Skip to content

Discerning Data

  • About Us
  • Additional Resources
  • Contact Us

DISCERNING DATA

A Faegre Drinker Blog Covering the Latest in Privacy, Cybersecurity and Data Strategy

  • Privacy
  • Cybersecurity
  • Data Strategy
  • Disruptionware

New York Department of Financial Services Issues New Guidance Regarding COVID-19 Cybersecurity Risks

Share

On April 13, 2020, the New York Department of Financial Services (NYDFS) issued new guidance to all New York State Regulated Entities to highlight “a significant increase in cybercrime” related to the COVID-19 epidemic. NYDFS’s guidance identified “several areas of heightened cybersecurity risk as a result of the crisis.” These risks include:

  • Remote Working – The mass shift to remote working forced by COVID-19 has created new security threats which are being exploited by hackers. Regulated entities should take proactive steps to address these new security threats. Among other things, regulated entities should take steps to make their remote access as secure as possible by using multi-factor authentication and VPNs. Companies also should ensure that devices used to access networks are properly secured and/or controlled. Regulated entities also must take steps to ensure the security of remote working communications, like video conferencing applications. Finally, companies should ensure that employees are not accessing or sending sensitive or non-public information through personal email accounts or devices.

  • Increased Phishing and Fraud – In response to a significant increase in online fraud and phishing attempts related to COVID-19, regulated entities should remind employees to be alert for phishing and fraud emails. Employees also should be encouraged to revisit trainings and internal policies on phishing and fraud. Moreover, remote working conditions may require regulated entities to address or modify their authentication protocols.
  • Third-Party Risk – Regulated entities must be aware of cybersecurity risks facing their critical vendors, and they must coordinate with their vendors to ensure that new risks are adequately addressed.

NYDFS’s guidance directs all regulated entities to assess these risks and address them appropriately, as called for in NYDFS’s cybersecurity regulation, 23 NYCRR Part 500. The guidance further reminds regulated entities that, under the NYDFS cybersecurity regulation, covered “Cybersecurity Events” must be reported to NYDFS as promptly as possible and within 72 hours at the latest.”

The NYDFS guidance serves as yet another reminder that companies must be aware of the cybersecurity risks related to COVID-19. Despite the challenges posed by COVID-19, companies must remain vigilant if they wish to avoid regulatory scrutiny and/or financial penalties.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

About the Author: Peter Baldwin

Peter Baldwin draws on his experience as a former federal prosecutor to counsel clients facing government investigations and cybersecurity issues. View Peter's full bio on the Faegre Drinker website.

Receive Email Alerts to New Articles

SUBSCRIBE

April 14, 2020
Written by: Peter Baldwin
Category: Cybersecurity
Tags: cybersecurity, NYDFS

Post navigation

Previous Previous post: COVID-19 and Cybersecurity: Combating “Zoombombing” and Securing Your Remote Working Videoconferences
Next Next post: DoD’s Cybersecurity Maturity Model Certification Is Here: What Your Business Needs to Do to Prepare

Search the Blog

Sign Up for Email Alerts

PODCASTS

Faegre Drinker on Law and Technology

©2023 Faegre Drinker Biddle & Reath LLP. All Rights Reserved. Lawyer Advertising.

  • About Us
  • Additional Resources
  • Contact Us
We use cookies to improve your experience with our website. By browsing our site, you are agreeing to the use of cookies. For more information about how we use cookies, please review our privacy policy and cookie policy. OK
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT