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Subcommittee Discusses Cyber Threats to Consumers and the Financial Sector
Washington,
May 19, 2015 -
The Financial Services Subcommittee on Financial Institutions and Consumer Credit, chaired by Rep. Randy Neugebauer (R-TX,) held a hearing today to learn how the financial sector address cyber threats.
“We should all remember that no single institution or system is 100 percent protected from cyberattacks. The sector faces threats posed by a growing array of cyber criminals, nation-state actors, and terrorist organizations. Each has tremendous financial and political incentive to continue looking for weak spots and to cause sector disruption. Today’s hearing is important for Members to gain a better understanding of some of the top cyber issues facing the financial services sector,” said Chairman Neugebauer.
“Given the importance of this threat, the financial services sector has responded very well. The sector has been the leader on setting up an information sharing framework. It has been an active and constructive participant working with U.S. regulatory agencies and law enforcement,” Neugebauer added.
Key Takeaways from the Hearing:
- Americans are rightfully worried about becoming the victims for the next major data breach and Congress must insist that Americans’ personal financial data is protected.
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- The increasing frequency and sophistication of cyberattacks demands heightened vigilance and enhanced efforts by industry participants to safeguard consumers’ financial data. The number of significant U.S. data breaches hit a record high of 783 in 2014, representing a substantial increase of more than 27 percent from 2013, and an increase of more than 18 percent over the previous high of 662 breaches tracked in 2010.
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- A broad-scale cyber-attack that disrupts financial markets or payments system or undermines confidence in the banking system could detrimentally impact the U.S. economy or our standard of living. The national and economic security of the United States depends on the reliable operation of our financial sector infrastructure.
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- Information sharing with appropriate privacy safeguards should be encouraged within the financial sector and the federal government to help counter the persistent and ever-changing threats of cyber-attacks. Continued collaboration between the financial sector and the federal government will ensure the flow of information used to identify and effectively mitigate cyber threats.
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Topline Quotes from Witnesses:
“We have learned that a strong risk management strategy for cyber and physical protection involves participating in communities of trust that share information about threats, vulnerabilities, and incidents affecting those communities. That strategy is based on the simple concepts of strength in numbers, the neighborhood watch, and shared situational awareness”. – Greg Garcia, Executive Director, Financial Services Sector Coordinating Council
“From criminals seeking financial gain, to nation states committing corporate espionage, to cyber terrorists seeking to dislocate markets and destroy confidence, cyber threat actors are becoming more sophisticated, making cybersecurity an area of risk that must be actively managed by firms similar to all other areas of risk. The destruction of financial data including books and records or the disruption of our capital markets caused by a successful cyberattack would have a ripple effect across the economy and across the globe.” – Kenneth Bentsen, President and CEO, Securities Industries and Financial Markets Association
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