In the last week, Sony has struggled to recover from a cyber attack that leaked the payrolls of employees, of which include social security numbers, addresses, and account information. Retail hacks have occurred frequently in the last year and over the summer JPMorgan was also attacked. Personal information is at risk and the public is realizing that something needs to be done.
The JPMorgan breach compromised the account information of approximately 83 MN households and small businesses. Customer names, addresses, phone numbers and email details were taken. In response, the Senate Banking committee is scheduled to hold a hearing Wednesday to discuss ways to protect the financial industry from such attacks. Testimonies will be heard from representatives of the FBI, the Secret Service, the Treasury Department, the Department of Homeland Security and the Office of the Comptroller of the Currency. There are currently no representatives from the financial services scheduled.
As quoted in an article by Bloomberg, Greg Medcraft, chairman of the Australian Securities and Investments Commission says,
Cyber crime is a global problem that requires a global solution… The links between market players and infrastructure mean that the impact of a cyber attack can spread quickly and has the potential to dangerously affect the integrity and efficiency of global markets.”
Industry experts note a need for governments agencies to work with private institutions to preserve “the integrity of the financial system.” The New York Times reports cyber attacks on financial institutions are becoming a matter of increasing concern for regulators. This hearing is hoped to be a step in the direction of bringing security measures up to speed.
Read more here- “Senate to Hold Hearing on Cyberattacks Against Finance,” (Matthew Goldstein, The New York Times)