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ARTICLE · 14 NOVEMBER 2023

NYDFS Expands Cybersecurity Regulations: Extortion Payment Reporting, Corporate Governance, And Technical Requirements

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A major amendment to the New York State Department of Financial Services' cybersecurity regulations establishes affirmative cybersecurity oversight duties and requires companies to report extortion payments to the agency.

United StatesTechnology
Lisa M. Ropple
Lisa M. Ropple
Dorothy Giobbe
Dorothy Giobbe
Mary Alexander Myers
Mary Alexander Myers
Michael T. Marcucci
Michael T. Marcucci
Mauricio Paez
Mauricio Paez
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A major amendment to the New York State Department of Financial Services' cybersecurity regulations establishes affirmative cybersecurity oversight duties and requires companies to report extortion payments to the agency.

On November 1, the NYDFS adopted the first substantial amendment to its cybersecurity regulations, 23 NYCRR 500, since their issuance in 2017. These regulations apply, with limited exemptions, to businesses authorized to operate under New York's Banking Law, Insurance Law, or Financial Services Law.

Key changes include:

  • Extortion Payment Reporting. Covered entities must notify NYDFS within 24 hours of making an extortion payment and then provide a written description within 30 days detailing the payment's necessity, alternatives considered, and all relevant diligence performed.

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