NY Cyber Regulator Warns on Third-Party Vendors After AWS Crash

The New York State Department of Financial Services on Tuesday warned financial and insurance companies against overreliance on third-party service providers in the wake of an Amazon Web Services outage that took down hundreds of sites across the financial, tech, and retail sectors.

The regulator’s guidance didn’t mention AWS—which underpins about one-third of the cloud computing market—by name. But it cautioned companies to exercise due diligence more broadly when using software and technology from third-party providers of cloud, file-transfer systems, and AI solutions.

“While third-party service providers have driven innovation and enabled significant efficiencies in our financial system, regulated entities ...