Last year saw a high number of risky bank cybersecurity issues that put everything from the financial services industry to small businesses in harm’s way. In fact, according to cybersecurity software giant Norton, more than 4.1 billion unique records were exposed throughout the year. To make matters worse, those numbers are expected to rise in 2020.
In response to this alarming statistic, the United States Treasury Department is proposing to collect more information from banks and financial markets, the hardest hit in recent years, about the different cybersecurity risks they may face. The goal being to better secure the country’s financial infrastructure as concerns increase over how a targeted attack might affect it and other industries.
Protecting Against Risks
Bank cybersecurity issues pop up every day and can vary in severity. From stolen login information to hefty ransomware heists, like Shark Tank judge Barbara Corcoran’s $400,000 loss in a February scam, these threats can target anyone at any time. That’s why banks would be right to invest in Cyber liability insurance or update their current bank cyber liability insurance program if they already have coverage.
Cyber liability insurance can help banks and other financial institutions with the right resources to pay back investors and customers who may see a financial loss during a bank cybersecurity threat. This kind of coverage can also help provide the funds needs for defense costs, which can pile up depending on how severe the cyber threat turns out to be.
Putting Cybersecurity on Notice
According to data from the Federal Reserve Bank of New York, if a cyberattack targeted one of the five most active banks in the United States, including Bank of America or Wells Fargo, it could end up having a major ripple effect throughout the global financial system. As bank cybersecurity incidents are 300 times more likely than any other industry, the fallout could be cataclysmic.
In an additional notice from the Federal Register, the Office of Cybersecurity and Critical Infrastructure Protection, a part of the Treasury Department, has proposed to collect more information to “support efforts to identify cybersecurity and operational risks to and interdependencies within U.S. financial services sector critical infrastructure to work collaboratively with industry and interagency partners to develop risk management and operational resilience initiatives,” according to the notice.
The Office of the Comptroller of the Currency, another wing of the Treasury Department, recently published a separate notice asking the public and other federal agencies to comment on whether the collection of data is needed in order to properly function and keep information safe in the industry.
Currently, the Treasury can only collect data from a limited number of private financial firms at a time, according to the rules outlined in the 1995 Paperwork Reduction Act. If the new guidelines are approved, the department would be able to access and collect more data and have better insight into what is happening in the financial sector, potentially leading to better protection from cyber threats.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (877) 485-4413 to speak with one of our professionals.