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Secure AI Adoption for Enterprise Data Protection: Are You Prepared?

June 11, 2025
5
Min Read
AI and ML

In today’s fast-moving digital landscape, enterprise AI adoption presents a fascinating paradox for leaders: AI isn’t just a tool for innovation; it’s also a gateway to new security challenges. Organizations are walking a tightrope: Adopt AI to remain competitive, or hold back to protect sensitive data.
With nearly two-thirds of security leaders even considering a ban on AI-generated code due to potential security concerns, it’s clear that this tension is creating real barriers to AI adoption.

A data-first security approach provides solid guarantees for enterprises to innovate with AI safely. Since AI thrives on data - absorbing it, transforming it, and creating new insights - the key is to secure the data at its very source.

Let’s explore how data security for AI can build robust guardrails throughout the AI lifecycle, allowing enterprises to pursue AI innovation confidently.

Data Security Concerns with AI

Every AI system is only as strong as its weakest data link. Modern AI models rely on enormous data sets for both training and inference, expanding the attack surface and creating new vulnerabilities. Without tight data governance, even the most advanced AI models can become entry points for cyber threats.

How Does AI Store And Process Data?

The AI lifecycle includes multiple steps, each introducing unique vulnerabilities. Let’s consider the three main high-level stages in the AI lifecycle:

  • Training: AI models extract and learn patterns from data, sometimes memorizing sensitive information that could later be exposed through various attack vectors.
  • Storage: Security gaps can appear in model weights, vector databases, and document repositories containing valuable enterprise data.
  • Inference: This prediction phase introduces significant leakage risks, particularly with retrieval-augmented generation (RAG) systems that dynamically access external data sources.

Data is everywhere in AI. And if sensitive data is accessible at any point in the AI lifecycle, ensuring complete data protection becomes significantly harder.

AI Adoption Challenges

Reactive measures just won’t cut it in the rapidly evolving world of AI. Proactive security is now a must. Here’s why:

  1. AI systems evolve faster than traditional security models can adapt.

New AI models (like DeepSeek and Qwen) are popping up constantly, each introducing novel attack surfaces and vulnerabilities that can change with every model update..

Legacy security approaches that merely react to known threats simply can't keep pace, as AI demands forward-thinking safeguards.

  1. Reactive approaches usually try to remediate at the last second.

Reactive approaches usually rely on low-latency inline AI output monitoring, which is the last step in a chain of failures that lead to data loss and exfiltration, and the most challenging position to prevent data-related incidents. 

Instead, data security posture management (DSPM) for AI addresses the issue at its source, mitigating and remediating sensitive data exposure and enforcing a least-privilege, multi-layered approach from the outset.

  1. AI adoption is highly interoperable, expanding risk surfaces.

Most enterprises now integrate multiple AI models, frameworks, and environments (on-premise AI platforms, cloud services, external APIs) into their operations. These AI systems dynamically ingest and generate data across organizational boundaries, challenging consistent security enforcement without a unified approach.

Traditional security strategies, which only respond to known threats, can’t keep pace. Instead, a proactive, data-first security strategy is essential. By protecting information before it reaches AI systems, organizations can ensure AI applications process only properly secured data throughout the entire lifecycle and prevent data leaks before they materialize into costly breaches.

Of course, you should not stop there: You should also extend the data-first security layer to support multiple AI-specific controls (e.g., model security, endpoint threat detection, access governance).

What Are the Security Concerns with AI for Enterprises?

Unlike conventional software, AI systems continuously learn, adapt, and generate outputs, which means new security risks emerge at every stage of AI adoption. Without strong security controls, AI can expose sensitive data, be manipulated by attackers, or violate compliance regulations.

