Report: High-Tech Heist: Government IT Vendors And The Threat To U.S. Banks

Report cites SolarWinds attack, recommends strategies for financial organizations to mitigate vulnerabilities

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Mar 03, 2021, 10:00 ET

WASHINGTON, March 3, 2021 /PRNewswire/ -- Dr. Roslyn Layton, China Tech Threat Co-Founder, today released a new report showing that cyber attacks on banks are increasing in frequency, severity, and sophistication despite banks' investment in cybersecurity and significant federal policy efforts intended to mitigate them.

"A cyber attack on a bank can devastate its customers and systems, and a cyber attack on the U.S. Treasury—which SolarWinds came dangerously close to achieving—could bring down the country. The possibility of a similar attack represents an existential threat to the financial industry," said Dr. Layton. "The stark reality is that cyber attacks are growing faster and larger than government or banks can address them."

The People's Republic of China (PRC), the leading threat actor against the U.S., increasingly supplies the IT products and services of U.S. financial organizations. This presents risks of backdoors, data exfiltration and unethical product development. The U.S. cyber policy approach, which restricts some PRC-owned IT firms but not others, is needlessly complex and invites exploitation. The report recommends a strategy for U.S. financial organizations to reduce operational and reputational risks:

1) Don't wait for policymakers to fix the problem
2) Conduct cyber resilience audits
3) Remove elements with cyber vulnerabilities
4) Adopt a secure cyber sourcing strategy

"China is the only national adversary providing technology to U.S. financial institutions, banks and credit unions so they must guard against relying on products and services from suppliers controlled by the PRC. As cyber threats continue to evolve and grow, so too must companies' cyber defenses. There is no silver bullet, but proactive strategies, like continuous audits of systems and equipment can help financial institutions stay ahead of these threats," said Layton.

About China Tech Threat: We bring attention to the threats, dangers and vulnerabilities posed of information technology from entities owned and affiliated with the Chinese government. We conduct research and collect on materials from other experts to better understand these complex issues and improve policy.

SOURCE China Tech Threat