Survey Reveals Potential Weaknesses In Banks’ Cybersecurity Practices For Third-Party Vendors

Kaylee Cox is an Associate in our Washington, D.C. office

The New York State Department of Financial Services recently issued a report, analyzing the cybersecurity requirements that financial institutions put in place for their third-party service providers. The report is based on survey responses from roughly 40 regulated banking organizations and serves as an update to an earlier Department report, which identified continuing challenges with the industry's reliance on third-party vendors for "critical banking functions."

In response to the survey as well as the "increasing number and sophistication of cyber attacks" and recent breaches at financial institutions, the Department is considering cybersecurity regulations that would apply to banks' third-party vendor management processes.