For organizations pursuing AI for organization-wide transformation, understanding AI-specific risks is essential:

  • Data loss and exfiltration: AI systems essentially share information contained in their training data and RAG knowledge sources and can act as a “tunnel” through existing data access governance (DAG) controls, with the ability to find and output sensitive data that the user is not authorized to access.
    In addition, Sentra’s rich best-of-breed sensitive data detection and classification empower AI to perform DLP (data loss prevention) measures autonomously by using sensitivity labels.
  • Compliance & privacy risks: AI systems that process regulated information without appropriate controls create substantial regulatory exposure. This is particularly true in heavily regulated sectors like healthcare and financial services, where penalties for AI-related data breaches can reach millions of dollars.
  • Data poisoning: Attackers can subtly manipulate training and RAG data to compromise AI model performance or introduce hidden backdoors, gradually eroding system reliability and integrity.
  • Model theft: Proprietary AI models represent significant intellectual property investments. Inadequate security can leave such valuable assets vulnerable to extraction, potentially erasing years of AI investment advantage.
  • Adversarial attacks: These increasingly prevalent threats involve strategic manipulations of AI model inputs designed to hijack predictions or extract confidential information. Adequate machine learning endpoint security has become non-negotiable.

All these risks stem from a common denominator: a weak data security foundation allowing for unsecured, exposed, or manipulated data.

The solution? A strong data security posture management (DSPM) coupled with comprehensive visibility into the AI assets in the system and the data they can access and expose. This will ensure AI models only train on and access trusted data, interact with authorized users and safe inputs, and prevent unintended exposure.

AI Endpoint Security Risks

Organizations seeking to balance innovation with security must implement strategic approaches that protect data throughout the AI lifecycle without impeding development.

Choosing an AI security solution: ‘DSPM for AI’ vs. AI-SPM

When evaluating security solutions for AI implementation, organizations typically consider two primary approaches:

  • Data security posture management (DSPM) for AI implements data-related AI security features while extending capabilities to encompass broader data governance requirements. ‘DSPM for AI’ focuses on securing data before it enters any AI pipeline and the identities that are exposed to it through Data Access Governance. It also evaluates the security posture of the AI in terms of data (e.g., a CoPilot with access to sensitive data, that has public access enabled).
  • AI security posture management (AI-SPM) focuses on securing the entire AI pipeline, encompassing models and MLOps workflows. AI-SPM features include AI training infrastructure posture (e.g., the configuration of the machine on which training runs) and AI endpoint security.

While both have merits, ‘DSPM for AI’ offers a more focused safety net earlier in the failure chain by protecting the very foundation on which AI operatesーdata. Its key functionalities include data discovery and classification, data access governance, real-time leakage and anomalous “data behavior” detection, and policy enforcement across both AI and non-AI environments.

Best Practices for AI Security Across Environments

AI security frameworks must protect various deployment environments—on-premise, cloud-based, and third-party AI services. Each environment presents unique security challenges that require specialized controls.

On-Premise AI Security

On-premise AI platforms handle proprietary or regulated data, making them attractive for sensitive use cases. However, they require stronger internal security measures to prevent insider threats and unauthorized access to model weights or training data that could expose business-critical information.

Best practices:

  • Encrypt AI data at multiple stages—training data, model weights, and inference data. This prevents exposure even if storage is compromised.
  • Set up role-based access control (RBAC) to ensure only authorized parties can gain access to or modify AI models.
  • Perform AI model integrity checks to detect any unauthorized modifications to training data or model parameters (protecting against data poisoning).

Cloud-Based AI Security

While home-grown cloud AI services offer enhanced abilities to leverage proprietary data, they also expand the threat landscape. Since AI services interact with multiple data sources and often rely on external integrations, they can lead to risks such as unauthorized access, API vulnerabilities, and potential data leakage.  

Best practices:

  • Follow a zero-trust security model that enforces continuous authentication for AI interactions, ensuring only verified entities can query or fine-tune models.
  • Monitor for suspicious activity via audit logs and endpoint threat detection to prevent data exfiltration attempts.
  • Establish robust data access governance (DAG) to track which users, applications, and AI models access what data.

