Cybersecurity Regulations: What They Are and Why They Matter in 2025

Cyberattacks are getting worse every year across the globe. With everything now connected to the internet, our banks, hospitals, shopping, and even schools, hackers have more chances than ever to break in. And when they do, the damage can be huge - financially and personally.

This is why we have cybersecurity regulations. These are rules made by governments and industry groups to help protect sensitive information and keep systems safe. They tell businesses what they must do to prevent cyberattacks, how to respond when something goes wrong, and how to report it.

But here’s the tricky part, these regulations are different in every country, and sometimes even in different states or industries. That makes it confusing for many businesses to understand what they need to follow.

In this blog, we’ll help you understand how cybersecurity regulations work, what the most important ones are, and how you can follow them without feeling lost. We’ll also look at how tools like ComplyScore® by Atlas Systems can make compliance a lot easier.

Let’s begin by knowing the difference between cybersecurity regulations and frameworks, what rules matter most in the industry, and how to stay compliant with less stress.

Cybersecurity Regulations vs Cybersecurity Frameworks: What’s the Difference?

When it comes to protecting data, there are two types of rules that businesses often hear about: cybersecurity regulations and cybersecurity frameworks. While they both sound similar, they are actually quite different and both are important.

Cybersecurity regulations are laws set by governments and if your business doesn’t follow them, you could face serious fines or penalties. These laws are also mandatory, which means you must comply with them. 

Some well-known examples include the NYDFS Cybersecurity Regulation (for financial services), HIPAA (for healthcare), and GDPR (for businesses dealing with European customers). There are also broader federal cybersecurity regulations in countries like the U.S. that apply to critical industries.

On the other hand, cybersecurity frameworks are not laws, they are more like best practices or guides that you have to follow. These are not mandatory but voluntary, however many businesses follow them to improve their overall security. Some of the popular frameworks include NIST Cybersecurity Framework (CSF) and ISO/IEC 27001. They help companies build strong processes, detect risks early and respond to incidents smarter and better.

But it is important to keep in mind that frameworks are helpful, but they are not always enough. In fact, a company can follow a framework really well and still get into trouble if it doesn’t follow the exact rules set by the law. Therefore, the best way is to use both, following a good framework and the legal regulations. 

Check this out: Cybersecurity Trends: Top Threats and Innovations to Track

Industry-Wise Breakdown of Cybersecurity Compliance Regulations

Every industry faces different cybersecurity risks, and so the laws and rules that apply can also vary. In this section, we’ll break down the key regulations, common challenges, and what can happen if companies don’t follow the rules. You’ll also see how Atlas Systems can help each industry stay on track.

Financial Services

The financial industry, especially banks, insurance firms and fintech companies, is a top target for cybercriminals. That’s because these organizations hold extremely sensitive data like account details, credit card numbers, Social Security information and personal financial records. Even a small data leak can cause serious harm to customers and shake trust in the entire system.

Because the risks are so high, this industry is also one of the most closely watched when it comes to cybersecurity. There are strict rules in place to protect customer data, prevent fraud and keep systems secure. These rules don’t just come from one place, companies often may need to follow federal, state or industry-specific regulations depending on where they operate and what services they offer.

Here are some of the most important cybersecurity compliance regulations for financial institutions:

• Gramm-Leach-Bliley Act (GLBA): Requires financial institutions to explain how they share and protect consumer data, and to implement strong safeguards.
• Sarbanes-Oxley Act (SOX): Focuses on the accuracy and security of financial reporting systems and requires controls to prevent tampering with digital records.
• Payment Card Industry Data Security Standard (PCI DSS): A global standard required for any business that processes credit or debit card transactions. It includes 12 security requirements covering everything from encryption to access control.
• NYDFS Cybersecurity Regulation: Applies to financial institutions licensed in New York. It requires regular risk assessments, incident response plans, multi-factor authentication, and annual certification of compliance.

