Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

3/1/2017
01:35 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

New Cybersecurity Regulations Begin Today For NY Banks

New York's new security regulations for financial industry viewed as potential model for other states.

Today's the day the much-anticipated new cybersecurity regulations for the financial industry go into effect in the state of New York.

Security experts say the new regulations by the state's Department of Financial Services (DFS) set a minimum baseline for security best practices, and acknowledge that small- to midsized businesses with fewer resources and smaller IT staffs may find compliance more challenging.

The regulations require that banks, insurance companies, and other financial institutions establish and maintain a cybersecurity program. The new rules are widely viewed as the first of their kind and potentially a baseline model for other states.

"These new regulations will push companies to have a basic level of cybersecurity, but it doesn’t create an unfair competitive situation because it's generally applied across the board," says Tim Erlin, senior director, product management and IT risk and security strategist at Tripwire.

The new regulations will be phased in over the next two years. Companies with less than $5 million in revenues and $10 million in assets are exempt from many of the more costly, technical aspects of the regulations, such as pen testing and vulnerability assessments, but still must document that they have implemented a security policy and program.

The vast majority of companies are now on the hook to develop an incident response plan and a training program in the next 180 days. Companies must also notify DFS of a security breach within 72 hours and have a CISO or a similar person responsible for protecting private data. The breach-notification portion requires companies to start the clock on notification from the time they have determined that a breach would cause material harm to the business.

By one year from today, companies must also demonstrate that they have pen testing, risk assessment, and multifactor authentication practices in place. In 18 months, they must have developed audit trail capabilities, application security, data retention (five years for financial, three years for non-financial), and encryption. The DFS requirements for third parties will be phased in over two years.

David Murray, chief business development officer at Corvil, says the vast majority of the large banks and financial institutions are well on their way to having implemented many of the best practices outlined by the DFS regulations.

While smaller hedge funds, retail banks, and credit unions have expressed concerns that implementing these security technologies will be too costly, he points out that many of these companies already have security analytics technologies that provide visibility into their operations.

"What we’re saying is that you can start by getting a better read on what’s happening within your organization and you don’t necessarily have to spend more money and time deploying new technology," Murray says. "We see this as pushing companies to be more proactive, because they are now tracking incidents and attacks versus just looking for a piece of malware."

Tripwire's Erlin adds that the strength of these regulations will be to what extent they are enforced. He points to recent cases where New York’s DFS fined Deutsche Bank $425 million and Mega Bank $180 million for violating state money-laundering laws.

"While those fines are not related to cybersecurity, it does indicate that the agency is capable of imposing those type of fines and that they actually might do it," he says. 

Related Content:

Steve Zurier has more than 30 years of journalism and publishing experience and has covered networking, security, and IT as a writer and editor since 1992. Steve is based in Columbia, Md. View Full Bio
 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
News
FluBot Malware's Rapid Spread May Soon Hit US Phones
Kelly Sheridan, Staff Editor, Dark Reading,  4/28/2021
Slideshows
7 Modern-Day Cybersecurity Realities
Steve Zurier, Contributing Writer,  4/30/2021
Commentary
How to Secure Employees' Home Wi-Fi Networks
Bert Kashyap, CEO and Co-Founder at SecureW2,  4/28/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-35519
PUBLISHED: 2021-05-06
An out-of-bounds (OOB) memory access flaw was found in x25_bind in net/x25/af_x25.c in the Linux kernel version v5.12-rc5. A bounds check failure allows a local attacker with a user account on the system to gain access to out-of-bounds memory, leading to a system crash or a leak of internal kernel i...
CVE-2021-20204
PUBLISHED: 2021-05-06
A heap memory corruption problem (use after free) can be triggered in libgetdata v0.10.0 when processing maliciously crafted dirfile databases. This degrades the confidentiality, integrity and availability of third-party software that uses libgetdata as a library. This vulnerability may lead to arbi...
CVE-2021-30473
PUBLISHED: 2021-05-06
aom_image.c in libaom in AOMedia before 2021-04-07 frees memory that is not located on the heap.
CVE-2021-32030
PUBLISHED: 2021-05-06
The administrator application on ASUS GT-AC2900 devices before 3.0.0.4.386.42643 allows authentication bypass when processing remote input from an unauthenticated user, leading to unauthorized access to the administrator interface. This relates to handle_request in router/httpd/httpd.c and auth_chec...
CVE-2021-22209
PUBLISHED: 2021-05-06
An issue has been discovered in GitLab CE/EE affecting all versions starting from 13.8. GitLab was not properly validating authorisation tokens which resulted in GraphQL mutation being executed.