Third-Party AI & API Security

Third-party AI models (like OpenAI's GPT, DeepSeek, or Anthropic's Claude) offer quick wins for various use cases. Unfortunately, they also introduce shadow AI and supply chain risks that must be managed due to a lack of visibility.

Best practices:

  • Restrict sensitive data input to third-party AI models using automated data classification tools.
  • Monitor external AI API interactions to detect if proprietary data is being unintentionally shared.
  • Implement AI-specific DSPM controls to ensure that third-party AI integrations comply with enterprise security policies.

Common AI implementation challenges arise when organizations attempt to maintain consistent security standards across these diverse environments. For enterprises navigating a complex AI adoption, a cloud-native DSPM solution with AI security controls offers a solid AI security strategy.

The Sentra platform is adaptable, consistent across environments, and compliant with frameworks like GDPR, CCPA, and industry-specific regulations.

Use Case: Securing GenAI at Scale with Sentra

Consider a marketing platform using generative AI to create branded content for multiple enterprise clients—a common scenario facing organizations today.

Challenges:

  • AI models processing proprietary brand data require robust enterprise data protection.
  • Prompt injections could potentially leak confidential company messaging.
  • Scalable security that doesn't impede creative workflows is a must. 

Sentra’s data-first security approach tackles these issues head-on via:

  • Data discovery & classification: Specialized AI models identify and safeguard sensitive information.
AI-powered Classification
Figure 1: A view of the specialized AI models that power data classification at Sentra
  • Data access governance (DAG): The platform tracks who accesses training and RAG data, and when, establishing accountability and controlling permissions at a granular level.  In addition, access to the AI agent (and its underlying information) is controlled and minimized.
  • Real-time leakage detection: Sentra’s best-of-breed data labeling engine feeds internal DLP mechanisms that are part of the AI agents (as well as external 3rd-party DLP and DDR tools).  In addition, Sentra monitors the interaction between the users and the AI agent, allowing for the detection of sensitive outputs, malicious inputs, or anomalous behavior.
  • Scalable endpoint threat detection: The solution protects API interactions from adversarial attacks, securing both proprietary and third-party AI services.
  • Automated security alerts: Sentra integrates with ServiceNow and Jira for rapid incident response, streamlining security operations.

The outcome: Sentra provides a scalable DSPM solution for AI that secures enterprise data while enabling AI-powered innovation, helping organizations address the complex challenges of enterprise AI adoption.

Takeaways

AI security starts at the data layer - without securing enterprise data, even the most sophisticated AI implementations remain vulnerable to attacks and data exposure. As organizations develop their data security strategies for AI, prioritizing data observability, governance, and protection creates the foundation for responsible innovation.

Sentra's DSPM provides cutting-edge AI security solutions at the scale required for enterprise adoption, helping organizations implement AI security best practices while maintaining compliance with evolving regulations.

Learn more about how Sentra has built a data security platform designed for the AI era.

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Yogev Wallach is a Physicist and Electrical Engineer with a strong background in ML and AI (in both research and development), and Product Leadership. Yogev is leading the development of Sentra's offerings for securing AI, as well as Sentra's use of AI for security purposes. He is also passionate about art and creativity, as a music producer and visual artist, as well as SCUBA diving and traveling.

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Sentra on the Road: Where to Find Us This October

Sentra on the Road: Where to Find Us This October

October is shaping up to be a big month for Sentra! From coast to coast, our team will be meeting with security leaders to share insights on securing sensitive data - no matter where it travels.

If you’re attending one of these top cybersecurity conferences, we’d love to connect and show you how Sentra helps organizations embrace innovation while keeping data secure. Here’s where you can find us this month:

Hou.Sec.Con: September 30–October 1, Houston, TX

We’re kicking off in Texas at Hou.Sec.Con, one of the region’s most anticipated security conferences. It’s a hub for IT and cybersecurity professionals looking to explore new ways to defend against today’s evolving threats.

Stop by and learn how Sentra helps organizations protect sensitive data across cloud environments.