Compliance challenges

Financial institutions face a lot of pressure from both regulators and cybercriminals. One big issue is the complex vendor ecosystem. Banks and financial companies rely on many third-party providers, for things like payment processing, software, and customer support. Each vendor adds a layer of risk. These risks must be tracked closely to avoid security gaps. On top of that, financial firms are high-value targets. Hackers know there’s a lot to gain from breaching a bank, so they are constantly hit with ransomware, phishing attacks, and even insider threats.

Another big challenge is overcoming overlapping laws. Along with financial rules like GLBA or SOX, many firms also need to follow privacy laws such as GDPR, CCPA, or India’s DPDP Act, especially if they serve customers in multiple countries. 

It gets even harder when legacy systems come into play. Older systems may not support modern security controls and are hard to upgrade without causing business interruptions. Finally, frequent audits demand detailed documentation of every control, incident, and fix, which can be time-consuming and stressful without the right tools.

Read: Financial Services Cybersecurity Trends and Tactics for 2025

Impact of non-compliance

Failing to follow financial cybersecurity regulations can lead to serious consequences. These may include fines, lawsuits, reputational damage, and even license suspension.

For example, First American Financial (2021) leaked millions of sensitive documents due to poor access controls. The NYDFS fined them $1.5 million under its cybersecurity regulation.

How Atlas Systems helps

Atlas Systems offers a practical solution to help financial firms overcome these challenges. With its platform ComplyScore®, financial institutions can:

• Track every vendor’s risk level: ComplyScore® builds a detailed risk profile for each third party, including those handling payments, cloud services, or customer data.
• Automate compliance mapping: The platform connects each regulation (e.g., GLBA, PCI DSS) to the specific actions and controls your business needs to take.
• Manage audits more easily: With built-in documentation tools and centralized dashboards, it’s easier to prepare for internal or regulatory audits.
• Get real-time alerts: If a vendor falls out of compliance or a control fails, you’ll get immediate notifications so you can fix issues before they grow.
• Simplify reporting: Whether you need to file with the NYDFS or prepare a SOX compliance report, ComplyScore® gives you clean, organized data to show regulators.

Healthcare

Healthcare organizations rely on digital systems to manage everything from appointment bookings to lab reports and insurance claims. This makes their networks a prime target for cybercriminals. 

Hackers often go after hospitals and clinics because medical data is extremely valuable and not easily changed unlike passwords or credit card numbers. That’s why healthcare providers are required to follow strict cybersecurity rules to protect patient information and keep their systems secure.

Here are the key healthcare cybersecurity regulations that providers, insurers, and health tech companies must follow:

• HIPAA (Health Insurance Portability and Accountability Act): This U.S. law requires healthcare organizations to protect patient health information (PHI). It covers everything from digital records and email communications to data stored in cloud systems.
• HITECH Act: This law encourages the use of electronic health records (EHRs) but also strengthens HIPAA rules, especially around data breaches and penalties.
• FDA Cybersecurity Guidance: The U.S. Food and Drug Administration has released guidelines for securing medical devices, especially those connected to hospital networks or patient monitoring systems.
• Global equivalents: In other countries, similar laws exist. For example, the GDPR covers health data in the EU, and India's DPDP Act applies to healthcare data in digital systems.

Compliance challenges

Healthcare organizations, from small clinics to large hospitals, deal with many cybersecurity challenges. A big problem is the use of old IT systems that aren’t built to handle today’s threats. Updating them is expensive and often disrupts patient care. The attack surface is also very large, hackers can target everything from patient portals and telehealth platforms to lab systems and connected medical devices. 

Third-party vendors add more risk, especially when handling billing, insurance, or patient data in the cloud. If just one vendor is weak on security, the whole system becomes vulnerable. 

On top of that, medical staff are busy and not always trained in cybersecurity, making them easy targets for phishing and other scams. And when something does go wrong, strict rules like HIPAA require providers to report breaches within 60 days or face even higher penalties.

