New York Cybersecurity Laws You Should Know (2025)
New York is one of the most highly regulated states when it comes to data protection and cybersecurity. With its concentration of financial institutions, healthcare organizations, and technology companies, compliance with New York cybersecurity laws is critical to avoiding penalties, data breaches, and reputational damage. Below, we’ll outline the key cybersecurity and privacy laws that affect New York businesses and explain how to maintain compliance.
New York Cybersecurity Laws
New York Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) (N.Y. Gen. Bus. Law § 899-bb)
The SHIELD Act is New York’s primary cybersecurity law. It requires any business that holds the personal information of New York residents, even if the business is located outside the state, to implement “reasonable safeguards” to protect that data. The law also expands breach notification obligations, requiring businesses to notify affected individuals and the Attorney General as soon as possible after discovery.
New York Department of Financial Services (NYDFS) Cybersecurity Regulation (23 NYCRR 500)
This regulation applies to financial institutions and insurance companies regulated by the New York Department of Financial Services (NYDFS). It mandates that covered entities implement a cybersecurity program, perform regular risk assessments, use multi-factor authentication, and report cybersecurity events within 72 hours. Annual certification of compliance is also required.
New York Consumer Protection Law (Gen. Bus. Law § 349)
This law prohibits deceptive business practices, including misleading claims about data privacy or cybersecurity measures. The Attorney General may enforce penalties for companies that misrepresent how they collect, use, or protect consumer data.
New York State Technology Law § 208
This law establishes breach notification requirements for state agencies and their contractors, mandating prompt reporting of data breaches that expose private information. While it primarily governs government entities, private contractors working with public agencies must also comply.
New York Electronic Signatures and Records Act (ESRA) (N.Y. State Tech. Law § 301 et seq.)
The ESRA gives legal validity to electronic records and signatures in New York. It requires proper authentication and integrity measures to protect digital documents and transactions.
Federal and Industry-Specific Cybersecurity Regulations That Affect New York Businesses
Payment Card Industry Data Security Standard (PCI DSS)
PCI DSS applies to New York businesses that handle credit card transactions. It establishes strict requirements for data encryption, network security, and vulnerability testing.
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA applies to New York healthcare providers and business associates that handle personal health information (PHI). It mandates comprehensive security controls to protect medical data.
Gramm-Leach-Bliley Act (GLBA)
Financial institutions in New York are subject to GLBA, which requires secure handling of customer financial data and the implementation of written information security programs.
General Data Protection Regulation (GDPR)
Although a European Union regulation, GDPR applies to New York businesses that collect or process personal data from EU residents. It requires explicit consent and gives consumers greater control over their information.
NIST Cybersecurity Framework
The NIST Cybersecurity Framework is widely used in New York’s finance, technology, and energy industries. It provides a structured approach to managing cybersecurity risks through five key functions: Identify, Protect, Detect, Respond, and Recover.
Federal Trade Commission (FTC) Act
Under the FTC Act, New York businesses must use reasonable cybersecurity practices and avoid deceptive claims about their data protection measures.
Children’s Online Privacy Protection Act (COPPA)
If your New York business collects data from children under 13, COPPA applies. It requires verified parental consent and limits how businesses can use or share minors’ personal information.
Sarbanes-Oxley Act (SOX)
Publicly traded companies in New York must comply with SOX, which enforces strict data integrity, internal control, and reporting requirements.
Family Educational Rights and Privacy Act (FERPA)
FERPA protects the privacy of student educational records for New York schools and institutions. Consent is required before releasing personally identifiable student information.
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)
CAN-SPAM Act
The CAN-SPAM Act applies to all commercial email communications in the U.S., including New York. Businesses must include a valid return address, an opt-out option, and truthful subject lines.
Defense Federal Acquisition Regulation Supplement (DFARS)
New York defense contractors must comply with DFARS cybersecurity standards based on NIST SP 800-171, protecting controlled unclassified information.
Section 5 of the FTC Act (Unfair or Deceptive Practices)
This section holds New York businesses accountable for unfair or deceptive data protection practices, especially when misleading consumers about cybersecurity readiness.
More New York Cybersecurity Laws to Be Aware Of
New York’s position as a financial and technology hub means it’s home to some of the most stringent cybersecurity regulations in the country. The SHIELD Act and NYDFS Cybersecurity Regulation set the standard for compliance nationwide.
Businesses operating in critical infrastructure, utilities, or healthcare should also be aware of additional cybersecurity requirements from federal agencies like the Department of Energy (DOE) and CISA.
Maintaining compliance in New York requires ongoing cybersecurity training, regular audits, and alignment with industry-recognized frameworks such as NIST or ISO 27001.
Conclusion
Staying compliant with New York cybersecurity laws is essential for protecting data, building trust, and maintaining a strong reputation. By following the SHIELD Act, NYDFS Regulation, and other key standards, businesses can significantly reduce their risk of data breaches and enforcement penalties.
If your organization needs help managing cybersecurity compliance in New York, we offer comprehensive services to help protect your business and maintain regulatory alignment.
Frequently Asked Questions About New York Cybersecurity Laws
- What is New York’s main cybersecurity law?
The SHIELD Act is New York’s primary cybersecurity law. It applies to any business that owns or licenses private information of New York residents and requires reasonable safeguards and breach notifications. - What industries does the NYDFS Cybersecurity Regulation cover?
The NYDFS Regulation (23 NYCRR 500) applies to financial institutions, insurance companies, mortgage lenders, and other organizations regulated by the Department of Financial Services. - How quickly must a business report a cybersecurity event in New York?
Under the NYDFS Regulation, covered entities must report cybersecurity events within 72 hours of determining that an incident has occurred. - Does the SHIELD Act apply to out-of-state companies?
Yes. The SHIELD Act applies to any company, regardless of location, that handles personal information belonging to New York residents. - Who enforces New York cybersecurity laws?
The New York State Attorney General enforces the SHIELD Act and other data protection laws, while the Department of Financial Services (NYDFS) regulates financial sector cybersecurity compliance.
Read More Cybersecurity Laws by State:
Florida Cybersecurity Laws You Should Know (2025)
Ohio Cybersecurity Laws You Should Know (2025)
Virginia Cybersecurity Laws You Should Know (2025)
North Carolina Cybersecurity Laws You Should Know (2025)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel for advice specific to their organization or situation.