Trace3 Evolve: September 30–October 3, Las Vegas, NV

Next up is Trace3 Evolve, where IT leaders and innovators gather to discuss the future of enterprise technology. With cloud adoption accelerating, conversations around data security, compliance, and innovation are more important than ever.

Meet our team to see how Sentra makes securing sensitive data simple and scalable.

GuidePoint GPSEC Security Forum: October 3, Dallas, TX

We’re heading back south to attend GuidePoint GPSEC Security Forum in Dallas which will bring together industry leaders, cybersecurity experts, and technology innovators for a full day of impactful conversations, networking, and hands-on learning. This conference will dive into today’s most pressing security challenges through dynamic keynote speakers, engaging breakout sessions, and a bustling vendor fair. 

Whether you're dealing with data sprawl, compliance complexity, or risk visibility, Sentra will be on-site to show how their platform helps reduce risk and strengthen security posture without slowing innovation.

GrrCON: October 2–3, Grand Rapids, MI

Heading north, we’ll be at GrrCON, a favorite for security practitioners, researchers, and executives alike. Known for its community-driven feel, this event fosters knowledge-sharing and collaboration.

Let’s chat about modern approaches to cloud data security and how to mitigate risk without slowing innovation.

Innovate Cybersecurity Summit: October 5–7, Scottsdale, AZ

We’re excited to join the Innovate Cybersecurity Summit, where industry leaders explore solutions to today’s toughest challenges in data protection and cyber defense.

Learn how Sentra empowers organizations to gain visibility into their sensitive data and take proactive steps to secure it.

FS-ISAC Scottsdale: October (Dinner & Meetings)

We will be in Scottsdale during FS-ISAC, a premier financial services cybersecurity community event.

Sentra will be hosting a private dinner where attendees can connect in an intimate setting. We’ll also be available for 1:1 meetings to discuss how Sentra helps financial institutions protect sensitive data and comply with complex regulatory requirements.

This is a great chance to meet our team and hear how we partner with organizations to balance innovation and data protection.

Gartner Symposium: October 20–23, Orlando, FL

One of the year’s biggest IT events, the Gartner Symposium brings together CIOs, CISOs, and technology leaders to discuss the future of digital business.

Sentra will be on-site at Booth #748, where our team will showcase how a data-first security approach empowers organizations to innovate confidently while ensuring sensitive information remains protected. Stop by to connect with our experts and learn how Sentra helps enterprises stay secure in the cloud era.

NYC Google Event: October 21, New York, NY

We’ll also be in New York City at the Google Event, connecting with forward-thinking organizations adopting cutting-edge cloud technologies.

Discover how Sentra seamlessly integrates with Google Cloud to protect sensitive data wherever it lives.

InfoSec World: October 27–29, Lake Buena Vista, FL

We’re wrapping up the month at InfoSec World, a leading cybersecurity event bringing together professionals from across industries.

Stop by to learn how Sentra helps organizations strengthen data security strategies and stay ahead of regulatory demands.

GuidePoint GPSEC Security Forum: October 29, Philadelphia, PA

We’re closing out October at the GuidePoint GPSEC Security Forum in Philadelphia. This annual event brings together security professionals, technology partners, and thought leaders for a full day of collaboration and learning.

Hosted at Convene at Commerce Square, the forum will run from 8:00 a.m. to 5:00 p.m. ET and features a rich agenda, including:

  • A keynote from a leading cybersecurity expert
  • Breakout sessions exploring today’s most pressing security challenges
  • A panel of CISOs sharing practical strategies and real-world insights
  • A showcase of more than 70 technology vendors driving innovation in security

The day wraps up with a networking reception, providing attendees with the opportunity to connect with peers, exchange ideas, and continue important conversations in a more relaxed setting. Sentra is proud to participate in this event and contribute to the dialogue on securing sensitive data in an increasingly complex landscape.

Why These Events Matter

Cybersecurity is a team sport. By joining these events, Sentra isn’t just sharing our vision for protecting sensitive data, we’re also listening, learning, and collaborating with the community to address the most pressing challenges in cloud security.

