations that governs New York’s banking, insurance, and financial services industries. Entities in those industries are required to develop and implement cybersecurity programs tailored to their individual risk levels. See Cybersecurity Requirements for Financial Services Companies, 23 N.Y.C.R.R.§ 500.02.
Yesterday, the New York State Department of Financial Services released the final version of its new cybersecurity regulations, to be promulgated at 23 N.Y.C.R.R. Part 500, making some incremental changes against its last version, released on December 28, 2016.