On September 10, 2026, the New York State Department of Financial Services (“NYDFS”) published an Industry Letter (the “Letter”) to regulated entities (“Covered Entities”) addressing what is probably the most frequently asked Part 500 question: “How to Conduct and Use Risk Assessments Required by the DFS Cybersecurity Regulation.” The risk assessment is, by all accounts, […]
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NYDFS Issues Frontier AI Advisory and Guidance for Heightened Cyber Threat Environment
On May 21, 2026, the New York Department of Financial Services (“NYDFS”) issued two Industry Letters to the organizations it regulates (“Regulated Entities”): “Heightened Cybersecurity Risks Associated with Frontier AI Models” (the “Advisory”) and “Guidance on Measures Regulated Entities Should Consider in a Heightened Cybersecurity Threat Environment” (the “Guidance”) (collectively, the “Letters”). The Letters discuss […]
NYDFS Revises Prescriptive FAQs on Multifactor Authentication
Two months after the New York Department of Financial Services (“NYDFS”) updated its Frequently Asked Questions (“FAQs”), which we wrote about here, NYDFS has released updated FAQs on multifactor authentication (“MFA”) that further clarify 23 NYCRR § 500.12. As we previously reported, the FAQs from December 2025 provided prescriptive guidance, including clarifications on technical requirements […]
NYDFS Releases New Prescriptive FAQs on MFA
The New York Department of Financial Services (NYDFS) has released a new set of Frequently Asked Questions (FAQs 18–23) under 23 NYCRR Part 500, reinforcing its position that multifactor authentication (MFA) remains a critical component of a covered entity’s cybersecurity program. These FAQs provide highly prescriptive guidance, including clarifications on technical requirements for the “possession” […]
NYDFS Issues Guidance on Managing Risks Related to Third-Party Service Providers
On October 21, 2025, the New York Department of Financial Services (“NYDFS”) published an Industry Letter (the “Letter”) outlining guidance on managing risks related to third-party service providers (“TPSPs”). NYDFS recognizes that as covered entities become more reliant on TPSPs, managing TPSPs “remains a crucial element of a Covered Entity’s cybersecurity program.” The Letter outlines […]