Federal Deposit Board to Weigh Cybersecurity Standards

Oct. 17 — Federal Deposit Insurance Corp. board members will meet Oct. 19 to consider an advance notice of proposed rulemaking for standards on how banks should protect themselves against cyberattacks.

The FDIC, Federal Reserve and Office of the Comptroller of the Currency have been working together to come up with industry standards for guarding against hackers, as Bloomberg News reported earlier this year. The advance notice to be discussed at the FDIC meeting is a preliminary step before a formal rule proposal.

Financial institutions and other companies have faced a series of attacks in recent years such as the February hack of Bangladesh’s central bank in which thieves made off with $81 million and a 2014 incursion of JPMorgan Chase & Co. that compromised information on millions of customers.

In recent years, regulators’ public responses have mostly consisted of issuing guidance and industry alerts. A formal rule could give the government power to crack down on banks that aren’t doing enough to protect themselves. New rules would update existing information-security standards that were issued well before the modern threats emerged.

Source: Federal Deposit Board to Weigh Cybersecurity Standards