Impact of non-compliance

Healthcare data is valuable and when it’s leaked or stolen, the consequences are serious. Regulatory bodies don’t take it lightly. For example, in 2020, Anthem Inc., one of the largest health insurance providers in the U.S., had to pay $16 million in a HIPAA settlement after a massive data breach affected nearly 79 million people. It was the largest healthcare cybersecurity fine at the time.

How Atlas Systems helps

Atlas Systems understands that healthcare organizations don’t always have large cybersecurity teams. That’s why their platform, ComplyScore®, is designed to make compliance simpler and more reliable.

Here’s how Atlas helps:

• Vendor risk assessments: ComplyScore® evaluates whether third-party providers like billing companies or software vendors meet HIPAA standards. It also flags issues that could lead to non-compliance.
• Pre-built healthcare compliance templates: Healthcare organizations don’t need to start from scratch. The platform provides ready-to-use checklists and controls aligned with HIPAA and HITECH.
• Continuous monitoring: Instead of only checking vendor risks once a year, ComplyScore® keeps track of changes in real time alerting you if a vendor’s risk profile suddenly worsens.
• Incident tracking and reporting tools: In case of a breach, Atlas helps healthcare teams log what happened, notify the right people, and generate reports that match HIPAA’s breach notification rules.
• Easy-to-read dashboards: Whether you’re a CIO, compliance officer, or department head, you can quickly see how your systems and vendors are doing all in one place.

Government and Public Sector

Government offices and public organizations handle very sensitive information like people’s personal data, police records, tax information, and national defense systems. Because this data is so important, these organizations are often targeted by hackers, foreign attackers, and even people inside the system. 

If even one part of a government system gets hacked, it can cause major problems like services getting disrupted, people losing trust, or even risks to the country’s safety. That’s why there are strict rules about how these organizations must protect their systems.

If a government agency, whether it’s a small town office or a federal department, doesn’t follow these rules, the consequences can be serious. They might have to pay fines, lose funding, face more checks from federal authorities, or even be stopped from working on important government projects. In areas like defense, not following these rules could even put critical infrastructure or public safety at risk.

Key regulations to know

• FISMA (Federal Information Security Management Act): Requires government agencies to follow a strict process for securing IT systems and managing risks.
• FedRAMP (Federal Risk and Authorization Management Program): Applies to cloud service providers working with federal agencies. It ensures standardized security requirements across all cloud vendors.
• CMMC (Cybersecurity Maturity Model Certification): Required for Department of Defense (DoD) contractors. It defines cybersecurity practices companies must follow to be eligible for government contracts.

Compliance challenges

Government organizations face unique difficulties when it comes to compliance. One major issue is the strict procurement and documentation standards they must follow. Every system and service goes through detailed approval processes, which can be slow and complex. 

There’s also the problem of supply chain security, especially in critical infrastructure like power grids, defense systems, and transportation. If a vendor or third party has weak security, it can become a point of entry for attackers. Lastly, multi-agency data sharing increases risk. When different agencies share sensitive information, it creates more access points that need to be secured.

Impact of non-compliance

Failing to follow federal cybersecurity regulations can have serious consequences. Agencies may face increased oversight from federal bodies, be forced to halt projects, or even lose contracts, especially in the case of CMMC violations. In some cases, national security may be put at risk, which adds even more pressure to get compliance right.

How Atlas Systems helps

Atlas Systems supports government agencies and contractors by offering risk profiles aligned with federal cybersecurity regulations. Through its ComplyScore® platform, agencies can maintain full audit trails, manage compliance across complex ecosystems, and handle CMMC documentation with ease. This helps reduce risk and meet federal standards without delays or confusion.

Retail and E-commerce

When you shop online, you trust that your personal details, from your name and address to your credit card information, are safe. Behind the scenes, retailers have a big responsibility to protect that trust. As online shopping grows, so do the risks. 

