US regulators order banks to report cyber-attacks within 36 hours

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The US federal bank agencies approve new rule giving strict instructions to bank to register the regulators of computer security in 36 hours. Now the banks should report the major cyber-attacks. The attacks related to have impact on the banking operations that delivers banking products and services or enhances the stability of the US financial industry.

The action should be immediate that is within 4-5 hours to every customers if there is cyber-attacks that affects the customers of the banks. Therefore the bank service providers should be vigilant all the time. Large-scale distributed denial of service assaults that impair client account access to banking services, as well as computer hacking incidents that take down banking operations for long periods of time, are examples of occurrences that must be notified under the new rule.

Computer-Security Incident Final Rule Draft

Large-scale distributed denial of service assaults that impair client account access to banking services, or computer hacking incidents that take down banking operations for extended periods of time, are examples of occurrences that must be notified under the new rule.

Destructive malware or malicious software (cyber-attacks) can cause computer security events, as well as non-malicious hardware and software failures, human error, and other factors. Cyber-attacks on the financial services business have become more common.

Cyber-attacks against financial institutions’ networks, data, and systems can have a negative impact on their capacity to restore normal operations.

Given the frequency and severity of cyber-attacks on the financial services industry, the agencies believe it is critical that a banking organization’s primary federal regulator be notified as soon as possible. If there is a significant computer-security incident that disrupts or degrades, the banking organization’s operations, results in customers being unable to access their deposit and other accounts.

These serious computer-security occurrences are referred to as “notification incidents” in the final rule. Prompt notification is critical because it allows the agencies to:

  • have early awareness of emerging threats to banking organizations and the broader financial system;
  • better assess the threat posed by a notification incident to a banking organization and take appropriate action to address the threat;
  • and facilitate and approve requests for assistance from banking organizations through the US Treasury Office of Cyber security and Critical Infrastructure Protection.

The Rule Need Compliance by May 2022.

The final regulation, which was adopted by the FDIC, the Board of Governors of the Federal Reserve System (Board), and the Office of the Comptroller of the Currency (OCC), will go into effect on April 1, 2022, with complete compliance expected by May 1, 2022.

The new cyber attack reporting requirement aims to raise banking supervisors’ knowledge of potential threats to banking institutions and the US financial system as a whole.

As a result, federal bank regulatory agencies will be able to respond to these growing and accumulating concerns before they become systemic.

The final regulation aims to keep financial supervisors informed about the most serious intrusions in a timely manner while avoiding unduly complicated or time-consuming reporting requirements, according to FDIC Chairman Jelena McWilliams.

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