Regulators Warn Banks To Be On Cyberattack Alert

The Fed Warns Banks

On Tuesday (June 7), U.S. regulators issued a stern warning to banks to be on the lookout for cyberthreats in the aftermath of the Bangladesh cyberheist, where $81 million was taken without a trace from the central bank’s account at the NY Fed.

According to Reuters, the notice from the Federal Reserve advises financial institutions to thoroughly review cybersecurity measures and systems in place to safeguard from fraudulent money transfers.

Concerns about the increasing threat continue to linger, especially as the trail for actually identifying those behind the $81 million cyberheist may be running cold.

Sean Kanuck, named as the most senior official in cybersecurity within the Office of the Director of National Intelligence, said no official fingers have pointed to any individuals in definitive connection with the crime. He has knowledge of the case but has not been directly involved.

The other agencies that have been part of the investigation include the U.S. Federal Bureau of Investigation and authorities stretching across the Philippines and Bangladesh. The vast majority of the money is still unaccounted for.

Most are now bracing for the inevitable — that the hacker group will launch more attacks.

“There is a hacker group out there that is polished and practiced. They know, when they target a bank, they get in and get out, and the attack will work,” Dan Guido, a former member of the security team for the U.S. Federal Reserve System and CEO of Trail of Bits, told Reuters.

Recently, it was announced that the House of Representatives’ Science Committee is launching a probe into how the Federal Reserve Bank of New York handled the massive bank heist that took place back in February.

“In light of the recent cyberattacks on our global financial systems, the committee believes it is imperative to receive information from the NY Fed about its response, its oversight of SWIFT, the status of the investigation and any remedial steps taken to address vulnerabilities,” a letter, signed by House Science Committee Chairman Lamar Smith (R-TX), states.