Cybercriminals often target e-commerce sites to steal sensitive data or disrupt services. That’s why retail and e-commerce companies must follow strict cybersecurity and privacy regulations. These rules help protect customer information and ensure businesses are handling data the right way.

Key regulations to know

• PCI DSS (Payment Card Industry Data Security Standard): Retailers that handle credit or debit card transactions must follow these rules to protect cardholder data.
• GDPR (General Data Protection Regulation): Applies to any business that collects data from users in the European Union, even if the company is based elsewhere.
• CCPA (California Consumer Privacy Act): A U.S. state law that gives California residents control over how their personal data is collected, used, and shared.

Compliance challenges

Retailers face a number of tricky compliance problems. First is secure payment processing; every transaction must meet strict PCI DSS requirements, or retailers could face penalties and lose payment privileges. 

Next, data privacy must be maintained across many digital touchpoints: websites, mobile apps, chatbots, and third-party plugins like payment gateways and product recommendation engines. These platforms often collect customer data automatically, and without proper oversight, can violate privacy laws.

Another big challenge is relying on third-party e-commerce providers, like Shopify, Magento, or WooCommerce. If these platforms are not properly secured or compliant, your customer data may still be at risk even if your internal systems are strong.

Impact of non-compliance

Failing to follow cybersecurity and privacy rules can lead to major consequences. One well-known example is British Airways, which was fined nearly $230 million under GDPR after a data breach exposed personal data of over 400,000 customers. 

In the U.S., retailers who violate laws like CCPA can face class-action lawsuits from affected users, especially if there’s a breach. Beyond fines, non-compliance can seriously damage a brand’s reputation. Customers are quick to abandon companies that don’t take data protection seriously.

How Atlas Systems helps

Atlas Systems offers specialized support for e-commerce and retail businesses through its ComplyScore® platform. It helps your team:

• Automate privacy assessments for third-party tools, plugins, and payment providers, ensuring everything connected to your store is compliant.
• Stay PCI DSS compliant by managing vendor risk and due diligence in one place, reducing manual tracking and saving time.

With ComplyScore®, retail businesses can focus on delivering great customer experiences while staying compliant with all necessary data protection regulations.

Technology and Telecommunications

The technology and telecom industry powers much of the modern digital world, from the phones we use to the cloud services businesses rely on. These companies handle enormous amounts of personal, business, and infrastructure data.

Because of this, they are closely watched under various cybersecurity regulations. Governments and regulators want to ensure that the systems behind mobile networks, artificial intelligence, and smart devices are built with security in mind, right from the start.

Key regulations to know

Tech and telecom companies must follow several important cybersecurity compliance regulations:

• FCC regulations (U.S.): Govern how communication networks protect user data and handle cybersecurity threats.
• GDPR (European Union): Applies to companies that store or process data of EU citizens, especially for cloud services and cross-border data transfers.
• National AI and IoT cybersecurity guidelines: Many countries, including India, the U.S., and EU members, are introducing rules to secure artificial intelligence systems, Internet of Things (IoT) devices, and connected infrastructure.
• Cross-border data protection laws: These are aimed at preventing personal data misuse and ensuring digital infrastructure remains safe from cyberattacks.

Compliance challenges

Staying compliant isn’t easy. Tech companies must secure fast-growing technologies like 5G networks, AI models, and smart sensors, all of which come with unique risks. Data localization laws, which require companies to store certain types of data within national borders, add more complexity. 

On top of that, tech firms are often expected to lead the way in privacy-by-design, meaning they must build products with strong privacy protections built in from the start, not added later. This puts pressure on teams to balance innovation with regulation.

Impact of non-compliance

If companies don’t meet cybersecurity compliance regulations, the fallout can be huge. A single misconfigured cloud server can expose millions of user records, damaging a company’s reputation and attracting heavy penalties. In some cases, governments may block new product launches or restrict operations until the company fixes its security issues. This can delay market entry and cause major revenue losses.

