Security testing for financial firms that hold client money and data

NYDFS Part 500 applies regardless of size, and SEC Regulation S-P requires written safeguards for customer records. We test the controls that keep client money and data safe and keep you in compliance.

What we test for firms

We focus on the systems that hold client money and data and the controls regulators expect. Every engagement pairs with our web application penetration test approach and our cloud security assessment where they apply.

MFA on cloud email and custodial portals
Wire-instruction verification, including call-back procedures before any wire moves
Email account compromise detection, so a hijacked mailbox does not become a wire-fraud vector
Encryption of client PII at rest and in transit
Vendor oversight for CRM and custodial platforms
NYDFS Part 500 control set, including the MFA and asset inventory requirements effective November 1, 2025
SEC Regulation S-P written safeguards, with administrative, technical, and physical controls documented

What is at stake

In the firm's language and the principal's language, these are the exposures a gap creates

Missed certification or an SEC exam finding

NYDFS Part 500 applies regardless of size to every organization under a NYDFS license, registration, charter, or authorization, including small broker-dealers, independent RIAs, insurance agencies, and mortgage companies. The Second Amendment was fully effective November 1, 2025. The amended rule requires an annual certification of compliance, with dual-signature certification creating personal accountability for the CEO and CISO.

Email account compromise and wire-fraud exposure

As of November 1, 2025, any individual accessing any information system of a NYDFS-covered entity must use MFA, with only a written, CISO-approved compensating control as an exception. A hijacked mailbox without MFA is both a compliance failure and a wire-fraud vector.

Custodians and clients asking for security evidence

Under SEC Regulation S-P Rule 30(a), every SEC-registered investment adviser must adopt written policies and procedures with administrative, technical, and physical safeguards for customer records. SEC settlements have turned on missing risk assessments, missing firewalls, unencrypted PII, missing incident response plans, and failure to enforce MFA on cloud email accounts.

Engagement and pricing

Assessments start at $5,000 and include a free 30-minute consultation. We scope the work to your systems, your custodial platforms, and the regulatory framework that applies to your firm.

Based in Long Island and serving firms across the region. See our Long Island security services page, compare options on our pricing page, or contact us to schedule a call.

Protect client money and data, and stay in compliance

Book a free 30-minute call. We will walk through your MFA, wire-verification, and encryption controls and tell you where a gap would be found.