NYDFS 500
New York Department of Financial Services Cybersecurity Regulation
Cybersecurity requirements for financial services companies operating in New York State.
What is NYDFS 500?
23 NYCRR 500, commonly known as NYDFS Cybersecurity Regulation, establishes cybersecurity requirements for financial services companies regulated by the New York Department of Financial Services. First effective in 2017 with amendments in 2023, it is one of the most comprehensive state-level cybersecurity regulations.
The regulation requires covered entities to establish and maintain a cybersecurity program designed to protect consumers and ensure the safety and soundness of New York's financial services industry. It applies to banks, insurance companies, money transmitters, and other DFS-regulated entities.
Key requirements include appointing a Chief Information Security Officer (CISO), conducting periodic risk assessments, implementing access controls, maintaining audit trails, and notifying DFS of cybersecurity events within 72 hours. The 2023 amendments added requirements for privileged access management, endpoint detection, and enhanced board oversight.
Who Needs NYDFS 500?
- Banks chartered or licensed in New York
- Insurance companies operating in New York
- Money transmitters and payment processors
- Mortgage companies and lenders
- Any DFS-regulated financial institution
Key Requirements
Core compliance areas for NYDFS 500
Cybersecurity Program
Maintain a program based on risk assessment to protect information systems
CISO Appointment
Designate a qualified Chief Information Security Officer
Incident Response
Written incident response plan with 72-hour notification requirement
Annual Certification
Board or senior officer must certify compliance annually
Benefits of NYDFS 500 Compliance
- Clear cybersecurity requirements for NY operations
- Enhanced protection of customer data
- Structured incident response procedures
- Board-level accountability for cybersecurity
- Foundation for other state regulations
Official Resources
Related Frameworks
GLBA
Federal law requiring financial institutions to protect consumer financial information.
SOC 2
The gold standard for demonstrating security practices to enterprise customers and partners.
NIST CSF
Voluntary framework providing standards and best practices for managing cybersecurity risk.