DFS announces cyber security fraud alert

February 16, 2021

The New York State Department of Financial Services issued a cyber security fraud alert today to all of its regulated entities. The alert describes a widespread cybercrime campaign to steal consumers’ nonpublic information from public-facing websites that transmit or display redacted nonpublic information. The hackers are attempting to use the stolen information to apply for pandemic assistance and unemployment benefits fraudulently.

Several regulated entities have reported successful or attempted data theft to the DFS from websites that provide instant quotes (e.g., auto insurance quotes), using consumer nonpublic information and displaying some redacted nonpublic information back to the consumer.

DFS reminds its regulated entities to report theft of consumers’ nonpublic information, pursuant to its cyber security regulation, to the department immediately.

Let PIA Northeast help you and your agency

If your agency does business in New York state, you are required to comply with the state’s cyber security regulations. PIA Northeast members have access to the cybersecurity regulation tool kit, which is part of PIA’s Privacy Compliance Central. Additionally, PIA Northeast offers members cyber liability products, let us navigate your coverage needs with precision. Our team of insurance professionals works to provide your agency with competitive coverage that fits.

About the author…

Bradford J. Lachut, Esq.

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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