Market Overview

New York Fed Creates Cybersecurity Team

New York Fed Creates Cybersecurity Team

Bloomberg Business on Tuesday reported that the Federal Reserve Bank of New York has created a new team dedicated towards cybersecurity threats.

The team will be led by Roy Thetford, the bank's former information security officer. He will be working with an examination team to establish a new risk-based cybersecurity assessment framework.

The bank has labeled cybersecurity as the biggest threat to financial stability.

"We have elevated our efforts in recent months and have formed a dedicated team focused on further strengthening our overall supervisory approach to cybersecurity," Sarah Dahlgren, the New York Fed's head of supervision, said in prepared remarks on Tuesday.

Dahlgren also said that cybersecurity threats keeps her "awake at night" and the new age threat would command a lot of attention in the future.

"Suffice it to say that as I think about the kinds of risks that might cause the next crisis, cybersecurity is the one that worries me the most," she said. "While we have begun to address other areas of systemic risk, I feel the industry as a whole is just beginning to scratch the surface of the potential system-wide impact of a significant cyber-attack."

Banks Already Affected

The New York Fed's move to create its own security team follows a similar move by individual financial institutions that have been affected by breaches, like JPMorgan Chase & Co. (NYSE: JPM).

JP Morgan established its own cybersecurity force led by James Cummings, the former head of the U.S. Air Force's cybercombat unit.

The bank faced a massive data breach last summer involving the names, addresses, and email addresses of tens of millions individuals and small businesses.

JP Morgan wasn't the only bank affected by a data breaches. A report by Bloomberg Business suggested that "at least four other banks" were also subjected to a "coordinated attack" targeting major financial institutions.

Posted-In: Bloomberg Cybersecurity New York Federal Reserve Roy Thetford Sarah DahlgrenNews Tech Best of Benzinga


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