How Atlas Systems helps

Atlas Systems understands the unique challenges faced by global tech and telecom providers. Through its ComplyScore® platform, Atlas offers a regulatory matrix builder that helps companies identify and manage all the cybersecurity regulations they must follow, across countries, services, and technologies. 

It also scans and flags risks across cloud infrastructure, SaaS environments, and third-party data processors, helping companies stay compliant and secure without slowing down their growth.

This may interest you: Cyber Risk Management: What You Need To Know

How to Stay Compliant Without Getting Overwhelmed

Cybersecurity compliance can feel like a never-ending task. With every industry having its own rules and new laws being added regularly, it’s easy for businesses to feel lost. But staying compliant doesn’t have to be stressful. With the right steps, companies can build a system that works, even as rules evolve.

Here’s how to make cybersecurity compliance more manageable:

Conduct regular cybersecurity risk assessments

Start with knowing your risks. A regular cybersecurity risk assessment helps you identify where your data is stored, who has access, and what could go wrong. Whether it's employee mistakes, outdated software or risky vendors, understanding the weak spots is the first step in fixing them.

Build a regulation-specific compliance plan

Not every regulation applies to every business. Instead of trying to follow every rule out there, create a clear plan that focuses on the ones that matter to you. Use a list of cybersecurity regulations relevant to your industry, for example, HIPAA for healthcare, PCI DSS for retail, and NYDFS for financial services. Then, break down each requirement into specific actions your team can follow.

Automate compliance monitoring with AI-powered tools

Manual tracking quickly becomes messy especially if you deal with dozens of vendors or systems. That’s why many businesses now use platforms like Atlas Systems' ComplyScore®, which use AI to automate tasks like:

• Mapping controls to specific regulations
• Flagging compliance gaps in real time
• Scoring vendor risks across cybersecurity areas

Automation not only saves time, it also helps you catch problems early, before they turn into violations.

Invest in training for internal and vendor teams

Technology alone isn’t enough. People are often the weakest link in cybersecurity. That’s why regular training is important, not just for your employees, but also for your vendors. Everyone handling sensitive data should understand:

• What regulations apply
• What secure practices to follow
• What to do if there’s a breach or suspicious activity

Simple things like avoiding phishing scams or locking screens can prevent major incidents.

Track changes in law across jurisdictions

Cybersecurity laws are always changing. What worked last year might not be enough today, especially if you operate across multiple regions. For example:

• The EU has GDPR
• The U.S. has CCPA, NYDFS, and sector-based rules like HIPAA
• India has the DPDP Act
• Global supply chains often involve cross-border data sharing

Make sure your compliance plan includes a way to monitor updates in regulations, and adjust controls as needed.

Why Atlas Systems is the Right Compliance Partner

Cybersecurity rules are getting stricter, and businesses are under more pressure than ever to stay compliant. That’s where Atlas Systems comes in. We help you stay ahead of threats and meet complex cybersecurity regulations without the stress.

Our ComplyScore® is built to simplify compliance across industries. It supports major regulations like HIPAA, GLBA, CMMC, PCI DSS, NYDFS, and ISO, helping you manage everything from one place with a central dashboard, audit logs, and policy checklists.

We also offer powerful cybersecurity risk assessment tools to protect your systems from threats. With AI-based risk identification, continuous monitoring, and custom risk profiling, we help you find weak spots before attackers do and fix them fast.

Here’s what makes us different:

• Vulnerability assessment: We scan your systems to detect outdated software, misconfigurations, and other security gaps. You get a detailed report with clear action steps to improve your defenses.
• Penetration testing: We run real-world attack simulations to see how well your systems hold up. This helps uncover risks that traditional testing often misses.
• IT risk assessment: We analyze your entire IT environment, including data security, compliance gaps, and response capabilities, so you can build a smarter risk strategy.

Whether you're in healthcare, finance, government, tech, or retail, Atlas Systems gives you the tools to stay secure, avoid fines, and prove compliance, all in one place.

Want to see how we can help? Talk to us