Last year, New York City established the first-ever cybersecurity regulations in an effort to crack down on cyber attacks. As of March 1, 2018, many of those regulations have gone into effect and will alter the way businesses handle their security.
In 2016, cybercriminals hacked more than 200 million financial records, not including the breaches that weren’t made public. With NYC being the financial capital of the world, it’s no wonder that hackers are focused on the Empire City.
The New York State Department of Financial Services enacted the regulations in an attempt to protect the “combined assets” of multiple financial institutions, which exceeds six trillion dollars. The Superintendent of Financial Services at the NYDFS noted that when New Yorkers are “engaging in financial transactions…they’re providing their social security information, banking information, etc.,” which can be open to hacking without the proper security measures in place.
Banks seem to be the most targeted organizations and in 2014, the largest United States bank was breached by hackers. JPMorgan and Chase had a server breach that allowed the cybercriminals to acquire the personal information of 83 million customers. The attackers didn’t steal any money from the personal accounts but instead used the information gathered for an email scam that amassed over $100 million. The bank had all of the employee information stored on one server that required a single log-in to access.
In order to prevent incidents like that from happening again, the new regulations on cybersecurity will govern how financial institutions secure their sensitive information. If a bank were to be attacked on a full-scale operation, there could be “catastrophic damage” to the financial system, according to an article by Business Insider. While many parts of the new regulations have already taken effect, some will come into play later on as they are integrated at a slower rate.
It isn’t just financial institutions that are worried or should be worried about breaches though. Cyber attacks are a concern for over half of all businesses, not just NYC financial organizations. Cybercriminals aren’t necessarily always fastidious when it comes to who they target so long as it helps them achieve their goal.
NYC might have the first ever attempt of governmental oversight in cybersecurity but unless other major financial cities follow suit, it won’t be enough.