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ARTICLE · 15 JUNE 2023

NYDFS Fines OneMain $4.25M For Cybersecurity Failures

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On May 25, 2023, the New York Department of Financial Services (NYDFS) announced that OneMain Financial Group (OneMain) will pay a $4.25 million fine pursuant...

United StatesTechnology
Natasha Kohne
Natasha Kohne
Michelle Reed
Michelle Reed
Erica E. Holland
Erica E. Holland
Joseph Hold
Joseph Hold
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On May 25, 2023, the New York Department of Financial Services (NYDFS) announced that OneMain Financial Group (OneMain) will pay a $4.25 million fine pursuant to a consent order to settle alleged violations of NYDFS's Cybersecurity Regulation (23 NYCRR Part 500), which included improperly storing passwords and not sufficiently managing risk from third-party data storage. According to NYDFS, OneMain has also agreed to engage in significant remediation measures as part of the settlement.

The Cybersecurity Regulation went into effect in 2017 and mandates minimum cybersecurity standards for any banking, insurance and brokerage firms using a license to operate in New York.1 OneMain is a licensed lender and mortgage servicer that specializes in non-prime lending, making the publically traded company a covered entity subject to the Cybersecurity Regulation.

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