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Dec. 22, 2021

Area #5: Breach Notification

  • Matt Fleischer-Black
    Cybersecurity Law Report
New York’s Department of Financial Services has a hidden superpower: it can use the cybersecurity laws of other states for enforcement, thanks to a broadly worded rule for breach notification. NYDFS highlighted its far-reaching authority in two consent orders this year, while imposing $4.5 million in penalties. These settlements also showcased the wide array of regulatory trouble that modest phishing exploits can cause for banks, insurers and other NYDFS licensees. This article discussed New York’s expansive breach obligations, the perils of a pioneering punishment and the top compliance implications of both settlements with enforcement specialists from Alston & Bird, Hogan Lovells and Lowenstein Sandler.

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