From data discovery and classification to continuous monitoring and protection, Sentra helps organizations embrace innovation without compromising on security.

Connect with Sentra This October

Will you be at one of these events? Let’s meet!

Schedule a meeting with Sentra or visit our team at any of the conferences listed above. We’d love to show you how we can help your organization protect sensitive data and move faster with confidence.

See you on the road this October!

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Aviv Zisso
Aviv Zisso
August 26, 2025
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Data Security

Global Travel Platform Secures Petabytes of Cloud Data in 30 Days

Global Travel Platform Secures Petabytes of Cloud Data in 30 Days

Introduction

Cloud-first travel platforms handle massive volumes of customer data every day, from booking details to payment information. With petabytes of data spread across hundreds of  cloud accounts, the stakes couldn’t be higher: customer trust, regulatory pressure (PCI DSS, GDPR), and business reputation are always on the line.

This is the story of how a global travel platform took action to ensure the highest level of customer data protection and set out to gain complete visibility and full control of its data estate, securing petabytes of sensitive information across 600+ cloud accounts in just 30 days.

At a Glance: Securing Petabytes at Scale

The Challenge

  • 100s of PBs of sensitive customer data
  • 600+ cloud accounts, 150K+ data stores
  • Manual tagging, blind spots, reactive DLP
  • Compliance risks (PCI DSS, GDPR)

The Solution

  • Sentra’s agentless DSPM platform
  • Automated discovery & AI-driven classification
  • Real-time data mapping and compliance alignment
  • Partnership-driven support and fast deployment

The Results

  • Full visibility across petabytes of data in 30 days
  • Streamlined governance across 600+ cloud accounts
  • Dramatic reduction in  false positives & alert fatigue
  • Stronger compliance with PCI DSS & GDPR
  • Data security transformed into a strategic advantage

The Challenge: Data Visibility at Scale

The travel tech company’s cloud footprint had grown rapidly, now its security practices needed to be brought up to speed. Relying on legacy Data Loss Prevention (DLP) tools left the security team in a reactive posture. Alerts were triggered only after data had already left the environment. In the high velocity world of digital travel, “too late” is not an acceptable outcome.

Manual tagging compounded the problem. It was slow, resource-intensive, inconsistent across teams, and prone to human error. With more than 600 cloud accounts and hundreds of petabytes of data in motion, the organization sought a reliable way to answer the most fundamental security questions:

  • What sensitive data do we have?
  • Where is it stored?
  • Who has access to it?

Answers to these three foundational questions would enable them to lock down exposure risk, misconfigurations, and regulatory noncompliance for sensitive customer information, including payment card data and personal identifiers.

Sentra Data Security: Scalable, Accurate, Agentless

After evaluating a wide mix of DLP and DSPM vendors, the company selected Sentra for its ability to deliver scale, accuracy, and scan efficiency.

  • Agentless discovery allowed rapid deployment across the entire multi-cloud environment without adding operational friction.
  • AI-driven classification replaced error-prone manual tagging, enabling sensitive data to be labeled consistently and accurately.
  • Regulatory mapping ensured risks were tied directly to frameworks such as PCI DSS and GDPR, making compliance reviews easier and faster.
  • Smart scanning lowered cloud compute costs and provided more timely results.

Just as importantly, Sentra’s customer success and engineering teams worked closely with the company. Rapid support and the ability to deliver custom features strengthened the partnership and accelerated adoption.

Implementation: Tackling Complexity Head-On

Securing hundreds of petabytes across over 600 cloud accounts, over 150K data stores, and 25K data storage locations was no small feat. The implementation involved coordination with six internal stakeholder teams.

Sentra’s engineering team collaborated directly with the customer to fine-tune scanning for high-memory formats and optimize scanning cycles. This ensured that even as the environment expanded, sensitive data could still be discovered, classified, and secured in near real time.

