SWIFT Attacks Lead Banking Experts to Look at IT Security

Banking regulators in the U.S. said that attacks earlier in the year, which involved SWIFT (the worldwide financial network), have caused them to focus on IT security controls and risks.

The regulators gave responses in a letter to questions posed by New York Democrat Representative Carolyn Maloney. In the letter, they stated that the U.S. Treasury Department’s Office of the Comptroller of the Currency was writing guidance notes on wholesale payments systems and interbank messaging.

The banking regulators penning the letter included Federal Deposit Insurance Corporation and Federal Reserve Board. It said:

“As part of ongoing supervision activities, the OCC’s on-site examination teams regularly address emerging issues, such as the recent reports of cyber-attacks involving SWIFT.”

It said that banking officials will soon be offered revised guidance. The letter outlines risk management and controls that may require assessment under supervisory oversight.

Maloney said that she takes encouragement from the response to security attacks, which involved the SWIFT worldwide payment system.

She added:

“As recent hacks demonstrate, our cybersecurity is only as strong as our weakest link. I remain concerned about the potential for future attacks and will be asking for regular updates from our banking regulators.”

Payment systems are an obvious target for hackers, and banking regulators are wise to turn their attention to defending against further threats. In addition to revising practices, they should also be looking to advise banks and building societies to create IT risk jobs to ensure that financial institutions are in a position to make the most out of these practices.