Fed Reports On Cybersecurity And Financial System Resilience

Recently, the Federal Reserve Board (Fed) published its annual Cybersecurity and Financial System Resilience report describing measures it has taken to strengthen cybersecurity in the financial services sector, including the supervision and regulation of financial institutions and third-party service providers.

The report highlights an increase in the number of cyber threats. Ransomware, in particular, has been rampant, and the effects of ransomware attacks could be particularly deleterious to smaller banking organizations. Increasing geopolitical events, such as Russia's invasion of Ukraine, have also lead to the potential for increase in cyberattacks in the U.S., which could affect financial systems. Finally, the Fed acknowledges that a cyberattack of a vendor or third party could impact banks due to supply chain compromise.