Educational Information Only
This page provides general educational information about cybersecurity laws and regulations. It does not constitute legal advice, legal interpretation, or a substitute for professional legal counsel. Laws change frequently. Always consult a qualified attorney and verify current requirements directly from official government sources before making compliance decisions. DecipherU is not a law firm and does not provide legal services.
New York Department of Financial Services Cybersecurity Regulation
23 NYCRR 500 is a prescriptive cybersecurity regulation for financial services companies licensed by the NY DFS. Amended in November 2023, it requires a CISO, annual penetration testing, MFA, encryption of nonpublic information, and 72-hour incident notification. The 2023 amendments added requirements for privileged access management, endpoint detection, and board governance.
Quick Reference
Key Requirements
500.4 (Cybersecurity governance)
Covered entities must designate a CISO responsible for overseeing the cybersecurity program
500.5 (Vulnerability management)
Conduct annual penetration testing and automated vulnerability scanning (at least monthly scanning added in 2023 amendment)
500.12 (Multi-factor authentication)
MFA required for remote access, privileged accounts, and any access to nonpublic information (expanded in 2023)
500.15 (Encryption of nonpublic information)
Nonpublic information must be encrypted in transit and at rest using industry-standard methods
500.17(a) (Notification to superintendent)
Notify DFS within 72 hours of a cybersecurity event that has a reasonable likelihood of materially harming normal operations
How Does 23 NYCRR 500 Affect Cybersecurity Careers?
23 NYCRR 500 is one of the most detailed state cybersecurity regulations. CISOs at DFS-regulated firms have regulatory obligations personally tied to this rule. Security engineers implement the specific technical controls (MFA, encryption, EDR). GRC analysts manage annual certifications of compliance filed with DFS.
How Does 23 NYCRR 500 Affect Cybersecurity Sales?
The prescriptive requirements create direct product demand: MFA, encryption, EDR, vulnerability scanning, and privileged access management. The 2023 amendments expanded the addressable market by adding new requirements. Sales teams should reference specific 500.x sections when positioning products to NY DFS-regulated prospects.
Cybersecurity Roles That Work With 23 NYCRR 500
Related Cybersecurity Certifications
Related Cybersecurity Laws
Read the full text of 23 NYCRR 500 at the official source: https://www.dfs.ny.gov/industry_guidance/cybersecurity
Frequently Asked Questions
What is 23 NYCRR 500 in cybersecurity?
23 NYCRR 500 is a prescriptive cybersecurity regulation for financial services companies licensed by the NY DFS. Amended in November 2023, it requires a CISO, annual penetration testing, MFA, encryption of nonpublic information, and 72-hour incident notification. The 2023 amendments added requirements for privileged access management, endpoint detection, and board governance.
How does 23 NYCRR 500 affect cybersecurity careers?
23 NYCRR 500 is one of the most detailed state cybersecurity regulations. CISOs at DFS-regulated firms have regulatory obligations personally tied to this rule. Security engineers implement the specific technical controls (MFA, encryption, EDR). GRC analysts manage annual certifications of compliance filed with DFS.
What are the penalties for 23 NYCRR 500 non-compliance?
Up to $1,000 per violation or $5,000 per violation for senior Class A compliance failures (2023 amendment); DFS has issued penalties exceeding $100 million in aggregate
Educational Information Only
This page provides general educational information about cybersecurity laws and regulations. It does not constitute legal advice, legal interpretation, or a substitute for professional legal counsel. Laws change frequently. Always consult a qualified attorney and verify current requirements directly from official government sources before making compliance decisions. DecipherU is not a law firm and does not provide legal services.
Sources
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