FBI on Cybersecurity:  Threats to the Financial Sector

On September 14, 2011, Gordon Snow, Assistant Director of the Cyber Division of the Federal Bureau of Investigation, testified before the House Financial Services Committee, Subcommittee on Financial Institutions and Consumer Credit, in Washington D.C.

"Cybercriminals can significantly threaten the finances and reputations of United States businesses and financial institutions. Given the abundance of potential victims and profits, cybercriminals will likely continue to target these entities. The FBI is committed to addressing these threats through innovative and proactive means and making the Internet more secure for financial institutions and U.S. consumers alike.

The number and sophistication of malicious incidents has increased dramatically over the past five years and is expected to continue to grow. As business and financial institutions continue to adopt Internet-based commerce systems, the opportunities for cybercrime increase at retail and consumer levels."

Snow described in depth eight serious and ongoing threats to the financial industry, including:

• Account takeovers
• Third-party payment processor breaches
• Securities and market trading exploitation
• ATM skimming and point-of-sale schemes
• Mobile banking exploitation
• Insider access
• Supply chain infiltration
• Telecommunication network disruption

In summarizing, Snow described the economic impact of these threats:

"The potential economic consequences are severe. The sting of a cybercrime is not felt equally across the board. A small company may not be able to survive even one significant cyberattack. On the other hand, companies may not even realize that they have been victimized by cybercriminals until weeks, maybe even months later. Victim companies range in size and industry.

Often, businesses are unable to recoup their losses, and it may be impossible to estimate their damage. Many companies prefer not to disclose that their systems have been compromised, so they absorb the loss, making it impossible to accurately calculate damages."

For a complete transcript of Gordon Snow's remarks, download the PDF.