ISpectra Technologies
Financial · Cybersecurity Regulation

What is NYDFS 23 NYCRR 500?

A New York DFS regulation requiring financial-services companies to run a risk-based cybersecurity program, appoint a CISO and report incidents.

Definition

23 NYCRR Part 500 is a cybersecurity regulation issued by the New York State Department of Financial Services (NYDFS). It requires “covered entities” — banks, insurers and other financial-services companies licensed in New York — to establish and maintain a risk-based cybersecurity program that protects the confidentiality, integrity and availability of information systems.

Amended in 2023 (with phased effective dates), the rule adds stronger governance, MFA and incident-notification requirements, including reporting certain cybersecurity events to NYDFS within 72 hours.

Key requirements

1

Cybersecurity program & policy

Risk-based and board-approved.

2

CISO

Designate a qualified Chief Information Security Officer.

3

Risk assessments

Periodic, documented risk assessments.

4

MFA & encryption

Protect access and nonpublic information.

5

Incident notification

Report qualifying events to NYDFS within 72 hours.

6

Third-party security

Policies governing service-provider risk.

Who needs to comply?

Any entity operating under a NYDFS license or registration — banks, insurers, mortgage companies and other financial-services firms in New York — is a covered entity, subject to limited exemptions for smaller firms.

How ISpectra helps

ISpectra builds your 23 NYCRR 500 program end to end — cybersecurity policy, CISO support, risk assessments, MFA/encryption controls and 72-hour incident reporting — with the evidence NYDFS expects.

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