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ARTICLE · 06 FEBRUARY 2025

NYDFS Imposes $2 Million Fine On PayPal For Cybersecurity Violations

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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On January 23, 2025, the New York State Department of Financial Services (NYDFS) announced a Consent Order against PayPal, Inc., imposing a $2 million civil penalty for violations of New York's cybersecurity regulations.

United StatesTechnology

On January 23, 2025, the New York State Department of Financial Services (NYDFS) announced a Consent Order against PayPal, Inc., imposing a $2 million civil penalty for violations of New York's cybersecurity regulations. This enforcement action underscores the growing regulatory scrutiny on financial institutions' cybersecurity practices and highlights the importance of compliance with 23 NYCRR Part 500 (the "Cybersecurity Regulation"), New York's leading cybersecurity regulation. This was the first enforcement action announced since the Cybersecurity Regulation was revised. You can find prior articles in our six-part series on the Cybersecurity Regulation on the Frankfurt Kurnit Technology Law blog: Part 1, Part 2, Part 3, Part 4, Part 5, and Part 6.

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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