Big banking groups are seriously worried about cybersecurity at government agencies that regulate them. A recent hack of the Office of the Comptroller of the Currency (OCC) has them especially concerned.
Banks’ Concerns and Proposed Solutions
The American Bankers Association, Bank Policy Institute, Managed Funds Association, and Securities Industry and Financial Markets Association wrote a letter to Treasury Secretary Scott Bessent. They’re pushing for several changes to improve cybersecurity at these agencies:
- Higher Security Standards: They want regulators to follow the same strict cybersecurity rules as banks themselves, with clear accountability.
- Data Control: Banks want to keep control of their own sensitive data used for regulatory purposes.
- Improved Incident Response: Better communication and notification to banks in case of a security breach is needed.
- Streamlined Audits: Fewer audits would mean less data shared, reducing risk.
The OCC Hack: A Wake-Up Call
The groups point out that foreign governments are increasingly targeting US agencies, including financial regulators. The OCC hack, which happened in May 2023, saw nearly 150,000 emails accessed by hackers. This incident highlighted the urgent need for better cybersecurity practices.
The Bottom Line
The banking industry is pushing for significant improvements in the cybersecurity of federal financial regulators. They believe stronger security measures are crucial to protect sensitive financial data and maintain the stability of the financial system.