Cyber attacks a growing threat for US financial system

May 20, 2015
Online attacks by ever-skillful hackers are a growing threat to the stability of the US financial system, according to a report
Online attacks by ever-skillful hackers are a growing threat to the stability of the US financial system, according to a report by a top-level government panel released Tuesday

Online attacks by ever-skillful hackers are a growing threat to the stability of the US financial system, according to a report by a top-level government panel released Tuesday.

The 2015 report by the Financial Stability Oversight Council said that although US banks and financial businesses have been leaders in erecting barriers to hackers, still present a potential systemic danger.

"Over the past year, financial sector organizations and other US businesses experienced a host of notable cyber incidents, including large-scale data breaches that compromised financial information," the report said.

"While security technologies and user awareness are improving, malicious cyber activity is likely to continue in the future. Even more concerning is the prospect of a more destructive incident that could impair financial sector operations."

The report noted vulnerabilities in the banking industry through interconnected systems that cover payments and clearing, for example.

It also pointed to the various services which run crucial infrastructure for the wider industry. "The concentration of key services may create the risk of a cyber incident impacting many organizations simultaneously, with significant impacts."

In addition, it warned that attackers could infect equipment from industry suppliers with malicious software that can be hard to detect.

Last year hackers took aim at JPMorgan Chase and a number of other banks, stealing customer and other data in an operation which sparked concerns at the highest levels of government.

In February, Russian computer security firm Kaspersky Lab said a hacker group had conducted a two-year wave of cyberattacks on around 100 banks worldwide, including some in the United States, costing them up to $1 billion.

The FSOC, which represents key US financial regulators and is led by Treasury Secretary Jacob Lew and Federal Reserve Chair Janet Yellen, noted that one recent attack on an entertainment company was not simply to steal information—it rendered its computers inoperable.

That "suggests a higher level of sophistication" among cyber attackers, it warned.

"Financial firms should assume they will be subject to destructive attacks and develop capabilities and procedures to resume operations," it said.

In a meeting on the report, Yellen said that, in terms of vulnerabilities to catastrophic economic events like the 2008 crisis, US banks "have made great strides" in achieving higher capital standards "so they can continue to operate even on unfavorable conditions such as prolonged severe recession."

But she added that regulators are prepared to further strengthen standards "to promote ."

Explore further: US banking sector too vulnerable to hackers, report says

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kinetiktrader
5 / 5 (1) May 20, 2015
Yet they collected 30 billion on overdrafting fees....

thats people that had no money...

a thief is still a thief even when he is able to rob with the law....
thats why they want wealth inequality so they can have a poster girl saying proud anyone can make it over a system that robs the poor, takes advantage of knowledge above others, robs the belief of talent and replaces it with greed and envy, etc, etc..
These elites, who do they think they are saying things intended to keep us away from the truth...
Keep on decaying the financial lives of the majority eventually morality decays and after enduring such pain who can get in the way?
Wish for a peaceful revolution where art, music, science, philosophy are able to help people unite over the industry of war in violence and business that intends to distract us from the fact that wealth inequality exists, as it punishes and enslaves.
kinetiktrader
not rated yet May 20, 2015
Yet Trillions of dollars miss-allocated...

Billion dollar pay offs and ruined whistle-blower careers...

Bailing out the government under the illusion that the government is bailing the financial system...

Giving loans that do not exist know that it is physically impossible to pay them all of if everyone payed back...

Stop making poorer nations and hiding under one.

Banks are the ultimate creators of crime and corruption.

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