Don’t Wait for the Auditor’s Knock - compliance doesn’t have to be a maze

Don’t Wait for the Auditor’s Knock

New York’s Department of Financial Services (NY DFS) isn’t just enforcing regulations — it’s reshaping how businesses think about cybersecurity. If you’re in finance, insurance, or even a service provider connected to these industries, an audit isn’t a matter of if — it’s when.

What the NY DFS Cybersecurity Regulation Means

The NY DFS Cybersecurity Regulation (23 NYCRR 500) requires covered entities to:

• Implement a cybersecurity program based on risk.

• Establish and enforce written security policies.

• Conduct regular penetration testing and vulnerability assessments.

• Use multi-factor authentication (MFA).

• Report certain cybersecurity events within 72 hours.

Who Must Comply

The regulation applies broadly to organizations licensed, registered, or chartered under the supervision of NY DFS, including:

• Banks and credit unions.

• Insurance companies and agents.

• Mortgage lenders, brokers, and servicers.

• Consumer lenders and money transmitters.

• Private equity firms or investment companies operating under DFS authority.

Even third-party service providers to these institutions (law firms, accounting firms, IT vendors, MSPs, healthcare practices with financial ties) often need to follow DFS standards — either directly or through contractual obligations.

Why This Matters for Your Business

For New York SMBs, law firms, healthcare providers, and financial institutions, DFS compliance isn’t just about checking boxes. It’s about proving — to regulators, clients, and partners — that your data security is mature, tested, and resilient.

When DFS auditors arrive, they won’t just ask for policies. They’ll want to see:

• Evidence of monitoring.

• Incident response plans.

• Board-level involvement.

• Annual certification of compliance.

How an MSP Strengthens Compliance

An MSP like Gigabit Systems helps businesses:

• Build a compliance-ready IT environment.

• Map controls to NY DFS requirements.

• Monitor and document activities to prepare for audits.

• Create incident response playbooks tailored to your business.

The Real Risk of Non-Compliance

Failing an audit isn’t just embarrassing — it can lead to steep fines, reputational damage, and lost client trust. In industries like finance and healthcare, that’s a risk you can’t afford.

Compliance is more than paperwork.

It’s proof that you’re ready for the threats of today — and the scrutiny of tomorrow.

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70% of all cyber attacks target small businesses, I can help protect yours.

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