Cyber security, also referred to as information technology security, focuses on protecting computers, networks, programs, and data from unintended or unauthorized access, change, or destruction.
New York State Department of Financial Services recently published an update to the Financial Services Law effective March 1, 2017:
Section 500.00 Introduction.
The New York State Department of Financial Services (“DFS”) has been closely monitoring the ever-growing threat posed to information and financial systems by nation-states, terrorist organizations and independent criminal actors. Recently, cybercriminals have sought to exploit technological vulnerabilities to gain access to sensitive electronic data. Cybercriminals can cause significant financial losses for DFS regulated entities as well as for New York consumers whose private information may be revealed and/or stolen for illicit purposes. The financial services industry is a significant target of cybersecurity threats. DFS appreciates that many firms have proactively increased their cybersecurity programs with great success.
The State of New York is requiring that by February 15 of each year a written statement is sent to the State Financial Superintendent stating that your business is in compliance with Section 500.00.
What this means for anyone outside of the state of New York is that usually when one state passes legislation like this it doesn’t take long for other states to follow suit. You will likely be required to comply with similar security regulations in the near future.