The insurance industry is facing an unprecedented surge in
Cyber threats against public agencies have reached a critical tipping point. In response, New York State has enacted a new law that marks a major leap in government cyber accountability. The legislation now mandates that municipalities and local public authorities report cyberattacks within 72 hours and ransom payments within 24 hours. In addition, all public sector employees will be required to undergo cybersecurity training to help prevent attacks before they happen.
This law does not exist in isolation. It mirrors federal efforts under the Cyber Incident Reporting for Critical Infrastructure Act and complements existing frameworks like the New York Department of Financial Services (NYDFS) cybersecurity regulation.
It is a clear message: compliance is no longer optional, and cybersecurity is now a matter of law.
What This Means for Public Sector Entities
The new legislation introduces several key requirements:
- Local government agencies must notify the New York State Department of Homeland Security and Emergency Services promptly after a cyberattack is identified
- Ransom payments, if made, must be disclosed within 24 hours
- Cybersecurity training is now mandatory for all public employees
Public sector organizations, especially in areas like education, public utilities, healthcare, emergency services, and local law enforcement, will now be held to higher standards of security readiness and response.
This law ensures that reporting delays no longer jeopardize public trust or incident containment. It brings visibility and structure to what has traditionally been an inconsistent or reactive approach to cyber incidents.
The Rising Risk to Local Governments
Local governments are a top target for cybercriminals due to their:
- Aging infrastructure and legacy IT systems
- Limited cybersecurity funding and resources
- Highly sensitive public data such as health, financial, and identification records
- Essential services that, if disrupted, impact thousands or even millions of citizens
Over the past few years, ransomware attacks have crippled city operations, disabled emergency systems, and exposed critical citizen data. These events demonstrate how urgent it is to develop agile and proactive cyber risk strategies across all public sectors.
Compliance Is the Starting Line, Not the Finish
To meet the expectations of this new legislation and to reduce operational risk, public agencies must act now:
- Develop detailed incident response plans aligned with regulatory timeframes
- Vet and monitor third-party vendors with access to government systems
- Provide continuous cybersecurity awareness and phishing defense training for employees
- Conduct regular penetration testing and risk assessments to identify vulnerabilities
- Align internal security policies with ISO 27001, NIST CSF, HIPAA, and NYDFS standards
Cybersecurity readiness is no longer just a matter of best practice – it is now a legal, reputational, and operational imperative.
Conclusion: A Turning Point for Cyber Governance
This legislative move by New York represents a decisive shift in public sector cyber governance. It sets a precedent that other states are likely to follow, especially as federal pressure to enhance critical infrastructure security continues to grow.
Public sector leaders must see this as an opportunity to build stronger defenses, improve employee preparedness, and reinforce trust with the communities they serve.
The time to act is now. The law requires it. Public safety demands it.
About COE Security
At COE Security, we help public sector agencies, critical infrastructure operators, and organizations across finance, healthcare, education, and legal domains meet the rising demands of cybersecurity and compliance.
Our core services include:
- Implementation of Governance Risk and Compliance frameworks aligned with ISO 27001, NIST, HIPAA, GDPR, and NYDFS
- Advanced penetration testing and vulnerability management
- Design and deployment of incident response and breach notification plans
- Custom cybersecurity awareness training programs tailored to public sector needs
- Third-party risk assessments to secure vendor ecosystems
Whether you’re a local government authority, a utility provider, or a healthcare institution, COE Security ensures you’re not just compliant – you’re resilient.
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