New York Governor Calls for CyberSecurity Programs for Banks and Insurance Firms

New York state is proposing new rules requiring banks and insurance companies to establish cybersecurity programs and designate an internal cybersecurity officer, in what Gov. Andrew Cuomo described as a "first-in-the-nation" move to codify cyber safety policies. The proposed rules come after some of the world’s biggest banks -- including JPMorgan Chase & Co. and HSBC Group -- have reported significant cyber intrusions and U.S. corporations in general have been frequent targets of hacking. Money center banks and insurance companies have built their own cybersecurity programs in recent years, often at expenses of hundreds of millions of dollars. The biggest impact of the new regulations is likely to be on small banks and insurers, which may now need to bring their cyber programs up to at least a minimum standard. Governor Andrew Cuomo said the regulations would "guarantee the financial services industry upholds its obligation to protect consumers and ensure that its systems are sufficiently constructed to prevent cyber-attacks to the fullest extent possible." Will these measures truly strengthen the cyber security of the banking and insurance industries or simply be superfluous government fluff? Share your comments with the Cloud and Cyber Security Center.