What Are the Penalties for Not Complying with DORA and NIS2?

24 August, 2023

What are the sanctions for non compliance with DORA and NIS2

Sanctions for DORA and NIS2

Understanding Sanctions for Non-Compliance with DORA and NIS2

In early 2023, two pivotal cybersecurity regulations—DORA (Financial Sector Operational Digital Resilience Regulation) and NIS2 (Directive on High Common Cybersecurity Standards)—went into effect, aiming to protect Europe’s critical digital infrastructure. These regulations raise cybersecurity standards across sectors, particularly within the financial industry, where compliance is mandatory.

What is DORA, the Digital Operational Resilience Act, and What are its Objectives

Compliance Requirements and Penalties Under DORA

DORA primarily targets the financial sector, requiring compliance with strict digital resilience standards. Non-compliance with DORA can result in severe penalties, including substantial fines calculated as a percentage of a company’s annual revenue. In serious cases, regulators may order audits, enforce operational changes, or even suspend a company’s activities to ensure cybersecurity standards are met.

Sanctions for DORA

Sanctions for Violations of NIS2

NIS2 has broader applicability, covering entities across multiple sectors critical to the economy and society. Non-compliance with NIS2 can lead to high fines, potentially amounting to millions of euros for significant infractions. Additional sanctions, such as operational bans or enforced security audits, may be imposed on non-compliant entities to prevent further cybersecurity risks.

Sanctions for NIS2

Role of Strong Authentication in Meeting DORA and NIS2 Requirements

Strong authentication is a critical factor in digital resilience and cybersecurity under both DORA and NIS2. Implementing robust, phishing-resistant MFA solutions, such as FIDO-based passkeys provided by Secfense, helps organizations comply without altering application code. This approach supports regulatory adherence by adding an effective security layer to protect sensitive systems and data.

Analysis of DORA and NIS2 Regulations in the Context of Enterprise Cyber Security in the EU.

Preparing for Compliance with DORA and NIS2

Failure to comply with DORA and NIS2 can bring significant risks, making it essential for organizations to invest in reliable security measures like strong authentication. Secfense enables organizations to integrate passwordless MFA solutions quickly, helping to secure applications against unauthorized access and meet compliance deadlines.

Access the Secfense Guide to DORA and NIS2 Compliance

Secfense will soon release a detailed DORA and NIS2 compliance guide, covering key topics such as:

Entities subject to DORA and NIS2.
Responsibilities for DORA and NIS2 implementation.
Compliance risks and potential penalties.
Requirements for strong, passwordless authentication.

Our guide provides expert insights on authentication requirements under DORA and NIS2, including answers to questions like:

Is strong authentication mandatory?
Does DORA require asymmetric cryptography?
Are all IT providers subject to third-party requirements under DORA?

To access this guide, subscribe to our newsletter for updates and follow us on LinkedIn, Facebook, and Twitter.

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Stay Compliant and Secure: Schedule a call with a Secfense expert to discuss compliance solutions, and watch our webinar on adopting strong, passwordless authentication under DORA and NIS2.

Antoni Sikora

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We are faced with new challenges every day. We must always be one step ahead of the attackers and know what they are going to do before they do it. We are convinced that the User Access Security Broker will bring security to a new level, both for those working at the office and from home. For us, working with Secfense is an opportunity to exchange experience with developers who put great value on out-of-the-box thinking.

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BNP Paribas Bank Poland

As part of the pre-implementation analysis, we verified that users utilize a wide range of client platforms: desktop computers, laptops, tablets, smartphones, and traditional mobile phones. Each of these devices differs in technological advancement, features, and level of security. Because of this, and also due to the recommendation of the Polish Financial Supervision Authority (UKNF), we decided to introduce additional protection in the form of multi-factor authentication mechanisms based on FIDO. As a result, users of our applications can log in safely, avoiding common cyber threats such as phishing, account takeover, and theft of their own and their clients’ data.

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We are excited to partner with Secfense to enhance our user access security for our web apps. By integrating their User Access Security Broker, we ensure seamless and secure protection for our applications and systems, delivering superior security and convenience to our customers.

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IT & Infrastructure

Visium Networks

Before investing in Secfense, we had the opportunity to talk to its existing clients. Their reactions were unanimous: wow, it’s so easy to use. We were particularly impressed by the fact that implementing their solution does not require the involvement of IT developers. It gives Secfense a huge advantage over the competition, and at the same time opens the door to potential customers who so far were afraid of changes related to the implementation of multi-factor authentication solutions.

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Managing Director

RKKVC

Even when the network and infrastructure are secured enough, social engineering and passwords can be used to gain control of the system by attackers. Multifactor authentication is the current trend. Secfense addresses this and allows you to build zero trust security and upgrade your current systems to passwordless applications within minutes, solving this problem right away,” said Eduard Kučera, Partner at Presto Ventures and cybersecurity expert – former Director in hugely successful Czech multinational cyber security firm Avast.

Eduard Kučera

Partner

Presto Ventures

One of the biggest challenges the world is facing today is securing our identity online. That’s why we were so keen to have Secfense in our portfolio. They make it possible to introduce strong authentication in an automated way. Until now, organizations had to selectively protect applications because the deployment of new technology was very hard, or even impossible. With Secfense, the implementation of multi-factor authentication is no longer a problem, and all organizations can use the highest standards of authentication security.

Stanislav Ivanov

Founding Partner

Tera Ventures

Two-factor authentication is known to be one of the best ways to protect against phishing; however, its implementation has always been difficult. Secfense helped us solve that problem. With their security broker, we were able to introduce various 2FA methods on our web applications at once.

Dariusz Pitala

Head of IT

MPEC S.A.