NYDFS Cybersecurity Compliance

You Got a Notice: 23 NYCRR 500 Compliance Required

The Problem

The New York Department of Financial Services (NYDFS) requires strict cybersecurity controls for financial institutions, insurance agencies, and related entities operating in New York State.

You are facing:

  1. Mandatory compliance deadlines: NYDFS regulations require multi-factor authentication, annual risk assessments, incident response plans, and detailed reporting.
  2. Complex requirements: 23 NYCRR 500 covers access controls, encryption, audit trails, third-party service providers, business continuity, and more.
  3. Audit pressure: NYDFS conducts examinations and expects documented evidence of compliance across all required domains.
  4. Penalties for non-compliance: Fines, enforcement actions, and reputational damage if you fail to meet requirements.

The real problem: You need someone who understands both NYDFS regulations and how to implement the required controls in your existing environment without disrupting operations.

The Solution

NYDFS Compliance Program Implementation

We assess your current security posture against 23 NYCRR 500 requirements, implement necessary controls, and maintain ongoing compliance documentation.

Gap Assessment

Comprehensive evaluation of all NYDFS requirements: access controls, MFA, encryption, risk assessments, incident response, business continuity, third-party management.

Control Implementation

Deploy required security controls: multi-factor authentication, encryption for data at rest and in transit, access management, logging and monitoring.

Policy and Documentation

Create and maintain required policies: cybersecurity policy, incident response plan, business continuity plan, third-party service provider policy.

Annual Risk Assessment

Conduct annual risk assessments as required, document findings, track remediation, and provide evidence for NYDFS examinations.

Who This Is For

23 NYCRR 500 applies to:

  • Banks and credit unions
  • Insurance companies and agencies
  • Mortgage brokers and lenders
  • Investment advisors and broker-dealers
  • Other entities licensed or registered by NYDFS

Real Client Example:

Hudson Valley insurance agency with 12 employees. Received NYDFS examination notice with 60 days to demonstrate compliance. No MFA deployed, no incident response plan, risk assessment outdated. Implemented MFA across all systems, created incident response and business continuity plans, conducted comprehensive risk assessment with documented remediation roadmap. Passed NYDFS examination with zero findings.

Key NYDFS Requirements We Address

Multi-Factor Authentication (MFA)

Required for all privileged accounts and remote access. We implement MFA solutions that integrate with your existing systems.

Encryption

Data at rest and in transit must be encrypted. We assess current encryption posture and implement required controls.

Annual Risk Assessment

Comprehensive risk assessment required annually. We conduct framework-aligned assessments and provide documented evidence.

Incident Response Plan

Written plan required for responding to cybersecurity events. We create tested, executable incident response playbooks.

Third-Party Service Provider Management

Due diligence and monitoring of vendors required. We establish vendor risk management processes and documentation.

Book a NYDFS Compliance Assessment

We will review your current posture against 23 NYCRR 500 requirements, identify gaps, and provide a clear roadmap to compliance.

Book Assessment Call