Despite the scope and complexity, deployment was completed on schedule. Within weeks, the company moved from chasing alerts to uncovering exposures proactively. Manual tagging errors were eliminated, and governance workflows became more consistent across business units.

Real Business Impact: From Reactive to Proactive

The shift in outcomes was dramatic. Within months, the security team achieved the visibility they sought. Instead of reacting to alerts, they were proactively discovering risks and preventing incidents before they escalated.

Key results included:

  • Discovery of sensitive data that had previously gone unnoticed
  • Streamlined governance across 600+ cloud accounts
  • Automated classification that reduced false positives and alert fatigue
  • Improved compliance posture with PCI DSS and GDPR

As one security engineering manager put it:

“The Sentra speed and support really stood out. We were able to quickly transform our approach from reactive alerts to proactive discovery. We’re not just detecting potential risks anymore; we’re gaining a comprehensive inventory of our data landscape across hundreds of petabytes, enabling us to truly protect our most critical assets.”

Sentra for Travel Tech: Setting the Pace

For travel technology companies, customer trust and agility are everything. Every transaction, every booking, every passenger record carries sensitive information that must be protected. At this scale, manual processes and reactive tools simply cannot keep up.

By adopting Sentra’s cloud-native DSPM platform, this global travel leader gained real-time visibility into its vast, fast-moving data estate. Booking and flight details, payment card data, and personal identifiers could now be classified automatically and governed consistently without slowing the pace of innovation.

What had once been a compliance bottleneck became a strategic advantage.

Bottom Line: Data Security is a Competitive Edge

The journey of this global travel platform illustrates what’s possible when scale, automation, and accuracy come together. In just 30 days, the company moved from dangerous blind spots to full visibility and control over petabytes of sensitive data.

But this is about more than one company’s success story. In the AI-powered economy, where data volumes are exploding and regulatory demands are intensifying, innovation speed without security is a liability. The leaders of the next decade will be those who can combine agility with trusted data security.

Sentra’s DSPM platform gives organizations the ability to:

  • Discover and classify sensitive data automatically
  • Map risks directly to compliance frameworks
  • Move from reactive alerts to proactive governance
  • Scale confidently across complex, cloud-first environments

This is about more than just compliance. For consumer industries like travel and hospitality, retail, financial services, and any enterprise that runs on data, it’s about protecting customer trust, unlocking innovation, and gaining a true competitive edge.

Discover how Sentra can help your organization secure its cloud data estate at scale.

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Meni Besso
Meni Besso
August 21, 2025
3
Min Read
Compliance

NYDFS 2.0: New Cybersecurity Requirements and Enforcement

NYDFS 2.0: New Cybersecurity Requirements and Enforcement

NYDFS Steps Up Enforcement

The New York State Department of Financial Services (NYDFS) has long been one of the most influential regulators in the financial sector, but over the past two years, it’s made one thing crystal clear: cybersecurity is no longer a back-office IT concern, it’s a regulatory priority.

In response to growing threats, increasing reliance on third-party services, and persistent operational risks, NYDFS has tightened its expectations around how financial institutions protect sensitive data. And it’s backing that stance with real financial consequences.

Just ask PayPal or OneMain Financial, two major firms hit with multimillion-dollar penalties for cybersecurity lapses. These weren’t headline-grabbing breaches or ransomware attacks, they were the result of basic control failures, delayed reporting, and repeated gaps in governance.

What do a $2M fine for PayPal and a $4.25M penalty for OneMain have in common?


Weak cybersecurity practices, and a regulator that’s no longer willing to wait for companies to catch up.

The Recent Crackdowns: PayPal and OneMain

a. PayPal – $2M Civil Penalty (January 2025)

In January 2025, NYDFS announced a $2 million penalty against PayPal for violations of its cybersecurity regulations under Part 500. The enforcement focused on failures to report a cybersecurity event in a timely manner and gaps in maintaining certain required controls.

