Bank Regulators Form Group in Response To Cyberattacks in Financial Sector

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By Jeff Bater  

 

Leading financial regulators have formed a working group to address the growing sophistication of cyberattacks.

The Federal Financial Institutions Examination Council (FFIEC) June 6 announced the formation of a working group to promote coordination across the federal and state banking regulatory agencies on critical infrastructure and cybersecurity issues.

The Cybersecurity and Critical Infrastructure Working Group will enhance communication among the FFIEC member agencies and build on existing efforts to strengthen the activities of other interagency and private sector groups, such as the FFIEC Information Technology Subcommittee of the Task Force on Supervision, the Financial and Banking Information Infrastructure Committee, the Financial Services Sector Coordinating Council, and the Financial Services Information Sharing and Analysis Center.

“These efforts are important in light of the growing sophistication and volume of cyberattacks and the global importance of critical financial infrastructure,” the FFIEC said.

The regulators that are part of the FFIEC include the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Consumer Financial Protection Bureau.

Fed Governor Warns of Hackers

Fed Governor Sarah Bloom Raskin sounded a warning in a February speech about hackers (41 PRA, 3/1/13).

She suggested banks face reputation damage at the hands of computer hackers, and that cyberattacks on banks are occurring with increasing frequency, affecting their customers.

“This cybersecurity threat is increasing at a time when more and more bank customers depend on electronic and mobile banking,” Raskin said. “Workers are using their own laptops and smart phones or working remotely from home computers, and this increases the entry points to the systems that need to be protected. In addition, customers and vendors are linking their systems, enhancing efficiency, but also creating more opportunities for potential intrusions. But even beyond the potential theft of data and disruption of service, cyberattacks can represent significant reputational risk because they have the potential to create dissatisfaction among many customers or, even more chilling, total loss of consumer confidence.”

 


The FFIEC news release is viewable at http://op.bna.com/bar.nsf/r?Open=jtin-98errp.