NEW YORK—New York’s state banking regulator has indicated his agency will be proposing a number of new regulations and guidelines related to cybersecurity.
Given the state’s influence, any proposals could be mirrored on the federal level, as well.
Benjamin M. Lawsky, superintendent of the Department of Financial Services, told the Reuters’ 2015 Financial Regulation Summit here that among the regulations his agency is considering is one that would ensure banks require vendors to provide warranties of cybersecurity protection in the event they are breached. Another proposal could require banks to adopt multiple-step authentication processes for employees and customers to log into their systems.
"The one thing we find to be an existential threat right now is whether our financial institutions and systems are adequately protected when it comes to cybersecurity," Lawsky told the Summit, adding that cybersecurity could be an increased focus during examinations. "If they fail, there would be pretty severe consequences."