Insurance company faces potentially millions of dollars in fines with NY DFS’s first enforcement of its cybersecurity regulations. With security breaches up 64% since 2014, the FBI has reported a 400% increase in cyberattacks during the COVID-19 pandemic. With the global average cost of a breach being $3.86 million, it has never been so vital that your business protect against the ever‑increasing threat of a security incident.
The New York Department of Financial Services (“NY DFS”) took notice of the increased security incidents by implementing Cybersecurity Regulations in 2017, requiring businesses operating under New York banking, insurance, and finance laws to implement and maintain certain cybersecurity practices. Now, NY DFS Superintendent Linda A. Lacewell is beginning to enforce these regulations with the newly‑created NY DFS Cybersecurity Division. On July 22, 2020, the NY DFS Cybersecurity Division commenced its first enforcement action under the NY DFS Cybersecurity Regulations when it issued a statement of charges against First American Title Insurance Company (“First American”). First American now faces millions of dollars in potential fines.