The incident involved unauthorized access to over 34,000 user accounts, exposing sensitive personal data including tax IDs and financial information. NYDFS emphasized that PayPal’s delayed reporting and lack of specific security measures put both consumers and the broader financial ecosystem at risk.

What it signals: No company - not even a digital-native fintech giant is immune from enforcement. The bar is rising, and NYDFS is expecting organizations to report, respond, and remediate swiftly and transparently.

b. OneMain Financial – $4.25M Fine (May 2023)

In May 2023, NYDFS fined OneMain Financial $4.25 million after discovering systemic cybersecurity deficiencies, including improperly stored passwords, insufficient multi-factor authentication, and inadequate third-party risk management.

Even more concerning: many of these issues were identified in earlier audits and hadn’t been fully addressed. NYDFS made it clear that repeated inaction wouldn’t be tolerated.

What it signals: It’s not just about responding to one-off incidents — regulators are watching for long-term security maturity. Ongoing hygiene, policy enforcement, and consistent control testing are now table stakes.

What’s Changing: NYDFS 2.0 (Part 500 Amendments)

These enforcement actions aren’t just about past violations, they’re a preview of what’s to come.

With the rollout of the NYDFS Second Amendment to Part 500, also known as NYDFS 2.0, covered entities, especially those classified as Class A companies are facing a new set of enforceable expectations.

Key new requirements include:

  • Annual independent audits of cybersecurity programs
  • Mandatory multi-factor authentication (MFA) for all systems
  • Stronger access control policies, including role-based access
  • Board-level or senior executive oversight of cybersecurity governance

Full enforcement kicks in on November 1, 2025. At that point, these aren’t just checkboxes, they’re compliance requirements with real financial and reputational risk for falling short.

The message is clear: NYDFS is no longer satisfied with written policies and best-effort intentions. It's expecting demonstrated outcomes, measurable control, and leadership accountability.

The Broader Message: Enforcement Is the New Default

NYDFS isn’t the only regulator stepping up, but it’s arguably the most proactive, and most willing to act. These recent fines signal a broader shift across the industry: compliance is no longer about having good intentions or written policies. Regulators are now focused on evidence of execution, real controls, timely reporting, and provable outcomes.

In other words, enforcement is the new default. This shift reframes cybersecurity from a purely technical issue to a board-level governance challenge. It's not enough for IT or security teams to manage risk in isolation. Executive leadership, legal, and compliance functions all need to be aligned — and accountable.

If your organization is treating cybersecurity as just a tech responsibility, you’re behind.

What Organizations Should Do Now

The message from regulators is clear, and now is the time to act.

Here are four practical steps your team can take to stay ahead:

  • Audit your current posture against NYDFS Part 500. Focus especially on:
    • Incident reporting timelines
    • MFA coverage
    • Access controls
    • Third-party risk assessments

  • Prioritize visibility across your environment
    You can’t protect what you can’t see. Ensure you have continuous insight into where sensitive data lives, who can access it, and how it moves across cloud, SaaS, and on-prem systems.

  • Document everything
    Have clear records of your policies, security controls, vendor assessments, incident response processes, and risk decisions. If you had to prove your compliance tomorrow, could you?

  • Benchmark your controls against recent enforcement
    If PayPal and OneMain were fined for these issues, ask yourself:
    How would our program hold up under similar scrutiny?

Final Thoughts: Read the Signals Now, Not After a Fine

The writing is on the wall - NYDFS is raising the bar, and other regulators are likely to follow. This is your opportunity to get ahead of the curve, rather than scrambling after the fact.

Take these fines as what they are: a warning shot and a roadmap. Organizations that prepare now - with tighter controls, better visibility, and cross-functional ownership won’t just avoid penalties. They’ll be more resilient, more trusted, and better equipped to lead in a high-risk landscape.

If you’re not sure where to start, use these enforcement cases as a prompt for an internal review. And if you want to go deeper, we’ve put together a compliance checklist that can help you assess where you stand.

Better to find the gaps now before NYDFS does.

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